About State Bank of India

State Bank of India was incorporated on 01 July 1955. The Government of India nationalized the Imperial Bank of India in year 1955, with Reserve Bank of India taking a 60% stake, and name was changed to State Bank of India. State Bank of India is an Indian multinational, public sector banking and financial services institution. Headquartered in Mumbai, SBI provides a wide range of products and services to individuals, commercial enterprises, large corporate, public bodies, and institutional customers through its various branches and outlets, joint ventures, subsidiaries, and associate companies. The Bank operates in four business segments, namely Treasury, Corporate/ Wholesale Banking, Retail Banking and Other Banking Business. The Treasury segment includes the investment portfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/ Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets Management Group. The Retail Banking segment consists of branches in National Banking Group, which primarily includes personal banking activities, including lending activities to corporate customers having banking relations with branches in the National Banking Group. SBI provides a range of banking products through their vast network of branches in India and Overseas, including products aimed at NRIs. The State Bank Group, with over 22,266 branches, has the largest banking branch network in India. The State Bank of India is the 10th most reputed company in the world according to Forbes. The Bank has 227 overseas offices spread over 30 countries. They have 22,414 branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. They have Offshore Banking Units in the Bahamas, Bahrain, and Singapore, and Representative Offices in Bhutan and Cape Town. In the year 2001, the SBI Life Insurance Company was started by the Bank. It is the only Bank that has been permitted 74% stake in the insurance business. The Bank's insurance subsidiary 'SBI Life Insurance Company' is a joint venture with Cardif S.A in which Cardif holds 26% of the stake. During the year 2005-06, the bank introduced 'SBI e-tax' an online tax payments facility for direct and indirect tax payment. They also launched the centralized pension processing. The Bank made a partnership with Tata Consultancy Services for setup C-Edg Technologies and consulting services to the banking, financial services and insurance industry. The bank was noted as 'The most preferred bank' in a survey by TV18 in association with AC Nielsen-ORG Marg. Also, the Bank was voted as 'The most preferred housing loan provider' in AWAAZ consumer awards for the year 2006. In the customer loyalty survey 2006-07 conducted by 'Business World', the Bank was ranked number one in all parameters of customer satisfaction, service orientation, customer care/ call center, and customer's loyalty and home loans. SBI Funds was judged 'Mutual fund of the year' by CNBC/TV-18/CRISL. The Bank introduced new products and services such as web-based remittance, instant fund transfer, online-trading and comprehensive cash management. During the year 2007-08, the Bank launched 965 branches all over the country. They inaugurated a new state-of-the art Dealing Room with online connectivity to all active forex intensive Branches at Corporate Centre in Mumbai. They launched a new product, Construction Equipment Loan to cater to construction Companies. Also, they introduced new products such as SBI Reverse Mortgage Loan and SBI Home Plus in the areas of Home Loans. During the year, the RBI transferred their entire shareholding in the Bank representing 59.73% of the issued capital of the Bank to the Government of India. The Bank acquired 92.03% of equity of Global Trade Finance Ltd. Consequently; GTFL became a subsidiary of the Bank. They signed an MoU with the Indian railways for installing ATMs at 682 railway stations. In March 2008, the Bank opened their 10,000th branch and became only the second bank in the world to have more than 10,000 branches after China's ICBC. During the year 2008-09, the company launched Import factoring, a new product in association with SBI Factors & Commercial Services Ltd. They increased the number of branches for retail sale of gold coins from 250 to 518. Also, they re-launched Gold Deposit Scheme at 50 branches to mobilize gold from domestic market for deployment as metal loans to jewellers. During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup District) in Assam. They introduced three new products viz., SBI Special Home Loan, SBI Happy Home Loan and SBI Lifestyle in response to the stimulus package announced by the Government of India. Also, they entered into an exclusive arrangement with Tata Motors for handling the booking process of Tata 'Nano' cars. During the year, the Bank launched on their website an on-line application form for registering Auto Loan enquiries and expeditiously monitoring and converting these leads into Auto Loans. Also, they launched 'e-invest' for the ASBA (applications supported by blocked accounts) to aid investors for their equity subscriptions, IPO and Rights applications. During the year, the Bank set up a custodial services company namely SBI Custodial Services Pvt. Ltd., in joint venture with Societe Generale, France. They signed letter of intent for setting up of joint venture company for undertaking General Insurance Business. Also, they divested 10% equity stake in its wholly owned subsidiary SBI Pension Fund Pvt. Ltd at cost in favour of its subsidiaries. In October 2008, the Bank signed an MoU with State General Reserve Fund (SGRF) of Oman, for a general purpose private equity fund. State Bank of Saurashtra (SBS), a wholly owned subsidiary of the Bank, amalgamated with the Bank with effect from August 13, 2008. They signed a joint venture agreement with Insurance Australia Group for undertaking General Insurance business. Also, they signed a joint venture agreement with Macquarie Capital Group, Australia and IFC, Washington for setting up an Infrastructure fund of USD 3 billion for investing in various infrastructure projects in India. During the year 2009-10, the Bank opened 1,049 branches. In July 2009, SBI introduced 'SBI Loan to Affluent Pensioners' enabling the government pensioners to avail personal loans upto Rs 3 lakh. During the year, the Bank designed a special package, the Defence Salary Package, for personnel of the three Armed Forces i.e. the Army, Navy and Air Force who maintain their Salary accounts with them. In June 2009, the company increased their shareholding in Nepal SBI Bank Ltd to 55.02% and thus Nepal SBI Bank Ltd became a subsidiary of the Bank with effect from June 14, 2009. In May 2010, the Bank selected consortium of Elavon Incorporation, USA and Visa International, USA as their joint venture (JV) partner for Merchant Acquiring Business. They set up a wholly owned subsidiary, namely SBI Payment Services Pvt Ltd for conducting Merchant Acquiring Business. In August 2010, State Bank of Indore was amalgamated with the Bank as per the scheme of amalgamation approved by the Central Board. During the year 2010-11, the Bank introduced 2 new products, namely 'Pushpa Ullas' and 'Arthias Plus' on pilot basis. They made substantial progress in establishing itself as a leading PE fund player of the country. Also, they signed a Joint Venture agreement with State General Reserve Fund (SGRF) of Sultanate of Oman, a sovereign entity, to set up a general-purpose private equity fund with an initial corpus of USD 100 million, expandable further to USD 1.5 billion. During the year, the Bank opened 576 new branches besides merger of 470 branches of erstwhile State Bank of Indore. Also, they opened 14 foreign offices during the year, taking the total to 156. In July 1, 2010, the Bank launched their 'Green Channel Counter' at select branches across the country. In General Insurance business, the Bank launched limited operations in April 2010 for the Corporate and Mid Corporate customers based at Mumbai, and it was expanded to six other major locations in July 2010. In the Retail segment, the Bank launched their Long Term Home Insurance business at Mumbai in October 2010, which was gradually extended to cover 56 RACPCs and RASMECCs. General Insurance SME business was launched on a pilot basis in Mumbai and Chennai in February 2011. During the first quarter of the financial year 2011-12, the Government of India issued the 'Acquisition of State Bank of India Commercial & International Bank Ltd. vide notification dated July 29, 2011. Consequent to the said notification, the undertaking of State Bank of India Commercial & International stands transferred to and vest in State Bank of India with effect from July 29, 2011. In 2012, State Bank of India signed a Preliminary Non-Binding Memorandum of Understanding with Russian Direct Investment Fund (RDIF), to facilitate advancing bilateral economic cooperation and trade between Russia and India aimed at exploring investment opportunities in both the countries. State Bank of India (SBI) also entered into an agreement with StarAgri Warehousing Ltd (StarAgri), India's leading agri-services & solutions provider, for Warehousing Receipt Financing and Collateral Management Services during the year under review. The bank launched virtual debit cards to check online fraud and promote e-commerce. In 2013, State Bank of India (SBI) inaugurated its 2nd branch in China in Tianjin, a major port city in northeastern China. The bank introduced smart pre-paid card for students, blue-collar workers. In 2014, State Bank of In-dia launched new digital Online and self-service banking solutions with support from Accenture. The bank also unveiled 6 digital branches. In 2015, State Bank of India launched a RuPay Platinum debit card in association with National Payment Corporation of India (NPCI). The bank also introduced online facility for overdraft against FDs. SBI partners with Amazon. SBI entered into a MoU with PayPal, an American online money transfer services provider firm, for facilitating cross-border transactions. State Bank of India launched SBI eforex. SBI also launched an initiative to provide doorstep services and expedite home loans application process. State Bank of India jointly launched a cyber crime awareness campaign. On 26 March 2015, State Bank of India (SBI) announced that consequent upon the promulgation of the Insurance Laws (Amendment) Ordinance, 2014 and subsequently passed by both the houses of parliament, the Executive Committee of the Central Board (ECCB) of the bank has decided to initiate the necessary action as per JV agreement for dilution of SBI's stake in SBI General Insurance from 76% to 51% with corresponding increase of stake of IAG from 26% to 49%, including appointment of a valuer to facilitate valuation and price discovery. On 31 March 2015, State Bank of India (SBI) announced that the Executive Committee of the Central Board (ECCB) of the bank has authorised divestment of SBI's stake in SBI Life Insurance Co. Ltd. by up to 10%. The Committee of Directors for Capital Raising of the bank at its meeting held on 1 April 2015 considered and accorded approval to allot 10.04 crore equity shares on preferential basis to Government of India (GoI) at an issue price of Rs 295.59 per share aggregating Rs 2969.99 crore. The Committee of Directors for Capital Raising of the bank at its meeting held on 29 September 2015 considered and accorded approval to allot 19.65 crore equity shares on preferential basis to Government of India (GoI) at an issue price of Rs 274.37 per share aggregating Rs 5392.99 crore. On 21 December 2015, State Bank of India announced that the Committee of Directors, duly authorized by the Board authorized the bank to raise up to Rs 12000 crore by way of issue of Basel III compliant Tier II bonds, at par, through private placement. State Bank of India and Reliance Industries Limited (RIL) signed the shareholders agreement on 30 June 2016 for setting up Payments Bank. The Subscription and Shareholders' Agreement was signed by RIL as promoter with a 70% equity contribution and SBI as joint Venture partner with 30% equity contribution. The Payments Bank will leverage SBI's nationwide distribution network and risk management capabilities alongwith the substantial investments made by RIL in its retail and telecom businesses. On 4 July 2016, State Bank of India announced that it has sold 5% stake in National Stock Exchange of India Limited (NSE) constituting 22.50 lakh equity shares of NSE to Veracity Investments Limited, a Mauritius based FII, at Rs 4,050 per share for a total consideration of Rs 911.25 crore. Post this transaction, SBI holds 5.19% stake in NSE while its subsidiary SBI Capital Markets Limited holds another 4.33% in the NSE. The Committee of Directors for Capital Raising of the bank at its meeting held on 24 August 2016 authorized the bank to raise up to Rs 11100 crore Additional Tier 1 capital by way of issue of Basel III compliant Perpetual Debt instrument in USD and/or INR, at par, through private placement to overseas and/or Indian investors. The Executive Committee of the Central Board (ECCB) of State Bank of India (SBI) at its meeting held on 14 October 2016 approved to dilute up to 5% stake of SBI in its subsidiary SBI Life Insurance Company Limited to a non-promoter entity. On 25 October 2016, SBI announced that it has issued and allotted 25,000 AT1 Basel III compliant Non-convertible, Perpetual, Subordinated, Unsecured Debt instrument in the nature of debenture, of face value Rs 10 lakh each at par through private placement bearing coupon at 8.39% p.a. payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2500 crore in third tranche. The Executive Committee of the Central Board (ECCB) of State Bank of India at its meeting held on 9 December 2016 approved divestment of 3.9 crore equity shares constituting 3.9% stake in SBI Life Insurance Company Ltd. at a price of Rs 460 per share, subject to all regulatory approvals. On 17 January 2017, SBI announced that it has concluded the issue of USD 500 million Fixed Rate Senior Unsecured Notes having a maturity of 5 years at a coupon of 3.25 percent payable semi-annually under Regulation-S. The bonds will be issued through the bank's London Branch and listed on Singapore Stock Exchange. The Committee of Directors for Capital Raising of State Bank of India considered and approved on 20 January 2017 by circulation the allotment of 21.07 crores equity shares at an issue price of Rs 269.59 per share on preferential basis to Government of India aggregating Rs 5680.99 crore. The Executive Committee of the Central Board of State Bank of India at its meeting held on 15 March 2017 accorded approval for infusing additional capital of up to Rs 1160.04 crore in credit card joint venture companies viz. SBI Cards & Payment Services Ltd. and GE Capital Business Process Management Services Ltd. through purchase of equity shares from GE Capital so as to increase the bank's stake in both the companies to 74%. SBI merged five of its associate banks viz. State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Hyderabad and Bhartiya Mahila Bank with itself with effect from 1 April 2017. In February 2017, the Union Cabinet approved the acquisition by State Bank of India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Hyderabad. On 8 June 2017, State Bank of India (SBI) announced closure of qualified institutional placement of equity shares. The bank successfully rose about Rs 15000 crore from issue of 52.21 crores equity shares at a price of Rs 287.25 per share to qualified institutional buyers. The Central Board of State Bank of India at its meeting held on 27 December 2017 accorded approval to raise Additional Tier 1 capital by way of issuance of Basel III compliant debt instrument in USD and/or INR to the tune of Rs 8000 crore from domestic/international market including rupee denominated Masala Bonds till 31 March 2018. The Executive Committee of the Central Board of State Bank of India at its meeting held on 8 January 2018 approved long term fund raising in single or multiple tranches up to USD 2 billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2018 and FY 2019. The Executive Committee of Central Board of State Bank of India at its meeting held on 17 January 2018 approval the proposal for issuance of long term bonds of Rs 20000 crore for financing of infrastructure and affordable housing in domestic and overseas market in FY 2018 and FY 2019. The Committee of Directors for Capital Raising of State Bank of India at its meeting held on 16 February 2018 accorded its approval for preferential allotment of 29.25 crore equity shares at Rs 300.82 per share (including a premium of Rs 299.82 per share) to Government of India (GoI) aggregating Rs 8800 crore. Total assets of the Bank have increased by 6.55% from Rs 34,54,752.00 crore at the end of March 2018 to Rs 36,80,914.25 crore as at the end of March 2019. During the period, the loan portfolio increased by 12.97% from Rs 19,34,880.19 crore, to Rs 21,85,876.92 crore and Investments decreased by 8.86% from Rs 10,60,986.71 crore to Rs 9,67,021.95 crore as at the end of March 2019. The Bank has one of the largest ATM networks in the world with 58,415 ATMs including Automated Deposit and Withdrawal Machines (ADWMs) as on 31 March, 2019. The Bank has 57,467 operating BCs, over 22,000 branches and 58,415 ATMs including 7,658 Automated Deposit & Withdrawal Machines (ADWMs). More than 36% of the financial transactions of your Bank are routed through ATMs/ADWMs. As on 31 March 2020, the Bank has 61,102 operating BCs, around 22,100 branches and 58,555 ATMs including 13,270 Automated Deposit & Withdrawal Machines (ADWMs). Nearly 28% of the financial transactions of your Bank are routed through ATMs/ADWMs. Total assets of Bank have increased by 7.35% from Rs 36,80,914.25 crore at the end of March 2019 to Rs 39,51,393.92 crore as at the end of March 2020. During the FY2020 , the loan portfolio increased by 6.38% from Rs 21,85,876.92 crore, to Rs 23,25,289.56 crore and Investments increased by 8.27% from Rs 9,67,021.95 crore to Rs 10,46,954.52 crore as at the end of March 2020. In March 2020, as per Scheme of Reconstruction notified by the Government of India, SBI infused Rs 6,050 crore in Yes Bank Ltd., having 48.21% stake into the SBI Group and accordingly, Yes Bank Limited became an associate of the SBI Group w.e.f 14 March 2020. During FY 2021, Bank launched three new products, viz. Agri Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF) and PM Formalisation of Micro Food Processing Enterprises (PM FME). The Bank has closed four foreign offices- Lenasia Marketing Office (South Africa), Selatar Remitance Center (Singapore), Bab-al-Bahrain Limited Service Centre (Bahrain) and its Representative Office at Istanbul (Turkey). The Bank has 22,219 branches over 71,968 Business Correspondents and over 62,617 ATMs including 13,237 Automated Deposit & Withdrawal Machines (ADWMs). As of Mar'22, Bank has 22,266 branches, over 68,000 Business Correspondents and over 65,000 ATMs including 12,872 Automated Deposit & Withdrawal Machines (ADWMs). During FY 2022, Bank rationalized its overseas operations by a closure of an overseas Subsidiary, SBI Botswana Ltd, and merged the Ilford branch of SBI UK Ltd. with its East Ham branch. During FY 2023, Bank opened one India Visa Application Centre (Other Offices) at Khulna (Bangladesh) and 5 branches and 3 extension counters through its overseas subsidiary in Nepal. As of March 2023, Bank had 22,405 branches, over 76,089 Business Correspondents and over 65,627 ATMs including 12608 Automated Deposit & Withdrawal Machines (ADWMs).

State Bank of India Chairman Speech

Bank of Choice Today and Tomorrow

Dear Shareholders,

It gives me immense pleasure to place before you the highlights of your Bank's performance during FY2023. Details of the achievements and initiatives taken by your Bank are provided in the Annual Report for FY2023.

ECONOMIC OVERVIEW

The past year has been another turbulent year with the global economy marred by profound shocks and unprecedented uncertainty. The global economic growth has moderated amidst the prolonged Russia-Ukraine war, even though the effect of the pandemic has receded. Food and energy price shocks affected the general prices, with wage- price spiral leading to elevated inflation across countries. The recent failures of banks in the United States are a reminder of the challenges posed by the interaction between tighter monetary and financial conditions and the buildup in vulnerabilities. Though inflation has receded with central banks raising interest rates, underlying price pressures are proving sticky, with labor markets being tight in several economies. In parallel, debt levels remain high, limiting the ability of fiscal policymakers to respond to new challenges. Commodity prices have moderated, but the elevated geopolitical tensions are the key risks. However, earlier than expected opening of China is easing supply chain disruptions and renewing hopes for moderate economic recovery. As per IMF projections, world growth will bottom out at 2.8% this year before rising modestly to 3.0% in 2024.

Against this backdrop of global uncertainties, Indian economy has remained resilient with robust agriculture and services sector. Meanwhile, on the external front, exports of goods and services reached new heights supported by strong demand of Indian services. India's GDP in FY2023 grew at 7.2%, driven by buoyant investment and private consumption. Looking ahead, real GDP growth is projected at 6.5% in FY2024 (RBI), with economic activity backed by improving rural demand, the Government's thrust on infrastructure spending, revival in corporate investment, healthy bank credit, and moderating commodity prices.

YOUR BANK'S PERFORMANCE

During the year FY2023, your Bank's business grew at a faster pace than the banking industry, both in deposits and credit.

Deposits

In FY2023, the whole Bank deposits grew by 9.19% YoY to Rs 44.23 Lakh Crore, of which domestic deposits increased by 8.50% to Rs 42.53 Lakh Crore and foreign offices deposits by 29.60% to Rs 1 .70 Lakh Crore. CASA deposits grew by 4.95% to Rs 1 8.62 Lakh Crore and CASA ratio of your Bank is at 43.80% as of March FY2023. Current account deposits grew by 7.47%, while saving bank deposits grew by 4.51%. Your Bank has opened 1.24 Crore Regular Savings Bank Accounts, of which 64% accounts were acquired digitally through YONO during FY2023.

Credit

Your Bank's gross advances grew by 15.99% to Rs 32.69 Lakh Crore, compared to a growth of 11.0% in FY2022. While domestic advances grew by 15.38% to Rs 27.76 Lakh Crore, foreign offices advances grew by 19.55% to Rs 4.92 Lakh Crore. You will be happy to know that your Bank's domestic advances growth (15.38%) is higher than the banking industry's growth of 15.0% in FY2023, led by robust growth in all the sectors. Among all the business segments, retail personal loans registered the highest YoY growth of 17.64% touching Rs 1 1.79 Lakh Crore followed by SME advances which grew by 17.59% to Rs 3.59 Lakh Crore. Agri & Corporate loans registered a YoY growth of 13.31% to Rs 2.58 Lakh Crore and 12.52% to Rs 9.79 Lakh Crore, respectively.

The 3-year CAGR of retail personal loans indicate a 16.0% growth and now accounts 42.5% of domestic advances in FY2023. Among the retail personal loans, Xpress credit loans crossed the Rs 3 Lakh Crore mark, with YoY growth of 22.72% to Rs 3.04 Lakh Crore in FY2023. Home loans and Auto loans, grew by 14.07% to Rs 6.41 Lakh Crore and 23.22% to Rs 97,523 Crore respectively during FY2023. As on March 2023, your Bank's market share in Home loans and Auto loans is at 33.1% and 19.4% respectively.

Investment

With the interest rate hikes across the globe to tame inflation, your Bank's prudent investment decisions helped contain the impact of rising interest rates on the investment portfolio. Your Bank's investment portfolio increased by 6.3% to Rs 1 5.87 Lakh Crore in FY2023, of which 96% are domestic investments. Within the domestic investment portfolio, 62.94% is in HTM category while the rest is under AFS & HFT category. The yield on investment at 6.51% is in line with the interest rate scenario of FY2023. Your Bank's liquidity position remains comfortable, and it is well-placed to handle any moderation in liquidity.

Your Bank has registered significant improvements on the asset quality front, provision coverage ratio, RoE/RoA, NII and NIM, while also giving highest standalone profit in FY2023 by any listed corporate, domestically.

Profitability

During FY2023, your Bank optimally leveraged the opportunities inherent in the resurgent and resilient Indian economy. Buoyed by relentless pursuit of best practices and strategies across niche segments, the standalone net profit during FY2023 rose by over 58% to Rs 50,232 Crore from previous year's net profit of Rs 31,676 Crore (FY2022). Your Bank has registered significant improvements on the asset quality front, provision coverage ratio, RoE/RoA, NII and NIM, while also giving highest standalone profit in FY2023 by any listed corporate, domestically.

The Net Interest Income (NII) of your Bank registered a robust growth of 19.99% over the previous year at Rs 1 ,44,841 Crore in FY2023 (Rs 1 ,20,708 Crore in FY2022). Lending book grew across all segments and remained adequately diversified with traditional bastions like Xpress credit and Housing loans growing handsomely, all contributing to higher interest income. Control in slippages and moderation in credit costs showed marked improvements. Credit costs further improved by 23 basis points to 0.32%, continuing its momentum. Total provisions made during FY2023 stood at Rs 33,481 Crore, falling 7.51% (Rs 2717 Crore) over FY2022 level. The operating profit of your Bank during FY2023 stood at Rs 83,713 Crore, a marked improvement of 11.18% over FY2022 (Rs 75,292 Crore that had grown by 5.22%). The cost to income ratio increased by 56 basis points in FY2023 (over FY2022), though standing a little elevated at 53.87 for the FY2023 against 53.31 (FY2022) due to higher provisions on account of wage hike negotiations.

Return on Assets (RoA) for Q4 FY2023 stood at 1.23% (0.96% for the full FY2023 against 0.67% for FY2022), signalling that the journey towards guidance of ROA of 1%+ was on track with continuous improvement in ROA from FY2020 onwards. Return on Equity (RoE) showed marked improvement of 551 basis points, rising to 19.43% for the FY2023 against 13.92% during FY2022 (as against improvement of 398 basis points displayed in FY2022).

Capital

The capital ratios of the Bank continued to improve during the financial year on the back of better planning, plough back of profit, and efficient risk management of the banking book. The CET-1 ratio improved by 33bps to reach 10.27% as of March 2023.

The overall Capital Adequacy Ratio (CAR) as at the end of March 2023 stands at 14.68%, improving by 85 bps YoY. With healthy profits in FY2023, the capital position of the Bank remains comfortable to tap future growth opportunities.

Dividend

I am happy to announce that the Board of your Bank has declared a dividend of Rs 1 1.30 per equity share (i.e. 1130%) for the financial year ended March 31, 2023.

Asset Quality

The focus on asset quality and containing risk has been an area of continued attention for the Bank. There was a broad-based improvement in the asset quality of your Bank in FY2023. The gross non-performing assets (NPA) of the Bank dropped by 119 bps YoY and stood at 2.78% as of March 2023. The net NPA ratio accordingly stands at 0.67% as of March 2023 down 35 bps YoY.

Slippage, which indicates the incremental fall in credit quality during the year, was down by 26.38% compared to FY2022 and as a result, the slippage ratio for FY2023 improved by 34 bps YoY reaching 0.65% as of March 2023.

The proactive management of risk during the year resulted in improvement in Provision Coverage Ratio (PCR) by 135 bps YoY, standing at 76.39% by the close of financial year.

Customer Centricity

At SBI, customer-centricity is of paramount importance, and we undertake a proactive and flexible approach to cater to the changing financial needs of our customers.

We employ cutting-edge technology and new solutions to offer seamless and efficient banking experiences, keeping our finger on the pulse of market developments. Our objective is to significantly increase our presence across the country and penetrate deeper into new regions to ensure that all our customers have access to our services.

Our multichannel delivery model - digital, mobile, ATM, internet, social media and branches, offer customers a wide choice to carry out their transactions, as per their convenience at any time and place. Your Bank has one of the largest ATM networks in the country, with 65,627 ATMs, including Automated Deposit and Withdrawal Machines (ADWMs), as on March 31, 2023. On an average, ~1.3 Crore transactions are recorded every day at your Bank's ATMs/ADWMs and 5.66 Lakh cash deposit transactions at ADWMs.

Your Bank has established a centralised dedicated cell, CLIC (Customer Liability Identification Centre), across all 17 circles. This cell expedites the resolution of complaints related to unauthorised electronic debit transactions (UAED), ensuring a swift and efficient customer experience.

To ensure optimal service quality, incognito visits were carried out at various branches. These visits assessed various aspects such as infrastructure availability, staff readiness, and overall branch activity.

To improve customer convenience and ease of banking, your Bank is extending doorstep banking services through agents to all customers at the top 100 banking centres. Senior Citizens more than 70 years of age and differently abled persons are being extended doorstep banking services at all banking centres.

With a presence across all time zones through its 235 points of presence in 29 countries, your Bank has gradually spread its wings globally and has become a pioneer of International Banking among the Indian banks. During FY2023, your Bank has opened one India visa application centre at Khulna (Bangladesh) and 5 branches and 3 extension counters through its overseas subsidiary in Nepal.

Technology & Innovation

Your Bank uses technology in every aspect of the value proposition - from business, designing products, streamlining processes, and improving delivery, to monitoring. Your Bank has taken several initiatives to build a quality SME portfolio in a risk-mitigated manner and has implemented significant changes to ensure ease of banking.

YONO Business combines all corporate banking needs by being a one-stop solution for the customer. Your Bank deploys the most advanced technologies like artificial intelligence, machine learning and business analytics, among others, to augment its product offerings to enhance customer delight each time, without exception. Under YONO, PreApproved Business Loan (PABL) has recorded a YoY growth of 1076% to Rs 3,605 Crore in FY2023.

Following initiatives have been implemented during the year:

1. New digital products under development in collaboration with Fintech/ AA/ GST

MSME SAHAJ Seller's Invoice Financing on Yono Business providing digital loan and financing of GST invoice Seller's Invoice Financing Scheme under GST Sahay, a GoI initiative, provides digital loan through GST Sahay app, which is a marketplace.

2. Contactless Lending Platform (CLP):

Your Bank is one of the stakeholders in SIDBI-led PSB Consortium, which offers SMEs quick and simple access to loans through CLP platform psbloanin59minutes.com. Eligible proposals receive instant in-principle approval based on GST returns, IT returns and account statements.

For FY2023, your Bank has already sanctioned 6,342 leads worth Rs 2,940.24 Crore, with ticket size ranging from Rs 1 Lakh to Rs 5 Crore.

To facilitate digitalisation and streamline the issuance of credit, a new mechanism for the auto-renewal of leads obtained from CLP has been launched. This approach will guarantee the prompt renewal of accounts considered good and financially satisfactory, with minimal need for manual work. It allows Relationship Managers (SME) to concentrate on sales and marketing activities.

3. Assisted Journey for ETCB/ NTCB/ NTB Customers

The Assisted Journey allows operating functionaries such as RM (SME) team, field officers and Branch Managers to initiate the CLP journey on behalf of the customer without needing them to input any details. These can be uploaded directly on the portal.

4. Supply Chain Finance

By leveraging technology and branch network, your Bank has been a major player in supply chain finance while strengthening corporate relationships across sectors. During FY2023, supply chain finance was extended to 34,592 dealers with total sanctioned limits of over Rs 44,565 Crore e-DFS (Electronic Dealer Financing Scheme) and Rs 1 6,437 Crore e-VFS (Electronic Vendor Financing Scheme) respectively.

Your Bank entered into 16 new e-DFS and 37 new e-VFS tie-ups during the year. Your Bank has already implemented CLP for e-DFS and e-VFS. Your Bank has also simplified the e-VFS processes and built a new digital interface "psbloansin59minutes.com" on CLP for improved customer experience. It has also introduced Supply Chain Finance Centralised Processing Centres to reduce TAT for proposal processing. To ring-fence the supply chain portfolio, it has implemented suitable risk mitigation measures and risk-based pricing. Your Bank is also launching various campaigns for onboarding dealers/ vendors and broadening the channel finance base.

Your Bank is the first Public Sector Bank to register as a financier on the TReDS platform and is present on all the three TReDS platforms in the country -RXIL, Ml Exchange and Invoicemart, to provide finance to MSMEs. In FY2023, your Bank has discounted 26,973 bills amounting to Rs 9,800 Crore, registering a YoY growth of 144%.

To further penetrate the agriculture and rural market, your Bank has floated State Bank Operations Support Services (SBOSS), which is expected to help your Bank reach out to a larger populace, coupled with improved efficiency in sourcing and renewal of KCC loans.

Your Bank is actively looking to partner with agri-techs and start-ups to cater to the financial needs across the agriculture value chain. Your Bank has opened specialised Start-up branches at Bengaluru, Mumbai, Delhi and Chennai to offer one-stop solutions to Start-ups.

In order to make banking more convenient for customers, your Bank has introduced the V-CIP digital process, which allows account opening from home, eliminating the need to visit branches. During FY2023, 4.70 Lakh customers joined us through V-CIP.

As a result of the various initiatives taken by your Bank, 64% of total Regular Savings Bank Accounts have been opened digitally during FY2023.

Your Bank has ensured customer convenience and portfolio growth by offering a comprehensive range of products on multiple platforms, with higher profit margins. YONO offers digital loans in real-time, eliminating the need for physical documentation or visiting a branch. Additionally, real-time pre-approved personal loan eligibility by sending SMS has been introduced.

Key initiatives during the FY on ATMs/ ADWMs front chiefly include:

• Implementing Enhanced cash dispensation logic for small denomination notes at all Bank's ATMs.

• OTP based Cash withdrawal - addition of new feature - 30 sec Timer display on ATM screen to make customer aware about the time available for entering the OTP and avoid time out.

• Pro-active reversal of failed transactions to customers.

• Installation of 15000 new GCC machines.

• Cassette Swap has been implemented in 12907 Branches managed by CAPEX ATMs/ ADWMs

• 49,719 sites have been covered under electronic surveillance solutions (eSS)

• SMS is being sent to customers for availing free Balance Enquiry & Mini Statement from SBI ATMs and the above services are also available on WhatsApp banking.

• Replacement of 3,250 old SWAYAM machines has been completed.

• Display of "Cash not available" on ATM Screen whenever the ATMs are out of Cash (Before the transactions are undertaken by the customers).

Your Bank has deployed 20,137 Barcode Based Passbook Printing Kiosks (SWAYAMs) at 17,643 branches and 13 lakh transactions are processed on daily basis, migrating ~3.65 Crore passbook printing transactions every month from branch counters. Your Bank has also deployed 33,077 GCC terminals at 21,446 retail branches for transactions through debit cards to promote Green Banking. To combat the Cybercrimes, Ministry of Home Affairs has rolled out cybercrime reporting Portal with dedicated email (www.cybercrime.gov. in) and a helpline number 1930 to report the cybercrime incidents by the victims. Cybercrime cells at 17 circles of your Bank work in multiple shifts to attend to customer complaints concerning cyber frauds.

As on 31.03.2023, a total of 3,04,450 complaints have been attended, and an amount of Rs 51.50 Crore has been put on hold.

Financial Inclusion

Your Bank has taken significant steps to promote financial inclusion through a vast network of Business Correspondents (BCs)/Customer Service Points (CSPs). As on 31^st March 2023, your Bank has 76,089 CSPs, providing access to 32 banking products and services in unbanked areas while reducing footfalls in the branches. The BC/CSP channel has recorded around 53.32 Crore transactions amounting to Rs 3,30,389 Crore during FY2023. On an average, around 25-30 Lakh transactions per day are routed through the BC/CSP channel.

The BC/CSP channel has opened 14.69 Crore BSBD accounts with Rs 50,091 Crore deposits and has brought the unbanked/underprivileged sections of society within the ambit of the formal Banking system by promoting various social security schemes, low-cost microinsurance products (PMJJBY, PMSBY) and pension schemes (APY).

Your Bank is the undisputed market leader in customer enrolment for government-sponsored social security schemes viz, PMJJBY, PMSBY and APY. The share of banks in PMJJBY, PMSBY and APY are 43.83%, 40.85% and 31.78% respectively, among all Public Sector banks. During FY2023, your Bank has achieved 27.88 Lakh APY enrolments as against the target of 17.90 Lakh allotted by PFRDA (~156% of the target), simultaneously winning major awards from the PFRDA under various APY campaigns.

Environmental, Social & Governance (ESG) Practices

We believe that our success is intertwined with the prosperity of the society we serve, and therefore, we actively engage in initiatives focused on education, healthcare, environmental sustainability, and community development. By embracing corporate social responsibility, we strengthen our bond with stakeholders, foster inclusive growth, and contribute to building a better and more equitable future for all.

For FY2023, an amount of Rs 316.76 Crore has been allocated for undertaking CSR activities by your Bank. Out of which, an amount of Rs 1 94.78 Crore is allocated to SBI Foundation for undertaking CSR activities in project mode.

Your Bank has developed an ESG financing framework aligned with sustainable finance guidelines and principles. This framework serves as a guide for our future bond and loan issuance programs, ensuring that proceeds are used to finance or refinance eligible assets and projects with environmental or social benefits. It has received a Second Party Opinion to validate its robustness and adherence to policy prescriptions.

To promote ESG and to underscore the Bank's longstanding commitment to supporting green and social projects, your Bank concluded its largest inaugural Syndicated Social loan of $1 billion ($500 million + green shoe of $500 million) making it the largest ESG loan raised by a commercial Bank in the Asia-Pacific market.

Taking cognizance of the importance of managing the efficiency of our owned facilities, your Bank is making continuous efforts to develop a green ecosystem. Under this initiative, your Bank's prominent establishments viz Corporate Office, Global IT Centre and 6 of the Local Head Offices (LHOs) have shifted to green power through green tariff policy or through open access channels via solar/wind.

