DRAFT





 















Responsive Responsible Resilient
At SBI, customer-centricity is We adhere to the highest We have always stood resolute
of paramount importance, and standards of corporate in the face of challenges,
we have a proactive and flexible governance, ethics, and fortified by a robust framework,
approach to meet the changing openness while operating with that ensures resilience across
financial demands of our uncompromising integrity. To operations. We maintain a
customers. We employ cutting- limit risk and safeguard the strong capital base, diligent risk
edge technology and new interests of our stakeholders, management practices, and
solutions to offer seamless and we comply with regulations and diversified business portfolios to
efficient banking experiences, employ responsible lending withstand market fluctuations.
keeping our finger on the pulse practices. In addition to this, Our strategic focus on digital
of market developments. We we promote environmental transformation equips us with
aspire to surpass expectations responsibility by sponsoring the agility to adapt swiftly to
and establish long-term initiatives with favourable social changing landscapes, ensuring
relationships with our valued and environmental benefits. Our uninterrupted banking services
clients by providing responsive committment to corporate social and fostering financial stability.
customer service, multi-channel responsibility helps strengthen
accessibility, and customised communities, allowing for
solutions. inclusive growth and societal
progress.

Contents
Company Overview Responsible Approach Statutory Reports
SBI at a Glance 2 Environment 20 Directors’ Report 38
Products and Services 4 Customers 22 Corporate Governance Report 104
Financial Legacy 6 People 24
Business Responsibility and
Ratings 7 Community 26 Sustainability Report 139
Awards and Recognitions 8
Reach 10 Governance Financial Statements
Chairman’s Message 12 Central Board of Directors 28 Standalone 140
Committees of the Board 30 Consolidated 228
Members of the Central Pillar 3 Disclosures (Consolidated) 290
Management Committee 31
Members of Local Boards 32 Notice 328
Bank’s Auditors 33 Green Initiative 336
Our Group Structure 34

Scan QR Code to download

https://bank.sbi/documents/17826/35696/Annual_Report_2023.pdf
Highlights, FY2023
FINANCIAL
TOTAL ASSETS DEPOSITS ADVANCES

J55,16,979 Cr J44,23,778 Cr J32,69,242 Cr

10.61% 9.19% 15.99%

NET INTEREST INCOME (NII) FEE INCOME PROFIT AFTER TAX (PAT)

J1,44,841 Cr J26,245 Cr J50,232 Cr

19.99% 6.84% 58.58%
YoY Growth

NON-FINANCIAL
CUMULATIVE REGISTERED NO OF NEW DIGITAL SAVINGS AVERAGE DAILY CARDLESS CASH
USERS IN YONO ACCOUNTS OPENED PER DAY WITHDRAWAL

6.07+ Cr ~23,000 1.07 Lakh

TOTAL EMPLOYEES CSR EXPENDITURE WOMEN IN THE WORKFORCE

2,35,858 `316.76 Cr 26.78%

SBI at a Glance

Redefining Banking for More Than Two

Centuries
Over the period of more than 200 years, we have been able to cement SBI's position as
the largest bank in the country. We have been able to successfully redefine the banking
landscape in India through the introduction of various industry-first products and services
for all our customer segments. In line with the requirements of our customers, we have
successfully diversified our businesses and leveraged the latest technologies to remain
the preferred Bank of the Indian populace. As we move ahead, we will continue to further
redefine banking through responsible and sustainable banking solutions.

We are India’s We serve We have a user base

largest bank 48+ Crore of 6.07+ Crore on our
customers digital application -
YONO

Vision Mission
Committed to providing
Be the Bank of Choice
Simple, Responsive
for a Transforming India
and Innovative
Financial Solutions

Values

Service Transparency Ethics Politeness Sustainability

2 Annual Report 2022 – 23

 Company Overview
LEADING THE WAY*

22,405 29.90%
TOTAL BRANCHES MARKET SHARE OF ATMs

65,627 26.25%

Responsible Approach
ATMs AND ADWMs MARKET SHARE OF DEBIT
CARD SPENDS

76,089 26%
CSPs
MARKET SHARE IN

22.99%

Governance
REMITTANCES

MARKET SHARE OF DEPOSITS

20.89%
19.68% MARKET SHARE IN
MOBILE BANKING
MARKET SHARE OF ADVANCES TRANSACTIONS IN VALUE

Statutory Reports
*As on 31st March 2023

ESG HIGHLIGHTS

23,679.55 MW B 8.34+ Lakh

Financial Statements
CAPACITY OF RENEWAL ENERGY CARBON DISCLOSURE PROJECT TREES PLANTED IN FY2023
PORTFOLIO RATING IN 2022

US$ 1 Billion 46 5,190

CONCLUDED THE LANDMARK EV CHARGERS INSTALLED EMPLOYEES WITH
SYNDICATED SOCIAL LOAN DISABILITIES

H36,243 Crore 32 ~54 Lakh

VALUE OF RENEWABLE ENERGY GREEN BUILDING CSR BENEFICIARIES
(RE) PROJECTS SANCTIONED CERTIFICATIONS

3
Products and Services

Diversified Portfolio Catering to Everyone

At SBI, our focus has always been on ensuring to offer a wide range of banking products
and services to all our customer segments. Through our various branches and outlets, joint
ventures, subsidiaries and associate companies, we are able to meet the requirements of
all our customers.