In line with the country's vision for scaling up Renewable Energy (RE) power generation, your Bank is also facilitating RE financing in a big way. Your Bank has availed lines of credit from multilateral agencies viz. the World Bank,

KfW German Development Bank etc., for onward lending to RE power developers.

Strategic New Initiatives

During FY2023, your Bank has continued undertaking strategic initiatives to achieve the long-term objectives set by the Bank. Some of the important initiatives are:

• In line with government policies on electric mobility, your Bank has partnered with Tata Power to set up EV charging facilities at various identified premises, including our corporate office, local head offices, and residential premises across the country. This initiative promotes sustainable mobility and encourages the use of electric vehicles among our employees.

• As a part of its commitment to sustainable development, your Bank has incorporated rooftop solar photo voltaic systems financing as a component of the home loan project cost. This, coupled with an extensive micro market study and the opening of 133 processing centres across India have enabled greater penetration of home loans in Tier-II and Tier-III cities.

• Furthermore, IT has developed 'SBI- Easy ride', an end-to-end digital product which enables two-wheeler financing without the need to visit any branch for sanction or disbursement.

• In case of personal loan products, your Bank has integrated Digital Document Execution into Xpress Credit loans, utilising e-stamping and e-signature for real-time document execution to make it customer-centric.

• For the benefit of its NRI clientele, your Bank has launched a number of services in FY2023 including tie- up with 'Remitly' to facilitate swift remittance to India, remittance facility using UPI Application, launch of NRE non-callable deposit scheme, increase of daily limit for forex outward remittances through FX-Out (INB Channel) from NRE Account to US$ 25000, among others.

• Your Bank has introduced SBI e-Forex facility in the YONO Business - Android app to enable customers to book foreign exchange rates on the go. The same is expected to be rolled out shortly for the iOS platform as well.

• External benchmark (T-Bill Rate) linked interest rates have been rolled out to WCL and LC Bill Discounting facilities to incentivise top-rated borrowers and encourage the utilisation of their limits. To stay competitive, this option is even offered for Rupee Export Packing Credit facilities.

• Project Kuber was launched in your Bank, which is driving a special focus on marketing of current account deposits and various transaction banking products in CCG vertical.

• Your Bank recognises the contribution of its ex-employees, whose dedicated lifelong services brought your Bank to its present height. It initiated 'Project SBI Cares' for automation and streamlining of various pre-retirement and post-retirement benefits and processes through its HRMS portal.

• Further, your Bank has adopted a branch-based model for manpower planning linked to productivity parameters at the branches.

• Your Bank has been at the forefront of launching various innovative solutions. Some of the initiatives taken during the year include development of Internal Financial Controls over Financial Reporting (IFCoFR) Portal, a dashboard for monitoring of gold retention limit, and new features in SBI Digi Vault Application.

• Your Bank has launched a Fund Management Solution to meet the requirements of Government of India pertaining to Centrally Sponsored Schemes (CSS) under Single Nodal Account (SNA) covering 433 schemes of 23 States/UTs and Central Sector Scheme through Central Nodal Account (CNA) mechanism covering 124 schemes.

Subsidiaries

Through its subsidiaries, your Bank provides a complete bouquet of financial products and services to its customers.

On a consolidated basis, SBI Capital Markets Limited has posted a profit after tax (PAT) of Rs 725.39 Crore for FY2023 as against Rs 635.42 Crore in the previous year. SBICAP Securities Limited (SSL), a wholly owned subsidiary of SBI Capital Markets Limited and broking arm of the SBI Group posted a net profit of Rs 308 Crore during the year ended FY2023 as against Rs 233 Crore in FY2022.

With a total Gross Written Premium (GWP) of Rs 1 0,888 Crore and a YoY growth of 18%, the SBI General Insurance Company Limited achieved the milestone of Rs 1 0,000 Crore GWP in FY2023. SBI General increased its market share from 4.15% in FY2022 to 4.21% in FY2023. The company's presence has grown from 17 locations in 2011 to over 141 branches across India. The company has served over 34 Crore clients to date, with claims of Rs 22,000 Crore handled.

SBI Life Insurance Company Limited has proven its market leadership in the year ended March 31, 2023, with numero- uno position in Individual New Business Premium, Individual Rated Premium, Total Rated Premium and Total New Business Premium among the private insurers. The company witnessed growth in Individual New business premium of 26.7% vis-a-vis the industry growth of 15.4% with a private market share of 24.3% & Industry market share of 14.5%. The company generated a PAT of Rs 1 ,721 Crore in FY2023 against Rs 1 ,506 Crore in FY2022.

SBI Cards and Payment Services Limited registered PAT of Rs 2,258 Crore in FY2023 as compared to Rs 1 ,616 Crore in FY2022, an increase of 40% YoY.

SBI Funds Management Limited is the fastest growing AMCs with a growth of over 10.83% against the industry average of 5.55% in FY2023. It has one of largest investor bases with over 121.80 Lakh live investor folios with about 27 Lakh new investor folios added in FY2023. The company posted a PAT of Rs 1 ,331.20 Crore for FY2023 as against Rs 1 070.65 Crore earned during FY2022.

SBI Global Factors Limited, a leading NBFC factor providing both Domestic and Export Factoring services under one roof, registered a turnover of Rs 5,544 Crore for FY2023 as compared to turnover of Rs 4,773 Crore in FY2022.

SBI Pension Funds Private Limited has earned net profit of Rs 53.51 Crore for FY2023. The total Assets Under Management (AUM) of the company as on 31^st March 2023 is Rs 3,39,006 Crore (YoY growth of 20.01%). The company maintains lead position among 10 PFMs in terms of AUM with market share of 37.71%.

Awards and Recognition

Your Bank's efforts in various areas of banking were acknowledged and many awards and recognitions were received during the year. Your Bank was awarded ET BFSI Best Brands award for 2022 and 2023. The Global Finance Magazine also awarded "The Best Bank Award 2022".

Your Bank has been awarded by ET HR World Future Skill Awards, 'Gold' under the category 'Best Learning Management System' for Gyanodaya "e-learning" and askSBI, and 'Silver' under the category "High Impact Certification Programme" for Role Based Certifications. In HR policies, your Bank received 3-Gold Awards at ET Human Capital Awards, namely HR Leader of the Year - Large Scale Organisations; Excellence in Business Continuity Planning & Management and Most Valuable Employer during COVID-19.

Your Bank was adjudged the "Winner", for the fourth year in succession, in Best Digital Financial Inclusion category among Large Banks in IBA Annual Banking Technology Awards 2022. In home loans, Government of India awarded "Best Performing Bank under CLSS" under 'PMAY-U Awards 2021: 150 Days Challenge'.

ICAI recognized your Bank's financial reporting standards by awarding the Gold Shield-Category-I for Public Sector Banks- FY 2021-22. Additionally, your Bank also bagged "India's Best Annual Report Awards 2022.

For its ESG initiatives, your Bank has been awarded CDP score of "B", the highest score in the last 5 years by CDP (formerly Carbon Disclosure Project), the global disclosure system for companies to manage their environmental impact. The score of B represents that the organisation has addressed the environmental impact of their business and has ensured good environmental management.

Your Bank was awarded "Issuer of the Year Private Placement" at the 5^th National Summit & Awards on Corporate Bond Market 2022 by Associated Chambers of Commerce and Industry of India (ASSOCHAM). Further, NASSCOM

DSCI Excellence Awards 2022 awarded "Best Security Awareness and "Best Security Operations Centre of the year".

Way Forward

Overall FY2023 has been a good year for the Bank. Despite the geopolitical headwinds, resurgence of COVID-19 in China, Indian economy showed remarkable resilience and the same reflects in your Banks financials.

Nevertheless, last financial year was not without its share of surprises. The episodes of financial instability in the US and European banking took markets by surprise but did not impact the Bank. However, vulnerabilities may emerge as interest rates normalise from their ultra-low levels. This warrants proactive identification and mitigation of risk in the current financial year.

Your Bank has had a healthy run of reporting robust financial results successively for the last three years. Despite the challenges, your Bank's ability to absorb unexpected losses has improved. Healthy internal accruals reinforce its ability to tap capital markets, if warranted, in future. Risk management practices have been strengthened over the years and incremental improvements remain a perpetual work in progress.

Accommodating environment induced financial risk in the bank's overall risk management strategy is the next milestone that the Bank will aim for in FY2024. It is widely expected that RBI will make tangible progress in this direction during this financial year. Your Bank remains committed to incorporating principles and practices that promote sustainable banking operations and the same reflects in our CDP score of "B" for FY2022, highest in last five years.

The conscious strategy to structurally transform your Bank through digitisation of systems and process has progressed well. The Bank's flagship digital offering SBI YONO has shown growth across products and business lines. The Bank aims to be agile and imaginative in respect of its digital offerings so that YONO becomes a "Primary digital bank of choice" in coming years.

The use of business analytics and AI/ ML in decision making and operations will be taken to the next logical level by deploying NextGen Data Warehouse and Data Lake. Mutually beneficial partnerships with fintechs and NBFCs under RBI's co-lending framework will be explored.

Your Bank is comfortably placed in terms of growth capital in the current year. With declining credit cost, opportunities for lending in sunrise sectors such as sectors identified under PLI scheme, renewables as well as electric mobility will be explored to diversify the portfolio. The RBI's guidelines on green deposits opens new opportunities on the liability side to green the Bank's balance sheet.

Summing up, despite the economic headwinds, your Bank has innovated well to respond to the challenges posed by the operating environment. I am more than hopeful that the performance achieved in FY2023 will continue in FY2024.

"Innovation is the ability to see change as an opportunity- not as a threat"

Yours Sincerely,

Dinesh Kumar Khara

   

State Bank of India Company History

State Bank of India was incorporated on 01 July 1955. The Government of India nationalized the Imperial Bank of India in year 1955, with Reserve Bank of India taking a 60% stake, and name was changed to State Bank of India. State Bank of India is an Indian multinational, public sector banking and financial services institution. Headquartered in Mumbai, SBI provides a wide range of products and services to individuals, commercial enterprises, large corporate, public bodies, and institutional customers through its various branches and outlets, joint ventures, subsidiaries, and associate companies. The Bank operates in four business segments, namely Treasury, Corporate/ Wholesale Banking, Retail Banking and Other Banking Business. The Treasury segment includes the investment portfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/ Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets Management Group. The Retail Banking segment consists of branches in National Banking Group, which primarily includes personal banking activities, including lending activities to corporate customers having banking relations with branches in the National Banking Group. SBI provides a range of banking products through their vast network of branches in India and Overseas, including products aimed at NRIs. The State Bank Group, with over 22,266 branches, has the largest banking branch network in India. The State Bank of India is the 10th most reputed company in the world according to Forbes. The Bank has 227 overseas offices spread over 30 countries. They have 22,414 branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. They have Offshore Banking Units in the Bahamas, Bahrain, and Singapore, and Representative Offices in Bhutan and Cape Town. In the year 2001, the SBI Life Insurance Company was started by the Bank. It is the only Bank that has been permitted 74% stake in the insurance business. The Bank's insurance subsidiary 'SBI Life Insurance Company' is a joint venture with Cardif S.A in which Cardif holds 26% of the stake. During the year 2005-06, the bank introduced 'SBI e-tax' an online tax payments facility for direct and indirect tax payment. They also launched the centralized pension processing. The Bank made a partnership with Tata Consultancy Services for setup C-Edg Technologies and consulting services to the banking, financial services and insurance industry. The bank was noted as 'The most preferred bank' in a survey by TV18 in association with AC Nielsen-ORG Marg. Also, the Bank was voted as 'The most preferred housing loan provider' in AWAAZ consumer awards for the year 2006. In the customer loyalty survey 2006-07 conducted by 'Business World', the Bank was ranked number one in all parameters of customer satisfaction, service orientation, customer care/ call center, and customer's loyalty and home loans. SBI Funds was judged 'Mutual fund of the year' by CNBC/TV-18/CRISL. The Bank introduced new products and services such as web-based remittance, instant fund transfer, online-trading and comprehensive cash management. During the year 2007-08, the Bank launched 965 branches all over the country. They inaugurated a new state-of-the art Dealing Room with online connectivity to all active forex intensive Branches at Corporate Centre in Mumbai. They launched a new product, Construction Equipment Loan to cater to construction Companies. Also, they introduced new products such as SBI Reverse Mortgage Loan and SBI Home Plus in the areas of Home Loans. During the year, the RBI transferred their entire shareholding in the Bank representing 59.73% of the issued capital of the Bank to the Government of India. The Bank acquired 92.03% of equity of Global Trade Finance Ltd. Consequently; GTFL became a subsidiary of the Bank. They signed an MoU with the Indian railways for installing ATMs at 682 railway stations. In March 2008, the Bank opened their 10,000th branch and became only the second bank in the world to have more than 10,000 branches after China's ICBC. During the year 2008-09, the company launched Import factoring, a new product in association with SBI Factors & Commercial Services Ltd. They increased the number of branches for retail sale of gold coins from 250 to 518. Also, they re-launched Gold Deposit Scheme at 50 branches to mobilize gold from domestic market for deployment as metal loans to jewellers. During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup District) in Assam. They introduced three new products viz., SBI Special Home Loan, SBI Happy Home Loan and SBI Lifestyle in response to the stimulus package announced by the Government of India. Also, they entered into an exclusive arrangement with Tata Motors for handling the booking process of Tata 'Nano' cars. During the year, the Bank launched on their website an on-line application form for registering Auto Loan enquiries and expeditiously monitoring and converting these leads into Auto Loans. Also, they launched 'e-invest' for the ASBA (applications supported by blocked accounts) to aid investors for their equity subscriptions, IPO and Rights applications. During the year, the Bank set up a custodial services company namely SBI Custodial Services Pvt. Ltd., in joint venture with Societe Generale, France. They signed letter of intent for setting up of joint venture company for undertaking General Insurance Business. Also, they divested 10% equity stake in its wholly owned subsidiary SBI Pension Fund Pvt. Ltd at cost in favour of its subsidiaries. In October 2008, the Bank signed an MoU with State General Reserve Fund (SGRF) of Oman, for a general purpose private equity fund. State Bank of Saurashtra (SBS), a wholly owned subsidiary of the Bank, amalgamated with the Bank with effect from August 13, 2008. They signed a joint venture agreement with Insurance Australia Group for undertaking General Insurance business. Also, they signed a joint venture agreement with Macquarie Capital Group, Australia and IFC, Washington for setting up an Infrastructure fund of USD 3 billion for investing in various infrastructure projects in India. During the year 2009-10, the Bank opened 1,049 branches. In July 2009, SBI introduced 'SBI Loan to Affluent Pensioners' enabling the government pensioners to avail personal loans upto Rs 3 lakh. During the year, the Bank designed a special package, the Defence Salary Package, for personnel of the three Armed Forces i.e. the Army, Navy and Air Force who maintain their Salary accounts with them. In June 2009, the company increased their shareholding in Nepal SBI Bank Ltd to 55.02% and thus Nepal SBI Bank Ltd became a subsidiary of the Bank with effect from June 14, 2009. In May 2010, the Bank selected consortium of Elavon Incorporation, USA and Visa International, USA as their joint venture (JV) partner for Merchant Acquiring Business. They set up a wholly owned subsidiary, namely SBI Payment Services Pvt Ltd for conducting Merchant Acquiring Business. In August 2010, State Bank of Indore was amalgamated with the Bank as per the scheme of amalgamation approved by the Central Board. During the year 2010-11, the Bank introduced 2 new products, namely 'Pushpa Ullas' and 'Arthias Plus' on pilot basis. They made substantial progress in establishing itself as a leading PE fund player of the country. Also, they signed a Joint Venture agreement with State General Reserve Fund (SGRF) of Sultanate of Oman, a sovereign entity, to set up a general-purpose private equity fund with an initial corpus of USD 100 million, expandable further to USD 1.5 billion. During the year, the Bank opened 576 new branches besides merger of 470 branches of erstwhile State Bank of Indore. Also, they opened 14 foreign offices during the year, taking the total to 156. In July 1, 2010, the Bank launched their 'Green Channel Counter' at select branches across the country. In General Insurance business, the Bank launched limited operations in April 2010 for the Corporate and Mid Corporate customers based at Mumbai, and it was expanded to six other major locations in July 2010. In the Retail segment, the Bank launched their Long Term Home Insurance business at Mumbai in October 2010, which was gradually extended to cover 56 RACPCs and RASMECCs. General Insurance SME business was launched on a pilot basis in Mumbai and Chennai in February 2011. During the first quarter of the financial year 2011-12, the Government of India issued the 'Acquisition of State Bank of India Commercial & International Bank Ltd. vide notification dated July 29, 2011. Consequent to the said notification, the undertaking of State Bank of India Commercial & International stands transferred to and vest in State Bank of India with effect from July 29, 2011. In 2012, State Bank of India signed a Preliminary Non-Binding Memorandum of Understanding with Russian Direct Investment Fund (RDIF), to facilitate advancing bilateral economic cooperation and trade between Russia and India aimed at exploring investment opportunities in both the countries. State Bank of India (SBI) also entered into an agreement with StarAgri Warehousing Ltd (StarAgri), India's leading agri-services & solutions provider, for Warehousing Receipt Financing and Collateral Management Services during the year under review. The bank launched virtual debit cards to check online fraud and promote e-commerce. In 2013, State Bank of India (SBI) inaugurated its 2nd branch in China in Tianjin, a major port city in northeastern China. The bank introduced smart pre-paid card for students, blue-collar workers. In 2014, State Bank of In-dia launched new digital Online and self-service banking solutions with support from Accenture. The bank also unveiled 6 digital branches. In 2015, State Bank of India launched a RuPay Platinum debit card in association with National Payment Corporation of India (NPCI). The bank also introduced online facility for overdraft against FDs. SBI partners with Amazon. SBI entered into a MoU with PayPal, an American online money transfer services provider firm, for facilitating cross-border transactions. State Bank of India launched SBI eforex. SBI also launched an initiative to provide doorstep services and expedite home loans application process. State Bank of India jointly launched a cyber crime awareness campaign. On 26 March 2015, State Bank of India (SBI) announced that consequent upon the promulgation of the Insurance Laws (Amendment) Ordinance, 2014 and subsequently passed by both the houses of parliament, the Executive Committee of the Central Board (ECCB) of the bank has decided to initiate the necessary action as per JV agreement for dilution of SBI's stake in SBI General Insurance from 76% to 51% with corresponding increase of stake of IAG from 26% to 49%, including appointment of a valuer to facilitate valuation and price discovery. On 31 March 2015, State Bank of India (SBI) announced that the Executive Committee of the Central Board (ECCB) of the bank has authorised divestment of SBI's stake in SBI Life Insurance Co. Ltd. by up to 10%. The Committee of Directors for Capital Raising of the bank at its meeting held on 1 April 2015 considered and accorded approval to allot 10.04 crore equity shares on preferential basis to Government of India (GoI) at an issue price of Rs 295.59 per share aggregating Rs 2969.99 crore. The Committee of Directors for Capital Raising of the bank at its meeting held on 29 September 2015 considered and accorded approval to allot 19.65 crore equity shares on preferential basis to Government of India (GoI) at an issue price of Rs 274.37 per share aggregating Rs 5392.99 crore. On 21 December 2015, State Bank of India announced that the Committee of Directors, duly authorized by the Board authorized the bank to raise up to Rs 12000 crore by way of issue of Basel III compliant Tier II bonds, at par, through private placement. State Bank of India and Reliance Industries Limited (RIL) signed the shareholders agreement on 30 June 2016 for setting up Payments Bank. The Subscription and Shareholders' Agreement was signed by RIL as promoter with a 70% equity contribution and SBI as joint Venture partner with 30% equity contribution. The Payments Bank will leverage SBI's nationwide distribution network and risk management capabilities alongwith the substantial investments made by RIL in its retail and telecom businesses. On 4 July 2016, State Bank of India announced that it has sold 5% stake in National Stock Exchange of India Limited (NSE) constituting 22.50 lakh equity shares of NSE to Veracity Investments Limited, a Mauritius based FII, at Rs 4,050 per share for a total consideration of Rs 911.25 crore. Post this transaction, SBI holds 5.19% stake in NSE while its subsidiary SBI Capital Markets Limited holds another 4.33% in the NSE. The Committee of Directors for Capital Raising of the bank at its meeting held on 24 August 2016 authorized the bank to raise up to Rs 11100 crore Additional Tier 1 capital by way of issue of Basel III compliant Perpetual Debt instrument in USD and/or INR, at par, through private placement to overseas and/or Indian investors. The Executive Committee of the Central Board (ECCB) of State Bank of India (SBI) at its meeting held on 14 October 2016 approved to dilute up to 5% stake of SBI in its subsidiary SBI Life Insurance Company Limited to a non-promoter entity. On 25 October 2016, SBI announced that it has issued and allotted 25,000 AT1 Basel III compliant Non-convertible, Perpetual, Subordinated, Unsecured Debt instrument in the nature of debenture, of face value Rs 10 lakh each at par through private placement bearing coupon at 8.39% p.a. payable annually with call option after 5 years or any coupon payment date thereafter aggregating to Rs 2500 crore in third tranche. The Executive Committee of the Central Board (ECCB) of State Bank of India at its meeting held on 9 December 2016 approved divestment of 3.9 crore equity shares constituting 3.9% stake in SBI Life Insurance Company Ltd. at a price of Rs 460 per share, subject to all regulatory approvals. On 17 January 2017, SBI announced that it has concluded the issue of USD 500 million Fixed Rate Senior Unsecured Notes having a maturity of 5 years at a coupon of 3.25 percent payable semi-annually under Regulation-S. The bonds will be issued through the bank's London Branch and listed on Singapore Stock Exchange. The Committee of Directors for Capital Raising of State Bank of India considered and approved on 20 January 2017 by circulation the allotment of 21.07 crores equity shares at an issue price of Rs 269.59 per share on preferential basis to Government of India aggregating Rs 5680.99 crore. The Executive Committee of the Central Board of State Bank of India at its meeting held on 15 March 2017 accorded approval for infusing additional capital of up to Rs 1160.04 crore in credit card joint venture companies viz. SBI Cards & Payment Services Ltd. and GE Capital Business Process Management Services Ltd. through purchase of equity shares from GE Capital so as to increase the bank's stake in both the companies to 74%. SBI merged five of its associate banks viz. State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Hyderabad and Bhartiya Mahila Bank with itself with effect from 1 April 2017. In February 2017, the Union Cabinet approved the acquisition by State Bank of India of its subsidiary banks namely State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and State Bank of Hyderabad. On 8 June 2017, State Bank of India (SBI) announced closure of qualified institutional placement of equity shares. The bank successfully rose about Rs 15000 crore from issue of 52.21 crores equity shares at a price of Rs 287.25 per share to qualified institutional buyers. The Central Board of State Bank of India at its meeting held on 27 December 2017 accorded approval to raise Additional Tier 1 capital by way of issuance of Basel III compliant debt instrument in USD and/or INR to the tune of Rs 8000 crore from domestic/international market including rupee denominated Masala Bonds till 31 March 2018. The Executive Committee of the Central Board of State Bank of India at its meeting held on 8 January 2018 approved long term fund raising in single or multiple tranches up to USD 2 billion under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2018 and FY 2019. The Executive Committee of Central Board of State Bank of India at its meeting held on 17 January 2018 approval the proposal for issuance of long term bonds of Rs 20000 crore for financing of infrastructure and affordable housing in domestic and overseas market in FY 2018 and FY 2019. The Committee of Directors for Capital Raising of State Bank of India at its meeting held on 16 February 2018 accorded its approval for preferential allotment of 29.25 crore equity shares at Rs 300.82 per share (including a premium of Rs 299.82 per share) to Government of India (GoI) aggregating Rs 8800 crore. Total assets of the Bank have increased by 6.55% from Rs 34,54,752.00 crore at the end of March 2018 to Rs 36,80,914.25 crore as at the end of March 2019. During the period, the loan portfolio increased by 12.97% from Rs 19,34,880.19 crore, to Rs 21,85,876.92 crore and Investments decreased by 8.86% from Rs 10,60,986.71 crore to Rs 9,67,021.95 crore as at the end of March 2019. The Bank has one of the largest ATM networks in the world with 58,415 ATMs including Automated Deposit and Withdrawal Machines (ADWMs) as on 31 March, 2019. The Bank has 57,467 operating BCs, over 22,000 branches and 58,415 ATMs including 7,658 Automated Deposit & Withdrawal Machines (ADWMs). More than 36% of the financial transactions of your Bank are routed through ATMs/ADWMs. As on 31 March 2020, the Bank has 61,102 operating BCs, around 22,100 branches and 58,555 ATMs including 13,270 Automated Deposit & Withdrawal Machines (ADWMs). Nearly 28% of the financial transactions of your Bank are routed through ATMs/ADWMs. Total assets of Bank have increased by 7.35% from Rs 36,80,914.25 crore at the end of March 2019 to Rs 39,51,393.92 crore as at the end of March 2020. During the FY2020 , the loan portfolio increased by 6.38% from Rs 21,85,876.92 crore, to Rs 23,25,289.56 crore and Investments increased by 8.27% from Rs 9,67,021.95 crore to Rs 10,46,954.52 crore as at the end of March 2020. In March 2020, as per Scheme of Reconstruction notified by the Government of India, SBI infused Rs 6,050 crore in Yes Bank Ltd., having 48.21% stake into the SBI Group and accordingly, Yes Bank Limited became an associate of the SBI Group w.e.f 14 March 2020. During FY 2021, Bank launched three new products, viz. Agri Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF) and PM Formalisation of Micro Food Processing Enterprises (PM FME). The Bank has closed four foreign offices- Lenasia Marketing Office (South Africa), Selatar Remitance Center (Singapore), Bab-al-Bahrain Limited Service Centre (Bahrain) and its Representative Office at Istanbul (Turkey). The Bank has 22,219 branches over 71,968 Business Correspondents and over 62,617 ATMs including 13,237 Automated Deposit & Withdrawal Machines (ADWMs). As of Mar'22, Bank has 22,266 branches, over 68,000 Business Correspondents and over 65,000 ATMs including 12,872 Automated Deposit & Withdrawal Machines (ADWMs). During FY 2022, Bank rationalized its overseas operations by a closure of an overseas Subsidiary, SBI Botswana Ltd, and merged the Ilford branch of SBI UK Ltd. with its East Ham branch. During FY 2023, Bank opened one India Visa Application Centre (Other Offices) at Khulna (Bangladesh) and 5 branches and 3 extension counters through its overseas subsidiary in Nepal. As of March 2023, Bank had 22,405 branches, over 76,089 Business Correspondents and over 65,627 ATMs including 12608 Automated Deposit & Withdrawal Machines (ADWMs).

State Bank of India Directors Reports

ECONOMIC BACKDROP AND BANKING ENVIRONMENT Global Economic Scenario

The FY2023, in hindsight, could best be remembered as the year of paradoxes, with the ebbing of surge in virulent infections, coupled with considerable easing of supply chains. However, continued geopolitical conflicts in Europe and subsequent escalation in the Taiwan/Korean peninsula has infused volatility in global energy and commodity prices. The central banks have acted in unison, raising key policy rates to counter unyielding inflation. Benchmark yields and equities remained volatile. There are no indications of a firm change in pivot by central banks in AEs towards a reversal in rate regime even though there are now signs of inflation cooling and slowdown in job openings.

Matters nosedived further in March this year with the collapse of certain mid-tier banks in the US. The aftermath of such a shake-up should likely have a cascading impact of altering deposits patterns in banking system across AEs. Additionally, de-dollarisation appears to have become a durable theme with most jurisdictions using alternate payment and settlement mechanisms in local currency.

As per IMF projections, global growth is expected to fall from 3.4% in 2022 to 2.8% in 2023, before settling at 3.0% in 2024. AEs are expected to see an especially pronounced growth slowdown, from 2.7% in 2022 to 1.3% in 2023 (CY). Global headline inflation is set to fall from 8.7% in 2022 to 7.0% in 2023 due to lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflation's return to target seems unlikely before 2025 in most cases.

India's Economic Scenario

Domestic economic activity exhibited resilience in H2 FY2023. The National Statistical Office's (NSO) provisional estimates placed real Gross Domestic Product (GDP) growth at 7.2% for FY2023, driven by investment and private consumption. On the supply side, activity was supported by buoyant agriculture and services sectors, while manufacturing was restrained under the pressure of high input costs. India continues to be the fastest-growing economy for the third time in succession.

Gross Value Added (GVA) in agriculture and allied activities posted a growth of 4.0% in FY2023, even as kharif production was dented by below normal rainfall in key rice producing states and excess rains during the harvesting stage. Food grains production touched a new record in FY2023. Industrial activity remained sluggish in FY2023 (grew by 4.4%), driven by muted growth in manufacturing sector GVA. The services sector held up well in FY2023 and grew by 9.5% owing to an impetus from contact-intensive services. The contact-intensive services, viz., trade, hotels, transport, and communication grew by 14.0% in FY2023. Robust GST collections point towards an ongoing revival of domestic trading activity.

India's merchandise exports rose by about 6% to a record US$447 Billion on account of healthy growth in the outbound shipments of sectors such as petroleum, pharma and chemicals/ marine products. Imports also grew by 16.5% to US$714 Billion in FY2023 as against US$613 Billion in FY2022. The current account deficit stood at 2.1% of GDP in FY2023, mirroring the trend in merchandise trade deficit.

A combination of adverse supply- side shocks and the pass-through of pending input costs to output prices exerted sustained pressures on headline inflation during FY2023. Average CPI inflation stood at 6.7% as compared to 5.5% in FY2022.

Banking

Credit growth continued to see doubledigit growth and has become broad based across sectors. In FY2023, ASCB's bank credit grew by Rs 1 7.8 Lakh Crore (15.0% YoY) to Rs 1 36.75 Lakh Crore, as against Rs 1 0.4 Lakh Crore (9.6% YoY) in FY2022. Aggregate deposits of ASCB grew by Rs 1 5.7 Lakh Crore (9.6% YoY) to Rs 1 80.43 Lakh Crore compared to last year growth of Rs 1 3.5 Lakh Crore (8.9% YoY).

During the reporting period , RBI increased the policy repo rate by 250bps in 6 tranches and banks have also transmitted it to both deposit and credit rates.

The asset quality of ASCBs improved during 2022-23, with gross NPA ratio declining to 4.5% in December 2022, compared to 5.8% in March 2022, primarily due to the quality improvement across all the major sectors.

With digital payments, India has been witnessing new milestones on the back of the robustness of our payment ecosystem and acceptance by a wide stratum of consumers. Among all, UPI has emerged as the most popular and preferred payment mode in India accounting for ~75% of the total digital payments.

Outlook

The domestic situation has coped well with exogenous external shocks. The real GDP growth for FY2024 is projected at 6.5%, which is the highest in the world. Inflation, which started on a positive note in April (4.70%) is expected to remain in the moderate zone for the ongoing fiscal, despite certain shocks from adverse climate changes impact due to the likely return of El Nino this year. However, the expectation of a record rabi food grain production bodes well for the food prices outlook and growth in general. We expect, in FY2024, average CPI would be around 5%-5.2%, compared to 6.7% in FY2023, giving some much- needed comfort to regulators.

The RBI monetary policy actions during FY2023 have been frontloaded. The notable development during the year includes RBI's thrust towards accommodating climate induced financial risk in banks' risk management framework.

Against this backdrop, your Bank's business has adapted quite well to evolving situation. Your Bank made record profits in FY2023, and internal accruals are used judiciously so that the business growth and risk buffers objectives are met as per the satisfaction of all stakeholders. With the continued demand for credit, banking businesses are expected to grow in double digits in FY2024.

FINANCIAL PERFORMANCE

Net Profit and Operating Profit

Net profit increased by 58.58% to Rs 50,232.45 Crore in FY2023 from Rs 31,675.98 Crore in FY2022. The operating profit of your Bank for FY2023 increased by 11.18% to Rs 83,712.97 Crore from Rs 75,292.37 Crore in FY2022 (excluding exceptional item of Nil in FY2023 and '(7,418.39) Crore in FY2022).

Net Interest Income

Net interest income increased by 19.99% to Rs 1 ,44,840.50 Crore in FY2023, from Rs 1 ,20,707.59 Crore in FY2022. Total interest income increased from Rs 2,75,457.29 Crore in FY2022 to Rs 3,32,103.06 Crore in FY2023 registering a growth of 20.56%. Total interest expenses increased from Rs 1 ,54,749.70 Crore in FY2022 to Rs 1 ,87,262.56 in FY2023. Interest expenses on deposits during FY2023 recorded an increase of 14.99%, compared to the previous year.

Other Income

Other income decreased by 9.73% to Rs 36,615.60 Crore in FY2023, from Rs 40,563.91 Crore in FY2022.

Operating Expenses

Operating expenses (excluding exceptional item) of your Bank increased by 13.68% to Rs 97,743.13 Crore in FY2023, from Rs 85,979.13 Crore in FY2022.

Provisions and Contingencies

Total provision and contingency decreased by 7.51% to Rs 33,480.51 Crore in FY2023 from Rs 36,198.00 Crore in FY2022. Major provisions made in FY2023: Provision of Rs 9,143.93 Crore for non- performing assets (as against 14,086.85 Crore in FY2022) and Investment depreciation of Rs 1 ,513.84 Crore (as against Rs 3,440.10 Crore in FY2022) was made during the year. The Provisioning to Gross Non-Performing

Assets ratio (including AUCA) of your Bank as on 31^st March 2023 is 91.91% (Previous Year 90.20%).

Assets and Liabilities

Total assets of your Bank saw a 10.61% increase to Rs 55,16,978.53 Crore as of end-March 2023, from Rs 49,87,597.41 Crore at end-March 2022. During the period, the loan portfolio increased by 17.02% to Rs 31,99,269.30 Crore from Rs 27,33,966.59 Crore. Investments increased by 6.00% to Rs 1 5,70,366.23 Crore from Rs 1 4,81,445.47 Crore. A major portion of investment in the domestic market was in government securities.

Your Bank's aggregate liabilities (excluding capital and reserves) rose by 10.24% to Rs 51,89,370.08 Crore as on 31^st March 2023 from Rs 47,07,509.35 Crore as on 31^st March 2022. Deposits rose by 9.19% and stood at Rs 44,23,777.78 Crore as on 31^st March 2023 against Rs 40,51,534.12 Crore as on 31^st March 2022. Borrowings showed a 15.75% increase to Rs 4,93,135.15 Crore by end-March 2023, from Rs 4,26,043.38 Crore on end- March 2022.

Reserves and Surplus

An amount of Rs 1 5,069.74 Crore (as against Rs 9,502.79 Crore in FY2022) was transferred to Statutory Reserves. An amount of Rs 232.81 Crore (as against Rs 538.16 Crore in FY2022) was transferred to Capital Reserves. An amount of Rs 4,575.43 Crore in FY2023 (as against Rs 4,647.87 Crore in FY2022) was transferred to the Investment Fluctuation Reserve.