PERSONAL RURAL INTERNATIONAL

BANKING BANKING BANKING GROUP
PG 41 PG 51 PG 57

We offer integrated Personal Banking We cater to the needs of India’s rural We are the pioneers of International Banking
services through a wide range of loan citizens through our offerings under in India. The International Banking arm is a
products, Salary Packages, Digital Loan financial inclusion micro credit and consistent contributor to transforming the
offerings, NRI Business, and Wealth agriculture business. industry landscape through its Overseas
Management services, amongst others. Branches, Overseas Banking Subsidiaries,
Joint Ventures and Associates.
Key highlights

y Real estate portfolio stands at `6.41 trillion. y Lending to farming and agricultural y Acted as the Lead Arranger in Syndicated
y High-value car loan segment registered a activities crossed `2,58,000 Crore. Loan facility of three Fortune 500 companies
growth of 160% YoY. y Crossed `34,000 Crore in the SHG in the US.
y Provided education loans to 1,13,793 loan portfolio. y Awarded as ‘The Best Trade Finance Provider
students during the year. y Provided training to 99,438 candidates (India) – 2023’ for the eleventh consecutive
y Personal loan por t folio reached through our 152 Rural Self Employment year by Global Finance Magazine, New York.
`3,49,988 Crore. Training Institutes (RSETIs).

#1 #1 1st
HOME LOAN PROVIDER IN INDIA LENDER TO FARMING AND INDIAN BANK TO EXPAND ITS
AGRICULTURAL ACTIVITIES IN INDIA PRESENCE GLOBALLY

#1 #1 $1+ Bn
EDUCATION LOAN PROVIDER MARKET SHARE IN SHG LOANS RESOURCES RAISED FROM
IN INDIA IN INDIA DIFFERENT MULTILATERAL
AGENCIES

#1 152 $12.81 Bn
PERSONAL LOAN PROVIDER RURAL SELF EMPLOYMENT VALUE OF FOREIGN CURRENCY
IN INDIA TRAINING INSTITUTES (RSETIs) SET LOANS SANCTIONED TO INDIA-
UP ACROSS INDIA BASED CORPORATES

4 Annual Report 2022 – 23

 Company Overview
Responsible Approach
SME CORPORATE GOVERNMENT
BANKING BANKING BANKING
PG 49 PG 55 PG 53

We are the leaders of SME financing in the Our Corporate Account Group and We are the undisputed market leader in
country. We provide simple and innovative Commercial Credit Group provide one- the Government business. It significantly
financial solutions to our SME clientele stop solution, by providing a wide range contributes towards e-governance initiatives

Governance
along with high-quality customer services. of financial products and services, taken by the GOI and is instrumental in the
to top corporates of the country and development of e-Solutions for both Central
Navratna PSUs. and State Governments.

y SME portfolio reached `3,59,270 Crore. y Investments wor th `80 0 Crore y Recorded a turnover of `60,35,342 Crore.
y Entered 16 new e-DFS and 37 new e-VFS sanctioned in Private Equity/ Alternative y Administered pension payments to ~43

Statutory Reports
tie-ups. Investment Funds. Lakh pensioners.
y Entered into co-lending agreements with y Made FX-All and e-Forex platforms y Added 2.54 Lakh new pension accounts
5 NBFCs. available to customers to meet their foreign during the year.
exchange requirements.

19 Lakh One-stop solution #1

Financial Statements
TOTAL SME CUSTOMERS FOR FINANCIAL SERVICES AND MARKET SHARE IN CENTRAL
PRODUCTS TO TOP-RATED GOVERNMENT BUSINESS
CORPORATES AND THEIR FOREIGN
ASSOCIATES AND SUBSIDIARIES

833 Funding of 26
DEDICATED SME INTENSIVE LARGE PROJECTS THROUGH CENTRAL GOVERNMENT MINISTRIES
BRANCHES PROJECT FINANCE AND AND DEPARTMENTS FOR WHICH WE
STRUCTURING SBU ARE THE ACCREDITED BANKER