Dividend

Your Bank has declared a dividend of Rs 1 1.30 per share @ 1130% for the year ended 31^st March 2023.

Progress of Implementation of Ind AS

RBI vide Circular DBR.BP.BC. No.29/21.07.001/2018-19 dated 22^nd March 2019 deferred implementation of Ind AS till further notice. However, RBI requires all banks to submit Proforma Ind AS financial statements every half year. Accordingly, the Bank is preparing and submitting to RBI Proforma Ind AS financial statements every half year after approval of Steering Committee headed by MD (R,C & SARG) formed for monitoring of implementation of Ind AS in the Bank.

CORE OPERATIONS

Retail Business and Operations

The Retail Business and Operations (RB&O) Group is the largest business Group of your Bank with 98.96% of total branches, and makes up 95.03% of the entire human resources of your Bank comprising eight strategic business units. Your Bank is committed to customer delight at all its branches. The ever-evolving customer preferences, especially those of the younger population, coupled with an increased focus on enhanced customer convenience, are transforming the retail banking landscape.

The customer base of your Bank is steadily widening in the country, making Retail Banking the most prolific segment, both in terms of deposit mobilisation as well as extending customised credit. Your Bank continues to be the largest Home Loan and Education Loan provider in the

Key Initiatives

As a part of its commitment to sustainable development, your Bank has incorporated rooftop solar photo voltaic systems financing as a component of the Home Loan project cost. This, coupled with an extensive micro-market study and the opening of 133 processing centres across India, have enabled greater penetration of Home Loans in Tier-II and Tier-III cities, thus contributing to your Bank's ambition of becoming the 'No. 1 Choice of Customers for Home Loans'.

Your Bank has significantly boosted its Home Loan portfolio by on-boarding projects under Builder Tie-Up (BTU). This also has improved sourcing quality besides improving TAT. To date, 13,184 residential projects (RERA approved) have been approved with a penetration of 29.04% in BTU projects.

The country-wide introduction of Retail Loan Management Solution and Vendor Verification Module across all centres has been beneficial in creating uniform underwriting standards, seamless delivery and fully-digitised products to ensure customer delight. To further increase the Home Loan business and strengthen the market share, YONO and RAAS are being promoted extensively as digital platforms. Document Management Solution (DMS) has also been rolled out to digitise and centralise Home Loan-related documents to ensure customer convenience.

Earlier, pricing was dependent on a multitude of factors such as loan amount, risk grade score, profession of the borrower and LTV. Now, pricing is solely based on the credit score of the borrower. This simplified pricing has received wide acceptance. To strengthen relationships with customers, a credit card for existing as well as new Home Loan customers has been launched under the name 'Happy Home Card'.

Country, demonstrating its unflinching commitment to serve society at large.

Your Bank is committed to creating an environment of increased risk awareness at all levels. Also, your Bank will offer end-to-end digitisation for all its retail banking products through its large network of branches.

Your Bank continues to be at the forefront of the digital banking domain with a steady stream of technology- driven innovations across various channels-digital, mobile, ATM, internet, social media and branches. It has a multi-channel delivery model, offering customers a wide range of choice.

A. Personal Banking Home Loans

The residential real estate market saw a sustained increase in housing sales and new launches. This was partly due to robust demand from consumers in metro, Tier-II and III cities. Consumer's keenness to invest in real estate has led to this positive trend.

Performance

Your Bank continues to be the largest Home Loan provider in the country. The strategic steps taken in recent years have enabled your Bank to cross the Rs 6 Trillion mark in its Real Estate portfolio. Now, it stands at Rs 6.41 Trillion as on March 2023, with a YoY growth rate of 14.07%. In FY2023, your Bank disbursed around Rs 1 .73 Trillion of home loans and home-related loans.

The Home Loan portfolio constituted 23.08% of total Domestic advances and 36.03% of NBG advances, while Priority Sector Lending stands at 31.62% of the total portfolio.

Proactive monitoring and soft contact with customers enabled us to keep NPA in Home Loans at a low level (only 0.69% as on of 31^st March 2023).

Your Bank has outpaced the industry growth and garnered an overall industry wide market share of 21.77% as on 30^th September 2022, and 33.09% among All Scheduled Commercial Banks (ASCB) as on 31^st March 2023.

Your Bank was the only commercial bank nominated as the Central Nodal Agency (CNA) by the Ministry of Housing and Urban Affairs (MOHUA). As CNA for the PMAY-CLSS scheme, 12,204 subsidy claims aggregating to Rs 255 Crore in FY2023 were processed by your Bank. In addition to this, to expand outreach to the under-served population, your Bank signed an MOU with 5 housing finance companies for co-lending.

Auto Loans

India is a growing market for automobiles driven by rising income levels, numerous buying options, and significant untapped potential evidenced by the ratio of 22 cars per 1000 people, compared to 900+ in USA and 200+ in China. Your Bank is one of the top players in new car loans, achieving success through various initiatives and services.

Performance

Your Bank achieved YoY growth of 23.2% in auto loans of Rs 1 8,375 Crore in FY2023, and an overall market share of 19.40%. The high-value car loan segment loan amount >= Rs 25 Lakh registered a YoY growth of 160%. In

FY2023, your Bank disbursed Rs 43,954 Crore of auto loans.

Your Bank's constant proactive monitoring and follow-up and best-inclass underwriting resulted in an NPA of 0.43%, compared to 0.69% in the previous year, making it one of the best in the industry.

Key Initiatives

A combination of increased manpower for loan distribution, partnerships with major car OEMs for instant in-principle sanction, pre-approved offerings and 'Green Car Loan' agreements at a concessionary rate, your Bank is expected to make 5.86 Lakh new customers happy over the year.

Furthermore, IT has developed 'SBI-Easy Ride', an end-to-end digital product that facilitates two-wheeler financing without the need to visit any branch for sanction or disbursement.

Education Loans

Your Bank takes pride in its position as the nation's largest education loan provider, accounting for 33.18% of the market share as on 31^st March 2023, and 37.70% of disbursement targets amongst All Scheduled Commercial Banks.

Performance

Your Bank has achieved YoY growth of 21.9% in education loans of Rs 5,776 Crore in FY2023. In FY2023, your Bank disbursed Rs 9,902 Crore of education loans. Bank's collateralised portion was 49% by the end of March 2023, and we achieved 128% of the annual disbursement target assigned by DFS, GOI.

Key Initiatives

Your Bank has helped 1,13,793 meritorious students realise their dreams by sanctioning loans amouting to Rs 1 5,086 Crore during the year. Of this, 41% of the loans were extended to female students. To broaden the scope of education loans, ensure quality business and enhance customer satisfaction, your Bank has taken various steps:

• Shortlisted top-rated premier and reputed institutions to extend education loans under the Scholar Loan Scheme at relaxed norms and concessional interest rates.

• Penetration of SBI flagship product 'Global Ed-vantage Education Loans' for studies abroad was improved through extension of door-step services in select cities.

• To ensure better tracking of loan applications and faster sanctioning of loans, your Bank's Loan Origination System was integrated with Vidya Lakshmi Portal and Jan Samarth Portal of Government of India.

Personal Loans

Your Bank is the market leader in personal loans, including secured and unsecured loans. These loans are offered to the salaried, pensioners and self-employed customers of your Bank, and salaried customers of other Banks through SBI Quick Personal Loans (CLP Platform) and SBI Elite.

Performance

Personal Loan portfolio (Xpress credit and Pension loan) crossed Rs 3 Lakh Crore to reach Rs 3,49,988 Crore in FY2023. During the year, your Bank has provided personal loans (Xpress credit and pension loan) to more than 87 Lakh customers.

Key Initiatives

Several modifications have been made to personal loan products to make them customer-centric. These include time-bound concession in the interest rate and waiver of prepayment/ foreclosure charges. Your Bank has integrated Digital Document Execution into Xpress Credit loans, utilising e-stamping and e-signature for real-time document execution. This feature is currently implemented in 22 states and, as on 31^st March 2023, has processed 1,41,334 personal loan agreements.

Consumer Durable Loans for e-Commerce Purchases

Your Bank offers two e2e products: POS EMI Loan and Online EMI Loan. While the former is being offered through Pine Labs POS machines at various shops, malls, and showrooms, the latter has been enabled via tie-ups with Bill Desk and PayU to be available at select online shopping portals.

These products are currently available to 1.18 Crore of preapproved customers based on their account behaviour and other parameters using AI/ML technology. Through regular SMS/e-mails, pre-approved customers are informed of their eligibility.

Modifications in the product features of Debit Card EMI Loan were rolled out on 23rd December 2022, which include increasing the maximum loan amount from Rs 1 Lakh to Rs 2 Lakh, reducing the minimum repayment period from 6 months to 3 months, and increasing maximum repayment period from 18 months to 36 months.

Gold Loans

Your Bank offers a general purpose personal loan against the pledge of gold ornaments.

Performance

During FY2023, the portfolio witnessed a YoY growth of 24.46%, thereby reaching a level of Rs 28,705 Crore as on 31^st March 2023, with a gold loan customer base of 1.4 Million. As per the data released by RBI on sectoral deployment of Bank Credit as on March 2023, your Bank had a personal gold loan market share of 31.94%.

Key Initiatives

Your Bank has personal gold loans available for SBI's Home Loan customers through a product named 'Realty Gold Loan' to meet margin requirements, project cost escalation and registration charges.

Also available are top-up gold loans for existing gold loan borrowers, who want to avail a top- up against their gold ornaments and jewellery, which is already pledged to your Bank.

Liability and Investment Products

				(Rs in Crore)
	FY2022	FY2023	Growth	Growth (%)
Total deposits	40,51,534	44,23,778	3,72,244	9.19
Term deposits	21,45,117	23,90,667	2,45,550	11.45
Savings bank deposits	15,13,205	15,81,466	68,261	4.51
CASA deposits	17,75,084	18,62,904	87,820	4.95
P-Domestic deposits	25,67,514	27,33,625	1,66,111	6.47

• Total Savings Bank Deposit grew by Rs 68,261 Crore (4.51%) during FY2023.

• Total Term Deposits grew by Rs 2,45,550 Crore (11.45%) during FY2023.

• Bank opened 124.41 Lakh Regular Savings Bank Accounts during the FY2023 as compared to 98.75 Lakh accounts during the FY2021-22.

• CASA Deposits of Bank grew by Rs 87,820 Crore (4.95%) during FY2023.

• Bank opened 2.13 Regular Savings Bank Accounts per day per Branch during the FY2023 as compared to 1.72 Accounts during FY2021-22.

• Average Balance in Regular Savings Bank Accounts has increased to Rs 49,915 as on March 2023 as compared to Rs 48,661 as on March 2022.

• SBI Sarvottam non-callable deposit scheme launched.

• Amrit Kalash Deposit scheme launched with 400 days tenure at an attractive rate of interest of 7.10%.

• SBI We Care Deposit scheme with enhanced interest rates of 100 bps over card rate for the tenure of 5 years and above extended to senior citizens.

Doorstep Banking

To improve customer convenience and ease of banking, your Bank is extending doorstep banking services through agents to all customers at the top 100 banking centres. Senior citizens above the age of 70, and differently-abled persons get the option of doorstep banking services.

Doorstep banking services include:

• Cash deposit and withdrawal.

• Life Certificate through Jeevan Pramaan .

• Pickup of Nomination Form and Fund transfer Request.

• Pick up of Cheque Book Requisition Slip .

• Pick up of cheques for collection / clearing, IT / Government / GST challan with cheque.

• Delivery of Statement of Account, Term Deposit Advice and TDS and Form 16 Certificate.

Video Customer Identification Process (V-CIP)

To make banking more convenient for customers, your Bank has introduced the V-CIP digital process, which allows account opening from home, eliminating the need to visit branches.

4.70 Lakh

CUSTOMERS WHO OPENED SAVINGS BANK ACCOUNTS THROUGH V-CIP

Salary Package Accounts

Your Bank is focused on sourcing of Salary Package Accounts across segments, including Defence, Central Government, State Governments and Corporates, with customised salary packages. Total salary accounts increased to 181.27 Lakh in FY2023, with 4.02 Lakh new accounts added during the year.

Digital Account Openings

As a result of the various initiatives taken by your Bank, 64% of the total regular savings bank accounts aggregating 78.6 Lakh were opened digitally through YONO in FY2023.

Digital Personal Loan Offerings

Your Bank has ensured customer convenience and portfolio growth through a comprehensive range of products on multiple platforms, with higher profit margins. YONO offers digital loans in real-time, eliminating the need for physical documentation or visiting a branch. Additionally, real-time pre-approved personal loan eligibility by sending SMS has been introduced.

Digital loan variants include:

• Real Time Xpress Credit Loans

• PAPL (Pre-Approved Personal Loan)

• PAXC (Pre-Approved Xpress Credit)

• PAPNL (Pre-Approved Pension Loan)

• INSTA Top-up for Xpress Credit

• Insta Pension Loan

• Insta Home Top Up

• PA2WLR (Pre-approved Two Wheeler Loan)

NRI Business

Your Bank has 434 dedicated specialised NRI Branches/NRI Intensive Branches in India, foreign offices in 29 countries, 227 global banks as Correspondent Banks, and has tie-ups with 45 Exchange Houses and five banks in the Middle East to facilitate remittances.

To provide a one-stop service to NRI Customers, a Global NRI Centre (GNC) has been set up in Ernakulam to oversee all non-financial services.

NRI deposit base stood at US$ 29.88 Billion (March 2023), driven by increasing Indian diaspora across the globe and the trust that your Bank has among NRIs. Your Bank increased its FCNR(B) Deposit market share to 26.06 %, up by 135 bps from last year.

Initiatives

Your Bank has launched the following services in FY2023 for the benefit of its NRI clientele:

• Training on NRI Products and services to operating staff of NRI Branches.

• Tied up with 'Remitly' to facilitate swift remittance to India.

• Cross Border Remittance facility using UPI Application.

• SBI WhatsApp banking facility.

• OTP over email in addition to registered mobile number.

• Launched NRE non-callable deposit scheme.

1,724	304	35.24 Lakh
NEW TIE-UPS WITH CORPORATES FOR SALARY PACKAGES IN FY2023	DEDICATED SALARY PACKAGE MICROSITES CREATED	NRI CUSTOMERS

• Increased daily limit for forex outward remittances through FX-Out (INB Channel) from NRE Account to US$25,000.

• Increased visibility of NRI products and services at airports in India and abroad through advertisements, social media campaigns and videos on YouTube and Facebook, among others.

• Introduced the option of availing car loans with a resident Indian (close relative) as co-borrower.

• Joined Account Aggregator framework .

Precious Metal

In FY2023, your Bank mobilised 1,730 kg of gold (~Rs 919.30 Crore) under the Sovereign Gold Bonds Scheme and 2,016 kg of Gold under the Gold Monetization Scheme by the Government of India.

Your Bank offers metal gold loans to jewellers manufacturing gold ornaments for domestic and export purposes. During FY2023, your Bank extended metal gold loans of 17,829 kg. Your Bank also extends Sale of Gold (SOG) scheme to jewellers/traders. During FY2023, your Bank sold 3,950 kg of gold under this scheme.

Wealth Management Business

Your Bank is the first public sector bank to offer wealth management services to its esteemed clients. SBI Wealth caters to the investment needs of affluent clients through a bouquet of investment products such as Mutual Funds, Insurance, PMS, Bonds and AIF as per their risk profile.

The Wealth team comprising of dedicated and personalised relationship managers is in constant touch with clients for their investment and banking needs. Doorstep banking services are also extended through customer relationship executives. The key elements of offer value proposition to clients are flexibility in choosing multiple delivery channels, in-depth research and analysis and open architectures.

Your Bank's wealth management services are offered at 100 major centres across the country through a network of 230 wealth hubs.

Your Bank has shown exponential growth in terms of investment AUM and investment active clients during the FY2023. Investment AUM has increased from Rs 1 4,317 Crore to Rs 20,580 Crore (43.75% growth), and the number of investment active clients increased from 93,726 to 1,18,569 (26.50% growth) during FY2023. The AUM increased from Rs 2,51,351 Crore to Rs 2,95,860 Crore (17.70% growth) for the same period. The number of clients also increased from 2,97,246 to 3,59,480 (20.94% growth).

Your Bank, on a pilot basis, launched Premier Banking Services in three circles-Mumbai Metro, Delhi and Hyderabad-to provide personalised banking and investment related services to Corporate Salary Package (CSP) customers- Platinum category.

B. Anytime Channels ATMs and ADWMs

Your Bank has one of the largest ATM networks in the country, with 65,627 ATMs, including 12608 Automated Deposit and Withdrawal Machines (ADWMs), as on 31^st March 2023. It is present even in the most remotest locations. There is a floating ATM at Dal Lake in Srinagar, on the jetties of Ernakulam and Vypeen in Kerala, new ATM lobbies in the tea gardens of Assam, on the islands of Andaman & Nicobar, Lakshadweep, and at Khardungla in Ladakh, which has the highest motorable road in the world. Your Bank's domestic market share in the number of installed ATMs and ADWMs is ~30% and handles the highest share of cash dispensation (34%) in the country. On an average, over 1.32 Crore transactions are recorded every day at your Bank's

Key initiatives during the Year

• Implemented enhanced cash dispensation logic in ATM for small denomination notes at all Bank's ATMs.

• OTP based Cash withdrawal - addition of new feature - 30 sec Timer display on ATM screen to make customer aware about the time available for entering the OTP and avoid time out.

• Pro-active Reversal of failed transactions to customers.

• 15000 new GCC machines installed.

• 49,719 sites have been covered under electronic surveillance solutions (eSS).

• SMS is being sent to customers for availing free Balance Enquiry & Mini Statement from SBI ATMs and the above services are also available on WhatsApp banking.

• Display of "Cash not available" on ATM Screen whenever the ATMs are out of Cash (Before the transactions are undertaken by the customers).

ATMs/ADWMs, and 5.66 Lakh cash deposit transactions at ADWMs.

SWAYAM Kiosks

Your Bank has deployed 20,137 Barcode Based Passbook Printing Kiosks (SWAYAM) at 17,643 branches and 13 Lakh transactions are processed on daily basis, migrating ~3.65 Crore passbook printing transactions every month from branch counters. The reprint functionality for the last 90 days has also been enabled, on a pilot basis, for five branches from each circle.

Green Channel Counter (GCC)

Your Bank has deployed 33,077 GCC terminals at 21,446 retail branches for transactions through debit cards to promote Green Banking.

Cyber cell

To combat cybercrimes, the Ministry of Home Affairs has rolled out a dedicated cybercrime reporting portal (www. cybercrime.gov.in) and a helpline number 1930. Cybercrime cells at 17 circles work in multiple shifts to attend to customer concerns regarding cyber fraud. During FY2023, a total of 3,04,450 complaints have been attended, and an amount of Rs 51.50 Crore has been put on hold.

Customer Value Enhancement

Your Bank is dedicated to increase value for its customers and stakeholders, by offering a range of financial services and products, all under one roof. As a financial superstore, your Bank provides mutual funds, general insurance, life insurance, credit cards, National Pension Scheme and Demat accounts through its pan-India network. As part of your Bank's digital transformation, it has made on-boarding simpler and relied on need-based selling to strengthen customer loyalty.

With an emphasis on better customer experience and offerings tailored to customers' needs, your Bank remains a leader in marketing of financial products services with earning revenue of Rs 3,641 Crore in FY2023.

The revenue contribution of each product is as under:

			(Rs in Crore)
Product	FY2022	FY2023	% Change YoY
SBI LIFE	1,568	2,040	30
SBI MF & Others	767	916	19
SBI GENERAL	319	398	25
SBI CARDS	199	264	33
SSL	5	5	-
NPS	10	18	80
TOTAL	2,868	3,641	27

Initiatives and successes: for FY2023 are mentioned below:

SBI Life

SBI Life Insurance is the No. 1 private player in Individual Rated Premium since FY2018. The persistency ratio has improved from 84.07% to 84.12% YoY in March 2023. The protection share for SBI Life in individual rated premium stood at 7.17% as on YoY March 2023. Digital sourcing rate of SBI Life Banca is 99.70%.

SBI Mutual Fund:

SBI remains the No. 1 Mutual Fund Distributer, having more than Rs 1 .48 Lakh Crore in Assets Under Management (AUM) as on March 2023. Further, SBIMF leads the rank amongst AMCs and has crossed Rs 7.12 Lakh Crore as on March 2023 in

AUM. Digital mobilisation of business is easing the process for customers as well as the operating staff. 76% of Lumpsum transactions and 92% of fresh SIPs are being mobilised through the digital mode.

SBI General

A direct impact of the pandemic was a surge in health insurance. It resulted in an increased share of health insurance business from 20% in March 2022 to 22% in March 2023. The number of specified persons for general insurance also increased to 31,017 on 31^st March 2023 as against 27,060 on 31^st March 2022.

SBI Card

SBI has been at the forefront when it comes to credit cards. With the increasing trend of the use of

#1	#1
PRIVATE PLAYER IN INDIVIDUAL RATED PREMIUM IN INDIA	MUTUAL FUND DISTRIBUTOR IN INDIA

plastic money, your Bank is meeting customers' demand and making credit cards available to them at the remotest of the locations. In FY2023, 23.48 Lakh (till March 2023) cards were issued, as against total 16.54 Lakh issued in FY2022.

NPS

Your Bank continues to be the leading bank in NPS registrations with a market share of 22%. Your Bank has also qualified to be the top Performing Point of Presence (PoP) under campaign observed by PFRDA. It offers the complete digital registration journey through Internet Banking (INB) and the YONO app. Around 80% of the total NPS accounts were opened digitally.

SBI SSL

Your Bank has sourced over 10 Lakh accounts in FY2023. An e2e Demat and trading account journey is available on the YONO app and INB.

Small & Medium Enterprises

Your Bank provides a comprehensive package of products and services to the MSMEs to meet requirements such as cash management, transactions and credit needs for domestic and export sales.

Your Bank is a pioneer and market leader in SME financing with over 19 Lakh customers. The SME portfolio of your Bank crossed the Rs 3 Trillion mark in FY2023 to Rs 3,59,270 Crore, and accounts for 12.94% of your Bank's

total domestic advances. The portfolio registered a growth of 17.59% YoY in FY2023.

A. Customer Convenience

About 2001 RMs (SME) and 833 dedicated SME-intensive branches are functioning across India. Your Bank has rolled out Supply Chain Finance Centralised Processing Centres (SCF CPCs) across 16 circles in India. All new proposals above Rs 1 0 Crore (SME and Builder Finance) are handled by Centralised Processing Centres (CPCs) for appraisal. As on 31^st March 2023, 323 proposals amounting Rs 1 4,912 Crore have been sanctioned.

B. Digital Offerings

Your Bank uses technology in every aspect of the value proposition- from business, designing products, streamlining processes, and improving delivery to monitoring. Several initiatives have been instated to build an SME portfolio in a risk-mitigated manner, and significant changes have been implemented to ensure ease of banking.

YONO Business addresses all corporate banking needs and acts as a one-stop solution for the customer. Your Bank deploys the most advanced technologies like artificial intelligence, machine learning and business analytics, among others, to augment its product offerings and enhance customer delight each time without exception. Under YONO, Pre-Approved Business Loan (PABL) has recorded a YoY growth of 926% to Rs 3,558 Crore in FY2023.

Digital Document Execution (DDE) involves digital contract formation, e-stamping, e-signature or its variants, as per applicable laws and through authorised government agencies, providing a safe and accurate recording of the financial information, and authentication and verification of the contents and the customer.

As a pilot, DDE was first launched in Uttar Pradesh in August 2022 for PABL accounts. Going by its success, your Bank is now extending this project to seven more states: Odisha, Chhattisgarh, Tripura, Kerala, Maharashtra, Himachal Pradesh and Meghalaya in Phase 2. Further expansion is underway.

Following initiatives have been implemented during the year:

1. New digital products under development in collaboration with Fintech/ AA/ GST

• MSME SAHAJ Seller's Invoice Financing on Yono Business providing digital loan and financing of GST invoice.

• Seller's Invoice Financing Scheme under GST Sahay, a GoI initiative, provides digital loan through GST Sahay app, which is a market place.

23.48 Lakh	#1	10+ Lakh	17.59%	19+ Lakh
TOTAL CREDIT CARDS ISSUED IN FY2023	LEADER IN NPS REGISTRATIONS IN INDIA	TOTAL DEMAT ACCOUNTS SOURCED DURING FY2023	GROWTH IN SME PORTFOLIO IN FY2023	MSME CUSTOMERS

2. Contactless Lending Platform (CLP):

Your Bank is one of the stakeholders in the SIDBI-led PSB Consortium, that offers SMEs quick and simple access to loans through a CLP platform 'psbloanin59minutes.com'. Eligible proposals receive instant in-principle approval based on GST returns, IT returns and account statements. For FY2023, your Bank has already sanctioned 6,342 leads worth Rs 2,940.24 Crore, with ticket sizes between Rs 1 Lakh and Rs 5 Crore.

To facilitate digitalisation and streamline the issuance of credit, a new mechanism for auto-renewal of leads obtained from CLP has been launched. This approach will guarantee prompt renewal of accounts considered good and financially satisfactory, with minimal need for manual work. It allows Relationship Managers (SMEs) to concentrate on sales and marketing activities.

3. Assisted Journey for ETCB/ NTCB/ NTB Customers

The Assisted Journey allows operating functionaries such as RMs (SME), field officers and Branch Managers to initiate the CLP journey on behalf of the customer without needing them to input any details. These can be uploaded directly on the portal.

4. Supply Chain Finance

By leveraging technology and branch network, your Bank has been a major player in supply chain finance while strengthening corporate relationships across sectors. During FY2023, supply chain finance was extended to 34,592 dealers with total sanctioned limits of over Rs 44,565 Crore under e-DFS (Electronic Dealer Financing Scheme) and Rs 1 6,437 Crore e-VFS (Electronic Vendor Financing Scheme) respectively.

Your Bank entered into 16 new e-DFS and 37 new e-VFS tie-ups during the year. New e-DFS limits of Rs 6,395 Crore for 6,224 new dealers and Rs 2,352 Crore for e-VFS were sanctioned during FY2023. Your Bank has already implemented CLP for e-DFS and e-VFS.

Your Bank has also simplified the e-VFS processes. It has introduced Supply Chain Finance Centralised Processing Centres to reduce TAT for proposal processing. To ring-fence the supply chain portfolio, it has implemented suitable risk mitigation measures and risk-based pricing. Your Bank is also introducing various campaigns for on-boarding dealers/vendors and broadening the channel finance base.

C. Green Energy Initiatives

Your Bank is committed to lowering its carbon footprint through many green energy initiatives. During the year under review, we launched the following products:

1. Surya Shakti Solar Finance

This special product was launched for financing 'Term Loans for Solar Projects' for captive use, with capacities of up to 1 MW. It entails a maximum loan

amount of Rs 4 Crore and a comfortable repayment option of up to 10 years. A dedicated Surya Shakti Cell has been created for centralised loan processing and quick TAT. MOUs have also been signed with reputed companies like Tata Power Solar Systems Ltd., Waaree Energies Ltd., Mahindra Solarize Pvt. Ltd. and Havells India Ltd. to finance companies that need solar PV systems.

2. Finance to Biofuel Projects

Your Bank launched a new product for extending credit to all forms of biofuels mentioned in the 'National Policy of Biofuels 2018', viz. ethanol, bio-diesel, advanced biofuels and bio-CNG, among others, in a bid to promote the Government of India's initiative of increasing biofuels projects.

Biomass suppliers and aggregators who supply pellets/briquettes to thermal power plants for substitution of coal are also financed under this product. The product has long door- to-door repayment tenure of up to 15 years and an option of a term loan or regular working capital facility.

D. Export Credit

The MSMEs play a pivotal role in the Government of India's objective of increasing exports. During FY2023, your Bank's export credit to the MSME segment increased by 17.20% and reached Rs 1 5,672 Crore. Your Bank has put in place strategies for maximising business potential in export finance. Various digital initiatives to improve customer experiences are in the pipeline.

E. Co-lending with NBFCs

Your Bank has entered into co-lending agreements with 5 NBFCs.

J39,000+ Crore

DISBURSEMENT UNDER MUDRA LOAN

F. Trade Receivables Discounting System (TReDS)

Your Bank is the first Public Sector Bank to register as a financier on the TReDS platform and is present on all the three TReDS platforms in the country- RXIL, M1 Exchange and Invoicemart- to provide finance to MSMEs.

FY2023, your Bank discounted 26,973 bills amounting to Rs 9,800 Crore, registering an YoY growth of 144%.

Rural Banking

A. Agri Business

Your Bank has come out on top in Nationwide One Branch One Loan (NOBOL) campaign and Bankers Enabling Sustainable Transformation (BEST) campaign for Agri Infra Fund run by Ministry of Agriculture and Farmers Welfare. Further, your Bank has launched a new product named Agri Enterprise Loan (AEL) for catering to the credit needs of agribased enterprises engaged in various agriculture, allied, agri infrastructure and ancillary activities, which will be a growth driver in the investment credit portfolio. Your Bank has also launched the Kisan Samriddhi Rin (KSR) product. It addresses the credit requirements of large farmers/corporates/FPOs/ cooperatives of farmers based on the realistic cost of end-to-end farming for all types of crops including those of high-value export importance and use hi-tech / scientific / modern methods of farming.

Your Bank has achieved a remarkable milestone this financial year with its lending to farming and agricultural activities crossing Rs 2,58,612 Crore, the highest offered by any Bank. This extends assistance to more than 1.45 Crore farmers. In addition, the agriculture gold loan portfolio has grown significantly from Rs 73,600 Crore on 31^st March 2022 up to Rs 83,000 Crore as on 31^st March 2023.

To further support Aatmanirbhar Bharat schemes like Agri Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF) and PM Formalisation of Micro Food Processing Enterprises (PM FME), your Bank has disbursed loans to 6,954 borrowers for an aggregate sum of Rs 1 ,543 Crore during the current financial year.

The credit disbursement to the farmers over the years is as follows:

			(Rs in Crore)
Flow of Credit to Agriculture
Year	Target	Disbursement	% Achievement
FY2019	1,16,315	1,56,385	134
FY2020	1,27,947	1,77,473	139
FY2021	1,74,468	1,98,268	114
FY2022	1,92,500	2,19,396	114
FY2023 ?	2,11,750	2,54,617	120

B. Micro Credit

Your Bank holds the highest market share in SHG loans among all banks. Your Bank's portfolio under SHG loans crossed Rs 34,000 Crore as on 31^st March 2023 covering more than 98 Lakh women members. Your Bank's market share of loans under National Rural Livelihood Mission is the highest among all PSBs, accounting for 28% as on 31^st March 2023.

Since the inception of Deendayal Antyoday Yojana-National Rural Livelihood Mission in 2013, your Bank has financed 32.60 Lakh SHGs under Bank-SHG Linkage and disbursed Rs 94,815 Crore up to 31^st March 2023.

Your Bank disbursed more than Rs 39,000 Crore in Mudra Loans, and has sanctioned more than 20,000 proposals under the Stand-Up-India scheme during the year, which is more than half of all PSBs put together.

In FY2023, your Bank disbursed 3.34 Lakh loans, amounting to Rs 561 Crore to Street Vendors under PM SVANidhi Scheme.

C. Digital and Collaborations

Your Bank is revamping its agri-tech stack for loan processing to agriculture and allied activities, significantly reducing the TAT for credit delivery. Your Bank has also embarked upon digitising all customer journeys in the agriculture segment.

Your Bank has signed MoUs with 18 NBFCs/HFCs under its co-lending model to enhance its reach to the unserved and underserved populace. Under this model, your Bank has sanctioned loans to more than 1,52,000 borrowers amounting to Rs 865 Crore, of which more than 1,49,000 accounts were sanctioned in completely digitised mode (loans up to Rs 1 Lakh).

Your Bank is actively looking to partner with agri-techs and start-ups to cater to the financial needs across the agriculture value chain. To start with, your Bank has conducted an agri start-ups and agritechs meet at Bengaluru in December 2022 to discuss and deliberate the support and growth of the sector.

To further penetrate the agriculture and rural market, your Bank has floated State Bank Operations Support Services, which is expected to help your Bank reach out to a larger populace, and record improved efficiency in sourcing and collection of loans.

D. Financial inclusion

Your Bank has aligned its business goal with national priorities, and focused attention is given to a range of financial inclusion activities. Your Bank has undertaken significant strides towards financial inclusion through a vast network of Business Correspondents (BCs) and Customer Service Points (CSPs). As on 31^st March 2023, your Bank has 76,089 CSPs, providing access to 32 banking products and services in unbanked areas while reducing footfalls in the branches. The BC/CSP channel has recorded around 53.32 Crore transactions amounting to Rs 3,30,389 Crore during FY2023. On an average, around 25-30 Lakh transactions per day are routed through the BC/CSP channel.

BC/CSP channel is increasingly becoming one of the most crucial drivers of financial inclusion initiatives of your Bank. The channel has opened 14.69 Crore BSBD accounts with Rs 50,091 Crore deposits and has brought the unbanked/ underprivileged sections of society under the ambit of the formal banking system. As part of social security measures, low- cost microinsurance products (PMJJBY, PMSBY) and pension schemes (APY), are provided to the unorganised sector in a significant way.

Your Bank is the undisputed market leader in customer enrolment for government-sponsored social security schemes viz, PMJJBY, PMSBY and APY. The share of Bank in PMJJBY, PMSBY and APY is 43.83%, 40.85% and 31.78% respectively, among all Public Sector banks.

E. Imparting Financial Literacy (FLCs)

Your Bank has set up 341 FLCs across the country to impart free financial literacy, credit counselling, and the propagation of electronic payment systems. FLCs have conducted 38,162 camps in which ~12.50 Lakh people participated. Furthermore, as part of the RBI initiative to propagate awareness of financial products among the rural masses, your Bank has also set up 440 Centres for Financial Literacy (CFLs) at the block level which are also instrumental in exploring innovative and participatory approaches to financial literacy.

F. Rural Self Employment Training Institutes (RSETIs)

Your Bank has set up 152 RSETIs spread across 26 states and 3 Union Territories. RSETIs act as social change agents, empowering rural youth towards sustainable livelihood through skill development and training, helping them establish their micro-enterprises, and thereby creating rural employment and wealth creation.

From 1^st April 2022 to 31^st March 2023, these RSETIs have trained 99,438 candidates and achieved ~103% against the annual training target of 96,616 candidates set by the Ministry of Rural Development (MoRD).

During the recently concluded Annual Grading Exercise for FY2022 by MoRD, all 152 RSETIs of your Bank secured outstanding grading (AA), with 101 of them scoring 200/200.