2,000+ `9.80 Lakh Crore `3,953 Crore

RELATIONSHIP MANAGERS (RMs) TOTAL PORTFOLIO OF TOTAL COMMISSION EARNED
DEDICATED TO SMEs CORPORATE BANKING

5
Financial Legacy

A Decade of Banking Excellence

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Liabilities
Capital (` in Crore) 747 747 776 797 892 892 892 892 892 892
Reserves & Surplus (` in Crore) 1,17,536 1,27,692 1,43,498 1,87,489 2,18,236 2,20,021 2,31,115 2,52,983 2,79,196 3,26,716
Deposits (` in Crore) 13,94,409 15,76,793 17,30,722 20,44,751 27,06,344 29,11,386 32,41,621 36,81,277 40,51,534 44,23,778
Borrowings (` in Crore) 1,83,131 2,05,150 3,23,345 3,17,694 3,62,142 4,03,017 3,14,656 4,17,298 4,26,043 4,93,135
Other’s (` in Crore) 96,927 1,37,698 1,59,276 1,55,235 1,67,138 1,45,597 1,63,110 1,81,980 2,29,932 2,72,457
Total(` in Crore) 17,92,748 20,48,080 23,57,617 27,05,966 34,54,752 36,80,914 39,51,394 45,34,430 49,87,597 55,16,979
Assets
Investments (` in Crore) 3,98,800 4,81,759 5,75,652 7,65,990 10,60,987 9,67,022 10,46,954 13,51,705 14,81,445 15,70,366
Advances (` in Crore) 12,09,829 13,00,026 14,63,700 15,71,078 19,34,880 21,85,877 23,25,290 24,49,498 27,33,967 31,99,269
Other Assets (` in Crore) 1,84,119 2,66,295 3,18,265 3,68,898 4,58,885 5,28,015 5,79,150 7,33,227 7,72,185 7,47,344
Total (` in Crore) 17,92,748 20,48,080 23,57,617 27,05,966 34,54,752 36,80,914 39,51,394 45,34,430 49,87,597 55,16,979
Net Interest Income (` in Crore) 49,282 55,015 57,195 61,860 74,854 88,349 98,085 1,10,710 1,20,708 1,44,841
Provisions for NPA (` in Crore) 14,224 17,908 26,984 32,247 70,680 54,529 42,776 27,244 14,087 9,144
Operating Result (` in Crore) 32,109 39,537 43,258 50,848 59,511 55,436 68,133 71,554 75,292 83,713
Net Profit Before Taxes 16,174 19,314 13,774 14,855 -15,528 1,607 25,063 27,541 43,422 67,205
(` in Crore)
Net Profit (` in Crore) 10,891 13,102 9,951 10,484 -6,547 862 14,488 20,410 31,676 50,232
Return on Average Assets (%) 0.65 0.68 0.46 0.41 -0.19 0.02 0.38 0.48 0.67 0.96
Return on equity (%) 10.49 11.17 7.74 7.25 -3.78 0.48 7.74 9.94 13.92 19.43
Expenses to Income (%) 52.67 49.04 49.13 47.75 50.18 55.70 52.46 53.60 53.31 53.87
(operating
Expenses to total Net Income)
Profit Per employee (` in 000) 485 602 470 511 -243 33 578.98 828.35 1,292.72 2,122.64
Earnings Per Share (`)* 156.76 17.55 12.98 13.43 -7.67 0.97 16.23 22.87 35.49 56.29
Dividend Per Share (`)* 30 3.5 2.60 2.60 Nil Nil Nil 4.00 7.10 11.30
Share Price (on NSE) (`)* 1,917.70 267.05 194.25 293.40 249.90 320.75 196.85 364.30 493.55 523.75
Dividend Pay out Ratio % (`) 20.56 20.21 20.28 20.11 NA NA NA 17.49 20.00 20.08
Capital Adequacy Ratio (%)
Basel-II Total Capital 1,45,845 1,54,491 1,81,800 2,06,685 2,34,056 2,41,073 2,66,596 3,01,980 3,34,829
(` in Crore)
% 12.96 12.79 13.94 13.56 12.74 12.85 13.13 13.82 13.85
Tier I Capital (` in Crore) 1,12,333 1,22,025 1,35,757 1,56,506 1,84,146 1,94,655 2,17,477 2,44,421 2,69,708
% 9.98 10.1 10.41 10.27 10.02 10.38 10.71 11.19 11.16
Tier II Capital (` in Crore) 33,512 32,466 46,043 50,179 49,910 46,418 49,119 57,559 65,121
% 2.98 2.69 3.53 3.29 2.72 2.47 2.42 2.63 2.69
Basel-III Total Capital 1,40,151 1,46,519 1,75,903 2,04,731 2,38,154 2,45,225 2,74,036 3,08,893 3,42,792 4,08,579
(` in Crore)
% 12.44 12 13.12 13.11 12.60 12.72 13.06 13.74 13.83 14.68
Tier I Capital (` in Crore) 1,09,547 1,17,157 1,33,035 1,61,644 1,95,820 2,05,238 2,30,769 2,57,177 2,83,070 3,35,528
% 9.72 9.60 9.92 10.35 10.36 10.65 11.00 11.44 11.42 12.06
Tier II Capital (` in Crore) 30,604 29,362 42,868 43,087 42,334 39,987 43,267 51,716 59,722 73,051
% 2.72 2.40 3.20 2.76 2.24 2.07 2.06 2.30 2.41 2.62
Net NPA to Net Advances (%) 2.57 2.12 3.81 3.71 5.73 3.01 2.23 1.50 1.02 0.67
Number of Domestic Branches 15,869 16,333 16,784 17,170 22,414 22,010 22,141 22,219 22,266 22,405
Number of Foreign Branches / 190 191 198 195 206 208 233 229 227 235
offices

*The face value of shares of the Bank was split from `10 per share to `1 per share - wef. 22nd November 2014. The data is on `1 per share from 2014-15
onwards and `10 per share for earlier years.

6 Annual Report 2022 – 23

Ratings
Rating Rating Agency

Company Overview
Baa3/Stable/P-3 Moody’s
BANK RATING BBB-/Stable/A-3 S&P
BBB-/Stable/F-3 Fitch Ratings

Responsible Approach
AA+/Stable CRISIL

Governance
AT 1 BONDS AA+/Stable ICRA
AA+/Stable CARE

Statutory Reports
AAA/Stable CARE
TIER II BONDS
AAA/Stable ICRA

Financial Statements
AAA/Stable ICRA
INFRASTRUCTURE
BONDS AAA/Stable India Ratings

CARE : Credit Analysis & Research Limited

ICRA : ICRA Limited
CRISIL : CRISIL Limited
S&P : Standard & Poor’s

Note: Ratings as on 31.03.2023

7
Awards and Recognitions

Getting Rewarded for our Endeavours

1 2 3

IBA 18th Annual Technology Awarded “Best Performing Bank Awarded “Special Jury Award for
Award 2022 under CLSS” from Government Consistent Transformation" from
of India, Ministry of Housing & BT-KPMG Best Banks & Fintechs
Urban Affairs under PMAY-U Awards 2022
Awards-2021: 150 Days Challenge”

4 5 6

Awarded “India’s Best Annual Awarded “Best Security Awareness Awarded "The Best Bank
Report Awards-2022 Award” and “Best Security Operations Award 2022" from Global
Centre of the year” from NASSCOM- Finance Magazine
DSCI Excellence Awards 2022

7 8

ICAI awards for

excellence in financial
reporting for year
ET BFSI Best Brands 2021-22 Gold Shield,
2022 and ET BFSI Best category I – Public
Brands 2023 Sector Banks

8 Annual Report 2022 – 23

 Company Overview
Responsible Approach
Governance
Shri Dinesh Khara, Chairman, SBI receiving “Best Bank Award 2022” from Global Finance New York.

Statutory Reports
9 10 11

Financial Statements

SBI SHINES GOLD. Honoured Awarded “Issuer of the  T HR World Future Skill Awards:
E
With 3 Gold Awards at ET Human Year - Private Placement” Awarded Gold under the category
Capital Awards Ceremony. at the 5th National Summit ‘Best Learning Management
y H
 R Leader of the Year – Large & Awards on Corporate System’ for Gyanodaya -
Scale Organisations Bond Market 2022 by the “e-learning” and askSBI, and the
Associated Chambers of Silver under the category “High
y E
 xcellence in Business Continuity
Commerce and Industry of Impact Certification Program” for
Planning & Management
India (ASSOCHAM) Role Based Certifications
y M
 ost Valuable Employer during
COVID -19

9
Reach

Being Close to
our Customers
We believe that in this day and age,
it is imperative to become an organisation
that is phygitally omnipresent. With this
in mind, we have not only been focusing on increasing our
presence physically, but have been placing great emphasis
on ensuring that we are diversifying and increasing our
penetration through digital channels.

Being Close to Our Customers Increasing Our Presence

As the largest bank in the country, our Digitally
objective is to significantly increase We are at the forefront of digital
our presence across the country and transformation with a steady stream
penetrate deeper into new regions in of technology-driven innovations to
order to ensure that all our customers stay relevant in the digital age led by
have access to our services. We have millennials. Our multichannel delivery
placed great emphasis on strengthening model – digital, mobile, ATM, internet,
our branch networks and ATMs across social media and branches, offers
all regions, especially in the rural areas. customers a wide choice to carry out
This strategy is crucial for us to establish these transactions, at any time and place.
a stronger hold in the market and achieve Our flagship mobile banking and lifestyle
sustainable growth for our business in app, YONO, offers not just financial
the long run. services but also a gamut of investment,
insurance and shopping solutions.

12.54%
CONTRIBUTION OF OVERSEAS
BRANCHES TO THE BANK’S NET
PROFIT IN FY2023

6.07 Crore 1.03 Crore ~45,000 ~5,50,000

DIGITAL CUSTOMERS DAILY LOGINS REGISTRATIONS PER DAY DAILY AVERAGE
TRANSACTIONS

10 Annual Report 2022 – 23

 Company Overview
Responsible Approach
Governance
Statutory Reports
Note: Map not to scale