#1	#1	#1	28%
LENDER TO FARMING AND AGRICULTURAL ACTIVITIES IN INDIA	MARKET SHARE IN SHG LOANS IN INDIA	MARKET LEADER IN CUSTOMER ENROLMENT FOR GOVERNMENT-SPONSORED SOCIAL SECURITY SCHEMES	MARKETS SHARE OF LOANS UNDER NATIONAL RURAL LIVELIHOOD MISSION AMONG PSBs

Special recognition given to your Bank by Pension Fund Regulatory and Development Authority (PFRDA) for performance in Atal Pension Yojna (APY)

During FY2023, your Bank has achieved 27.88 Lakh APY enrolments as against the target of 17.90 Lakh allotted by PFRDA (~156% of the target). PFRDA has conferred following major awards to your Bank for various APY campaigns:

Government Business

Your Bank is at the forefront of conducting Government Business, with a market share of 65.92% in Central Government turnover, and is an accredited Banker to 26 major Central Government Ministries and Departments.

Turnover and Commission

(Rs in Crore)

Particulars	FY2022	FY2023
Turnover	55,18,281	60,35,342
Commission	3,713	3,953

Your Bank is continuously engaged in developing customised technology solutions, to support the Government's digital initiatives facilitating transition to the online mode, providing greater efficiency and transparency, resulting in ease of doing business & ease of living for the citizens.

Following initiatives have been implemented during the year:

1. PM Kisan Samman Nidhi Yojana

As accredited Bank to Ministry of Agriculture & Farmers' Welfare, your Bank has facilitated distribution of Rs 40,477 Crore under the scheme as a sponsor bank.

2. Direct Benefit Transfer (DBT)

All the major schemes of Direct Benefit Transfer (DBT) of GoI and State Govts are being implemented through your Bank on a pan-India level. State Bank of India is the sole Banker for processing Direct Benefit Transfer of LPG subsidy (DBTL).

Your Bank has successfully rolled out the ePA (Electronic Payment Advice) mechanism for the digital authorisation of payments originating through Public Financial Management System (PFMS).

3. Ministry of Defence (MoD)

• PRABAL: (PFMS Raksha Budget Aaharan and Lekhankan)

Launched by MoD to bring all CDAs (Controller of Defence Accounts) under single platform. This will act as unified interface for all offices of MoD for lodging, processing and payments of Bills. Your Bank has integrated its digital platform with PRABAL.

• Armed Forces Battle Casualties Welfare Fund (Maa Bharti ke Sapoot):

Launched by the Hon'ble Defence Minister, the Armed Forces Battle Casualties Welfare Fund account was set up to receive online donations through the SBI payment gateway on 14^th October 2022.

4. Ministry of Railways

• Indian Railways e-Procurement System (IRePS):

The VAN solution on IRePS was made live allowing participation in leasing and other auctions. Now IRePS bidders have option to choose either Lien module or VAN solution as a payment option to submit EMD (Earnest Money Deposit).

• Parcel Management System:

Railway has a computerised Parcel Management System (PMS) under which details of Parcels are fed into the system. Your Bank has taken up digitalisation for fee collection and entered into an MoU with Railways.

5. Centrally Sponsored Schemes (CSS) under Single Nodal Account (SNA) mechanisms and Central Sector Schemes (CSS) under Central Nodal Account (CNA) mechanisms Your Bank has developed and rolled out the necessary solutions for all the models prescribed by PFMS to implement SNA and CNA mechanism. The customised SNA solutions have been rolled out for Govt. of Rajasthan (IFMS application) and Karnataka (Khajane application).

6. Pension Payments

• Your Bank has been administering pension payments to 43 Lakh pensioners. New pension accounts of 2.54 Lakh pensioners were added in FY2023.

• Your Bank has launched Pension Seva Mobile App for pensioners to avail of all the services.

• Video Life Certificate made available on Pension Seva Mobile App for regular and family pensioners.

• Pension slip through SBI WhatsApp Banking was launched on 5^th November 2022.

• Your Bank has integrated Bhavishya Portal of GoI with SBI Pension Seva Portal for ease of services to the Central Government Pensioners.

#1

MARKET LEADER IN SMALL SAVINGS SCHEMES AMONG AUTHORISED BANKS IN INDIA

• Your Bank successfully conducted a nation-wide campaign for the submission of Digital Life Certificates at 35 centres across India, which were identified by the Ministry of Personnel, Public Grievances and Pensions, Department of Pension & Pensioners' Welfare (DoPPW), New Delhi.

• Two new services were launched by the Ministry of DoPPW on Bhavishya Portal of GoI. Form 16 (part B) and Life Certificate Status have been made available to the Central Government pensioners in the Portal.

7. Small Savings Schemes

Your Bank services more than 88.32 Lakh PPF, 25.66 Lakh Sukanya Samriddhi Yojana (SSA) accounts, and 12.73 Lakh Senior Citizen Savings Schemes (SCSS) accounts, making it the highest among all the authorised banks. During FY2023, 5.13 Lakh PPF accounts, 2.93 Lakh SSA accounts and 2.09 Lakh SCSS were added.

Digital & Transaction Banking (D&TB) - Marketing

1. Current Accounts

Current Account (CA) balances contribute directly to the profitability of your Bank by reducing Cost of Deposits and improving Net Interest Margin. CA remains critical component of the CASA deposits. Your Bank has a bouquet of CA products that are competitive in the market and meet the requirements of different customer segments.

Your Bank has taken the following initiatives for improving the CA business:

People:

• Created an exclusive position of Relationship Manager Current Account (RMCA) to focus on the marketing of CA business and cater to existing high-value CA customers.

• Close monitoring of 20 districts/ centres with high potential and low market share.

• Training on YONO, CKYC, Online CA opening, other digital products and soft skills for RMCAs.

Process:

• Digital (Online) CA opening facility for all entities to provide an omnichannel experience to the customers and reduce TAT in opening of accounts.

• Re-imagined Journey through YONO business to simplify and improve CA opening journey.

• CKYC for Digital transmission of AOF and KYC documents and help in improving TAT in CA opening.

• Various dashboards, including campaign dashboards for better performance monitoring.

• Enhanced CA visibility on SBI corporate website.

• Project Drishti and Kuber with external consultant for improving and revamping CA and CMP (Cash Management Product) Business.

• Integration with FinTechs to provide industry/sector specific offerings.

Products:

• Integration of MCA SPICe Form for CA opening.

• Revamping of RERA products.

2. Transaction BankingMarketing

TB Marketing, formerly Transaction Banking Unit (TBU), employs cutting- edge technology to offer clients comprehensive transaction-related products and solutions. Your Bank's TB business seeks to take advantage of new technology initiatives and meet clients' bulk transaction needs, in addition to customised MIS, ERP integration and a dedicated Client Support Cell. Its study and analysis of transaction patterns allows it to devise unconventional ways of meeting clients' other banking needs like Credit, Fund Management, Cross Selling and others services.

Your Bank's commitment to offering customer satisfaction drives us to improve its technology continuously. Your Bank has recently implemented new solutions such as VAN-based Cash and Cheque Collections to extend TB across all branches, Digi Voucher, and provide a multi-channel delivery model for transactions. Customers across Corporates, MidCorporates, Government Departments, Financial Institutions such as NBFCs, Insurance Companies, Banks, Mutual Funds and SME Clients can benefit from these TB products designed to facilitate, automate and optimise fund management.

Corporate Banking A. Corporate Accounts Group

Corporate Accounts Group (CAG) is a dedicated Business Unit (BU) of your Bank and handles SBI's 'high-value credit' portfolio as a specialised and efficient delivery platform. CAG BU has four specialised Branches headed by General Managers located in India's top three commercial centres, namely Mumbai (2), New Delhi (1), and Chennai (1). Major top corporates of the country and Navratna PSUs are esteemed customers of CAG BU.

CAG BU is an exclusive one-stop shop that provides the entire range of financial services and products to top-rated corporates and their foreign associates and subsidiaries. The business model of CAG BU is based on the relationship management concept. Each client/business group is mapped to a relationship manager who spearheads a cross-functional client service team consisting of highly skilled credit and operations functionaries.

The relationship strategy is anchored on delivering integrated and comprehensive solutions to clients, including structured products within a specified time frame. The prime objective is to make SBI the first choice of top corporates. A regular review of each corporate relationship by senior management sets the benchmark for relationship management in CAG BU.

Apart from various core credit products, CAG BU offers an array of customer-specific products like Cash Management Product, Treasury/ Forex products and Merchant Banking products in association with other BUs and subsidiaries of SBI. The Client Service Teams at CAG Branches also aid customers in the selection and delivery of a wide variety of products and services offered by associates and subsidiaries of SBI.

To align with the changing banking landscape, your Bank has created two specialised units within CAG BU:

Corporate Solutions Group (CSG)

-To address the entire ecosystem of banking related requirements of credit light corporate customers in significant sectors such as FMCG, Auto, IT, Pharma and Agri with a focused thrust on new- to-bank as well as existing customers.

Financial Institutions Group (FIG)-To address credit, transactional, general banking and non-banking requirements of financial Institutions such as Insurance Companies, Brokerage Firms, Banks (Private and Foreign), Mutual Funds, FDI and FPI entities.

The total loan portfolio (Fund Based and Non Fund Based) of CAG BU as on 31^st March 2023 stands at Rs 6.50 Lakh Crore as against Rs 6.18 Lakh Crore on 31^st March 2022. Demand for credit picked up in the second half of FY2023 resulting in growth of 0.56 Lakh Crore in fund-based advances at CAG BU.

B. Treasury Operations Treasury operations

Global Markets Unit (GMU) performs the domestic treasury operations of your Bank and is responsible for deployment of surplus funds to achieve desired risk- adjusted returns. The Global Markets' portfolio comprises investments in Statutory Liquidity Ratio (SLR) and Non- SLR Securities, Publicly Traded Equities, Venture Capital Funds, Private Equity, and Strategic Investments. Additionally, it offers multiple products and services that cater to its customers' foreign exchange and risk management requirements.

FY2023 began with the conflict in Ukraine, which, combined with the removal of the lockdown, led to another round of high inflation across the globe, just as the pandemic- induced supply chain issues started to resolve. Developed countries saw unprecedented tightness in labour markets, leading to a round of sharp rate hikes by central banks. US 2-year treasury yields, which were around

0. 25% in 2021, shot up to 5%+ levels as the US Federal Reserve hiked its policy Fed funds rate by 475 basis points (including a 25 basis points hike in March 2022), the fastest pace of hikes since the 1980s. In India, CPI touched a high of 7.79% in April 2022, well above the upper level of RBI's target band of 4% to 6%. RBI started hiking the policy repo rate from May 2022 to curb inflation, with 6 consecutive hikes totalling 250 basis points during FY2023.

Rupee Markets

1. Interest Rate Markets : SLR and Non-SLR Portfolio

Rate hikes by RBI led to a jump in bond market yields, with the benchmark 10 year touching a high of 7.62% in June 2022, up from 6.84% at the end of March 2022. Your Bank took prudent investment decisions that helped contain the impact of rising interest rates on the investment portfolio.

Key Initiatives

Customer Value Creation

• Your Bank has introduced SBI e-Forex facility in the YONO Business-Android app to enable customers to book foreign exchange rates on the go. The same is expected to be rolled out shortly for the iOS platform as well.

• Your Bank has removed the minimum transaction size in e-Forex and has increased the maximum transaction size limit. This will allow SME customers to book the smallest foreign exchange transactions through the platform, while providing more flexibility for larger customers.

• Further improvements in your Bank's online outward remittance product, FXOut, have been made. An SMS and email facility to track outward remittances has been introduced, and a new currency 'NZD' has been added to the currencies that can be remitted.

• A centralised processing cell has been set up for opening FCNR deposits, to speed up the process and for better customer experience, at GMU Kolkata.

• Submission of LC/BG application as well as Purchase Order/ Invoice through email has been waived for applications submitted through the YONO business platform.

Fresh investments were also made at appropriate levels to augment interest income. Your Bank's liquidity position remains comfortable, and it is well placed to handle any moderation in liquidity.

2. Equity Markets

In FY2023, the Indian market outperformed other global emerging markets, driven by the country's robust economic outlook despite multiple global headwinds. Your Bank actively participated in the rally in the equity markets, calibrating the investment book as per market dynamics. There was moderation in IPOs during the second half of the year, with listing gains for the issuances remaining muted. But your Bank actively participated in the primary market during the first half, including in InvITs and REITs, generating high returns.

Your Bank remains focused in building a long-term investment portfolio, as well as in generating positive alpha through short-term tactical positions. Your Bank continues to deepen its research capabilities through the expansion of the research team and advanced training.

3. Private Equity /Venture Capital Fund

Your Bank has been an active participant in the alternative investment space during FY2023 and has supported startups through direct equity participation as well. During the year, it has sanctioned investments of more than Rs 800 Crore in private equity/alternative investment funds.

Forex Markets

The Global Markets Unit (GMU) handles the foreign exchange business of your Bank, providing solutions to the customers for managing their currency flows and hedging risks through options, swaps, and forwards, in addition to providing liquidity to markets. Your Bank is a leading player

in USD-Rupee Spot and USD-Rupee Forward markets and has a high market share in merchant foreign exchange flows. Your Bank is the leader in providing liquidity in CCIL Fx Clear platform. The volume traded in currency futures puts your Bank in the bracket of leading client banks of exchange houses. Your Bank is actively on-boarding customers on the Fx-Retail platform rolled out by CCIL. FX-All and e-Forex platforms are made available to customers to meet their foreign exchange requirements. Your Bank is also a major player and a market maker in offshore USD-Rupee NDF market or Non-deliverable Derivative Contracts (NDDCs).

Your Bank also has treasury marketing units in 8 major cities and 10 satellite centres spread across the country to help customers with their requirements. They conduct meetings and conferences with exporters, trade industry bodies and large corporate customers to understand their needs and discuss about foreign exchange markets and the various products of your Bank. During the year, we have opened a new satellite centre at Surat. Your Bank also has a specialised desk to take care of the requirements of FPI/ FDI/ODI customers.

Derivatives

Your Bank currently deals in Over- the-Counter (OTC) interest rate and currency derivatives, along with exchange-traded currency derivatives and Interest Rate Futures. The interest rate derivatives traded by your Bank are Rupee Interest Rate Swaps (Rupee IRS), Rupee Interest Rate Futures (IRF), Foreign Currency Interest Rate Swaps (IRS), Foreign Currency to Rupee Interest Rate Swaps (Modified MIFOR), Forward Rate Agreements (FRA), Caps, Floors and Collars. Currency derivatives dealt by your Bank are Cross Currency

Swaps (CCS), USD/INR options and Cross Currency Options. These products and their customised versions are offered to your Bank's customers to hedge their interest rate and foreign exchange exposures.

Post-liberalisation of derivative guidelines by RBI, your Bank has started offering a larger bouquet of hedging solutions to its customers, including barrier options, and has started doing Foreign Currency Settled Overnight Index Swap (FCS-OIS) transactions.

Your Bank's 'Policy for Derivatives' prescribes market risk parameters (Greek limits, loss limits, cut-loss triggers, open position limits, Duration, Modified Duration, PV01, amongst others), as well as customer eligibility criteria (Credit Rating, sanctioned limits, and CAS rating as per Customer Appropriateness and Suitability policy) for entering into derivatives transactions. Risk on interbank counterparties is monitored through limits set for the purpose. These counter-parties have also executed ISDA with your Bank.

C. International Operations

Foreign Banking Subsidiaries/Associates	Share Holding (%)
Subsidiaries
State Bank of India (California)	100.00
SBI Canada Bank	100.00
State Bank of India (UK) Limited	100.00
Commercial Indo Bank LLC	100.00
SBI (Mauritius) Limited	96.60
Bank SBI Indonesia	99.56
Nepal SBI Bank Limited	55.00
Foreign Non-Banking Subsidiary
SBI Servicos Limitada, Brazil	99.99
Associate
Bank of Bhutan Limited	20.00

In its endeavour to become a truly International Bank, your Bank has realigned its focus to enhance its penetration in overseas local markets and India-based businesses to support the Indian diaspora and global Indian corporates spread across various geographies.

Global Presence

Your Bank's first global footprint was with the branch of Bank of Madras in Colombo, Sri Lanka in July 1864 (a first amongst Indian Banks). With presence across all time zones through its 235 offices in 29 countries, State Bank of India has gradually spread its wings globally and has become a pioneer of International Banking among the Indian PSBs. International Banking Group (IBG) is managing the overseas operations of SBI.

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

Overseas Offices	As on March 2022	Opened during the year	Closed during the year	As on March 2023	Business Volume
Branches/Sub-offices/ Other Offices	55	1	0	56	USD 74 Billion
Total no. of Subsidiaries	(8)	0	0	(8)
- Offices of Subsidiaries	161	8	0	169
Representative Offices	6	0	1	5	Net Profit
JV/ Associates/Managed Exchange Cos / Investments	5	0	0	5	USD 334 Million
Total	227	9	1	235

During FY2023, your Bank opened one India Visa Application Centre (Other Offices) at Khulna (Bangladesh) and 5 branches and 3 extension counters through its overseas subsidiary in Nepal.

IBG has been gradually adapting to the dynamics of the post-COVID world while continuing to grow at a healthy rate. It has adapted well to optimise its cost of resources in the rising interest rate scenario by diversifying its liability base. It has also leveraged its digital offerings like SBI YONO by launching in new geographies to improve penetration through contactless offerings for raising retail deposits.

IBG has maintained its focus on business by registering good growth in its overseas credit portfolio during the year while maintaining the quality of assets with a reduction in both Gross NPAs and Net NPAs. Besides meticulous credit monitoring, IBG has been agile in managing assets showing signs of stress to minimise the possibility of losses due to further deterioration in asset quality. Further, it has maintained its connect with the clientele through various outreach initiatives with exporters, banks, etc., to reinforce the existing relationships and also to forge new ones.

Despite the macroeconomic headwinds, shrinking of spreads, etc., IBG has maintained profitability during the year. This was achieved by enhancing cost efficiencies and bringing down expenditure ratio. It is continuing to leverage new income streams like Merchant Banking and Invoice Financing to supplement its profitability.

Strategic focus of IBG:

a. Growth in balance sheet size while maintaining assets quality

b. Focus on booking of assets with reasonable margins

c. Optimising cost of resources

d. Enhancing digital offerings and using technology across processes.

e. Boosting fee income to improve profitability

f. Compliance to be the top focus, with zero tolerance on compliance/ regulatory issues.

The specialised departments of IBG have played a vital role in sustaining the momentum by contributing across various fronts:

1. Credit Contribution

While your Bank is an active supporter of Indian corporates in their global growth strategy, by arranging debt in Foreign Currency by way of ECBs through syndicated deals in conjunction with other Indian and Foreign Banks, and through bilateral arrangements, it has also been increasing its presence in Local Credits by partnering with local / global Banks.

Your Bank sanctioned Foreign Currency loans of USD 12.81 Billion to India-related corporates and USD 11.95 Billion to overseas entities during FY2023.

Your Bank acted as the lead arranger in Syndicated Loan facility of three Fortune 500 companies in the US.

2. Trade Finance

Your Bank is supporting Indian importers and exporters by offering them a bouquet of Trade Finance products and services through an extensive, well-equipped branch network that operates in India and abroad.

The Global Trade Department (GTD) of IBG supports Bank's Foreign Offices (FOs) for an orderly growth of Trade Finance portfolio, formulates policies and innovates new products for FOs as per the market demands and changing regulatory norms.

The GTD facilitates trade credits to Indian corporates for their imports by the centralised handling of quote process and plays an important role in synergising business flows between domestic and foreign offices for maximising returns. It also organises trade-related workshops/conferences, by partnering with trade bodies viz. BAFT (Bankers Association for Finance and Trade), GTR (Global Trade Review) etc. Workshops are also organised in partnership with ICC, FIEO etc. to provide a platform to network with exporters/regulators/industry majors.

Your Bank was awarded 'The Best Trade Finance Provider (India) - 2023' for the 11th consecutive year by the Global Finance Magazine, New York.

3. Overseas Treasury Management

Treasury Management Group (TMG) at International Banking Group undertakes following functions for the Foreign Offices:

• Liquidity Management

• Dealing Room Operations

• Investments

TMG-IBG manages overall liquidity portfolio of IBG and also monitors asset liability management ratios. TMG is the nodal department for raising long and medium-term funds through Bond Issuance (MTN/Standalone 144A), Syndicated Loans, etc. In addition to this, TMG also utilises various means of borrowings, to keep the cost of resources in check. TMG is actively engaged with Multilateral/Supranational entities in arranging foreign currency finance/ refinance at competitive pricing.

During the financial year, your Bank raised more than USD$1 Billion longterm resources from different multilateral agencies. Your Bank has done a Club deal in self syndication format and raised USD$500 Million for 3 years.

Currently, there are five major dealing rooms at London, New York, Hong Kong, Bahrain, and the Gift City in Gandhinagar, that work on a hub and spoke model to help smaller Foreign Offices in their operations. Your Bank is also working to develop Gift City Gandhinagar banch as another fundraising centre. Your Bank is expanding its wings in Debt Capital Market and has created Merchant Banking desks at Singapore and London.

Your Bank has drawn out an ESG (Environmental, Social and Governance) framework this year, which captures how we manage risk and opportunities around sustainability issues.

Your Bank became the first PSU Bank having duly vetted ESG financing framework on which a social syndicated loan for USD$1 Billion was raised during FY2023.

The loan became the largest ESG loan by a commercial Bank in Asia Pacific and second largest social loan globally. This was also the largest overseas syndicated loan concluded by your Bank at an attractive pricing.

4. Global Payments and Services

Global Payments & Services (GP&S) facilitates Online Inward Remittances and SWIFT-based Remittances from Overseas locations to India, Foreign Currency Cheque collection, Opening and Maintenance of Vostro Accounts and Asian Clearing Union (ACU) Transactions.

The highlights of the year are:

• During the year, GP&S entered into a new tie up with M/s. Remitly Inc. USA for channelising remittances from various countries viz., US, UK, Canada, Europe etc. to India under Rupee Drawing Arrangement.

• As per the provisions of RBI for settlement of trades in INR through Special Rupee Vostro Accounts, GP&S has opened five SRV accounts during the year with the approval of RBI.

5. Retail Strategy

Through its specialised retail and remittance products, your Bank has been a 'Window to India' for NRIs residing in different parts of the world. Notable achievements for the year are:

• YONO SBI has now been extended to customers at overseas offices. It has been successfully launched in the UK, Canada, Mauritius, Nepal, Maldives, Bangladesh, South Africa, Sri Lanka, and Bahrain, with remote account opening facility operational in the UK and in Canada. More than 1,25,000 overseas customers have been on-boarded through YONO.

• Fully digital online account opening journeys deployed at SBIUK and at SBI Canada Bank.

• GIC account: The product enables students travelling to Canada (for studying) to open GIC account with our SBI Canada Bank in YONO Canada App.

• The 'One View' feature of YONO Global allows international customers to view their domestic SBI Accounts, practically merging all enquiry features of Domestic YONO SBI with its global version. Over 5,500 SBI Foreign Office customers are already using this feature.

6. Financial Institutions Group (FIG)- Correspondent Relations

FIG facilitates linkages between your Bank and international stakeholders viz. Financial Institutions (FIs), Foreign Govt. Agencies and Developmental Financial Institutions (DFIs), etc. and establishes a synergy between IBG and other business verticals such as Corporate Accounts Group, Commercial Clients Group, Retail Banking Group and Global Markets.

FIG functions as a pivot in maintaining and reviewing Correspondent Banking relationship with a network of 224 Banks in 55 countries. It also maintains RMAs (Relationship Management Application) established by both domestic and foreign offices. Your Bank has more than 4,200 RMAs with 850+ Banks in 114 countries, as on 31^st March 2023.

4,200+

TOTAL RMAs ESTABLISHED BY DOMESTIC AND FOREIGN OFFICES AS ON 31ST MARCH 2023

7. International Banking -Domestic(IBD)

Your Bank is well-equipped to provide exporters and importers with a wide range of products and services through an extensive domestic and international branch network.

IBD serves as a single point of contact between the Domestic Offices and Foreign Offices in areas related to Trade Finance and International Banking. IBD aims at improving synergies and trade flows between Domestic Offices and Foreign Offices/Correspondent Banks

and trading community, by acting as a robust link between them.

IBD facilitates growth of export credit by actively involving with branches, trade bodies and other stakeholders.

8. Technology Initiatives at Overseas Offices

Your Bank continues to leverage technology solutions to automate processes, enhance customer experience and manage risk. The initiatives undertaken at overseas offices includes:-

• Your Bank has been consistently leveraging digital channels to provide an omni-channel experience to its customers across all geographies. YONO Global App has emerged as the prime fulcrum for providing Banking services to retail customers. The registrations of the YONO Global App have crossed the 1 Lakh landmark. With almost 50% of customer base using the App to access banking services, the platform has evolved with enhanced features like online account opening, real-time payments enabled via QR codes, bill payments, etc. Some of the major new features added include INR remittance for non-customers at UK Operations, 24/7*365 inter-bank fund transfer functionality through integration with Instant Payment System at Mauritius, etc.

• Your Bank has also embarked upon a complete revamp of its e-Banking web platform in consonance with latest functionalities and industry standards. This has been completed across 6 geographies namely, USA, UK, Mauritius, Maldives, Sri Lanka & Bangladesh during the year.

• Your Bank has completed the rollout of the new revised version of the sanctions screening solution having improved features including AI/ML capability. The revised AML/CFT solution with enhanced features like peer profiling, improved compliance dashboards and case workflow enhancements has also been completed at all FOs in FY2023.

Commercial Clients Group (CCG)

CCG services the credit needs of mid and large corporates through a network of 51 branches across 30 cities in the country, and includes specialised branches like the Diamond branch, Capital Market branch, and others. It has an experienced team of credit specialists to support large credit proposals.

CGMs in the CCG are assigned as the group relationship owners in order to improve the quality of coverage and to enable an integrated view on exposure and earnings across the group. Your Bank has set up an experienced team of credit specialists to support large credit proposals

CCG performance

			(Rs in Crore)
Levels	MarRs 21	MarRs 22	MarRs 23
Non-food Advances	4,08,110	4,20,276	4,87,989
CASA Deposit (%)	23.56	24.91	26.43
Avg. Business per Employee	168.96	185.42	226.76
Other Income (excluding income from AUCA recovery)	3,163	3,819	3,900
Pre-TPM Operating Profit	32,623	29,113	32,916
New Credit Customer added:
(i) No. of Customers	128	304	232
(ii) Limits Sanctioned during FY2022	59,965	75,552	49,101

 

51

BRANCHES THROUGH WHICH CCG SERVICES THE CREDIT NEEDS OF ITS CUSTOMERS

30

CITIES OF PRESENCE

Key initiatives

Export Credit Growth: External benchmark (T-Bill Rate) linked interest rates have been rolled out to WCL and LC Bill Discounting facilities in order to incentivise top-rated borrowers and encourage utilisation of their limits. To stay competitive, this option is even offered for Rupee Export Packing Credit facilities. To further reinforce awareness about

your Bank's services among exporters, we are organising various informational meets in India. Additionally, with the implementation of Trade Regulatory Reporting and Compliance Solution (TRRACS) Software, the backlog of EDPMS/IRMs/Export advances entries has dropped significantly.

DIPAK Pricing: Digital Interface on Pricing and Knowledge (DIPAK), a pricing tool has been made available to operating functionaries and sanctioning committees to enable data-driven pricing of Corporate Loans.

Others:

• Project Kuber was launched in your Bank, which is driving a special focus on the marketing of current account deposits and various transaction banking products in CCG vertical.

• As on 31^st March 2023, the gross advance level of CCG increased by 16.11% on a YoY basis. Major sectors which contributed to the growth are Infra, NBFC, Mining, Services, CRE, Power, Chemical, and Engineering.

• ESG initiatives in renewable energy, ethanol, EVs and city gas distribution remained in focus.

Project Finance and Structuring Strategic Business Unit

Your Bank's Project Finance and Structuring Strategic Business Unit (PF&S SBU) deals with the appraisal, structuring and syndication of funds for large projects in infrastructure such as power, roads, ports, railways and airports, among others, and non-infrastructure such as refinery, metals, glass, fertilisers, cement, and oil & gas, with certain threshold on minimum project cost. The PF&SSBU also supports other verticals for vetting their large- ticket term loan proposals. It provides inputs from the lender's perspective to various ministries of Centre/State Governments and RBI, provides inputs and suggestions on draft agreements and contracts like Model Concession Agreements, and takes up broader issues faced in infrastructure finance with various stakeholders.

Your Bank has an experienced team to support, deal structuring for high value proposals across lending, bonds, International Banking, and Structured/ Mezzanine Finance.

The government has stepped up investment in infrastructure space and have increased outlay on capital expenditure in FY2024 budget to Rs 1 0 Lakh Crore. A lot of activity is also seen in the emerging sectors such as electric vehicle, electric batteries, battery energy storage system, semi-conductors and data centres, among others.

Based on effective connect with the clients, Government Ministries, Authorities, and expertise developed over the years, your Bank is well poised to garner more business opportunities and maintain its leadership position in the project lending space.

Stressed Assets Management

Today, Stressed Assets Resolution Group (SARG) stands as one of the most important verticals of your Bank, and the GNPA of your Bank is on the course of a downward journey. Resolution of Stressed Assets by SARG presents the following latent income generating avenues for your Bank:

• Cash recovery in NPA and AUCA

• Reduction in Loan Loss Provisions

• Contribution to your Bank's bottom line

• Unlocking the lendable funds for credit growth

The movement of NPAs in SBI and recovery in written-off accounts during the last six financial years:

					(Rs in Crore)
Particulars	FY2018	FY2019	FY2020 FY2021	FY2022	FY2023
Gross NPA	2,23,427	1,72,750	1,49,092 1,26,389	1,12,023	90,928
Gross NPA%	10.91%	7.53%	6.15% 4.98%	3.97%	2.78%
Net NPA	1,10,855	65,895	51,871 36,810	27,966	21,467
Net NPA%	5.73%	3.01%	2.23% 1.50%	1.02%	0.67%
Fresh Slippages + Increase in O/s	1,00,287	39,740	54,510 29,332	26,776	19,223
Cash Recoveries / Up-gradations	14,530	31,512	25,781 17,632	21,437	16,258
Write-Offs	40,196	58,905	52,387 34,403	19,705	24,061
Recoveries in AUCA	5,333	8,345	9,250 10,297	7,782	7,097
PCR	66.17%	78.73%	83.62% 87.75%	90.20%	91.91%

Your Bank is taking all pre-emptive measures by extending assistance to the borrowers for maintaining asset quality.

The current level of NPA has come down significantly over the years due to consistent recovery efforts viz.,

• Insolvency and Bankruptcy Code (IBC) 2016 for resolution of stressed assets has provided Bank with a time-bound, transparent, and effective mechanism to tackle Stressed Assets. Resolution has been achieved in some of the high-value NPA accounts referred to

the NCLT under the Code. The cases referred to NCLT are also monitored by NCLT Cell at SARG. A total of 1075 cases (Whole Bank) were referred to the NCLT as on 31^st March 2023, out of which 882 cases have been admitted. Furthermore, 196 cases have been resolved, including some high-value accounts from 1^st & 2^nd reference lists of RBI.

• Compromise Settlement is also offered to all eligible cases to recover sticky loans. Bank's Board approved OTS Scheme, which is non-discretionary and non-discriminatory, is also offered to all eligible borrowers for recovery/ resolution.

• Prudential Framework for Resolution of high-value Stressed Assets by RBI has provided an avenue for time- bound resolution of these accounts (outside the NCLT process). Your Bank is exploring this option in all the eligible cases.

• In non-NCLT cases, recovery is explored through action under the SARFAESI Act and suit filing in DRTs and Courts. The sale of mortgaged properties is explored through a common e-Auction platform https://ibapi.in ('e-B^T' -Indian Banks Auction Properties Information) under the aegis of IBA.

Sector Specific Targeted Approach:

SARG focusses on prioritising the resolution of NPAs through a Sector- specific approach. Currently, SARG is headed by the Deputy Managing Director, supported by the Chief General Managers overseeing the Sector-wise portfolio, NPA portfolio across SARG branches and accounts under liquidation.

With effect from 1^st August 2022, SARG has been reorganised by creation of 4 SAM Regional Offices (SAMROs) at Hyderabad, Kolkata, Mumbai and New Delhi, covering the entire country.

SARG controls 16 Stressed Assets Management Branches (SAMBs) and 48 Stressed Assets Recovery Branches (SARBs) across the country handling 50.48% of Bank's NPAs and 88.03% of AUC Accounts of your Bank.

Industry-wise distribution of the NPA portfolio (as on 31.03.2023):

1 Power	5%
2 Telecom	3%
3 Trading	9%
4 Roads & Ports	7%
5 Infrastructure (Others)	6%
6 Engineering	2%
7 Iron & Steel	1%
8 Textiles	2%
9 CRE/Real Estate	2%
10 Automobiles/Transport	1%
11 Metals & Mines	1%
12 Others	61%

The major NPA accounts are from Industries like Power, Telecom, Trading, Roads & Ports, Infrastructure (Others), etc. Apart from the above, the remaining portion of gross NPA is from AGRI/ PER/MSMEs. The GNPAs from Agri Segment & Personal Segment (33% & 8% of Total GNPAs, respectively) also form part of Others above.

Compromise Settlements, NCLT & ARC: Apart from normal recovery, a significant portion of the recovery at SARG comes from Compromise Settlements and NCLT. A team has been set up to look after the sale of assets to Asset Reconstruction Companies (ARCs) on a Cash and/or Security Receiptvs (SR) basis.

Innovation for Resolution of Stressed Assets

Resolution under IBC is a market- oriented mechanism where competing bidders for a particular Stressed Corporate Debtor bring better valuation and higher recovery. SARG has set up a marketing team to reach out to a broader investor base and showcase Stressed Asset portfolio covering assets undergoing IBC resolution or outside IBC.

The transfer of eligible assets to NARCL is also being monitored by SARG and the requisite enablers are in place to ensure smooth migration of identified assets.

Robust IT initiatives have been rolled out, including LITMAS (Litigation Management System), to monitor legal recourse undertaken in the Stressed Accounts for expediting resolution. It will further strengthen the transparency and efficiency of the process. Wilful Defaulter Management System (WDMS) Application has also been developed for digitalisation of Wilful Default examination process for better monitoring and achieving operational excellence.

SARG also conducted a Conclave with a theme 'Rapid Resolution & Recovery'. The address/direction by the top management heightened the performance spirit of SARG functionaries. Also, there were brainstorming sessions by SARG functionaries with deliberations on the present and future prospects. The sessions by External Domain Experts also provided a knowledge enriching experience to the participants.

Redesign Studio

1. Opening of Branches and Retail Assets Central Processing Centres (RACPC) during FY2023

A total of 159 branches were opened during the year with a focus on Unbanked Rural Centres, where 79 branches were opened. Also, 128 RACPCs/RACCs were opened.

New branch openings in FY2023

2. Digital Banking Units (DBUs)

To celebrate 75 years of independence of progressive India and to give boost to the digital economy, your Bank has opened 12 DBUs across seven states and one UT. The DBUs provide banking services through digital modes/ channels in a paperless, efficient, safe and secured environment.

3. Start-up Branch

Your Bank has decided to open specialised start-up branches to exclusively cater to the banking and non-banking needs of startup ecosystem and 4 branches have been opened in Bangalore, Chennai, Gurugram and Mumbai Metro.

4. Accessibility to Divyangjans

94.68% of Bank's branches have been made accessible to divyangjans along with provisioning of doorstep banking services. Additionally, wheelchairs are available at branches where divyangjan customers have been registered.

5. Rationalisation of processes at Liability Central Processing Centre (LCPC)

Image-based processing of accounts has started at LCPC. This has led to reduction in TAT for account activation of individual accounts to less than T+2 days in FY2023. For non-individual accounts, the average TAT of debit activation of new-to-bank customers was less than T+3 days in FY2023.

6. Developing culture of Business with Compliance

To imbibe the culture of doing things right the first time and to avoid wastage of resources, various campaigns were launched to create a culture of being first-time right and always fully compliant with the present regulations. The campaign has led to employee engagement and widespread enthusiasm in reducing TAT for account activation.

7. Project SBI DIGI Vault

This project has been rolled out with the objective to digitise all types of documents pertaining to Loans and Deposits, with the facility to provide viewing/download rights. It will also facilitate off-site audit for internal audit, compliance, statutory audit and supervisory audit, etc.

SUPPORT AND CONTROL OPERATIONS

Human Resources and Training

Your Bank acknowledges the fact that human capital is at the core of any organisation's growth engine. Your Bank possesses a balanced mix of young and experienced employees. This results in a perfect blend of energy and innovation on one hand, and experience on the other. It's HR policies are reviewed regularly and adjusted to make it more relevant in the present context. In addition to this, the processes are also being moved to digital platforms to ensure seamless user experience and reduce the TAT for employees, which would result in increased employee productivity.

The summarised HR profile of your Bank as on 31.03.2023 are as:

Category	31.03.2022	31.03.2023
Officers	1,11,549	1,09,259
Associates	99,259	94,977
Subordinate Staff & Others	33,442	31,622
Total	2,44,250	2,35,858

Productivity Enhancement Initiatives

Your Bank adopts a branch manpower model for manpower planning to ensure optimal utilisation of human resources. The model is based on the productivity parameters at the branches like identified work-drivers of operations, transaction load factors, number of advance accounts, feedback from the operating units and organisational structure, among others.

Your Bank completed streamlining its promotion and transfer process in the first quarter of the financial year under review, thereby providing the required assurance and stability to the branches and other units to actively focus on business activities.

Your Bank is developing a 'HR Super App', which will integrate all staff requirements, along with process of relevant employee-specific business requirements in a single app. The application will provide the employees with a Single Sign-On (SSO) platform for all their requirements.

Your Bank's Career Development System (CDS) ensures a transparent, credible data-backed performance evaluation process for assessment of employee's performance. The system ensures objectivity, business orientation, performance visibility and greater alignment between individual and organisational goals.

Your Bank has defined career path for its officers from Scale-II to V as per seven job families viz. Credit & Risk, Sales, Marketing & Operations, HR, Finance & Accounts, Treasury & Forex, IT and Analytics, to ensure deep domain knowledge and to further fostering the expertise.

Your Bank has instated a policy on succession planning for the senior leadership positions to ensure smooth transition at all the critical executive level positions. This has resulted in consistent, open and transparent manner to prepare and update development/ training programmes and to take staffing decisions during posting, including the relative priority of the developmental assignments that benefit the officer and your Bank.

Your Bank has introduced 'SBI GEMS' to promote recognition and develop organisation memory of such recognitions.

Recruitment

Your Bank has streamlined the recruitment process with the implementation of a regular recruitment calendar. During the year, it has recruited probationary officers, circle- based officers and junior associates for entry-level positions. It is also actively recruiting specialised talent on a lateral and contractual basis in wealth management, IT, information security, risk, credit, and marketing, among others, to stay ahead of the curve and meet the regulatory requirements.

With a comprehensive policy in place for engagement of retired officers/employees of your Bank/ other PSBs on a contract basis/short terms assignment basis for identified assignments such as Channel Management, Concurrent Audit, Marketing, Recovery Facilitators etc., your Bank has continued to engage retired staff. This not only serves the purpose of filling up the skill gap, if any, but also ensures that the knowledge and experience gained by the retired staff while working is utilised to the optimum level. This also helps your Bank in reducing its expense ratio without compromising on productivity aspect.

Gender Diversity

Gender sensitivity and inclusiveness have always been the cornerstone of your Bank's HR policy. Out of the total work force, the representation of women is 26.78% who are spread across all geographies and levels of hierarchy.

Reservations and Equal Opportunity

Your Bank meticulously follows the GOI directives on Reservation Policy for SC/ST/OBC/EWS/PwBD. It has a significant representation of SCs, STs, OBCs and Person with Benchmark Disability across all levels of the organisation. It has also implemented reservation applicable to 'economically weaker sections' in direct recruitment w.e.f. 1^st February 2019 in terms of the GOI guidelines.

Industrial Relations and Staff Welfare

Your Bank has a harmonious relationship with the staff and officers' federations, with constant emphasis on a healthy work environment, mutual respect and empathy at workplace.

Your Bank took a slew of transformative initiatives in the areas of staff welfare and woman empowerment at the workplace. These are crucial steps to ensure that your Bank remains in the forefront of banking in India and our employees are equipped to meet the challenges of tomorrow.

Care and Assistance for Retired Employees

Your Bank recognises the contribution of its ex-employees, whose dedicated lifelong services brought your Bank to its present position. It initiated 'Project SBI Cares' for automation and streamlining of various pre-retirement and post-retirement benefits and processes through its HRMS portal.

In addition to this, your Bank's e-Pharmacy facility provides attractive discounts on medicines and delivers at the doorstep of the retiree without any extra cost.

Training and Development

Through a mix of classroom and digital training, your Bank has rebooted and reframed its training programmes to meet the multifaceted knowledge requirements of a sustainable workforce. This has been carried out through its six top-notch Apex Training Institutes (ATIs) and 51 State Bank Institutes of Learning and Development (SBILDs).

Precision Classroom Training Making Business Performance the Goal of Training: Your Bank continued with e-Role-Based Certifications for threshold domain knowledge across the board. In addition to this, it has also initiated a precise skilling intervention for identified 'transitional- roles' for deeper infusion of business- related skillsets.

Training to 1^st time Branch Managers (BMs): This programme, targeted upskilling 2,337 BMs new to the role.

Training to 1^st time Relationship Managers MSMEs and Credit Support Officers: Comprehensive classroom training was provided to all officers transitioning to the role of MSME credit for powering ease of credit availability to SME clientele.

'Samanvay': This comprehensive

programme was rolled out for first-time Regional Managers (RMs) with practical inputs to provide an understanding of the big picture and inculcate the behaviours and skillsets essential in becoming a cultural change-driver in the region, as well as achieving a longterm and holistic business impact. 92% eligible RMs were imparted with this training, and experienced a high- powered experience sharing and interaction with the top management of your Bank.

Mid-career Programme: Your Bank has covered 1,539 SMGS-V officials under the comprehensive Mid-Career Training Programme that tests officials on the nuances and finer details of functional banking and preventive vigilance, grooms them for higher leadership roles and is linked to their role transition and career elevation.

Programme on KYC, AML & CFT:

An exclusive programme on KYC, AML and CFT was organised for the Board Members on 29^th March 2023. The programme was attended by the Chairman, all Managing Directors and 5 Independent Directors.

Trainings for Future Leaders: Your Bank organised Specialized Training Programmes (STPs) for the top 330 executive grade officials in the niche areas of international banking and global markets, human resources and digital banking and IT. This coupled with Individual development Plans (IDPs) (a six-month individualised intensive intervention) was imparted to 923 TEG officials to cultivate leadership pipeline.

External Training to Executives: 14

Officers in the top executive grade were deputed for external training programmes to some of the most reputed institutes / business schools like London Business School, Harvard Business School, Wharton Executive Education and Centre for Creative Leadership, to provide them with better understanding and insights about the global trends in various domains and hone their leadership skills.

26.78%	51	6
WOMEN REPRESENTATION IN THE TOTAL WORKFORCE	STATE BANK INSTITUTES OF LEARNING AND DEVELOPMENT (SBILDs)	APEX TRAINING INSTITUTES (ATIs)

Orientation programme for JIBOs and IBOs: Officers based out of India, who are manning the branches abroad have a dual purpose to perform. Apart from being ambassadors of our nation, they also are crucial developers of business overseas. Thus, they are critical to the success of our branches abroad and also improve the standing as a Global Bank. A specialised training programme was crafted for their role relevant training.

Building Effectiveness in New Recruits: A one-week Management Development Programme is part of Onboarding training for POs, TOs, CBOs and Systems Officers to enhance their effectiveness and impart leadership traits. The programme covers topics like team building, team priorities, building bonds, and effective delegation, among others, to sensitise about the importance of teams at the workplace. It also covers areas like emotional intelligence, stress management and work life balance to prepare the participants to deal with critical situations effectively without hampering their personal health and well-being. In FY2023, 4,808 POs, TOs and CBOs were imparted MDP. 6,073 POs, TOs and CBOs were imparted onboarding trainings and another 4,278 employees administered the confirmation examination.

Learner-driven trainings

Armed with the understanding that in a fast-paced financial world, the window of training needs to be a rapidly evolving one, your Bank has shifted the immediate role-related learning decisions closer to the frontlines to increase efficacy of training.

Elective Topics for Mandatory Learning: It is mandatory for all employees to complete one Role Based Certification (e-RBC) and a basket of e-lessons. In FY2023, in addition to the prescribed e-lessons on KYC-AML CFT Compliance, IS and Cybersecurity, and Sustainability, employees were provided the option of completing two e-lessons of choice as per their knowledge needs and aspirations. The staff also had the facility of selecting an RBC aligned to their current or envisaged role from 43 in-house RBCs and 158 external RBCs. As on 31^st March 2023, a total of 1,72,258 eligible employees (92.70%) completed their mandatory e-RBC and 98.84% of eligible Officers and 93.77% of eligible Award staff had completed all their specified e-lessons. In addition, a repository of 600+ in-house developed e-lessons are available to the employees for knowledge enrichment.

Aspirational e-courses: A basket of 10 e-courses have been crafted for all the employees to help them in career progression by providing knowledge in the areas of SME Credit, Data Analysis and Interpretation, International Banking, Personal Development and Soft Skills, Fundamentals of Marketing, Invest SMART for Financial Wellbeing, NRI Business & Compliance and Digital Empowerment for Effective Management of Branch, among others. As on 31^st March 2023, the courses have been viewed by 18,657 employees.

Fuelling Employee Productivity through Deeper Engagement

Your Bank believes that engagement initiatives can play a critical role in fuelling employees productivity by fostering a sense of ownership and commitment towards the organisation. When employees feel connected to the Company's vision, values, and goals, they are more likely to be motivated and perform their best.

'Samarthya': This was initiated to focus on employee engagement upto the age-group of 40 years. Covering over 1.03 Lakh employees, this two-day,'smart-classroom'-based programme stressed on instilling the values of ethics, compliance, and customer centricity, and a sense of pride in your Bank's illustrious heritage.

'Prerak': This was designed for about 70,000 employees above the age of 40 years. It focuses on recognising the stellar efforts of this group of people for their role in sustaining Bank's leading position in the industry. Their contribution in the transition of your Bank from manual to digital, and for effectively managing various changes happening in the Banking and Finance Sector are recognised. In FY2023, 20,773 employees were imparted 'Prerak' values.

High Profile Power Talks: Your Bank convenes several high-profile workshops, e-panel discussions and power talks, where distinguished academicians, CXOs and industry experts share their expertise for enhancing employee knowledge. Two such events were: a Digital & Business Leadership Workshop by Dr. Ram Charan, an International Business Advisor, Speaker and Coach for 92 top executives of your Bank; and a Power Talk by Dr. Krishnamurthy V. Subramanian, India's Executive Director at the IMF on 'Money: A Zero Sum Game'.

'Yes, I Can Bring Change': Employees possess a wealth of knowledge and talent that can be harnessed to create a positive work culture, build a corporate memory, and identify practical solutions for operational issues. To leverage this potential, your Bank introduced an Annual Success Story campaign aimed at collecting the most innovative, inspiring, and actionable transformation stories from our employees. This initiative had received over 80 success stories during FY2022, which were duly recognised and celebrated.

'SBI Wizards': STU institutionalised a family quizzing event 'SBI Wizards' in FY2021 to boost positivity and enhance resilience. The event for FY2023 was conducted in a hybrid (online/offline) format with 1,802 teams participating in the virtual preliminary rounds. The grand finale was held in-person at SBI's Corporate Centre Mumbai, and broadcast live to employees across your Bank through MS Teams and social media platforms (FB and YouTube).

Ground Zero Innovations

Your Bank took learning to ground zero to empower employees through individualised delivery of knowledge inputs.

Sarthak: To ensure the safety, reputation and investor confidence, your Bank believes that the Audit and Compliance process should lead to transformative changes in the work culture rather than being a tickbox exercise. Therefore, in FY2023, your Bank has launched a coaching intervention for branch staff to improve compliance culture, enhance risk awareness, and foster a habit of doing things right the 1^st time.

'Samunnati' and Quality Circle:

Institutionalised in FY2021 to augment the competency of our workforce, these participative one-to-one coaching interventions were rolled out during the year in 638 critical branches. Under the initiative, your Bank's faculty addressed these branches with an aim to align the training to the business and make them self-reliant in problem solving/quality improvement.

Digital Leadership Programme at Indian School of Business (ISB), Hyderabad: Your Bank's senior functionaries in the grade of GMs and DGMs were given access to a curated digital leadership programme by the Indian School of Business (ISB). The programme has helped officers utilise their existing skillset gained over decades of experience in wider ways, and exposed them to concepts at the cutting-edge of leadership research. The 5-day, in-person classroom programme covered 386 officials.

Microcapsules: In FY2023, the

following micro-learning initiatives were launched by our ATIs: a series of general awareness snippets on BFSI called 'Do You Know'; Understanding Risk', a micro-knowledge series on risk management, micro-videos on topics like cybersecurity etc, for knowledge inputs to employees.

Digital and Hybrid learning tools for on-point learning: Apart from the instructor-led, in-classroom training, the fast pace of changes have necessitated a digital approach for continuous reskilling. Some of your Bank's popular digital tools includes a virtual Case Study Discussion Board (1.11 Lakh unique visitors) for facilitating online community-based deliberations on real-life banking cases, My Quest Today-the daily quiz platform available on the intranet (1.09 Lakh participations in FY2023), Audio Podcasts on different banking topics, viz. SBSC-on-Air (119 episodes with 26,000+ cumulative listens), Gurukul Vani (35 audio files on credit, risk and NPA with 97,000+ cumulative listens) and Gyan Chetana (6 episodes on HR matters with 640+ cumulative listens), a Gamified app for checking knowledge levels, askSBI, a Google-like internal search engine where employees can raise questions and search for related responses, and Theme-based Fridays -webinars hosted every Friday by our ATIs on a rotational basis on their respective domain-specific topics.

Holistic Inclusivity

Holistic inclusivity encompasses creating a work environment that values and embraces individual differences, including diverse perspectives, experiences, and identities. It goes beyond merely meeting legal requirements to foster a culture of equity, fairness, and belonging, where everyone feels respected and empowered to reach their full potential.

Training Interventions for Women Employees

• 'Samya' is a flagship intervention that focuses on reinforcing gender parity and sensitivity at workplace. The initiatives under 'Samya' includes fortnightly case- based quizzes disseminated on the intranet, webinars to acquaint operating personnel with the provisions of the Prevention of Sexual Harassment (POSH).

• Exclusive 3-day classroom programme for women in business leadership positions:

Women employees in business operations are an extremely high potential group of business leaders. Accordingly, an exclusive 3-day classroom training was designed for 2078 women business leaders of your Bank. The first such programme was delivered in February 2023. The programme will continue in FY2024.

Training to Retirees: Transition to Retirement (TTR) Programme is a 4-day flagship classroom training of your Bank for all officials due for retirement, with the objective to help them manage the paradigm shift in their life after retirement. The programme covers financial planning, tax planning, health for senior citizens, post-retirement career prospects, cyber security awareness, spiritual well-being and some behavioural science inputs. TTR is being conducted by all SBILDs and SBIL, Kolkata

Training to VI/HI employees: A specialised training programme for VI-HI employees was conducted, in collaboration with SBI Foundation. 274 employees have been covered under specialised training in FY2023. This includes training to visually impaired new recruits in the use of Job Access with Speech (JAWS) and hearing- impaired employees in sign language.

Training to Apprentices: Your

Bank engaged with more than 2,455 apprentices under the Apprentices Act, 1961. The process of engagement of 6160 fresh apprentices for the year 2023 has started.

Training to value chain partners:

16 training programmes for 376 BC Supervisors, 1,029 CSP Udaan workshops for 53758 CSP Kiosk Operators and 92 orientation trainings for all Feet-On-Street (SBOSS) were conducted in FY2023.

Milestones

Risk and Portfolio Management Round table organised in association with International Association of Credit Portfolio Managers (IACPM)

The programme was attended by about 80 CRO/CCO and top risk officials from over 50 National and International Banks and FIs, including IFC, ADB, NABFID, PFC, HDFC, PNB, BOB, PNB, JP Morgan, Standard chartered, Asian Infrastructure and Investment Bank, Exim, BRICS Bank (NDB) etc.

A Symposium on Insolvency and Bankruptcy Code 2016: This was attended by Shri Ravi Mital, Chairperson IBBI, Shri Sunil Mehta, Chief Executive, IBA and Shri Ashwini Kumar Tewari, Managing Director (Risk, Compliance & SARG).

MSME Conclave on 17^th November 2022 was attended by 50 Directors, CFOs, CROs and Top Executives of various domestic and international banks identified. It was also attended by Top Executives of your Bank.

ET HR World Future Skill Awards:

Your Bank was awarded Gold under the 'Best Learning Management System' category for Gyanodaya -e-learning and askSBI, and the Silver under the category 'High Impact Certification Programme" for Role- Based Certifications'.

Digital Transformation and e-Commerce

The traditional banking model is being reimagined as innovations in technology continue to redefine Banking Industry. With our Digital-First approach, it has been a continuous endeavour of our Bank to provide cutting edge & innovative digital banking solutions to all our customers.

With this objective, YONO was launched in 2017 and during FY2023, a critical milestone of the 5^th anniversary of the successful launch of the YONO was achieved. YONO, our flagship mobile banking, and lifestyle app, is a one-stop-shop offering not just financial services but also a gamut of investment, insurance, and shopping solutions.

YONO

YONO app has been a key driver for customer acquisition. YONO has helped your Bank to reposition its Brand image as New Generation Bank, with a single touch point and one-stop solution for the customer's various Banking, Financial and Lifestyle needs through a convenient, intuitive, and omnichannel interface. Customers can also access various financial products from your Bank's Joint Venture Companies comprising of SBI Life, SBI Caps, SBI Cards, SBI Mutual Fund and SBI General Insurance.

YONO Cash, a game-changer functionality, allows customers to make cardless withdrawals from SBI ATMs, Point of Sale (POS) Terminals and Customer Service Points (CSPs).

YONO Business is our integrated platform (available on both desktop and mobile app) designed to serve a whole range of banking needs -Trade Finance, Forex, Cash Management, Internet Banking, API Banking, Pre-Approved Business Loans (PABL), and Supply- chain finance-for corporate customers across categories, from the biggest conglomerates to emerging start-ups.

YONO Krishi is a comprehensive multilingual platform for agriculture segment customers offering simplified finance, including Agri Gold Loan, KCC Review, SAFAL Dairy pre-approved Agri Loan, market intelligence-related services (Mitra), online marketplace for agri-products (Mandi), and Bachat, a financial super store for farmers' investment and insurance needs.

Your Bank has provided transformational journeys like Real-Time Xpress Credit (RTXC) and Account Aggregator in Car Loan for new customers, development of Personal Finance Management with Account Aggregator services, updation of subvention flag during KCC review, NPS Enhancement, Sampoorna Arogya, SBI Life Smart Platina Plus, etc. Over 135 journeys/enhancements were done during FY2023.

The overarching guiding focus of YONO has been to deliver exceptional customer experience and leveraging technology to deliver superior value proposition to our customers across our product segments. YONO has integrated state- of-the-art technology to offer a gamut of products pertaining to Insurance, Credit Cards, Investment products, and services of your Bank's JVs.

The scale of impact of YONO can be gauged from the fact that YONO has a cumulative registered user base of more than 6.07 Crore users as on 31^st March 2023 and has helped to improve the productivity of your Bank through end- to-end digitisation.

The industry-wide growth of U PI-basec payments continues to be astonishing To increase your Bank's market share in the payments space, we propose extensively leveraging technology- based innovations like enabling non- SBI customers to use our UPI services

To further cement your Bank's leadership in the digital banking space and to enable YONO to scale greatei heights and emerge as one of the mos successful digital banking platform: in the world, your Bank has started working on the next generation o YONO, which envisages a total revamp of YONO not only in terms of features and functionality, but also in terms o ease of use and customer experience.

The focus of the next generation of YONC shall be on customer-centric design, hype - personalised experience, innovative product offerings, modernisation of tech stack, and leveraging AI/ML, Cloud anc Data Analytics for digital transformation in ord er for benchmarking YON O with the best of Global/Indian digita banking propositions.

Salary Account Opening using V-CIP

Your Bank launched end-to-end digitised salary account opening journey using Video Customer Identification Process. Salaried customers can open their salary account through a seamless and paperless video KYC process without visiting the branch. This functionality provides ease and hassle-free banking experience.

Information Technology

Network Infrastructure Improvement

Your Bank is relentlessly working to improve the network experience and minimise branch isolations. Your Bank has completed the deployment of optical transport network (OTN) devices at Data Centers by BSNL, which supports bandwidth on-demand up to 100 Gbps and automatic routing of traffic at BSNL network cloud.

Software Factory

Your Bank has been at the forefront of launching various innovative solutions. Some of the initiatives taken during the year include development of Internal Financial Controls over Financial Reporting (IFCoFR) Portal, a dashboard for monitoring of gold retention limit, and new features in SBI Digi Vault Application. Additionally, your Bank has successfully addressed GoI requirements by launching the following initiatives:

Central Bank Digital Currency (CBDC)

CBDC is a digital form of currency notes issued by a central bank. CBDC, being a sovereign currency, holds unique advantages of central bank money, viz. trust, safety, liquidity, settlement finality and integrity. CBDCs can take on various forms or models based on their application. The main models are Retail CBDC, Wholesale CBDC and Cross-Border CBDC. These models have potential benefits in acting as a catalyst for innovation and development of financial ecosystems.

The banker to every

Your Bank is one of the nine banks identified by RBI for participation in CBDC pilot. Accordingly, CBDC Wholesale and CBDC Retail were launched on 1^st November 2022 and 1^st December 2022, respectively.

Complaint Management System (CMS 2.0) for CVC

The application can handle end-to-end processing of all complaints received at CVC, making the process completely paperless. The CMS 2.0 application was launched by the honourable Prime Minister of India Shri Narendra Modi on 3^rd November 2022 as a part of CVC's annual Vigilance Awareness Week. _a

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portfolio purchases & proposals to

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remove dependence on your Bank's

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Core Banking System (CBS) for

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accounting purposes.

Benefits to Customers and Bank

• Burden on CBS has been reduced

by ~13% (in terms of number | of accounts) by managing pool accounts outside CBS.

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• Business worth Rs 1 3,306 Crore is | being managed by the application.

• Repayments over Rs 8000 Crore has been calculated and processed post data validation.

• Income leakage worth Rs 85.97 Crore has been plugged.

• Processing time has been reduced by 93%.

4.1	6.07+ Crore	143+ Million
RATING AT PLAY STORE	YONO REGISTERED CUSTOMERS	YONO DOWNLOADS

• Risk of Manual errors has been reduced to zero.

RBI Bonds Application

Your Bank has developed an in-house application that handles end-to- end digitisation including issuance, maintenance, and redemption of RBI Bonds. It facilitates Dealing Branches, Settlement Branches and Nodal branches to centrally process all Interest payments, Principal payments, Brokerage payments and Claims from RBI. The system caters to both SBI and non-SBI customers through branch Channel.

Benefits to Customers and Bank

• Real-time accounting and detailed MIS and regulatory RBI reporting for user convenience.

• In-built service request module for basic operations like nominee update, address update, repayment accounts update, etc.

• Integrations with Other Applications using APIs for financial transactions and customer related enquiries:

- Internet banking for customer interface for issuance of RBI Bonds.

- CBS for real-time accounting.

- Enterprise document management system for document upload and tracking in the near future.

- TRS and GST tax engine for tax reporting.

- NSDL for PAN validation ensuring valid PAN holder can apply for RBI bond.

Channels and Operations Payment System (PS)

Your Bank holds a significant share in NEFT remittances. SBI has processed 157.37 Crore transactions, constituting over 15.00% of the market share. SBI is a significant player in RTGS remittances and has processed more than 6.19 Crore transactions involving more than Rs 364.16 Lakh Crore.

Your Bank holds a significant share in CTS Clearing with 8.69 Crore inward transactions with 12.51% market share and 6.08 Crore outward transactions with 8.75% market share. Value-wise inward clearing transactions amount to Rs 1 0.16 Lakh Crore with a market share of 14.53% and outward transaction amount to Rs 7.96 Lakh Crore with a market share of 11.39%.

Your Bank uses the SWIFT messaging system for cross-border financial message transmission. Your Bank has processed 40.91 Lakh financial messages. Your Bank has fully complied with all the 23 mandatory controls and 9 advisory controls prescribed by the SWIFT for Customer Security Compliance Framework.

Your Bank has centralised three modules of NACH into Integrated Payment Hub (IPH) of your Bank. Your Bank has a total 17.15 Lakh active outward mandates. Fresh mandates totalling 5.42 Lakh of outward mandates were registered during the current financial year, and 95.66 Lakh transactions relating to NACH Debit outward (EMI Recovery) were processed during the current financial year.

Foreign Office

YONO Global Applications

YONO Global app expands the digital footprint across geographies and streamlines the user experience. The app has been rolled out in the UK, Maldives,

Mauritius, Canada, Bahrain, South Africa, Bangladesh, Sri Lanka and Nepal.

Enhancements / Customer-centric Functionalities

Your Bank has implemented following enhancements in digital journeys of foreign offices:

• OTP over email to YONO Mobile App Customers.

• Retrieve forgotten User ID from YONO MB App.

• ATM Green PIN generation from YONO Global MB App.

• Integration of eChannels with Local Payment to enable customers for interbank fund transfer like IPS in Mauritius.

• Customer feedback for INB/ MB experience in YONO Mobile Application.

• Biller Module in Nepal YONO Global App.

• Remittance for Noncustomers (NTB) of UK in YONO App.

On-boarding to Local Payment System

Your Bank has on-boarded SBI Singapore onto the local 24x7 FAST payment network. This will facilitate instant transfer of funds between accounts of top 20 participating banks in Singapore on round the clock basis. Participation in FAST puts SBI Singapore on a level-playing field when it comes to inter-bank funds transfer facility.

Adoption of ISO 20022 Messaging Standards

Your Bank has implemented Finacle Messaging Hub (message converter from MT to MX and vice versa) in South Africa, Singapore and Australia for local RTGS payment as per regulatory timelines. This will take care of all incoming cross boarder payment MX messages for our foreign offices.

ATM

Your Bank's ATM department is PCIDSS-compliant, a benchmark security standard for the payment card industry, serving 27.05 Crore active debit card users. The following new facilities were rolled out during the fiscal year:

a. Revamp of cash withdrawal screens.

b. KYC updation through ATM & ADWM.

c. Consideration of all Debit Card International Txns through ATM/E- COM & POS for TCS (Tax Collected at Source) through a Centralised LRS (Liberalised Remittance Scheme) database.

d. Card tokenisation to enhance security of the entire payment infrastructure.

e. PCI-PIN Certification for its ATM network.

f. Customer Satisfaction Index allows customers to submit feedback immediately after the completion of transaction.

g. Revamping of cash Dispense Logic at ATM/ADWM for supporting spread of denomination to accommodate all available denominations.

h. Rollout of new customer feedback screens with a new format having 4-pointer (PAGO) rating in a linear scale.

i. Multi-currency on Visa Prepaid Card (FTCs).

27.05 Crore

ACTIVE DEBIT CARD USERS

Payment Solutions

Debit Cards: Your Bank has ensured the deactivation of expired debit card automatically upon activation of renewed debit card. Facility of

blocking and reissuance of debit card through IVR Agent are provided to customers. Along with INB/YONO/ YONO-Lite services, provision of Card Transaction Flags (ON/OFF) are also made available at ATM and IVR to provide more option to card holders. POS EMI Real-Time Account opening functionality has been launched in lieu of T+1 a/c opening.

Rupee Prepaid Cards: Your Bank provides Rupee-denominated Prepaid Cards like Gift Card, e-Z Pay Cards, Imprest Cards, and Achiever Cards, targeted for various customers and business segments.

Rupee Contactless Prepaid Cards:

Your Bank has developed the contactless variant of Rupee Prepaid Cards as per the best market practices. This feature comes along with robust Card Control tools that enable a cardholder to enable or disable the contactless mode of payment. It will encourage the cardholders to use their prepaid cards more frequently at Merchant Establishments as it provides ease of use for making card-based payments.

State Bank Foreign Travel Card (SBFTC): Your Bank is issuing State Bank Foreign Travelers Card (SBFTC), which is an EMV chip and PIN- compliant prepaid card in foreign currencies providing safety, security, and convenience to outbound travellers (valid worldwide except in India, Nepal and Bhutan). SBFTC is available as a single currency and multicurrency card. It is available in nine currencies -US Dollar, British Pound Sterling, Euro, Canadian Dollar, Australian Dollar, Japanese Yen, Saudi Arab Riyal, Singapore Dollar, and UAE Dirham.

Metro and Transit Projects: Your Bank has participated in various metro and transit projects to digitise micropayments rapidly. Your Bank has been awarded Nagpur Metro, Noida Metro, Chennai Metro, Kanpur

Metro and MMRDA Line 2A and Line 7 metro projects to implement qSPARC technology on the RuPay platform. Bank has issued 1,74,000 prepaid cards in metro projects.

Proactive Risk Manager (PRM): Your Bank has deployed fraud monitoring solution i.e, PRM, for monitoring of suspicious and fraudulent transactions, committed on various digital channels. Presently PRM is integrated with ATM Cash, POS, E-COM, Retail INB, Corporate INB, Merchant, YONO, YONO-Lite, UPI, Kiosk Banking and Fastag channels.

Internet Banking

Your Bank's Internet Banking provides seamless online experience by offering secure and diverse banking services to 1,107 Lakh Retail Users and ~36 Lakh Corporate Users.

Several new services were also rolled out for retail customers like online account opening for pre-approved personal loans, enabling OTP over email for financial transactions, e-KYC through internet banking, online updation of customer profile and enabling NZD currency for foreign outward remittance.

Many new services were rolled out for corporate customers via Corporate Internet Banking, and YONO Business. Some of them are:

• PFMS integrated electronic payment authorisation facility for Government entities.

• Integrated Cheque Deposit Kiosk for CINB customers for collection.

• Stock statement upload facility for Saral and corporate customers.

• Electronic retailer finance facility for industry's major retailers.

• Digital Retailer Finance scheme for ITC corporate retailers.

• RBI Bond subscription for HUF customers.

• MCA SPICE integrated current account opening facility for newly registered companies with enhanced features.

YONO Business

Your Bank's YONO Business offering integrated platform for MSME and corporate customers with following additional features were rolled out this year. It digitally serves various Banking interface requirements of all types of non-individual entities, right from a small proprietorship/MSME to large multinational corporates to central and state governments.

The YONO business product consist of the following new offerings:

• Reimagined online current account opening journeys for all entities.

• New-age banking solution through API.

• Banking with file and form- based payment for corporate and aggregators.

• Digital on-boarding for API Banking.

• YONO business mobile app with Import LC approval.

• Forex rate booking facility through YONO Business Mobile App.

• New reimagined intuitive payments journey for Saral and corporates with new feature of Quick Transfer facility for corporate customers.

• Reporting unauthorised transactions.

• Customer Satisfaction Survey through YONO business.

SBIePay Lite (formerly SBMOPS- State Bank Multi-options Payment System)

Your Bank has rolled out SBIePay Lite to facilitate collection through various modes using the site-to-site integration with e-commerce and other merchant entities. A total of 576 active direct merchants have been integrated through SBIePay Lite.

Following significant changes have been implemented:

• Merchant UI Revamp (MOPS Page).

• Sponsor Bank API eMandate.

• eMandate for repayment of EMIs.

• Various integrations with government entities and e-Commerce merchants.

Implemented 6-digit OTP for merchant transactions.

• Various integrations with government entities and eCommerce Merchants.

SBI UNI PAY

Your Bank has developed a SBI Unipay application for Bill payments through BBPS services hosted by NPCI, which went live in July 2021. In the SBI Unipay platform, Bank provides the facility of BBPS and Non- BBPS bill payments.

• Total number of billers onboarded as on March 2023 is 654 which includes 3 online billers and 651 offline billers.

• 2 Agent Institutions were made live

1,74,000	1,107 Lakh	36 Lakh
TOTAL PREPAID CARDS ISSUED IN METRO PROJECTS	RETAIL INB USERS	CORPORATE INB USERS

Agent Institution portal and Agent portal were developed enabling MIS access, Complaint management and MIS dashboard functionality for Agent Institutions, which are available along with Bill payment transaction module for Agents in Agent Portal.

ePay and PG

Your Bank works both as a payment aggregator and payment gateway for facilitating seamless e-commerce transactions between businesses, merchants, Customers, and financial institutions for various payment modes. The platform is provided through our Payment Aggregator (SBI e-Pay) and Payment Gateway (SBIPG) applications by integrating with thousands of merchants on one end and large number of Payment Channels such as Banks, Wallets and Cards at the other end.

SBIePay (your Bank's Payment Aggregator Solution) is PCIDSS and ISO27001:2013 certified. During the financial year, SBIePay added 468 new merchants including prestigious merchants such as NIT Puducherry, Indian Army Agniveer, IIT Tirupati, West Bengal GRIPS, MEA Vishwa Hindi Sammelan, etc. As on 31-032023, 1974 merchants are integrated with SBIePay.

SBIPG is a PCIDSS-certified application that processes all card- based transactions of Payment Aggregators, SB Collect, SBI-MOPS and YONO. During the financial year, SBIPG added 13,390 sub-merchants. As on 31^st March 2023, 83,352 submerchants and 17 aggregators are integrated with SBIPG.

Following major developments were rolled out during the year:

• Finalisation and selection of New PG Solution.

• Tokenisation changes implemented in I PAY PG: Processing of VISA/ MasterCard/Rupay card-based token e-commerce transactions acquired in IPAY PG.

• Implementation of EMV 3DS 2.0 as an Acquirer for VISA and MasterCard networks.

• Implementation of Application Monitoring (APM) Tool for IPAY PG application.

Mobile Banking

Your Bank's Mobile Banking department is the largest alternate channel by volume. It handles various critical customer-facing mobile applications/Services like UPI, YONO, YONO Lite, YONO Business, SBI Quick, SBI WhatsApp and SBI Secure OTP.