Financial Statements
A Truly International Bank Branches Branches/Offices Investment
USA (3) Belgium (1) Nigeria (1)
Our focus is to strengthen our Germany (1) Managed Exchange Co
presence in overseas markets while Banking Subsidiaries UK (1) Oman (2)
continuing to support the Indian California (7) S Africa (2) UAE (1)
diaspora and Indian corporates Canada (6) Bahrain (2) Joint Venture
Russia (1) UAE (2) Bhutan (1)
worldwide. Today, we have a presence
UK (12) Oman (1)
across all time zones through our
235
Mauritius (15) Israel (1)
235 overseas offices in 29 countries Indonesia (11) China (1)
and have established ourselves as Nepal (116) S. Korea (1)
Japan (2) OVERSEAS BRANCHES
the pioneer of International Banking
Rep Office India (1)
among the Indian PSBs. The overseas
Maldives (4)

29
USA (1)
operations of SBI are being managed Sri Lanka (5)
Brazil (1)
by International Banking Group (IBG). Iran (1) Bangladesh (19)
UAE (2) Myanmar (1) COUNTRIES OF PRESENCE
Philippines (1) Singapore (5)
Hong Kong (1)
Australia (2)

11
Chairman’s Message

Bank of Choice Today

and Tomorrow
Dear Shareholders, ECONOMIC OVERVIEW
It gives me immense pleasure to place before you the highlights of your The past year has been another turbulent
Bank's performance during FY2023. Details of the achievements and year with the global economy marred by
initiatives taken by your Bank are provided in the Annual Report for profound shocks and unprecedented
FY2023. 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 build-
up 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,

Dinesh Kumar Khara

Chairman

12 Annual Report 2022 – 23

 Company Overview
real GDP growth is projected at 6.5%
in FY2024 (RBI), with economic activity
industry’s growth of 15.0% in FY2023,
led by robust growth in all the sectors.
Your Bank has
backed by improving rural demand, the Among all the business segments, retail registered significant
Government’s thrust on infrastructure
spending, revival in corporate
personal loans registered the highest
YoY growth of 17.64% touching `11.79
improvements on the

Responsible Approach
investment, healthy bank credit, and Lakh Crore followed by SME advances asset quality front,
moderating commodity prices. which grew by 17.59% to `3.59 Lakh
Crore. Agri & Corporate loans registered
provision coverage
YOUR BANK'S a YoY growth of 13.31% to `2.58 Lakh ratio, RoE/RoA, NII and
PERFORMANCE
Crore and 12.52% to `9.79 Lakh
Crore, respectively.
NIM, while also giving
During the year FY2023, your Bank’s highest standalone

Governance
business grew at a faster pace than The 3-year CAGR of retail personal
the banking industry, both in deposits loans indicate a 16.0% growth and now profit in FY2023 by
and credit. accounts 42.5% of domestic advances
in FY2023. Among the retail personal
any listed corporate,
Deposits loans, Xpress credit loans crossed the domestically.
`3 Lakh Crore mark, with YoY growth of
In FY2023, the whole Bank deposits 22.72% to `3.04 Lakh Crore in FY2023. Profitability
grew by 9.19% YoY to `44.23 Lakh Crore,

Statutory Reports
Home loans and Auto loans, grew by
of which domestic deposits increased 14.07% to `6.41 Lakh Crore and 23.22% During FY2023, your Bank optimally
by 8.50% to `42.53 Lakh Crore and to `97,523 Crore respectively during leveraged the opportunities inherent
foreign offices deposits by 29.60% to FY2023. As on March 2023, your Bank’s in the resurgent and resilient Indian
`1.70 Lakh Crore. CASA deposits grew market share in Home loans and Auto economy. Buoyed by relentless pursuit
by 4.95% to `18.62 Lakh Crore and loans is at 33.1% and 19.4% respectively. of best practices and strategies across
CASA ratio of your Bank is at 43.80% niche segments, the standalone net
as of March FY2023. Current account Investment profit during FY2023 rose by over 58%

Financial Statements
deposits grew by 7.47%, while saving to `50,232 Crore from previous year’s
bank deposits grew by 4.51%. Your Bank With the interest rate hikes across the net profit of `31,676 Crore (FY2022).
has opened 1.24 Crore Regular Savings globe to tame inflation, your Bank’s Your Bank has registered significant
Bank Accounts, of which 64% accounts prudent investment decisions helped improvements on the asset quality front,
were acquired digitally through YONO contain the impact of rising interest rates provision coverage ratio, RoE/RoA, NII
during FY2023. on the investment portfolio. Your Bank’s and NIM, while also giving highest
investment portfolio increased by 6.3% standalone profit in FY2023 by any listed
Credit to `15.87 Lakh Crore in FY2023, of which corporate, domestically.
96% are domestic investments. Within
Your Bank’s gross advances grew by the domestic investment portfolio, The Net Interest Income (NII) of your Bank
15.99% to `32.69 Lakh Crore, compared 62.94% is in HTM category while the registered a robust growth of 19.99%
to a growth of 11.0% in FY2022. While rest is under AFS & HFT category. The over the previous year at `1,44,841 Crore
domestic advances grew by 15.38% yield on investment at 6.51% is in line in FY2023 (`1,20,708 Crore in FY2022).
to `27.76 Lakh Crore, foreign offices with the interest rate scenario of FY2023. Lending book grew across all segments
advances grew by 19.55% to `4.92 Lakh Your Bank’s liquidity position remains and remained adequately diversified
Crore. You will be happy to know that comfortable, and it is well-placed to with traditional bastions like Xpress
your Bank’s domestic advances growth handle any moderation in liquidity. credit and Housing loans growing
(15.38%) is higher than the banking handsomely, all contributing to higher

13
Chairman’s Message

of the banking book. The CET-1 ratio We employ cutting-edge technology

Your Bank has improved by 33bps to reach 10.27% as and new solutions to offer seamless
declared a dividend of of March 2023. and efficient banking experiences,
keeping our finger on the pulse of
D11.30 per equity share The overall Capital Adequacy Ratio
market developments. Our objective is
(CAR) as at the end of March 2023 stands
(i.e. 1130%) for the at 14.68%, improving by 85 bps YoY. With
to significantly increase our presence
across the country and penetrate deeper
financial year ended healthy profits in FY2023, the capital
into new regions to ensure that all our
position of the Bank remains comfortable
March 31, 2023. to tap future growth opportunities.
customers have access to our services.

Our multichannel delivery model – digital,

Dividend mobile, ATM, internet, social media and
interest income. Control in slippages
branches, offer customers a wide choice
and moderation in credit costs showed I am happy to announce that the Board
to carry out their transactions, as per
marked improvements. Credit costs of your Bank has declared a dividend of
their convenience at any time and place.
further improved by 23 basis points to `11.30 per equity share (i.e. 1130%) for
Your Bank has one of the largest ATM
0.32%, continuing its momentum. Total the financial year ended March 31, 2023.
networks in the country, with 65,627
provisions made during FY2023 stood
ATMs, including Automated Deposit
at `33,481 Crore, falling 7.51% (`2717 Asset Quality
and Withdrawal Machines (ADWMs), as
Crore) over FY2022 level. The operating
The focus on asset quality and on March 31, 2023. On an average, ~1.3
profit of your Bank during FY2023 stood
containing risk has been an area of Crore transactions are recorded every
at `83,713 Crore, a marked improvement
continued attention for the Bank. There day at your Bank’s ATMs/ADWMs and
of 11.18% over FY2022 (`75,292 Crore
was a broad-based improvement in the 5.66 Lakh cash deposit transactions
that had grown by 5.22%). The cost
asset quality of your Bank in FY2023. at ADWMs.
to income ratio increased by 56 basis
The gross non-performing assets (NPA)
points in FY2023 (over FY2022), though Your Bank has established a centralised
of the Bank dropped by 119 bps YoY and
standing a little elevated at 53.87 for the dedicated cell, CLIC (Customer Liability
stood at 2.78% as of March 2023. The net
FY2023 against 53.31 (FY2022) due to Identification Centre), across all 17
NPA ratio accordingly stands at 0.67%
higher provisions on account of wage circles. This cell expedites the resolution
as of March 2023 down 35 bps YoY.
hike negotiations. of complaints related to unauthorised
Slippage, which indicates the electronic debit transactions (UAED),
Return on Assets (RoA) for Q4 FY2023
incremental fall in credit quality during ensuring a swif t and ef ficient
stood at 1.23% (0.96% for the full
the year, was down by 26.38% compared customer experience.
FY2023 against 0.67% for FY2022),
to FY2022 and as a result, the slippage
signalling that the journey towards To ensure optimal service quality,
ratio for FY2023 improved by 34 bps YoY
guidance of ROA of 1%+ was on track incognito visits were carried out at
reaching 0.65% as of March 2023.
with continuous improvement in ROA various branches. These visits assessed
from FY2020 onwards. Return on Equity The proactive management of risk various aspects such as infrastructure
(RoE) showed marked improvement of during the year resulted in improvement availability, staff readiness, and overall
551 basis points, rising to 19.43% for the in Provision Coverage Ratio (PCR) by branch activity.
FY2023 against 13.92% during FY2022 135 bps YoY, standing at 76.39% by the
To improve customer convenience and
(as against improvement of 398 basis close of financial year.
ease of banking, your Bank is extending
points displayed in FY2022).
doorstep banking services through
Customer Centricity
agents to all customers at the top 100
Capital
At SBI, customer-centricity is of banking centres. Senior Citizens more
The capital ratios of the Bank continued paramount importance, and we than 70 years of age and differently abled
to improve during the financial year on undertake a proactive and flexible persons are being extended doorstep
the back of better planning, plough back approach to cater to the changing banking services at all banking centres.
of profit, and efficient risk management financial needs of our customers.