Unified Payments Interface (UPI):

BHIM SBIPay is one of the flagship applications of your Bank which allows interoperable, seamless and real-time transactions through UPI. Various new features like UPI Number, Foreign inward and outward remittances, Merchant tab, voice alerts for merchants, Online dispute resolution feature, etc.

During FY2023, your Bank recorded successful processing of peak volume of UPI transactions, approximately 165 Million every day. Your Bank has an overall UPI registration (UPI handles) base of over 35 Crores.

165 Million

UPI TRANSACTIONS RECORDED DAILY

The following features were rolled out for customer convenience:

• Foreign Inward Remittance/ Foreign Outward Remittance:

Enablement of foreign inward remittance (FIR)/foreign outward remittance (FOR) in the India- Singapore corridor using UPI.

• UPI Lite: SBI customers can now use the UPI Lite, a feature which facilitates low-value transactions without utilising your Bank's CBS in real-time. The UPI Lite feature ensures transactions in a safe and secure manner while providing a great user experience.

• UPI Number: SBI customers can now create their own UPI number (8 to 10 digit number) which may also be the customers registered mobile number. UPI transactions can now be initiated without the need to input the entire virtual payment address (VPA) or UPI handle.

• Online Dispute redressal system:

Your Bank also rolled out the Unified Dispute & Issue resolution system (UDIR) to enable customers to view the updated status of failed transactions real time thereby facilitating fast reversal of failed transactions.

• E-Rupi projects: Your Bank

has extended e-?UPI service to Direct Benefit Transfer / welfare programmes of various State Government Departments and Centre Government Departments viz. Seed Subsidy disbursement (Government of Odisha), PMSMA (Pradhan Mantri Surakshit Matritva Abhiyan) Project of National Health Mission (Government of Uttar Pradesh), National Health Authority PMJAY scheme (Central Government), Agriculture Mechanisation - Horticulture (Government of Karnataka), Distribution of mobile phones to State Village Lambardars (Government of Haryana) etc.

WhatsApp Banking: SBI WhatsApp Banking facility has been launched on 1^st July 2022 through which your Bank is providing a plethora of services to our customers, viz: 1) Account Balance 2) Mini statement 3) Pension slip service 4) Information on Loan products (Home loan, Car loan, Gold loan, personal loan, Education loan) 5) Information on Deposit products (Savings, Recurring deposit, Term deposit) 6) Information on NRE services (NRE account, NRO Account, NRE & NRO savings interest rate, FCNR deposit interest rate) 7) Information on Digital Banking products (YONO Lite, YONO Business, YONO, FAQ section) 8) Information on opening of Instant account 9) Contact helplines and helpline numbers

10) Information on pre-approved loan (Personal/Car/Two wheeler loan)

11) Bank holiday calendar 12) Option to download various Banking forms (Internet Banking forms, Account opening forms, Form 15G/H, Form 60, PPF/Loan A/c linking, Aadhaar linking, PPF, Nomination forms, etc.

13) Information on debit card usage

14) Information on lost /stolen cards

15) Deregister option

YONO Lite: YONO Lite has a total user base of 2.12 Crore. Following developments have been done in YONO Lite mobile banking app during the year:

• IMPS Limit Enhancement from Rs 2 Lakh to Rs 5 Lakh.

• YONOLite Uniform OTP Length (6-Digit).

• PRM integration of Financial Transactions (Self Account, Bharat QR & RD/TDR) to enhance the risk mitigation process.

2.12 Crore

YONO LITE USER BASE

Executive Support System

Customer Relationship Management (CRM)

Your Bank's CRM Solution helps to build and maintain strong, loyal relationships with existing and prospective customers. It has been implemented and continuously getting enhanced to engage with customers throughout the lifecycle of sales, service, and marketing.

CRM Solution has customised Lead modules for all Business Units and other critical departments, integrated with other sources such as OCAS, YONO, LOS, LLMS, Bank's website, etc. It also has a sophisticated and advanced Complaint Module, i.e., CRM-CMS wherein the customer's entire trail of previous complaints and other details are captured in the application giving ease to users and customers for complaint lodgement, tracking and resolution.

The platform has been made available over bank-registered mobile devices securely for enabling your Bank employees to perform certain services anywhere. A few customer-centric projects initiated during the year were:

• Enrichment of Customer 360 for one view of Retail, as well as Corporate Customers/ product recommendations and CRM, Leads through Analytics based outputs.

• Enablement of Hybrid Call Centre- Centre with both CC agents & Bank employees.

• Customer Request & Complaint Form (CRCF) is introduced in Hindi Language for the benefit of Hindispeaking customers.

• Net Promoter Score (NPS) is introduced to understand and analyse the customers' experience with banking transactions.

• Revamp of Internal Ombudsman (IO) journeys for better customer service.

• CLIC (Customer Liability Identification Centre) was established for identifying customer liability in case of unauthorised transactions, which helps in early resolution of complaints.

Data Governance

In line with the emerging trend worldwide, Data Governance in your Bank too is going beyond regulatory or compliance requirements and creating enablers for strategic use of data and insights. Consistent efforts are being made by your Bank to leverage the internally available data while combining them with the insights available externally to create new business opportunities to serve customers optimally and boost the revenue streams. The Data Management function of your Bank is giving heightened importance to the business-critical data across all domains and taking proactive steps to create a lean, agile and redundancy- free ecosystem. This also involves creating the right atmosphere across the organisation for better engagement with stakeholders like Customers, Regulators, Employees, Management etc.

Core and Special Projects Core Banking

Your Bank has rolled out many customer service initiatives / developments during the year as under:

• Net Promoter Score to capture customer ratings on services rendered by any of your Bank's branches.

• Introduction of System based Cheque security features through Random Alphanumeric code verification to prevent frauds.

• Realtor's Current Account- Collection and Sweep Functionality to make funds available on the same day.

• Printing solution has been rolled out in CBS in 10 more Indian Languages viz. Assamese, Bengali, Gujarati, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, and Telugu in addition to existing facility of printing in Hindi and English.

• System has been enabled for Conversion of non-personal eligible Current Account into CC/ OD Product.

IT-Retail Loans

IT Retail Loans cater to end-to- end credit processes. Your Bank is promoting "RAAS"- the lead acquisition Solution- for retail loan products for Home and Auto Loan products. RAAS is also available for outsourcing entities to gain maximum share in various retail loan products.

IT-Corporate & SME Loans

Your Bank's entire journey of Corporate and SME Loans is captured through an in-house Loan Life Cycle Management System (LLMS) Portal, leading to standardisation of the credit process, enhanced risk management and improved user experience and TAT.

Your Bank has simplified Credit appraisal formats in LLMS to improve TAT and appraisal quality. Pratham App has been rolled out for RM-SMEs for lead detail capturing. In addition, CLP-assisted journeys have been introduced for passing the lead from CLP to LLMS.

Financial Inclusion and Government Schemes (FI&GS)

Your Bank was adjudged the "Winner", for the fourth year in succession, in Best Digital Financial Inclusion category among Large Banks in IBA Annual Banking Technology Awards 2021-22.

BC channel is an important mode of providing a wide range of Banking services to unbanked and remote areas. To enhance customer convenience and customer delight, your Bank has introduced the following new facilities through BC Channel during FY2023:

Instant generation of account at Customer Service Point (CSP) outlet:

Functionality for instant account opening for Customers having Aadhar with same address, valid mobile no, PAN card and authenticated by e-KYC is enabled through BC channel at CSP outlet. This has enabled the CSP to open customer account in real time and provide the account number to customer instantaneously without any branch intervention.

NEFT facility at CSP outlet: Facility of NEFT for the customers through BC Channel at CSP outlets has been enabled. This has made available one more avenue in addition to IMPS mode for transfer of funds to other Bank customers through CSP outlets.

Lead generation facility for various loans at CSP outlet: Facility of lead generation for six services (Home Loan, Vehicle Loan, Personal Loan, Agri Gold Loan, P-Segment Gold Loan and Mudra Loan) for the customers through BC Channel at CSP outlets has been enabled. CSP will be able to capture lead for above six services and the lead will be available to the linked branch in CRM for further processing.

Aadhar Seeding and Deseeding facility at CSP outlets: Enablement of facility for Aadhaar Number Seeding and De-seeding in CBS through Kiosk application at any CSP Outlets. Aadhaar Number Seeding and De-seeding facility at CSP Outlets will be available for both, FI and Non-FI customers into their saving bank account.

Other Regulatory compliance:

Implementation of FMR+FIR XML template in UIDAI authentication process for AePS as per UIDAI guidelines was completed on 31^st July 2022 and your Bank was the first large PSB to implement the same. FRM- PRM integration with Kiosk Banking application for Real-time (RT) and Near-Real-Time (NRT) transaction monitoring was also completed on 1^st September 2022.

PM Kisan Samman Nidhi Disbursement through DBT: Under 11^th, 12^th and 13^th Installments of PM Kisan Samman Nidhi, SBI processed 2.43 Crore, 1.83 Crore and 1.84 Crore transactions respectively as Destination Bank in a single day on 31^st May 2022, 17^th October 2022 and 27^th February 2023.

IT-Special Projects

Your Bank has rolled out many initiatives/ developments as under during the year:

DigiGov

Your Bank has launched a Fund Management Solution to meet the requirements of Government of India pertaining to Centrally Sponsored Schemes (CSS) under Single Nodal Account (SNA) covering 433 schemes of 23 States/UTs and Central Sector Scheme through Central Nodal Account (CNA) mechanism covering 124 schemes of 7 States/UTs. Your Bank has rolled out customised solution for Member of Parliament Local Area Development Scheme (MPLAD).

NETC FASTag

Online Issuance of FASTag: Your Bank has initiated facilitating customers online purchase of SBI FASTag, thereby reducing their hassle and improving the onboarding process. This functionality was rolled out in December 2022.

Balance Enquiry through SMS and Missed Call: Your Bank has enabled the facility for SBI FASTag Customers for balance enquiry along with checking of last 5 transactions done via NETC FASTAG.

Fastag Integration with Proactive Risk Management (PRM): Your

Bank has enabled the functionality for monitoring the transactions and alert the Customers against probable fraud.

Government Business Software Solution (GBSS)

Your Bank has enabled the facility for bulk upload for any instrument in GBSS solution (Single Debit, Multiple Credit) through State Government Generic Module.

Cross Selling

SBI Life and SBI General Insurance Proposal Form Storage in Bank: As per the regulatory requirement of IRDAI, your Bank has fully automated with end-to-end encryption process for SBI Life and SBI General Insurance Proposal Form Storage.

1st

BANK TO INTEGRATE WITH BHAVISHYA PORTAL OF GOVERNMENT OF INDIA

Swayam Reprint through Kiosk

Your Bank has rolled out functionality for customers to re-print passbook through Swayam Kiosks in self-service mode with date prior to 90 days from current system date.

Pensionseva Mobile App

Your Bank has facilitated pensioners to access all their Pension related information with more ease through Mobile app (available for Android and iOS both). Life certificate submission through Video is now enabled for both Regular and Family Pensioners.

Integration of Pension application with GOI Bhavishya Portal

Your Bank is the first bank to integrate with Bhavishya portal of Govt of India for providing various pension related services. The public pensioners of your Bank who are registered in Bhavishya portal can avail the services seamlessly from Bhavishya portal itself without any further login.

AML-CFT - AMLOCK Solution:

Use of AI-ML for Enhanced transaction monitoring: Your Bank is the first bank in India to pioneer the usage of AI-ML in transaction monitoring for AML- CFT activities and implement AI-ML model score in AMLOCK. The benefits derived are:

a. Data driven risk scoring augments prioritising alert investigation process with better insights on customer behaviour.

b. Enhanced due diligence and filing of quality Suspicious Transaction Report with FIU-IND.

c. The additional attributes data for the AIML score would supplement the alert investigation process reducing the drudgery of searching CBS and other applications for STR data points.

d. Reduction in manpower as data driven decision will be put in use to deal with Alerts over the period.

New Features introduced in AMLOCK Solution for Enhanced Transaction Monitoring: Your Bank has introduced enhanced monitoring of digital delivery channels and identification of money mule in AMLOCK application, as per FATF recommendations on "NEW TECHNOLOGIES" & RBI advisory dated 10^th August 2022, to mitigate terror financing and money laundering risk, emerging from virtual asset activities and the activities or operations of VASP. To counter the money laundering efforts, some New Red Flag Indicators were recently implemented in AMLOCK resulting in upgraded transactional monitoring systems in your Bank.

IT-Trade Finance

EXIM Enterprise/Customer Enterprise

Your Bank has embarked on redefining the trade finance processes by leveraging the latest technology. These digitalisation initiatives include centralising all trade finance transactions to 2 apex trade processing cells (GTFC) and leveraging AI/ML- based solutions to minimise TAT, operational risks and costs.

The Customer Enterprise has been revamped to ease the corporate customer interactions with your Bank. Document upload facility in all journeys and dashboard for EDPMS & IDPMS, C2B MT798 for LC and BG have already been rolled out.

EDPMS/IDPMS

Reconciliation percentage are 97.48 and 96.35 as on 31/03/2023 respectively which is among the best in the industry.

Centralised Swift Interface Gateway (CSIG)

CSIG is a centralised messaging system for cross-border transactions over the SWIFT network. During the year, the average daily transactions included 22,000 incoming and 7500 outgoing messages.

Awards won by your Bank during FY2023

Your Bank has been adjudged winner of the following awards under IBA Banking Technology Awards 2022-23:

• The Best Financial Inclusion- Winner.

• The Best Fintech Collaboration- Winner.

• The Best Digital Sales & Engagement- Special Prize.

• The Best IT Risk and Management- Special Prize.

• The Best AI and ML Bank of the Year- Special Prize.

Your Bank has won the following awards under IDC Future Enterprise Awards 2022:

• Recommendation Engine/ Next Best Product in category Best in Future of Intelligence.

• Data Lab and Self-Service BI in category Best in Future of Operations.

• Automation of Asset Liability Management (ALM) for Overseas Operations of SBI in category Best in Future of Digital Innovation.

Three-Way Reconciliation Utility For SWIFT Transactions (TRUST)

The application acts as an outward SWIFT message aggregator and reconciliation system with appropriate Control frameworks. It provides an integrated view of the SWIFT Outward message and corresponding underlying CBS accounting entries with an auto-match indicator.

Customer Experience Enhancement Department

Your Bank has embarked on the process of Standardisation of Customer offerings across all Customer touchpoints of your Bank with a view to enhance Customer Experience.

Key Initiatives:

CLIC (Customer Liability Identification Centre)

Your Bank has rolled out CLIC (Customer Liability Identification Centre) a centralised dedicated cell at all 17 Circles to fast track resolution of complaints arising out of Unauthorised Electronic Debit Transactions (UAED).

Metrics for various engagement with Customers:

Your Bank has rolled out measurement of the following metrics for obtaining feedback from Customers.

• CSAT: This initiative aims to understand Customer Experience, post completion of customer induced transaction (financial & non financial) on all platforms of your Bank.

• Net Promoter Score: This is a tool for measurement of Customer Loyalty and satisfaction and helps to gauge likelihood of a customer recommending organisation's products or services to others.

• Customer Effort Score (CES): This measures a product or service's ease of use to customers. This reflects amount of effort a customer had to exert to use a product or service, or get an issue resolved.

Incognito Visit to 4930 branches:

Your Bank arranged for incognito visits to 4930 branches across India conducted during the period April 2022 to June 2022. Various aspects including availability of infrastructure, staff readiness and activity were observed and actionable insights were implemented.

Town Hall meetings:

Your Bank conducted Town hall meetings with Millennial/Gen Z & Gen Y Customers to have better understanding of their preferences and expectations to commemorate "Azadi Ka Amrit Mahotsav" celebrations. Open house interactions at 1488 centres were held across all metro Centres and District headquarters during the month of November 2022. 95.33 % prefer the digital channels and the remaining 4.67 % prefer other channels.

Your Bank achieved 1st Rank in promotion of Door Step Banking Services for the under noted Campaigns promoted by PSB Alliance Private Limited.

Risk Management

A. Risk Management Overview

Risk Management at your Bank includes risk identification, risk assessment, risk measurement and risk mitigation, with

1st Rank	1st Rank
DSB SUVIDHA CAMPAIGN	DSB LAKHSHYA CAMPAIGN

its main objective to minimise negative impact on profitability and capital.

Your Bank is exposed to various risks that are an inherent part of any banking business. The major risks are credit, market, liquidity, and operational risks, including IT risks.

Your Bank is committed to creating an environment of increased risk awareness at all levels. It also aims at constantly upgrading controls and security measures, including cyber security measures, to avoid or mitigate various risks. Your Bank has policies and procedures to systematically measure, assess, monitor, and manage risks across all its portfolios.

An independent Risk Governance Structure, in line with international best practices, has been put in place to separate duties and ensure the independence of Risk Measurement, Monitoring and Control functions. This framework visualises the empowerment of Business Units at the operating level, with technology being the key driver, enabling the identification and management of risk at the place of origination. The various risks across your Bank and the SBI Group are monitored and reviewed through the Executive Level Committees and the Risk Management Committee of the Board (RMCB), which meets regularly. Risk Management Committees at the Operational unit and Business unit level are also in place.

1. Credit Risk Mitigation Measures:

Your Bank has established robust credit appraisal and risk management frameworks for identifying, measuring, monitoring, and controlling the risks in credit exposures. The industrial environment is scanned, researched, and analysed in a structured manner by a dedicated team to decide its outlook, Credit Rating threshold based on outlook and probability of default for industry and growth appetite for 38 identified industries and sectors, which constitute close to 64% of your Bank's total advances (excluding retail and agriculture) as on 31^st March 2023.

Events such as government policies or regulatory guidelines changes, power shortages, and supply chain issues in these industries are monitored continuously. Special studies for its implications are conducted, which are shared with the business groups to enable them to make informed credit decisions. Furthermore, knowledgesharing sessions as well as industry workshops are conducted to benefit the operating staff at various levels. Additionally, monthly/bi-monthly/ quarterly dashboards covering the top 18 industries are provided to business units detailing the developments in these critical industries and sectors to keep them updated on the latest information/ developments.

Your Bank uses various internal Credit Risk Assessment Models and scorecards for assessing borrower- wise credit risk. Models for internal credit ratings of the borrowers were developed in-house. They are reviewed through cycles of comprehensive validation and back testing frameworks including external validation/review. Considering the ESG Risk, Bank has put in place an Environment, Social and Governance (ESG) Rating Model which rates large borrowers on various objective ESG criteria.

Your Bank also has a 'Dynamic Review of Internal Rating' framework, which facilitates early identification of stress and triggers the appropriate mitigation mechanisms.

Your Bank has adopted an IT platform for credit appraisal processes through a Loan Origination Software/Loan Lifecycle Management system (LOS/ LLMS). Models developed by your Bank are hosted on these platforms, which are interfaced with CIBIL/CIC and RBI defaulters' lists.

Your Bank has a framework for Risk- Adjusted Return on Capital (RAROC), and the Customer level RAROC calculation has also been digitised.

Your Bank conducts Stress Tests every half-year on its Credit portfolio. Stress Scenarios are regularly updated in line with RBI guidelines, industry best practices and changes in macroeconomic variables.

Your Bank undertakes specific analytical studies to identify trends in the movement of NPAs, a quarterly review of loan sanctions etc., to keep track of the asset quality.

RBI has allowed your Bank to participate in the parallel run process for Foundation Internal Ratings Based (FIRB) under the Advanced Approaches for Credit Risk. The data under parallel run of FIRB is being submitted to RBI. Models for estimation of Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) are hosted in OFSAA for computation of IRB capital.

Your Bank conducts risk-return analysis of critical portfolios at periodical intervals to assess the adequacy of return vis-a-vis the risk associated with the exposures. Your Bank has also initiated measures for objective and sustained assessment of evolving risk of corporate exposures. In this regard Bank has devised a framework for Integration of Dynamic Review of internal rating with Early Warning Signal Triggers and has completed the IT implementation of the framework and the same has been rolled out.

2. Market Risk Mitigation Measures:

Your Bank's market risk management consists of identifying and measuring risks, control measures, monitoring, and reporting systems. Market risk is managed through a well-defined Board approved Investment Policy, Trading Policy, Market Risk Management Policy and Market Risk Limit Policy that caps risk in different trading desks or various securities through trading risk limits/ triggers for effective and judicious management of investment funds. These risk measures include position limits, gap limits, tenor restrictions, and sensitivity limits, namely, PV01, Modified Duration, Value-at-Risk (VaR) Limit, Stop Loss Trigger Level, NOOP, Forex Daylight Limit, LMAT, UMAT and Options Greeks are monitored on an end-of-day basis. Further, the risk limits are reviewed periodically based on the risk appetite of your Bank.

Value at Risk (VaR) is a tool for monitoring risk in your Bank's trading portfolio. Enterprise level VaR of your Bank is calculated daily and backtested daily. The Stressed VAR for market risk is also computed daily. This is supplemented by a Board approved stress testing policy and framework that simulates various market risk scenarios to measure stress losses and initiate remedial measures.

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

Your Bank undertakes risk-adjusted performance analysis of its domestic and overseas portfolios. It also analyses the credit rating migration of non-SLR bonds as a tool for decision-making. Forward-looking analysis based on the future outlook of Interest Rate Risk and its probable impact on your Bank's trading portfolio is being carried out regularly as a prudent risk practice.

Your Bank has Model Risk Management Framework, which enables Bank to assess, measure, monitor and mitigate Model Risk.

3. Enterprise Risk Mitigation Measures:

Enterprise Risk Management aims to put a comprehensive framework to manage and align risk with strategy at your Bank level. It encompasses global best practices such as establishing a Risk Appetite Framework, Risk Culture Assessment Framework, and Material Risk Assessment Framework.

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

The Risk Appetite Framework incorporates limits for significant risks with monitoring parameters. To promote a strong risk culture in your Bank, a Risk Culture Assessment Framework has been operationalised. As a part of the Material Risk Assessment Framework, periodic analysis of risk-based parameters for Credit Risk, Market Risk, Operational Risk and Liquidity Risk, amongst others, is presented to the Enterprise and Group Risk Management Committee (EGRMC)/Executive Committee of the Central Board (ECCB).

Your Bank conducts a comprehensive Internal Capital Adequacy Assessment Process (ICAAP) exercise on a yearly basis with respect to the adequacy of Capital under normal and stressed conditions at solo and group levels.

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

Your Bank is committed to reducing the carbon footprint of its operations by addressing climate change concerns by identifying and managing climate- related risks and opportunities. Accordingly, your Bank has developed Climate Change Risk Management Policy which will serve as a guidepost in supporting its journey towards a low- carbon and climate-resilient future. The policy aims to integrate climate-related risk (and opportunity) considerations within day-to-day operations, lending portfolios and overall decision-making.

4. Group Risk Mitigation Measures:

Group Risk Management aims to establish standardised risk management processes in group entities. Policies relating to Group Risk Management, Group Liquidity and Contingency Funding Plan (CFP), maintaining arm's length requirements for intra group transactions and exposures are in place. The consolidated prudential exposures and group risk components are regularly monitored.

5. Basel Implementation:

The RBI Guidelines on Basel III Capital Regulations have been implemented, and your Bank is adequately capitalised as per current requirements, including maintaining the required level of Capital Conservation Buffer (CCB). Your Bank is 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 1^st April 2019.

B. Internal Control

Internal Audit (IA) in your Bank is an independent activity and has sufficient standing and authority within your Bank. The IA Department (IAD), headed by a Deputy Managing Director, works under the guidance and supervision of the Audit Committee of the Board. Your Bank's IA function works in close coordination with the Risk Management and Compliance Departments to evaluate the effectiveness of controls, assess compliance with controls and adherence to internal processes and procedures. The IA function undertakes a comprehensive risk-based audit of the operating units of your Bank, in line with regulatory guidelines relating to Risk Based Supervision.

Key Initiatives:

External Assessment of IAD

External Assessment of the functioning of Internal Audit Department was carried out by an external audit firm as per Internal Audit Policy. The report dated 22nd June 2022 stated that your Bank's Internal Audit Department "Generally Conforms" with the Institute of Internal Auditors (IIA) Standards which is the top rating judged in conformance with the standards.

ISO 9001:2015

Internal Audit Department (IAD) of your Bank has been awarded ISO 9001: 2015 certification for Quality Management System benchmarking with global best practices to continuously deliver high-quality services in line with internal audit policy, processes and regulatory guidelines.

Keeping pace with rapid digitalisation in your Bank, the IA function has initiated technological interventions to provide enhanced efficiency and effectiveness.

A few key initiatives include the following:

• Risk Focused Internal Audit (RFIA) for assessing compliance with controls at a granular level.

• Remote evaluation of data for continuous assessment of compliable controls.

• System-driven off-site monitoring of transactions.

• Concurrent Audit of business units to ensure contemporaneous scrutiny of compliances.

• Early Review of Sanctions to assess critical risks of all eligible sanctioned credit proposals.

• Self-audit by branches for selfassessment and vetting by controllers.

As part of RFIA, IAD conducts various audits, viz. Risk Focused Credit Audit, Information Systems Audit, Cyber Security Audit, Home Office Audit (of Foreign Offices), Concurrent Audit, FEMA Audit, Audit of Outsourced Activities, Expenditure Audit, Compliance Audit, Early Review of Sanctions, Management Audit and Audit of Corporate Centre Departments.

Branch Audit

The domestic branches are broadly segregated into four groups (Group I Special, Group I, Group II and Group III) based on business profile and advances exposures. Your Bank has initiated a system-driven process for identification of branches for audit, whereby analytical algorithms are deployed to identify units displaying significantly different behavioural patterns. This enables your Bank to step in with a prioritised audit to identify the causative factors at the outlier branches and flag the underlying problem areas for early intervention.

During FY2023, the IA Department has completed RFIA of 15,134 units of Domestic Branches & Central Processing Centres (CPCs) as on 31^st March 2023.

Risk Focused Credit Audit

RiskFocused Credit Audit is an integral part of 'Risk Focused Internal Audit' system. It is aimed at identifying risks inherent to the businesses of the counterparty and measuring effectiveness of the control systems for monitoring inherent risks. The Audit also suggests remedial measures for controlling credit risks for high value loan portfolios.

'Credit Audit Division' (CAD) provides assurance to the 'Management' and to the 'Board' on the quality of your Bank's credit portfolio. The Audit recommends corrective actions for improving credit quality, credit administration and credit skills for the staff handling large advances with exposures of above Rs 20 Crore annually.

Early Review of Sanction (ERS)

A review of all eligible sanctioned proposals with total domestic credit exposure of above Rs 1 Crore each or exposure of US$ 1 Million & above in respect of International Banking Group, is carried out under ERS. ERS captures the critical risks in sanctioned proposals at an early stage and apprises the Business Units of such critical risks for mitigation thereof. ERS facilitates in improving the quality of sourcing, pre-sanction and sanction processes. ERS activity is centralised and the sanctioned proposals are reviewed by in-house internal audit officials. The entire ERS process is system driven and carried out through the Loan Lifecycle Management Solution (LLMS).

FEMA Audit

The branches that are authorised to deal (Authorised Dealers) in Foreign Currency transactions, including Trade Finance Centralised Processing Cells (TFCPCs) are subjected to FEMA audit. All "A" & "B" category branches are audited once in a year. In addition, branches linked to TFCPCs are also covered to the extent of 50% in a year. As on 31^st March 2023, 498 such branches/units of your Bank had been subjected to FEMA Audit.

Information Systems Audit,

Cyber Security Audit, Information Systems Concurrent Audit and Audit of IT Outsourced Activities

Your Bank is subjected to Information System Audit ("IS Audit") to assess the IT-related risks. IS Audit of Centralised IT and Corporate Centre establishments is also carried out by internal team of qualified IS Auditors. During FY2023, Information Systems (IS) Audit was carried out in respect of 312 applications and Annual Cyber Security Audit was conducted for 52 internet facing IT applications. Further, 225 IT applications of Global IT Centre (GITC) were subjected to be monthly IS Concurrent Audit (ISCA) and IT Outsourced Activities Audit was conducted for 472 IT activities supported by Third Party IT Service Providers.

Foreign Offices Audit

Foreign Offices are subjected to Home Office Audit (HOA) in addition to Internal Audit conducted locally by reputed International Audit Firms and Local Based Officers/India Based Officers under the oversight of Internal Audit Department Home Office Audit at 33 Foreign Offices and Management Audit of 6 Subsidiaries, 5 Representative Offices, 4 Regional/ Country Head Offices have been completed during FY2023.

Concurrent Audit System (CAS)

Concurrent Audit System in your Bank covers risk sensitive areas, as prescribed by the Regulatory Authority. Branches are categorised as Extremely High Risk/Very High Risk/High Risk/ Medium Risk/Low Risk based on the Risk Categorisation model developed by your Bank as per RBI guidelines. All Extremely High Risk, Very High Risk and High-Risk branches are covered under Concurrent Audit. Concurrent Auditors are also placed at all Centralised Processing Centres to ensure monitoring of transactions contemporaneous with their occurrence. Concurrent Auditors also cover Currency Chest Branches, Treasury Operations, and other Special Outfits. Your Bank has covered 3,445 branches/Units under Concurrent Audit during FY2023.

Off-site Transaction Monitoring System (OTMS)

Offsite Transaction Monitoring System (OTMS) was introduced by your Bank in June 2013 as a measure of strengthening transaction audit in your Bank and to meet the regulatory requirements to introduce off-site surveillance of transactions passing through your Bank's Core Banking System. Process re-engineering of the system was carried out last year to make the system more effective.

Legal Audit

Legal Audit in your Bank covers scrutiny of the loans and security related documents of loans amounting to Rs 5 Crore and above. The Legal Audit is a control function, carried out through a panel of advocates and 10% of such reports, are examined by the internal auditors on a sample basis, to ensure that there are no shortcomings in the documents or creation of security in favour of your Bank. Legal Audit Process is automated in Loan Lifecycle Management System (LLMS) and as on 31^st March 2023, Legal audit has been carried out for 17,286 accounts.

Audit of Outsourced Activities (Non-IT)

Your Bank recognises the need of service providers engaged to be compliant with the legal and regulatory requirements as your Bank itself. Therefore, the Audit of Outsourced activities (Non-IT) is also conducted at regular intervals to assure that adequate systems and procedures are in place to mitigate legal, financial, and reputational risks arising from outsourced activities (Non-IT).

Audit of Non-IT outsourced activities in your Bank covers audits of vendors engaged in providing ATM services, ATM e-surveillance, ATM Cash Replenishment Agents (CRAs), Corporate Business Correspondents (BCs), Customer Service Points (CSPs), Recovery and Resolution Agents, Doorstep Banking, Cheque Book Printing, Collateral Management, Marketing of Loan proposals, Registrar and Transfer Agents, Document Archival Centre (DAC), Cash Efficiency Project (CEP) and Floor Coordinators amongst others.

During FY2023, your Bank has completed audit of all 34,248 CSPs as per the audit plan. As for the other non-IT outsourced activities (other than CSPs) audit of 842 vendors had been completed as on 31^st March 2023.

RFIA of Corporate Centre Departments

The Corporate Centre Audit wing of IAD carries out Risk Focused Internal Audit (RFIA) of Corporate Centre Departments of your Bank to strengthen the overview of the audit of its aggregate risk assessment processes at macro level.

In addition, it undertakes various audits viz., Thematic Audit, Validation Audit and Audit to verify compliance of the RBI Directions and other Regulatory guidelines and also at the request of the Central Board, Auditee Committee of the Board and various Business Units and Departments at Corporate Centre. The Corporate Centre Audit wing is also engaged in the validation of RBI-Tranche-111-DCTs, RAR/RMP observations.

Management Audit

The core function of Management Audit is to assess effectiveness of control and governance process at apex level in accomplishing overall corporate objectives. Management Audit of your Bank covers Circle's Local Head Offices, sponsored Regional Rural Banks and select Corporate Centre Departments. In its endeavour to enhance the effectiveness of Management Audit, in the FY2023, your Bank has revamped the audit process by redefining rating methodologies and revising the risk weightages and parameters used for Management Audit.

C. Compliance Risk Management

Your Bank gives utmost priority to meeting Regulatory and Statutory Compliances. Your Bank has communicated down the line that Compliance needs to be at the core of every decision and activity undertaken by your Bank. Compliance is focused on in your Bank to avoid the risk of legal and regulatory sanctions and potential loss to reputation.

To further strengthen the compliance in your Bank, a separate set up of compliance officials has been identified in your Bank at each of the Controllers' level. i.e. LHO, Administrative Offices, Regional Business Offices. The activities of these Compliance Officials are being monitored from Corporate Centre. Your Bank has endeavoured to develop a compliance culture ensuring adherence to laws, rules and regulations and for preventing our banking channels from being misused for money laundering and terror financing activities.

We are also making sustained efforts in improving the compliance culture in your Bank by increasing awareness amongst the employees about Compliance. All employees (including Top Executives) are mandated to complete the e-lesson on KYC/ AML-

CFT. Your Bank is providing special training to Compliance Officials through external agencies for dissemination of Compliance information through Blogs, Newsletters etc. To increase the awareness on Compliance, your Bank has introduced internal compliance newsletters titled Anuvartan & Compliance Capsule. Also, various activities i.e. Quiz, Compliance Talk have been held to spread awareness of Compliance Culture in your Bank.

Compliance Risk Management

Committee comprising of Senior Executives from business verticals and support functions, maintains oversight on all compliance related issues. The Compliance Department at Corporate Centre has obtained necessary certification and is now ISO.9001:2015 compliant.

D. KYC/ AML-CFT Measures

Your Bank has been taking comprehensive steps for the implementation of KYC norms/ guidelines. Your Bank has an approved Policy on Know Your Customer (KYC) Standards, Anti-Money Laundering (AML) and Combating of Financing of Terrorism (CFT) Measures, in line with the extant RBI Master Direction on KYC.

The policy contains Banks framework for Customer Acceptance, Risk Management, Customer Identification and Monitoring of Transactions. Bank has taken steps to implement provisions of the Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, as amended from time to time.

Your Bank, has been carrying out 'Money Laundering (ML) and Terror Financing (TF) Risk Assessment' exercise periodically to identify, assess and take effective measures to mitigate money laundering and terror financing risk for clients, country, geographic areas, products, services, transactions, delivery channels, etc.

Your Bank has implemented a robust system containing a combination of manual and system-enabled methodology to ensure KYC compliance. No account is opened in anonymous or fictitious/benami name or where the Branch/Business unit is not able to apply appropriate Customer Due Diligence (CDD) measures. Bank does not open accounts for transacting in or settling transactions of virtual currencies. However, while implementing the policy, your Bank takes care that it should not result into the denial of banking services to those who are financially or socially marginalised.

Your Bank has launched Video KYC facility to facilitate contactless customer onboarding. New customers can open fully functional accounts using this process without visiting any Branch. KYC updation through INB, YONO and ATM has been rolled out for customers having CKYC number and there is no change in the status of their KYC. This will enable the customers to perform KYC updation with ease and without physically visiting a branch.