14 Annual Report 2022 – 23

With a presence across all time zones loan through GST Sahay app, which is Your Bank deploys

Company Overview
through its 235 points of presence in a marketplace.
29 countries, your Bank has gradually the most advanced
spread its wings globally and has 2. Contactless Lending Platform technologies like
become a pioneer of International (CLP):
Banking among the Indian banks. During Your Bank is one of the stakeholders
artificial intelligence,
FY2023, your Bank has opened one in SIDBI-led PSB Consortium, which machine learning and
India visa application centre at Khulna

Responsible Approach
(Bangladesh) and 5 branches and 3
offers SMEs quick and simple access
to loans through CLP platform
business analytics,
extension counters through its overseas psbloanin59minutes.com. Eligible among others, to
subsidiary in Nepal. proposals receive instant in-principle
approval based on GST returns, IT
augment its product
Technology & Innovation returns and account statements. offerings to enhance
Your Bank uses technology in every For FY2023, your Bank has already customer delight each

Governance
aspect of the value proposition -
from business, designing products,
sanctioned 6,342 leads worth `2,940.24
Crore, with ticket size ranging from
time without exception.
streamlining processes, and improving `1 Lakh to `5 Crore.
delivery, to monitoring. Your Bank dealers with total sanctioned limits of
has taken several initiatives to build a To facilitate digitalisation and streamline over `44,565 Crore e-DFS (Electronic
quality SME portfolio in a risk-mitigated the issuance of credit, a new mechanism Dealer Financing Scheme) and `16,437
manner and has implemented significant for the auto-renewal of leads obtained Crore e-VFS (Electronic Vendor
from CLP has been launched. This

Statutory Reports
changes to ensure ease of banking. Financing Scheme) respectively.
approach will guarantee the prompt
YONO Business combines all corporate renewal of accounts considered Your Bank entered into 16 new e-DFS
banking needs by being a one-stop good and financially satisfactory, and 37 new e-VFS tie-ups during the
solution for the customer. Your Bank with minimal need for manual work. year. Your Bank has already implemented
deploys the most advanced technologies It allows Relationship Managers CLP for e-DFS and e-VFS. Your Bank
like artificial intelligence, machine (SME) to concentrate on sales and has also simplified the e-VFS processes
learning and business analytics, among marketing activities. and built a new digital interface

Financial Statements
others, to augment its product offerings “psbloansin59minutes.com” on CLP for
to enhance customer delight each time, 3. Assisted Journey for ETCB/ improved customer experience. It has
without exception. Under YONO, Pre- NTCB/ NTB Customers also introduced Supply Chain Finance
Approved Business Loan (PABL) has Centralised Processing Centres to
The Assisted Journey allows operating
recorded a YoY growth of 1076% to reduce TAT for proposal processing. To
functionaries such as RM (SME) team,
`3,605 Crore in FY2023. ring-fence the supply chain portfolio, it
field officers and Branch Managers to
has implemented suitable risk mitigation
Following initiatives have been initiate the CLP journey on behalf of
measures and risk-based pricing.
implemented during the year: the customer without needing them to
Your Bank is also launching various
input any details. These can be uploaded
campaigns for onboarding dealers/
1. New digital products under directly on the portal.
vendors and broadening the channel
development in collaboration with
finance base.
Fintech/ AA/ GST 4. Supply Chain Finance
MSME SAHAJ Seller’s Invoice Financing By leveraging technology and branch Your Bank is the first Public Sector Bank
on Yono Business providing digital loan network, your Bank has been a major to register as a financier on the TReDS
and financing of GST invoice Seller’s player in supply chain finance while platform and is present on all the three
Invoice Financing Scheme under GST strengthening corporate relationships TReDS platforms in the country -RXIL,
Sahay, a GoI initiative, provides digital across sectors. During FY2023, supply M1 Exchange and Invoicemart, to
chain finance was extended to 34,592 provide finance to MSMEs. In FY2023,