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

Your Bank conducts special audit on KYC to ensure compliance with KYC/ AML/ CFT matters. Several initiatives are put in place to bring greater awareness amongst the staff. Training of personnel in KYC/ AML/ CFT areas is an ongoing process in your Bank. Employee training programmes are regularly conducted to adequately train staff in KYC/ AML/ CFT matters.

E. Insurance

Your Bank is procuring insurance policies to cover its assets and mitigate risks. Insurance covers cash and valuables, properties of your Bank, fraudulent transactions under Debit Card/Electronic banking, and Cyber Risk, amongst others.

F. Premises

As a responsible corporate, your Bank has always incorporated environmental management practices in its functioning. With an intent and commitment for a greener world much in alignment with national priorities, your Bank has initiated various initiatives.

• Achieving a milestone of getting IGBC green building ratings to our 14 prestigious buildings during this financial year, making it to total 32.

• Installation of PET Bottle Crushing machine in Corporate Centre.

• Installation of EV Charging Station at State Bank Bhavan Building.

• Signed MOU with M/s Tata Power for installation of 48 EV Charging station in all LHO Buildings & 4 Residential buildings under CC. Total 46 EV chargers have been installed successfully and are in working conditions.

Official Language

Your Bank is taking 'banking' to the masses by imbibing the multilingual culture of India. All our projects reflect the spirit of unity in diversity. We are committed to communicate in the languages of customers, providing banking facilities in their languages. Customer facilities and their expectations are paramount to us.

Our frontline staff are trained and proficient in the local languages. They communicate with customers in the local language and all information in our branches are displayed in local languages, Hindi and English. All forms, slips, booklets etc. are being made available to the customers in Hindi and English, as well as in local language. We have published 'Lets Learn Regional Language' in 10 languages namely: Gujarati, Tamil, Telugu, Malayalam, Punjabi, Marathi, Assamese, Bengali, Kannada and Oriya for Hindi-speaking officers posted in different states.

Through our various banking channels, we are spreading Indian languages in accordance with the spirit of Article 351 of the Constitution. In line with the spirit of digital India, our call centres speak to customers in the language of their choice, using the latest technology.

Various facilities of Core Banking Solution (CBS) are available in all languages. Our customers can print passbooks in Hindi. They can even get SMS alerts of their transactions in Oriya, Gujarati, Kannad a, Tamil, Assamese, Punjabi, Bengali, Maithili, Marathi, Malayalam, Telugu, Hindi and English, as per their choice.

Agriculture is the heartbeat of our country. Yono Krishi App provides all the facilities to farmers, traders and consumers in their native language. Customers are taking advantage of all the facilities like YONO Lite, Online SBI and SBI Quick in their native languages.

We have been developing technical subjects like banking in Hindi and other Indian languages. Role-based manuals, Vigilance Manuals 2022, Right to Information Act 2005 and Garima (Prevention of Sexual Harrasment) have been published in Hindi. All our computers are equipped to work in Hindi. Role Guide cum certification Manual for Service Managers, Retail Credit (Part-I), Retail Credit (Part-II) Role manual have also been published in Hindi.

We are active participants in the Town Official Language Implementation Committees (TOLIC) constituted by the Ministry of Home Affairs, Government of India. We also support various offices of the Government of India through this platform. TOLICs of Jabalpur, Surat, Indore and Nalgonda have been awarded by MHA.

Your Bank continuously organises various programmes for the dissemination and promotion of languages like Hindi Day, World Hindi Day, Marathi Day and Kannada Day. Discussions, seminars, etc. are organised on the contributions of great litterateurs. Your Bank had organised a grand programme in Mumbai on the occasion of Premchand Jayanti. The celebration of World Hindi Day in more than 200 offices abroad is an innovative effort to carry the glow of Indian culture abroad.

Seminar/Gyan Varta

A Gyan Varta was organised on 'Importance of Mother Tongue', 'Leadership and Hindi Literature', 'Premchand Ki Kahani Aapki Zubani' and 'Bhasha ka Sarlikaran'. Your Bank has published print and digital editions of the quarterly home magazine 'Prayas'.

Your Bank also participated in the Official Language Conference held in Surat from the 14^th to 15^th of September 2022, under the chairmanship of Hon'ble Home Minister, Shri Amit Shah. Official language fortnight was organised in all branches and offices between 16^th September 2022 and 30^th September 2022.

Marketing and Communication

The Marketing and Communications (M&C) Department is responsible for your Bank's initiatives towards branding, product marketing and corporate communications. The Department adopts a contemporary marketing approach to give impetus to the digital initiatives and to connect with the young India as well. It endeavours to develop and implement integrated marketing strategies to address business challenges of different divisions of your Bank including Indian and overseas operations. This department comprises of domain skilled professionals and specialists drawn from various relevant fields - media, marketing communications, digital marketing, advertising, and public relations.

During the year, it carried out various media campaigns across digital platforms/social media to strengthen your Bank's brand image by projecting the uniqueness, highlighting presence across remote locations, showcasing the contributions to the society at large and establishing your Bank as the front runner in the space of social media.

The focus of M&C Department was to promote your Bank's digital initiatives for safety of customers and staff. Your Bank undertook various initiatives to increase the download and consistent use of digital banking channels like YONO, SBI BHIM Pay, Yono Lite, etc. The M&C department engaged with your Bank's customers to increase the awareness of alternate channels and their usage in a safe manner. Your Bank also undertook various brand/ marketing initiatives like 'Banker To Every Indian', 'SBI is Your BFF', 'State Bank Of Happiness', 'Khushiyon KI Tayari' etc. on social media platforms for creating customer awareness about your Bank's products and services.

The M&C team also launched major marketing campaigns for products such as Home Loans, Personal Loans, NRI Services, Digital Products, etc. The Department also initiated one of its kind, media-outreach programme for the customers and took the products and services of your Bank to every corner of the Country. Different media channels such as print, social media, digital platforms, websites, ATMs, etc. were used for the campaigns. The Department also promoted your Bank's several sustainability initiatives and CSR activities through various media platforms.

Going forward, along with the other marketing initiatives, your Bank plans to further promote its various digital initiatives along with its flagship product YONO. The thrust of the M&C Department is to constantly redefine and reinvent all its marketing initiatives to stay relevant and act as a change catalyst so that your Bank can maintain the glory of being one of the most vibrant and trusted brands.

Vigilance Mechanism

The vigilance department is headed by a Chief Vigilance Officer of MD's rank appointed by the Government of India in consultation with the CVC who reports to the Chairman. The CVO assists the top management in formulating, implementing and reviewing Bank's policy on all vigilance matters. To assist CVO in his task of supervision of Vigilance matters in Circles/ Verticals/ Subsidiaries, the Government of India has appointed six (6) Additional Chief Vigilance Officers on a deputation basis in SBI at various locations.

There are three aspects to the vigilance function- Preventive, Punitive and Participative. Based on past experiences/incidences, system/ process improvements are being undertaken continuously by leveraging technology, and your Bank guidelines are being streamlined as a preventive vigilance measure.

Key activities during the year included:

• This year, from 31^st October 2022 to 6^th November 2022, Vigilance Awareness Week was celebrated with the theme "Corruption Free India for a Developed Nation; 'him 'V - fdHfgv 'V". Bank staff members took Integrity Pledge as a part of the celebration. SBI Times, ATMs, CDMs, Internet Banking, Facebook, Twitter, Instagram and LinkedIn were effectively employed to broaden awareness among employees and in the wider community. In addition, mass awareness initiatives were conducted for students at educational institutions and in villages through Gram Sabhas.

• The Top Management met during Vigilance Awareness Week to discuss Preventive Vigilance. CVC and Chairman unveiled the updated version of the Vigilance Manual & Bulletin. They also felicitated 7 staff members who had taken vigilant actions at branch level.

• The Complaint Portal, inaugurated by Prime Minister on 3^rd November 2022 in New Delhi, was lauded by CVC for contribution of SBI in it's development.

• An Annual Sectoral Review Meeting was held between CVC and SBI at SBIL, Kolkata on 22^nd July 2022, wherein the Hon'ble Member Lokpal stressed the need for transparency and accountability to fight corruption and urged society's participation in preventing it.

• Vigilance Department had conducted 834 preventive vigilance programmes and 90 training sessions for EO/PO/

IO, which were attended by 16,993 officers. Suo-moto investigations were conducted in 1,355 branches, including complaint-prone branches, branches where the RFIA Auditor observed serious irregularities and High-Risk and Very High-Risk branches identified by AI/ML engine.

• The number of cases categorised as vigilance have come down from 1,332 to 956 YoY, which is an impressive improvement of 28% over the last year.

	FY2022
FY2023
Cases categorised as vigilance	1,332	956

Asset & Liability Management

Effective Assets and Liabilities Management (ALM) is essential for a bank's sustainable and qualitative growth. Your Bank's ALM strives to strengthen the Balance Sheet by reviewing the market dynamics, picking up signals emanating therefrom, and maintaining regulatory requirements while creating value.

As a part of commitment for sound Risk Management practices, your Bank regularly reviews its Internal Policies on 'Interest rate on Deposits, 'Asset and Liability Management', 'Stress Test on Liquidity and Interest Rate Risks' to adapt to changes in market conditions. Your Bank further undertakes Stress Tests and Reverse Stress Tests to address any risks that may arise as a worst-case scenario.

Studies are carried out at regular intervals to assess customer behaviour to impart proper treatment of noncontractual assets and liabilities while evaluating liquidity position. Behavioural studies are conducted at half-yearly intervals to ensure the proper placement of outflows/inflows in liquidity and interest rate sensitivity statements, which may result from Off-Balance Sheet (OBS) exposures or probable loan losses. The assumptions relating to non-contractual assets and liabilities are periodically reviewed, back-tested and revised as per the outcomes of the latest studies.

The stock of High-Quality Liquid Assets (HQLA) and cash outflows are monitored daily under a dynamic market environment to ensure the maintenance of LCR as prescribed by the Regulator and Bank's internal Policy benchmarks. Your Bank has implemented the NSFR guidelines of RBI, measuring the long-term resilience of your Bank in terms of liquidity.

Your Bank identifies the inherent risks associated with changing interest rates on its Balance Sheet (On/Off) exposures from both short-term and long-term perspectives. For this purpose, the impact of change in the interest rates on Earnings at Risk (EaR) and Market Value of Equity (MVE) is assessed with pre-defined tolerance limits, enabling the management to initiate appropriate preventive steps in a likely scenario of erosion in NII/ Net Worth.

To encourage branches to garner stable funds and assess their profitability based on the cost of funds, a matched maturity-based Funds Transfer Pricing was adopted by your Bank. Your Bank constantly strives to ensure adequate monetary policy transmission through its benchmark lending rates.

Your Bank's Asset Liability Management Committee (ALCO) monitors and manages Liquidity and Interest Rate risks by modulating the asset-liability mix in the Balance Sheet and recalibrating the pricing of liabilities and assets from time to time. The ALCO, inter alia, regularly reviews the interest rate scenarios, the growth pattern of liability products, credit growth, competitive advantages, evolving liquidity conditions, adherence to regulatory prescriptions, etc.

With automation of Regulatory Reports/ Returns pertaining to ALM, your Bank is well-positioned in monitoring and compliance regarding Liquidity and Interest Rate Risk Management.

Ethics & Business Conduct

The Ethics & Business Conduct Department of your Bank is committed to the mission of integrating ethics and morality into all operational areas. To further this agenda, your Bank conducted activities throughout FY2023. These include issuing a comprehensive Anti-Bribery & AntiCorruption Policy to protect the interests of all its stakeholders and developing a Staff Accountability Portal to comply with RBI's risk assessment report. This system-driven process monitors and streamlines reporting of staff accountability post account classification as NPA. This Portal has increased transparency in the reporting process and strengthened the conduct of staff accountability in eligible cases.

Your Bank regularly conducts capacity-building workshops for various role holders in discipline management to promote a healthy environment of compliance as well as to have comprehensive guidelines prescribing the processes for bringing standardisation in the staff accountability exercise.

Your Bank is committed to nurturing an inclusive, secure, and safe environment for its women employees. A dedicated Garima (POSH) framework covers the entire process, from raising awareness to escalation and empowerment on matters relating to gender sensitivity and sexual harassment. The year saw the revision of the Garima (POSH) policy with updated operational guidelines to streamline the process at functional levels. To increase knowledge, webinars on Ethics and Garima POSH have been organised for target groups. Workshops were held for Internal POSH Committees on your Bank's Garima Policy and the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. With the commitment to empower its women employees, your Bank conducted a webinar 'Be a woman with voice', one of its kind, with audience of around 20,000 women employees across India, addressed by the DMD (HR & CDO).

Corporate Social Responsibility Sustainability

Sustainability has been identified as one of your Bank's core values and guides us in operations and strategic decisionmaking. Your Bank believes in the coexistence of profitability with social and environmental responsibility and endeavours to strike the right balance to create value for all its stakeholders.

Your Bank has Board approved Sustainability and Business Responsibility (BR) Policy outlining the approach taken to manage Bank's economic, environmental, and social performance in an integrated manner. A Sustainability report as per Global Reporting Initiative (GRI), an internationally accepted standard, is published annually. For FY2023, your Bank has also complied with the mandatory Business Responsibility and Sustainability Reporting guidelines introduced by the Securities and Exchange Board of India (SEBI).

Some of the key initiatives

undertaken towards the promotion of Sustainability, inter-alia, includes:

• To demonstrate commitment

towards ESG approach and to bring synergy between existing policies and products, your Bank has developed an ESG financing framework to be used as a handbook for Bank's future bond/loan issuance programmes under green, social and sustainable criteria. Proceeds so raised shall be used for financing/refinancing eligible assets/projects with environmental or social benefits. The framework has been aligned with Sustainable finance guidelines and principles and has been provided with Second Party Opinion on its robustness and adherence to policy prescriptions.

• To further the journey on wider ESG spectrum and to underscore Bank's long-standing commitment to supporting green and social projects, your Bank concluded its largest inaugural Syndicated Social loan of $1 Billion ($500 Million + green shoe of $500 Million) making it the largest environment, social and Governance (ESG) loan raised by a commercial Bank in the Asia-Pacific market.

• Your Bank has been awarded CDP score of "B", the highest score in the last 5 years by CDP

(formerly Carbon Disclosure Project), the global disclosure system for companies to manage their environmental impacts. CDP, looked upon as gold standard of environmental reporting by world's economy, awards score providing a snapshot of a company's disclosure and environmental performance. The score of B represents that the organisation has addressed the environmental impacts of their business and has ensured good environmental management.

• In line with the Government's policies on electric mobility, increased customer interest in migrating to sustainable mobility solutions and to augment the green mobility ecosystem, your Bank has partnered with Tata Power to set up EV charging facility at some of the identified premises of your Bank, including the corporate office, local head offices and residential premises across the country. Your Bank has signed a MoU with Tata Power to install 48 state-of-the-art charging infrastructures covering both four-wheelers passenger cars and two-wheelers. The initiative is in line with your Bank's dedication to promote sustainable mobility and will encourage the use of electric vehicles among its employees. SBI also promotes cleaner mobility through the Green Car Loan scheme by offering a longer repayment period of up to eight (8) years and concession of 25 bps in the interest rate for the purchase of electric cars

• Taking cognizance of importance of managing the efficiency of Bank's owned facilities, your Bank is undertaking dedicated efforts towards developing a green ecosystem. As on 31^st March 2023, Bank's Thirty-Two (32) premises have been certified by Indian Green Building Council (IGBC) under different categories (Platinum/Gold/ Silver). Your Bank is also striving to shift the power requirements of its large establishments to renewable energy sources. Under this initiative, your Bank's prominent establishments viz Corporate Office, Global IT Centre and 6 of the Local Head Offices (LHOs) have shifted to green power through green tariff policy or through open access channels via solar/wind.

• To reduce carbon footprint, your Bank is actively undertaking the implementation of solar rooftop installations at offices, branches and ATMs and has set internal targets for energy efficiency, installation of rainwater harvesting, green building certifications and reduction in the use of diesel generator sets. As on 31^st March 2023, the total capacity of solar installations is >22MW. Your Bank also owns 10 windmills with an installed capacity of 15 MW for captive use.

• In line with the country's vision for scaling up Renewable Energy (RE) power generation, your Bank is also facilitating RE financing in a big way. Your Bank has availed line of credits from multilateral agencies viz. the World Bank, KfW German Development Bank etc., for onward lending to RE Power developers.

• To develop a culture of learning amid the growing importance of Sustainability in the present scenario, your Bank has mandated the completion of online certification on Sustainability for specified officers and award staff. More than 1.8 Lakh staff members have completed the training during FY2023. The lesson covered a preliminary understanding of Sustainability, Sustainable Development Goals and your Bank's initiatives in the area.

• Your Bank has also taken digitisation in a big way to bring not only greater ease of business but also strengthen the sustainability agenda. Bank's flagship digital app -YONO, apart from significantly facilitating the conduct of business and enriching customer experience, has also contributed immensely towards reducing paper usage. Further, to motivate Bank's digital channel customers, Bank is offering green reward Points which can be redeemed for credit to SBI Green

Fund, the proceeds of which will be utilised for sustainable activities. Since the inception of this fund initiative in October 2019, more than 239 Lakh reward points have been redeemed for contribution to the fund till 31^st March 2023.

• Pet bottle-crushing machine has been installed at State Bank Bhavan for crushing plastic bottles used at the Corporate Centre. The plastic flakes generated are taken back by the vendor, who in turn provides recycled products made from these flakes.

• Total of 454 rainwater harvesting systems have been installed at Bank's branches/offices across the circles.

• A total of 12.34 Lakh pre-approved personal loan accounts have been opened through YONO app thereby saving 32 pages of paper per account. Approximately total paper saved by using YONO application is 394.88 Lakh pages.

• To percolate the spirit of sustainability among staff and the public, your Bank also observed various days having Sustainability relevance viz. World Environment Day, International Yoga Day, World Soil Day, Earth Hour etc. Your Bank also conducts 'Joy of Giving Week- Daan Utsav' annually across your Bank, through which donation activities were carried out to support marginalised sections of society.

CSR Activities

Your Bank has been a pioneer for welfare activities in India, after having introduced the idea in the form of 'Innovative Banking' in 1973. Its social focus is to make a meaningful and measurable impact on the lives of economically, physically, and socially challenged communities.

Key initiatives undertaken across the Country by your Bank during FY2023

	Amount (in Rs Lakh)	Number of Schools/ Anganwadi/ PHC	Number of students/ people benefitted
Transformation of Primary Schools: Setting up of smart classrooms, computer lab, science lab, school toilet construction, painting, etc.	574.62	115	61,225
Anganwadi Transformation: Painting, providing for new furniture & fixtures, smart TV, etc.	352.50	344	30,132
PHC transformation: Providing medical equipment, computer, new furniture and fixtures, etc.	780.60	95	9,76,437
Sanitary pad distribution	464.94	2.25 Lakh sanitary kits distributed to around 2 Lakh girl children in 750+ schools across the Country

The focus areas of your Bank's CSR activities include healthcare, education, livelihood, rural and slum area development, skill development, environment, protection of national heritage, empowerment of women, youth and senior citizens, animal welfare and sports, among others. For the current financial year, an amount of Rs 316.76 Crore has been allocated for undertaking CSR activities by your Bank. Out of which, an amount of Rs 1 94.78 Crore is allocated to SBI Foundation for undertaking CSR activities in project mode.

Major CSR initiatives undertaken during the year:

Health

• To boost the Medical Research in the Country, your Bank has tied-up with Indian Institute of Sciences (IISC), Bengaluru for setting up of new Hospital cum Medical College. An amount of Rs 24 Crore shall be donated to IISC over a period of 3 years towards Orthopaedic unit.

• As a part of Pradhan Mantri TB Mukt Bharat Abhiyaan, Amaravati Circle supported 1200 TB patients towards their food expenditure for a period of 6 months. As a part of same program, Bhubaneshwar Circle has adopted 4 blocks under Ni-kshyay Mitra scheme at a total cost of Rs 1 0.96 Lakh.

• An amount of Rs 1 .59 Crore has been donated to Vision India Foundation - Trilochan Netralaya Trust, located at Sambalpur, Odisha towards procurement and installation of medical equipment at community eye clinic, Jharsguda town. The community eye clinic provides for free eye care treatment to patients.

Environment

• The Amrit Sarovar Yojana was announced by the Hon'ble Prime Minister as an initiative wherein 75 lakes in every district of the country would be rejuvenated to mark the occasion of 75 years of India's Independence (Azadi Ka Amrit Mahotsav). Out of the 75

lakes identified for rejuvenation in the Kolar district, Karnataka, your Bank has supported rejuvenation of 7 lakes under CSR at total budget of Rs 4.26 Crore.

• As a part of Green Initiatives of your Bank, 10 Electric Vehicles have been donated for transport of patients and their dependants at AIIMS, New Delhi. Electric Charger has also been installed for the purpose.

Livelihood

• Support has been provided to the people affected by the landslide at Joshimath by donating to Uttarakhand State Disaster Management Authority. An amount of Rs 2.00 Crore shall be donated towards providing livelihood and rehabilitation of the affected people.

• As a part of rural skill development programmes, your Bank has donated an amount of Rs 30.11 Crore to SBI RSETI Societies to meet the shortfall in capital expenditure for completion of construction of RSETI building/ boundary walls and acquiring other essential training equipment.

• An amount of Rs 2.00 Crore has been donated to iTNT hub (Tamil Nadu Technology hub) - an incubator supported by the State Government. The vision of the iTNT hub is to set up the governance of iTNT as PPP model so that the organisation will have Government oversight, supported by the Academia and Industry. It aims to support 200 new start-ups and facilitate 200 innovators over the first five years of operation.

• Support has been provided to flood victims, who are affected by

J316.76 Crore	854	54 Lakh	19,074
TOTAL AMOUNT SPENT	CSR ACTIVITIES UNDERTAKEN	PEOPLE BENEFITTED/ LIVES TOUCHED	TOTAL NO OF VILLAGES COVERED

the floods in the states of Assam, Andhra Pradesh and Telangana. Guwahati, Amaravati and Hyderabad Circles have provided groceries and other essentials to the poor villagers residing in the flood affected villages.

Women Empowerment

• An amount of Rs 87.22 Lakh has been provided to Bhartiya Sankalp Path Foundation, Lucknow Circle towards procurement and distribution of 100 laptops and 1305 sewing machines at Varanasi. The beneficiaries of sewing machines and laptops shall be the women, who completed the skill training under the flagship skill training programme "Pradhan Mantri Kaushal Vikas Yojana - PMKVY".

Protection of National Heritage

• As a part of Har Ghar Tiranga campaign, your Bank has undertaken distribution of flags to underprivileged sections of the society across the Circles. An amount of Rs 1 .75 Crore spent on distribution of 5 Lakh (approx.) flags to the needy people

• Your Bank has supported the initiatives of New Delhi Municipal Council (NDMC) towards repairs and renovation of heritage buildings located at Connaught Place, New Delhi. Towards this, an amount of Rs 3.19 Crore has been donated to Indian National Trust for Art and Cultural Heritage (INTACH), New Delhi.

Armed Force Veterans

• Your Bank has always been in the forefront supporting for the cause of armed forces veterans. An amount of Rs 2.00 Crore has been donated to Armed Forces Battle Casualties Welfare Fund. In addition to that, an amount of Rs 3.30 Crore has been donated to Army Central Welfare

Fund towards upliftment of Palliative Care Centers located at Delhi Cantt and Jalandhar.

• An amount of Rs 94.94 Lakh has been donated to Army Hospital (R&R), New Delhi towards procurement of State-of-the-art advanced life support ambulance. The said donation is carried out as a part of your Bank's initiatives to support armed forces veterans, battle casualties and their dependants.

Swacchhata Pakhwada

As a part of Swacchhata Pakhwada campaign launched by the Government of India, your Bank has undertaken various initiatives across the Country during the months of September- October 2022 and January 2023. Swacchhata activities include, arranging for cleanliness of surroundings, beach cleaning, distribution of Jute bags, organising no-plastic campaigns, construction of toilets etc.

SBI Foundation

SBI Foundation was established by the State Bank of India as a section VIII company under the Companies Act (2013) to undertake the CSR Activities of State Bank Group in a planned and focused manner.

SBI Gram Seva Programme

SBI Gram Seva is an integrated rural development programme for making villages self-reliant (Atma-Nirbhar).

SBI Foundation has adopted 150 villages across 25 States, in 5 phases, impacting over 1.75 Lakh lives.

'SBI Gram Saksham' is a sub-project focused mainly on rural livelihoods to empower communities beyond the adopted villages. So far, Gram Saksham has been rolled out in a total of 115 villages across 6 States, namely

Assam, Bihar, Jharkhand, Maharashtra, Uttarakhand and Uttar Pradesh.

SBI Youth for India Fellowship

SBI Youth for India is a 13-month rural development fellowship programme which provides a framework for bright young minds from urban areas to join hands with rural communities in their struggles and aspirations.

• 6 alumni ventures and 17 Fellows of the 2021-22 batch across 14 partner NGOs, were awarded grants as a part of the Youth for India Sahyog, an initiative to provide handholding support to innovative and promising pilots and ventures.

• The programme also collaborated with Dastkar for their Winter Bazaar in Delhi and Bangalore in December 2022 and provided a platform for YFI alumni entrepreneurs to showcase their work at the exhibition.

Centre of Excellence (CoE) for Persons with Disabilities (PwD)

Centre of Excellence for Persons with Disabilities (CoE) was conceptualised and launched in 2017 with the goal to be a centralised support centre for Persons with Disabilities. CoE conducted 17 offline training programs for 352 PwD employees in SBI, RBI and Punjab & Sind Bank.

Impactful Projects for promoting Inclusion and Empowerment of PwDs

• Dialogue in the Dark: Visual Simulation project.

• GROW PwD: Skill Development Training for Persons with Disability and support them with job placement.

• Eliminating Clubfoot in Uttar Pradesh.

• Project Inclusive India 2.0: Creating entrepreneurial ecosystem.

• Sristi Farm Academy: Imparting learning about agri and allied activities.

• Comprehensive Lifecycle Approach project benefiting 6000 PwDs at Raichur, Karnataka.

• Enabling children with Mental & Multiple Disabilities to become selfreliant.

• Project SAMEIP: Skilling and Upskilling of 650 PwDs.

• Training in Culinary Arts.

• Early Intervention for Children with visual impairment and multiple disabilities.

• SBIF CoE: Swavlamban focus on enterprise promotion and scaling- up in Anand, Kheda, Gandhinagar, Ahmedabad and Arvalli Districts of Gujarat.

• SBIF, CoE: Assistive Aids for Persons with Disabilities.

Jivanam

Jivanam, the Foundation's healthcare vertical, makes healthcare accessible and affordable for the most vulnerable sections of society. It has impacted over 6.6 Lakh lives so far, contributing to 3 SDGs-Good Health and WellBeing, Clean Water and Sanitation, and Industry, Innovation and Infrastructure.

1. SBIF Sanjeevani

Providing primary healthcare services in rural, tribal & remote areas at the doorstep of communities through a mobile medical unit.

2. SBIF Sanjeevani - Nirantar Seva

An initiative for providing emergency healthcare services to the victims of road accidents on the Mumbai- Ahmedabad highway.

3. Suraksha

An initiative for providing 1600 helmets to Mumbai Police Personnel for safe riding.

4. Anugraha

An initiative for hospice and palliative care, geriatric support and rehabilitation services for seriously ill and bedbound patients in rural Coimbatore, Tamil Nadu.

5. Project Eye Care

An initiative to provide medical equipment support by setting up an advanced eye OPD unit and conducting eye care camps in Nagpur, Maharashtra.

6. Project Manas

An initiative for decentralised mental health services, strengthening community-based mental health programs in Gadchiroli, Maharashtra.

7. Medical Facilities for destitute women

8. Project Sahyog

Charitable Neuro Rehabilitation Centre providing support to 200 victims of traumatic brain and spine injuries in Delhi/ NCR.

9. Project Forever Smiles

Supporting 1000 lifesaving cleft surgeries, in 50 Districts of Uttar Pradesh.

10. TB Mukt Gujarat

The project aims to ensure early detection of TB.

11. Project Amrut

Setting up of a nuclear medicine diagnostic facility for early detection & treatment for cancer patients.

Integrated Learning Mission (ILM)

ILM is the education vertical of the Foundation, set up to make quality education accessible for all children.

Key Programmes

• SBIF ILM - Government School Project, Uttar Pradesh

• SBIF ILM - Asha Scholarship Program

• SBIF ILM - Learn Play Grow, Meghalaya

• SBIF ILM - Future Women Leaders

• SBIF ILM - Asha Scholarship Phase 2

• SBIF ILM - Smart Lachen

• SBIF ILM - Centre for Knowledge and Information Dissemination (C-KID)

Livelihood and Entrepreneurship Accelerator Programme (LEAP)

Foundation's flagship program, LEAP, strives to develop, foster, and sustain robust and inclusive livelihood models, entrepreneurial ecosystems, and strategic collaborations in order to uplift incomes and empower marginalised communities, thus contributing to bridging the development gap and breaking the poverty cycle in the country.

1. SBIF LEAP - Project Prayas

An initiative for providing rehabilitation and support for 270 marginalised individuals in criminal and juvenile justice in districts of Gujarat and Maharashtra.

2. SBIF LEAP - Development of a climate-resilient livelihood model

Promotion of diversified livelihood options at 10 flood-affected villages covering 4600 residents in Chamoli District of Uttarakhand.

3. SBIF LEAP - Formation and Expansion of 18 New Farmer Cooperatives in Andhra Pradesh

4. SBIF LEAP - Accelerating Entrepreneurship through Social Innovation

Youth and women in 6 Districts from Eastern Uttar Pradesh and 1 District from Madhya Pradesh

5. SBIF LEAP - Initiation support to 250 SME startups

6. SBIF LEAP - Exotic Vegetable Cultivation

An initiative to empower 1000 farmers through the introduction of exotic vegetable cultivation and the formation of farmer producer companies in Khordha and Cuttack Districts, Odisha.

7. SBIF LEAP - Innovators for Bharat - Climate Resilient Agriculture Livelihoods

An initiative to provide incubation support to 15 startups working to devise climate-resilient agriculture solutions.

8. SBIF LEAP - Integrated Livestock Development

10 villages of the Champawat District in Uttarakhand for a period of 3 years.

9. SBIF LEAP - Centre of Excellence for Deep Science Entrepreneurship

Providing incubation and acceleration support to 12 startups.

CONSERW - Conservation through Sustainable Engagement, Restoration and Wildlife Protection

CONSERW is the Foundation's flagship programme to ensure environmentally conscious production and consumption, clean energy adoption, restoration of ecosystems and natural resources and conservation of wildlife.

1. SBIF ARANYA

Undertaking large-scale tree plantation projects across the country.

2. SBIF XRD Analytical Lab

The Indian Institute of Petroleum and Energy (IIPE), Vishakhapatnam to support research towards sustainable energy solutions.

3. SBIF CONSERW - Green Infrastructure in Ladakh

4. SBIF CONSERW - Transforming Small Towns into Model Sanitation Towns in Karnataka

Through holistic planning and implementation of the Swachh Bharat Mission 2.0.

5. SBIF CONSERW - Mitigating Human-Elephant Conflict (HEC)

An initiative to mitigate Human-Elephant Conflict through the restoration of degraded habitats, facilitate effective monitoring and empower local communities in Baksa and Udalguri Districts of Assam.

6. SBIF CONSERW - Solar Technology for Eradication Poverty

An initiative to increase the income of 2,000 small and marginal women farmers from 100 villages in Odisha and Bihar through the promotion of Renewable and Clean Energy.

7. SBIF CONSERW - Wildlife Conservation in Madhya Pradesh

To promote wildlife conservation through the donation of 5 wildlife rescue vehicles and equipment in Madhya Pradesh.

SBIF ACE

Ace is the Foundation's flagship programme in the domain of sports. It comprises key interventions in building state-of-the-art sports infrastructure, creating and nurturing strategic partnerships with the flag bearers of sporting excellence in India like ex-Olympians and sportspersons of International repute.

Holistic Athlete Support

An initiative for providing support to 100 athletes at 5 Abhinav Bindra Foundation Trust Centres.

Para Athlete Grant Program

Supporting 100 para-athletes for a period of 1 year.

Olympic Development Program

SBIF Sports Science Centre in Yamuna Nagar, Haryana.

Women Empowerment

1. Project Naya Savera

Sensitisation programme on Menstrual Health and Hygiene.

2. Project Sashakta

Supporting health and development needs of women in Thane, Maharashtra.

3. Project Unnati

Empowering 4,100 women belonging to SC & ST communities, and women with disabilities.

REGIONAL RURAL BANKS (RRBs)

With two-thirds of our country's population living in rural areas, it presents a vast yet under-tapped opportunity for the Indian Banking sector. Our extensive network of sponsored Regional Rural Banks (RRBs) has a distinct competitive advantage due to their large account base and decades of trust-earning service tradition.

SBI has sponsored 14 Regional Rural Banks operating at regional levels in 14 different States/UTs. These RRBs have a combined branch strength of 4,751 spread across 223 Districts. These RRBs are on the CBS platform and offer banking services at par with any other commercial banks in the country.

Business Highlights of FY2023:

The aggregate deposits and advances of the 14 RRBs sponsored by your Bank as on 31^st March 2023 stood at Rs 1 ,23,907 Crore and Rs 85,117 Crore, respectively, as against Rs 1 ,13,502 Crore and Rs 73,755 Crore as on 31^st March 2022.

During the year under review, despite the persistently challenging macroeconomic environment, the RRBs improved their business, with deposits growing by 9.17% and advances by 15.41% YoY. RRBs expanded their Housing and Gold loan exposure by 22.54% and 38.20% (YoY), respectively, as a part of its strategy to diversify the portfolio.

The RRBs posted a Net-Profit of Rs 2,301.91 Crore as against a Net-Profit of Rs 1 ,659.53 Crore as on 31^st March 2022, despite providing substantial provision for pension of Rs 1 ,071 Crore. The RRBs continue to focus on improving earnings from their core Banking business, strengthening the fee income streams and maintaining control of operating costs.

The combined Gross Non-performing Assets ratio of the RRBs has decreased to 4.21% as against 4.64% as on 31^st March 2022. The Net NPA stands at 0.82% as against 1.22% as on 31^st March 2022.

Business per employee during the year improved to Rs 1 1.68 Crore as against Rs 1 0.76 Crore as on 31^st March 2022.

Associates:

		Group's Stake (%)
Sr Name of the Associate (RRB) No.	Country of Incorporation	Previous Year (2021-22)	Current Year (2022-23)
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%	35.00%
5 Jharkhand Rajya Gramin Bank	India	35.00%	35.00%
6 Madhyanchal Gramin Bank	India	35.00%	35.00%
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 Rajasthan Marudhara Gramin Bank	India	35.00%	35.00%
11 Saurashtra Gramin Bank	India	35.00%	35.00%
12 Telangana Grameena Bank	India	35.00%	35.00%
13 Utkal Grameen Bank	India	35.00%	35.00%
14 Uttarakhand Gramin Bank	India	35.00%	35.00%

Significant Developments in FY2023:

The year under review witnessed several significant events, some of which are listed as under:

• Introduction of Asset Management Hubs (AMHs) - a centralised credit processing system for Loans & Advances, for an efficient underwriting process at all RRBs.

• Launch of mobile app by eight RRBs for digital account opening with video KYC facility. Apart from Branch Channel, services of digital account opening with Video KYC facility have been extended to the Business Correspondent channel in 8 RRBs.

• To improve treasury yields/ returns, the services of SBI Fund Management Limited for nondiscretionary Portfolio Management Services have been engaged at all the 14 RRBs.

SUBSIDIARIES

SBI Capital Markets Limited (SBICAPS) incorporated in 1986, is one of India's leading domestic Investment Bank and is registered with SEBI as a Category I Merchant Banker and Research Analyst. SBICAPS offers the entire bouquet of Investment Banking and Corporate Advisory Services to its clients.

SBICAPS is ranked No. 1 with a market share of 76.2% as Mandated Lead Manager for India Borrowers Loans in INR during the calendar year 2022.

On a consolidated basis, the Company has posted a profit after tax of Rs 725.39 Crore for FY2023 as against Rs 635.42 Crore in the previous year.

During the period, the Company completed and has been involved in several marquee transactions, a few of which are listed below:

SBI CAPITAL MARKETS LIMITED (SBICAPS)

		(Rs in Crore)
Name of the subsidiary company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) FY2023
SBI Capital Markets Ltd.	58.03	100	334
SBICAP Securities Limited (SSL)			308
SBICAP Ventures Limited (SVL)	NOT APPLICABLE	62
SBICAP Trustee Co. Limited (STCL)			29

• Navi Mumbai International Airport Private Limited- Syndication of debt facilities for international airport project at Navi Mumbai.

• Jindal Steel & Power Limited- Syndication of debt facilities for steel project capacity expansion at Angul in Odisha.

• Financial advisory for financing Air India Ltd.

• Kutch Copper Limited- Syndication of Debt facilities for proposed 0.5 MTPA integrated copper smelting and refinery complex by Adani Group.

• Shapoorji Pallonji Roads Private Limited-M&A Sell Side Advisory and Debt Advisory.

• Advisory to State Government on Auction of 4 Iron Ore blocks in Goa.

• IPO offering of Life Insurance Corporation of India which fetched Rs 20,557 Crore to the Government, is India's biggest IPO to date.

• Lead Manager for the Green Bond issue by Indore Municipal Corporation - First Public Issue of Municipal Bonds by any Municipal Corporation.

• Lead Manager for Maiden Public issue of Secured, Rated, Listed, Redeemable Non-Convertible Debentures ("NCDs") by the National Highways Infra Trust.

• Pune IT City Metro Rail Limited

- Down selling of Rs 4,790 Crore of underwritten exposure- Transport Deal of the Year - Railway - Sustainable Infrastructure

Awards 2022.

• Yamuna International Airport Private Limited - Debt syndication aggregating Rs 3,725 Crore- Transport Deal of the Year - Airport - Sustainable Infrastructure Awards 2022.

A. SBICAP SECURITIES LIMITED (SSL)

SBICAP Securities Ltd (SSL), a wholly owned subsidiary of SBI Capital Markets Ltd., started its operations in 2006 to provide primary and secondary capital market access to the retail customers and became the broking arm of the State Bank of India (SBI) Group.

In Retail Broking, the market share increased to 1.56% in FY2023 as compared to 1.46% in FY2022. The Company has also improved the market share in the Derivative segment to 0.30% in FY2023 as compared to 0.12% in FY2022. The market share in account acquisition improved to 4.49% in FY2023 with a growth of 217 bps as compared to FY2022.

In Retail Assets, the SSL Home Loan team has increased its reach in Tier-

3 and Tier-4 cities. Presently, it has a presence in 296 locations in FY2023 as compared to 194 locations in FY2022. Also, SSL Auto Loan team has improved its presence in 503 locations in FY2023 as compared to 396 locations in FY2022. The monthly average productivity of the team in Home Loan has increased from Rs 1 .14 Crore per person in FY2022 to Rs 1 .21 Crore per person in FY2023. In Auto Loan, the monthly average productivity of the team has improved from Rs 1 .26 Crore per person in FY2022 to Rs 1 .74 Crore per person in FY2023.

Home Loan business clocked Rs 43,679 Crore during FY2023, with a growth of 42.30% YoY. Auto Loan business reached an all-time high of Rs 38,186 Crore during FY2023, up by 98% YoY, supporting SBI in gaining market share.

In Third Party Products, the revenue from insurance and investment products increased from Rs 30 Crore in FY2022 to Rs 44 Crore in FY2023. Similarly in IPO, the revenue grew to Rs 9 Crore in FY2023 from Rs 3 Crore in FY2022.

Key Initiatives Digital Customer Acquisition and On-boarding Journey Enhancement

The Company has enhanced its account opening journey by integrating with SBI Internet Banking.

Digital Initiatives - Mobile Releases

SSL has focussed on creating investment offerings by curated Mutual Fund Investment. The investment menu has been upgraded with Corporate Fixed Deposits, 54 EC Bonds, Sovereign Gold Bonds, NonConvertible Debentures, New Fund Offerings, IPO & FPO.

Awards and Recognition received during the year include:

• The SBI Securities Trading & Investment App was awarded the 'Best Mobile App Initiative - Stock Broking Company' at

the 2^nd Annual NBFC and Fintech Excellence Awards 2023.

• Awarded the 'Enterprise Mobility Award' at BFSI Technology Conclave 2022.

• Awarded 'Digital Customer Experience Transformation Initiative Award' at the Technology Excellence Awards 2022.

• Awarded with the 'Excellence in Team Building Engagement Award 2023' at ET Human Capital Awards.

B. SBICAP VENTURES LIMITED (SVL)

SBICAP Ventures Limited (SVL), a wholly owned subsidiary of SBI Capital Markets Limited, presently manages NEEV Fund I (Neev), NEEV II (SVL-SME) Fund & SWAMIH Investment Fund I (SWAMIH). The Company is also the investment manager for three Funds of Funds: Self Reliant India (SRI) Fund, UK India Development Cooperation Fund (UKIDCF) and Trilateral Development Co-operation Fund (TDCF).

Neev I is a SEBI-registered Category - I AIF with a mandate to invest in infrastructure development of eight low-income states. SVL is a General Partner in the fund with net investment of Rs 52.26 Crore till March 2023. The fund has fully invested its investible corpus of Rs 450.10 Crore across 10 portfolio companies of which one has been fully exited in FY2022.

NEEV II (SVL-SME) is a SEBI registered Category - I AIF which had its first close in June 2021 at Rs 480 Crore. The target corpus is Rs 1 ,000 Crore with a green shoe option of Rs 1 ,000 Crore. The Fund had made commitment of Rs 525 Crore in four investments against the actual investment aggregating to Rs 255 Crore till March 2022.

SWAMIH is a SEBI registered Category - II AIF which had its first close on 6^th December 2019 at Rs 1 0,037.50 Crore with the Government of India, Public Sectors Banks and Institutions as investors in the Fund. The Fund achieved its final close with an aggregate capital commitment of Rs 1 5,530 Crore. It has a mandate to provide last-mile funding to stalled Housing Projects. The fund has disbursed Rs 5,112 Crore in 101 projects where the committed amount is Rs 1 0,142 Crore. The Fund has returned Rs 757.3 Crore back to investors through 11 complete exits and partial exits in 15 projects till March 2023.

UKIDCF Fund is SEBI registered Category - II AIF with a corpus of Rs 5000 Crore and had its first close in June 2021 at Rs 253 Crore. The Fund has given commitments in two identified downstream funds aggregating to Rs 1 17 Crore and invested Rs 24.7 Crore. The Fund would identify 2-3 daughter funds every year and deploy its corpus across the daughter fund over the next 2-3 years.

SRI Fund has been set up in Oct 2021 by National Small Industries Corporation (NSIC) on behalf of the Ministry of MSME with corpus of Rs 1 0,000 Crore upto March 2022. Final approval has been given for 46 investments in daughter funds amounting to Rs 5,910 Crore. The Fund has also provided preliminary recommendations (subjected to diligence and final approval) to another 5 investments aggregation of about Rs 390 Crore till March 2023.

SVL has earned a gross revenue of Rs 1 41.71 Crore for FY2023 as against Rs 91.75 Crore for FY2022 and a net profit of Rs 61.82 Crore for FY2023 as against Rs 32.28 Crore for FY2022.

C. SBICAP TRUSTEE CO. LIMITED (STCL)

STCL is a wholly-owned subsidiary of SBI Capital Markets Limited. STCL commenced the Security Trustee business on 1^st August 2008.

The Company acts as a Security Trustee to the Lenders for Corporate and Project Finance Loans. It performs the role of a Debenture Trustee for the Debentures /Bonds issued by Corporates, Banks, PSUs and Municipal Corporations. It is registered with SEBI as a Debenture Trustee. STCL also provides other related services like Share Pledge Trustee, Escrow Trustee, AIF Trustee and ESOP Trustee, among others.

STCL posted net profit growth of 83% on a YoY basis. (Rs 28.73 Crore for FY2023 against Rs 1 5.71 Crore for FY2022). The fee income from the businesses has shown an increase of 52% on a YoY basis.

Product enhancements:

• STCL has come out with the new product Virtual Data Room (VDR), which provides cloud storage and an easy retrieval facility for users.

• STCL is in the process of starting a new business vertical i.e., 'Securitization Trusteeship Business' during the year.

• STCL is negotiating for extending its ancillary services to SBI and HDFC Bank wherein the role of the Security Trustee would be coordinating with empanelled Advocates & Valuers of banks and obtaining Valuation and TIR reports.

Awards and Recognition received during the year include:

• Awarded with the prestigious Times ascent Global HR Excellence Award: Best HR Organisation to work for by the World HRD Congress.

• Debenture Trustee businessRanking has improved by one notch to #3 in prime database in terms of AUM.

SBI CARDS & PAYMENTS SERVICES LIMITED (SBICPSL)

SBI Cards and Payment Services Limited (SBICPSL) is a subsidiary of the State Bank of India wherein your Bank holds a 68.98% stake. SBI Cards and Payment Services Limited (SBI Card) is a non-banking financial company that offers an extensive credit card portfolio to individual cardholders and corporate clients.

The Company registered Profit after Tax (PAT) of Rs 2,258 Crore in FY2023 as compared to Rs 1 ,616 Crore in FY2022.

Performance Highlights (FY2023)

• Profitable operations: PAT Rs 2,258 Crore, at 40 % YoY, ROAA at 5.6% up by 20 bps YoY, ROAE at 25.3% up by 245 bps YoY.

• Market share: #2 in both Spends and Cards for FY2023; Cards in force @19.7% (FY2022 18.7%), Spends @ 18.2% (FY2022 19.2%), Transactions @18.2% (FY2022 19.8%) [as per RBI report available till MarRs 23].

Growing Portfolio: Cards-in- Force of 1.68 Crore at 22% YoY, Spends Rs 262,498 Crore at 41% YoY, Receivables Rs 40,722 Crore at 30% YoY.

Asset quality: GNPA @2.35%, NNPA @0.87%, GCL @5.9% v/s 8.3% for FY2022.

Adequate liquidity: Diversified borrowing mix, adequate banking limits available. Healthy CAR @23.1%, T-1 @20.4%.

New Products: New products launched in FY2023:

- Cashback SBI Card

- PSB SBI Card

Awards and Recognition received during the year include:

• Recognised as 'The Economic Times

Best Brand' for the year 2022.

• Received 'Reader's Digest Trusted Brand award.

• Certified by COPC Inc for Quality processes in Customer Services.

• Winner of Gold & Silver Stevie awards in 2023 for Sales & Customer Services.

• Winner of Golden Peacock National Training Award in

Financial Sector for Excellence in Training & Development.

• Winner of MarTech Leadership award in the category "Use of Technologies - Best Data Enablement Campaign".

			(Rs in Crore)
Name of the Subsidiary Company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) in FY2023
SBI Cards and Payment	652.63	68.98%	2,258
Services Limited

SBI DFHI LIMITED (SBI DFHI)

SBI DFHI Limited is one of the largest standalone Primary Dealers (PD) with a pan-India presence. As a Primary Dealer (PD) it is mandated to support the book-building process in primary auctions and provide depth and liquidity to secondary markets in G-Sec.

State Bank of India group holds 72.17% (SBI-69.04%, SBICAP-3.13%) share in the Company. It posted a Net profit of Rs 20.26 Crore for FY2023 as against a profit of Rs 1 42.06 Crore for FY2022. The total balance sheet size is Rs 1 7,268 Crore as on 31^st March 2023 as against Rs 1 3,078 Crore as on 31^st March 2022.

			(Rs in Crore)
Name of the Subsidiary/ Company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) in FY2023
SBI DFHI Limited	131.52	69.04%	20

SBI GENERAL INSURANCE COMPANY LIMITED (SBI GENERAL)

			(Rs in Crore)
Name of the subsidiary/ company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) in FY2023
SBI General Insurance Co. Ltd.	151.00	69.95	184

SBI General Insurance Company Limited ('the Company') was incorporated on 24^th February 2009 as a public limited company under the Indian Companies Act, 1956 ('the Act') and was originally a joint venture between State Bank of India (SBI) and IAG International Pty Limited, a subsidiary of Insurance Australia Group Limited. Out of the 74% stake in the Company, SBI had in mid of 2018 divested a 4% stake to

PI Opportunities Fund - I (2.35%) and Axis New Opportunities- AIF-I (1.65%). Further, IAG, the erstwhile JV partner with a 26% stake made a complete exit in March 2020, thereby divesting its entire stake of 26% to Napean Opportunities LLP (16.01%) and Honey Wheat Investments Ltd (9.99%). Further, Axis New Opportunities- AIF-I out of its balance stake of 1.27% has sold to IIFL Special Opportunities Fund - Series 9 (1.04%) and IIFL India Private

Key Initiatives

• Conducted seminar on STRIPS (Separate Trading of Registered Interest and Principal Securities) for Insurance & other long-term investors.

• Conducted seminar for Cooperative Bank in Bengaluru on 24^th June 2022 on various aspects of the financial markets.

At the end of the meeting, participants were more aware and informed and geared up for contributing towards the development of the government securities market.

• SBI DFHI conducted several regional seminars and provided training for Cooperative Banks (263 UCCBs & 21 DCCBs) for smooth migration to the RBI NDS-Call platform.

Equity Fund - Series 1A (0.23%) during the current year.

Currently, SBI owns 69.95%, Napean Opportunities LLP owns 16.00%, Honey Wheat Investment Ltd. owns 9.98%, PI Opportunities Fund-1 owns 2.35%, IIFL Special Opportunities Fund - Series 9 (1.04%), IIFL Special Opportunities Fund - Series 10 (0.12%), IIFL Large Value Fund - Series 2 (0.02%), IIFL Large Value Fund - Series 4 (0.03%), IIFL Large Value Fund - Series 11 (0.03%), IIFL Large Value Fund - Series 12 (0.04%), Avendus Future Leaders Fund I &II owns 0.38% and other shareholders own 0.07% in SBI General Insurance. The Company is registered with the Insurance

Regulatory and Development Authority of India ('IRDAI') with a certificate of registration No. 144 dated 15^th December 2009 and is in the business of General Insurance in India.

With a total GWP of Rs 1 0,888 Crore and a YoY growth of 18%, the Company achieved the milestone of Rs 1 0,000 Crore GWP in FY2023. SBI General increased its market share from 4.15% in FY2022 to 4.21% in FY2023. The business has advanced in the rankings, and among Pvt. players, SBI General is now ranked 6^th in comparison to 7^th in FY2022.

The Company's presence has grown from 17 locations in 2011 to over 141 branches across India. The Company has served over 34 Crore clients to date, with claims of Rs 22,000 Crore handled. SBI General is present and available at all conceivable client touchpoints, with over 31,600 agents, 28,000+ banking touchpoints, 400+ brokers, alliances, and digital partners.

The Company established an independent health vertical with the goal of becoming a prominent participant in the health insurance market in India. The health vertical of the Company today serves 21 Lakh members, including group customers, and has a comprehensive centralised underwriting and claims set-up based in Pune. The Company has 12,500+ network hospitals empanelled and over 4,000 health agents have been onboarded in FY2023.

The Company generated a net profit of Rs 1 84 Crore in FY2023, representing a YoY increase of 40%.

Awards and Recognition received during the year

• Award for 'Best General Insurance Company of the Year' at the 'Third Emerging Asia Insurance Awards' organised by the 'Indian Chamber of Commerce'.

• Recognised as the 'Best Ethical Procurement Company of the Year'.

• Recognised as a 'Smart Insurer' in the 'Large Non-Life Insurance' category at The Economic Times Insurance 9^th Annual Summit & Awards.

• Recognised as one of the 'Most Preferred Workplaces in BFSI 2022-23' presented by Marksmen Daily.

SBI GLOBAL FACTORS LIMITED (SBIGFL)

(Rs in Crore)

Name of the subsidiary company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) in FY2023
SBI Global Factors Ltd.	159.89	100%	31

SBIGFL is a leading NBFC factor providing both Domestic and Export Factoring services under one roof. It is a wholly owned subsidiary of State Bank of India and is regulated by Reserve Bank of India.

The Company's services are especially suitable for MSME sector clients for freeing up resources locked in book debts and provide require liquidity. By virtue of its membership of Factors Chain International (FCI), the SBIGFL is able to alleviate Credit risk from export receivables under the 2-factor model.

• The Company has reported a Profit Before Tax (PBT) of Rs 46.18 Crore for

FY2023 against Profit Before Tax (PBT) of Rs 43.49 Crore for FY2022.

• Profit After Tax (PAT) for the FY2023 is Rs 31.17 Crore against Profit After Tax (PAT) of Rs 25.26 Crore for FY2022.

• Turnover for the period ended March 2023 is Rs 5,544 Crore as compared to the turnover of Rs 4, 773 Crore in the previous year

• Fund in use (FlU) as on 31^st March 2023 is Rs 1 ,277 Crore as compared to Rs 1 ,205 Crore as on 31^st March 2022.

• Turnover in TReDS for the period ended March 2023 is Rs 1 ,655 Crore, as against Rs 1 ,737 Crore in the previous year

• Turnover in Export Factoring-2 Factor Model for the period ended 31^st March 2023 is equivalent to EUR 40.16 Million (Previous year: Eur 40.04 Million). In INR terms, the Export Factor turnover touched Rs 338.24 Crore for the period ended March 2023, as against Rs 344.38 Crore in previous year March 2022.

SBI LIFE INSURANCE COMPANY LIMITED (SBILIFE)

			(Rs in Crore)
Name of the subsidiary company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) in FY2023
SBI Life Insurance Company Ltd.	555	55.45	1,721

SBI Life has a multi-channel distribution network comprising an expansive Bancassurance Channel, including State Bank of India, the largest Bancassurance partner in India, a large and productive individual agent network comprising 208,774 agents as on 31^st March 2023, as well as other distribution channels including direct sales and sales through corporate agents, brokers, insurance marketing firms and other intermediaries.

During the year ended 31^st March 2023, the Company operated in a sound and stable manner, with its sole objective of increasing insurance penetration and targeting a balanced product mix with a focus on non-par savings and annuity segment with an active and prudent strategy, sales team maintaining the quality as well as quantity and established a firmer market position. The Company has proven its market leadership in the year ended 31^st March 2023, with numero-uno position in Individual New Business Premium, Individual Rated Premium, Total Rated Premium and Total New Business Premium among the private insurers.

The Company witnessed a 16.2% growth in Total New Business Premium (NBP) vis-a-vis the industry growth of 17.9%. The market share of SBI Life in Total New Business Premium (NBP) among all private players for the year ended 31^st March 2023 is 21.3%. Total New Business Premium of the Company for the year ended 31^st March 2023, stands at Rs 29,589 Crore. Individual New Business stands at Rs 20,906 Crore and Group New Business Premium stands at Rs 8,683 Crore, for the year ended 31^st March 2023. The Company witnessed growth in Individual New business premium of 26.7% vis-a-vis the industry growth of 15.4% with a private market share of 24.3% & Industry market share of 14.5%.

Key Initiatives

Various products launched by SBI Life:

Smart Platina Plus, a guaranteed product with longterm income

Smart Annuity Plus, with the deferred option

Retire Smart Plus, with a choice of 7 varied fund options

Smart Lifetime Saver, guaranteed returns and protection for a lifetime

Group Micro Shield, Insurance leading to financial inclusion.

SBI Life generated a PAT of Rs 1 ,721 Crore in YTD Mar 23 against Rs 1 ,506 Crore in YTD Mar 22. The AUM of the Company crossed Rs 3 trillion and recorded a growth of 15% at Rs 307,339 Crore as on 31^st March 2023 as compared to Rs 267,409 Crore as on 31^st March 2022. For FY2023, the Indian Embedded

Value (IEV) of the Company stands at Rs 46,044 Crore with a growth of 16%. For FY2023, the Value of New Business (VoNB) stood at Rs 5,067 Crore with a growth of 37%. VoNB's margin stood at 30.1%.

In FY2023, the Company tied up with Karur Vysya Bank (KVB) enabling SBI Life to expand the insurance market across your Bank's presence in the country. A tie-up arrangement with Paschim Banga Gramin, a Regional Rural Bank will help make footprints stronger in the East. The Company has also executed a tie-up with India Post to improve its penetration in rural markets and enable customers, particularly from weaker sections and living in unbanked and underserved areas.

Awards and Recognition received during the year include:

• 'Most Trusted Private Life Insurance Company' of the

Year award at the 2^nd Edition of Navabharat BFSI Conclave and Awards 2022.

• Awarded Gold medal for being the Team of the Year at The TISS Leapvaul CLO Awards 2022.

• Gold Award in Environment Protection Initiative of the Year- Integrated Health & Wellness (IHW) Annual Awards.

• Awarded Insurance Industry Award - Insurer of the Year 2022 by FICCI.

SBI FUNDS MANAGEMENT LIMITED (SBIFML)

			(Rs in Crore)
Name of the subsidiary company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) in FY2023
SBI Funds Management Ltd.	18.90	62.53	1,331
SBI Mutual Fund Trustee Company Pvt. Ltd.	0.10	100.00	1
SBI Funds Management (International) Pvt. Ltd.	100% owned by SBIFML	62.53	4

SBI Funds Management Ltd. (formerly known as SBI Funds Management Pvt. Ltd.) the Asset Management Company of SBI Mutual Fund, is the fastest growing AMCs with a growth of over 10.83% against the industry average of 5.55% in FY2023. In the last three years, SBIFML has achieved a CAGR of 24.29% against the industry average of around 14.45% in terms of Average AUM growth. In FY2023, the Fund House has further consolidated the 1^st Rank position for three years. SBIFML has one of largest investor bases with over 121.80 Lakh LIVE investor folios with about 27 Lakh new investor folios added in the financial year ending Mar 2023. The Fund House has 24.15 Lakh direct live investors and over 2.55 Lakh institutional investors. SBIFML has maintained its top leadership position as the ETF manager in the country with a 46.82% market share.

SBI Funds Management Ltd. posted a PAT of Rs 1 ,331.20 Crore for FY2023 as against Rs 1 070.65 Crore earned during FY2022. The average "Assets Under Management" (AUM) of the Company during the quarter ended March 2023 was Rs 717,161 Crore with a market share of 17.70% as against the average Assets Under Management of Rs 647,967 Crore with a market share of 16.86% during the quarter ended March 2022. The Company has a fully owned foreign subsidiary viz. SBI Funds Management (International) Private Limited, which is based in Mauritius and manages Offshore Funds. SBIFML also provides Portfolio Management Services (PMS) and manages Alternative Investment Funds (AIF).

Awards and Recognition received during the year include:

• Awarded SBI Banking & Financial Services in the Equity Sector Financials category (5 years) in the Lipper Fund Awards Ceremony of 2022.

• SBI Magnum Children's Benefit Fund was the winner in the Mixed Asset INR Conservative (5 & 10 years) in the Lipper Fund Awards Ceremony of 2022.

• SBI Magnum Gilt Fund-Growth

was the winner in the in-Bond INR Government category (10 years) in the Lipper Fund Awards Ceremony of 2022.

• SBI Funds Management Ltd was the winner under Overall Group Award in the Lipper Fund Awards Ceremony of 2022.

• SBI Funds Management Ltd was the winner under Mixed Asset Group in the Lipper Fund Awards Ceremony of 2022.

SBI PENSION FUNDS PRIVATE LIMITED (SBIPFPL)

			(Rs in Crore)
Name of the subsidiary company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) in FY2023
SBI Pension Funds Private Limited. *	18	60	54

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

SBIPFPL has been appointed as the Pension Fund Manager (PFM) to manage the pension corpus under the National Pension System (NPS). SBIPFPL is one of the three PFMs appointed by the Pension Fund

Regulatory & Development Authority (PFRDA) for the management of Pension Funds under the NPS for Central Government (except Armed Forces) and State Government employees The Company has got

the license to operate as PoP (Point of Presence) in the year 2019 for on- boarding of NPS subscribers.

The Company has earned net profit of Rs 53.51 Crore for FY2023. The total Assets Under Management (AUM) of the Company as on 31^st March 2023 is Rs 3,39,006 Crore (YoY growth of 20.01%) against Rs 2,82,476 Crore on 31^st March 2023. The Company maintains lead position among 10 PFMs in terms of AUM with market share of 37.71 %.

SBI PAYMENT SERVICES PRIVATE LIMITED (SBI PAYMENTS)

			(Rs in Crore)
Name of the subsidiary company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) in FY2023
SBI Payments	4.50	74	159

SBI Payments is one of the largest acquirers in the country with more than 2.93 Million Merchant Payment Acceptance Touch Points and over 1.14 Million PoS machines as on 31^st March 2023 distributed across geographies (Tier 1 to Tier 6).

During FY2023, in order to encourage the Government's vision of a less cash economy and promote digital payments, SBI Payments has facilitated the acceptance of e-'UPI prepaid vouchers through the YONO SBI Merchant application (SoftPoS) for Direct Benefit Transfer projects initiated by many State Governments. In addition to existing channels for merchant onboarding, the Company has started partnering with major Payment Facilitators to expand its reach pan India. Some of the other key initiatives taken by the Company during the financial year are the launch of the Self- Onboarding functionality on the YONO SBI Merchant Application (SoftPoS), the acquisition of 26 toll plazas on the Mumbai-Nagpur Samriddhi Mahamarg, offering customised solutions to various merchant categories for digitisation payment collection for utility bills, temple ticket bookings temple donations, etc., and the introduction of WhatsApp Servicing which permits merchants to raise service requests for their PoS terminals directly through WhatsApp, etc. The Company has posted a net profit of Rs 1 59.34 Crore for FY2023.

SBI SG GLOBAL SECURITIES SERVICES PRIVATE LIMITED (SBI-SG)

			(Rs in Crore)
Name of the subsidiary company	Ownership (SBI Interest)	% of ownership	Net Profit (Losses) in FY2023
SBI SG Global Securities Services Pvt. Ltd.	52	65	88

SBI-SG is a joint venture between the State Bank of India and Societe Generale with 65% equity holding by SBI. The company commenced commercial operations in 2010 and provides custodial services with end-to-end support on clearing & settlement, Cash & forex solutions, asset servicing, derivatives clearing, gold custody for gold ETFs to Domestic (MFs, AIF, PMS, Banks, Corporates) and Foreign Investors (FPI, FDI, FVCI).

The company is managing AUC (Assets under Custody) of Rs 1 5,29,613 Crore and AUA (Assets Under Administration) of Rs 1 1,33,448 Crore as on 31^st March 2023. The Company's Net Profit stands at Rs 87.55 Crore for FY2023.

SBI-SG plays a crucial role in the overall start-up strategy of the SBI group by providing custody and fund accounting services to the AIF players.

SBI-SG maintains high-quality standards as evidenced by various certifications like ISAE 3402, ISO 27001:2013 and ISO 9001:2015.

Awards and Recognition received during the year include:

• Rated as Market Outperformed Global Outperformer and Category Outperformer in the Agent Banks Emerging Markets Survey -2022 by Global Custodian, a renowned magazine.

• Received an Award for Consistent outperformance at the "Leaders in Custody" event.

• Received the award "Best Local Custodian in India" at the Best of Best Awards event of Asia Asset Management.

STATE BANK OPERATIONS SUPPORT SERVICES PVT LTD (SBOSS)

			(Rs in Crore)
Name of the subsidiary company	Ownership (SBI Interest)	% of ownership	Net Profit (losses) 9M FY2023
State Bank Operations Support Services Pvt. Ltd.	10	100	3

State Bank Operations Support Services Pvt Ltd (SBOSS) is a wholly owned subsidiary of SBI set up in July 2022 for providing operations support services at RUSU branches of SBI. SBOSS has its Registered Office in New Delhi. The subsidiary is providing support services to SBI in Agri/MSME/ Microloans and will also work as a Corporate Business Correspondent of SBI.

SBOSS deploys Feet-On-Street (FOS) at RUSU Branches of your Bank with appropriate technology support for

doorstep services to customers at a competitive cost. It is providing support to more than 5000 RUSU branches across 17 Circles of your Bank. This facilitates greater Financial Inclusion through the provision of appropriate credit linkages as a part of its national development goals.

The company has developed a robust Pan India "High Tech", "High Touch" and "Low Cost" model for providing multidimensional support to operations in Agri & SME segments.

MANAGEMENT DISCUSSION & ANALYSIS (MDA)

In terms of compliance with the SEBI (Listing Obligations & Disclosure Requirements) (Amendment) Regulations 2018, following ratios have changed by more than 25%, as per details given below:

(in %)	Mar 22	Mar 23	Variation (bps)	% Change
Net Profit Margin	10.02	13.62	360	35.92
ROE	13.92	19.43	551	39.60

Net Profit Margin:

Net Profit registered YoY growth of 58.58% (from Net profit of Rs 31,676 Crore in FY2022 to Net Profit of Rs 50,232 Crore in FY2023) as against YoY growth of 16.68% in Total Income (from Rs 3,16,021 Crore in FY2022 to Rs 3,68,719 Crore in FY2023).

Return on Net worth (ROE):

Net Profit registered YoY growth of 58.58% (from Net profit of Rs 31,676 Crore in FY2022 to Net Profit of Rs 50,232 Crore in FY2023) as against YoY growth of 14.99% in Net Worth of your Bank (from Rs 2,40,502 Crore in FY2022 to Rs 2,76,563 Crore in FY2023).

RESPONSIBILITY STATEMENT

The Board of Directors hereby states:

i. that in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. that they have selected such accounting policies and applied them consistently and made judgements and estimates as are reasonable and prudent, so as to give a true and fair view of the state of affairs of your Bank as on the 31^st March 2023, and of the profit and loss of Your Bank for the year ended on that date;

iii. t hat they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Banking Regulation Act, 1949 and State Bank of India Act, 1955 for safeguarding the assets of your Bank and preventing and detecting frauds and other irregularities;

iv. that they have prepared the annual accounts on a going concern basis;

v. that the internal financial controls had been laid down, to be followed by your Bank and that such internal financial controls are adequate and were operating effectively; and

vi. that proper system had been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENT

During the year, Shri Ashwani Bhatia, Managing Director, superannuated on 31^st May 2022 and Shri Alok Kumar Choudhary was appointed as Managing Director on the Board w.e.f. 7^th June 2022. Dr. Vivek Joshi was nominated as Director on the Board u/s 19 (e) of SBI Act, 1955, w.e.f. 15^th November 2022 vice Shri Sanjay Malhotra. Shri Sanjeev Maheshwari retired from the Board on 19^th December 2022 upon completion of his term.

The Directors place on record their appreciation for the contributions made by Shri Ashwani Bhatia, Shri Sanjay Malhotra, and Shri Sanjeev Maheshwari to the deliberations of the Board.

The Directors welcome Shri Alok Kumar Choudhary and Dr. Vivek Joshi as new Directors on the Board.

The Directors also express their gratitude for the guidance and co-operation received from the Government of India, RBI, SEBI, IRDA and other government and regulatory agencies.

The Directors also thank all the valued clients, shareholders, Banks and financial institutions, stock exchanges, rating agencies and other stakeholders for their patronage and support and take this opportunity to express their appreciation for the dedicated and committed team of employees of your Bank.

For and on behalf of the Central Board of Directors

- Chairman

Date: 18th May 2023

   

State Bank of India Company Background

DINESH KUMAR KHARAChalla Sreenivasulu Setty

Incorporation Year	1955
Registered Office	State Bank Bhavan 14th Floor,Madame Cama Road Nariman Point Mumbai,Maharashtra-400021
Telephone	91-22-22740841/42/43/44/45/46/47/48,Managing Director
Fax	91-22-22855348
Company Secretary	Aruna Nitin Dak.
Auditor	ASA & Associates LLP/Guha Nandi & Co/Suri & Co
Face Value	1
Market Lot	1
Listing	BSE,Kolkata,London,MSEI ,NSE,
Registrar	Alankit Assignments Ltd 205/208,Anarkali Market,Jhandewalan Extn,New Delhi - 110055

State Bank of India Company Management

Director Name	Director Designation	Year
DINESH KUMAR KHARA	Executive Chairman	2023
B Venugopal	Director(Shareholders)	2023
Challa Sreenivasulu Setty	Managing Director	2023
Ganesh G Natarajan	Director	2023
Ketan S Vikamsey	Director	2023
Mrugank M Paranjape	Director	2023
Ashwini Kumar Tewari	Managing Director	2023
Anil Kumar Sharma	Nominee (RBI)	2023
PRAFULLA PREMSUKH CHHAJED	Non Official Director	2023
Aruna Nitin Dak.	Company Sec. & Compli. Officer	2023
Alok Kumar Choudhary	Managing Director	2023
Vivek Joshi	Nominee	2023

State Bank of India Listing Information

Listing Information
BSE_SENSEX
NIFTY
BSE_500
BSE_100
BSE_200
BSEDOLLEX
BSE_PSU
CNX500
BSEBANKEX
BANKNIFTY
CNX100
PSUBANK
CNXSERVICE
CNX200
CNXFINANCE
CNXDIVIDEN
BSECARBONE
NFT100LQ15
NIFTY50V20
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEFINANCE
SENSEX50
BSEBHARA22
ESG100
LMI250
BSEEVI
NFT50EQWT
BSE100LTMC
NFTYLM250
NFTY100ESG
NFTYFS2550
NF500M5025
NFTYTOTMKT

State Bank of India Finished Product

Product Name	Unit	Installed Capacity	Production Quantity	Sales Quantity	Sales Value
Interest/Discount on Adv/Bills	Rs.	0	0	0	221400.6468
Income on Investments	Rs.	0	0	0	95928.2671
Others	Rs.	0	0	0	11283.1351
Interest on bal with RBI	Rs.	0	0	0	3491.0112