15
Chairman’s Message

your Bank has discounted 26,973 bills y OTP based Cash withdrawal – addition As on 31.03.2023, a total of 3,04,450
amounting to `9,800 Crore, registering of new feature – 30 sec Timer display complaints have been attended, and an
a YoY growth of 144%. on ATM screen to make customer amount of `51.50 Crore has been put
aware about the time available for on hold.
To further penetrate the agriculture
entering the OTP and avoid time out.
and rural market, your Bank has floated Financial Inclusion
State Bank Operations Support Services y Pro-active reversal of failed
(SBOSS), which is expected to help your transactions to customers. Your Bank has taken significant steps to
Bank reach out to a larger populace, y Ins tallation of 15 0 0 0 new promote financial inclusion through a vast
coupled with improved efficiency in GCC machines. network of Business Correspondents
sourcing and renewal of KCC loans. (BCs)/Customer Service Points (CSPs).
y Cassette Swap has been implemented
As on 31st March 2023, your Bank has
Your Bank is actively looking to partner in 12907 Branches managed by
76,089 CSPs, providing access to
with agri-techs and start-ups to cater CAPEX ATMs/ ADWMs
32 banking products and services in
to the financial needs across the y 49,719 sites have been covered under unbanked areas while reducing footfalls
agriculture value chain. Your Bank has electronic surveillance solutions (eSS) in the branches. The BC/CSP channel
opened specialised Start-up branches at y SMS is being sent to customers for has recorded around 53.32 Crore
Bengaluru, Mumbai, Delhi and Chennai availing free Balance Enquiry & Mini transactions amounting to `3,30,389
to offer one-stop solutions to Start-ups. Statement from SBI ATMs and the Crore during FY2023. On an average,
In order to make banking more above services are also available on around 25-30 Lakh transactions per day
convenient for customers, your Bank has WhatsApp banking. are routed through the BC/CSP channel.
introduced the V-CIP digital process, y Replacement of 3,250 old SWAYAM The BC/CSP channel has opened 14.69
which allows account opening from machines has been completed. Crore BSBD accounts with `50,091
home, eliminating the need to visit y Display of “Cash not available” on ATM Crore deposits and has brought the
branches. During FY2023, 4.70 Lakh Screen whenever the ATMs are out unbanked/underprivileged sections of
customers joined us through V-CIP. of Cash (Before the transactions are society within the ambit of the formal
As a result of the various initiatives undertaken by the customers). Banking system by promoting various
taken by your Bank, 64% of total Regular social security schemes, low-cost
Your Bank has deployed 20,137 Barcode
Savings Bank Accounts have been microinsurance products (PMJJBY,
Based Passbook Printing Kiosks
opened digitally during FY2023. PMSBY) and pension schemes (APY).
(SWAYAMs) at 17,643 branches and 13
Your Bank has ensured customer lakh transactions are processed on daily
convenience and portfolio growth by basis, migrating ~3.65 Crore passbook
offering a comprehensive range of printing transactions every month from As on 31st March
branch counters. Your Bank has also
products on multiple platforms, with
higher profit margins. YONO offers deployed 33,077 GCC terminals at 2023, your Bank
digital loans in real-time, eliminating 21,446 retail branches for transactions has 76,089 CSPs,
through debit cards to promote Green
the need for physical documentation or
visiting a branch. Additionally, real-time Banking. To combat the Cybercrimes, providing access to
pre-approved personal loan eligibility by Ministry of Home Affairs has rolled 32 banking products
out cybercrime reporting Portal with
sending SMS has been introduced.
dedicated email (www.cybercrime.gov. and services in
Key initiatives during the FY on ATMs/
ADWMs front chiefly include:
in) and a helpline number 1930 to report unbanked areas
the cybercrime incidents by the victims.
Cybercrime cells at 17 circles of your while reducing
y Implementing Enhanced cash
dispensation logic for small
Bank work in multiple shifts to attend footfalls in the
to customer complaints concerning
denomination notes at all Bank’s ATMs. cyber frauds. branches.

16 Annual Report 2022 – 23

Your Bank is the undisputed market We believe that our KfW German Development Bank etc., for

Company Overview
leader in customer enrolment for onward lending to RE power developers.
government-sponsored social security success is intertwined
schemes viz, PMJJBY, PMSBY and with the prosperity of Strategic New Initiatives
APY. The share of banks in PMJJBY,
PMSBY and APY are 43.83%, 40.85% the society we serve, During FY2023, your Bank has continued
undertaking strategic initiatives to
and 31.78% respectively, among all and therefore, we achieve the long-term objectives set
Public Sector banks. During FY2023,

Responsible Approach
your Bank has achieved 27.88 Lakh APY actively engage in by the Bank. Some of the important
initiatives are:
enrolments as against the target of 17.90 initiatives focused on
Lakh allotted by PFRDA (~156% of the
target), simultaneously winning major education, healthcare, y In line with government policies
on electric mobility, your Bank has
awards from the PFRDA under various environmental partnered with Tata Power to set
APY campaigns.
sustainability, and up EV charging facilities at various

Governance
identified premises, including our
Environmental, Social & community corporate office, local head offices,
Governance (ESG) Practices
development. and residential premises across the
We believe that our success is country. This initiative promotes
intertwined with the prosperity of the sustainable mobility and encourages
society we serve, and therefore, we To promote ESG and to underscore the the use of electric vehicles among
actively engage in initiatives focused on Bank’s longstanding commitment to our employees.
supporting green and social projects,

Statutory Reports
education, healthcare, environmental y As a part of its commitment to
sus tainabilit y, and communit y your Bank concluded its largest
sustainable development, your
development. By embracing corporate inaugural Syndicated Social loan of $1
Bank has incorporated rooftop solar
social responsibility, we strengthen our billion ($500 million + green shoe of
photo voltaic systems financing as a
bond with stakeholders, foster inclusive $500 million) making it the largest ESG
component of the home loan project
growth, and contribute to building a loan raised by a commercial Bank in the
cost. This, coupled with an extensive
better and more equitable future for all. Asia-Pacific market.
micro market study and the opening

Financial Statements
For FY2023, an amount of `316.76 Crore Taking cognizance of the importance of 133 processing centres across India
has been allocated for undertaking CSR of managing the efficiency of our have enabled greater penetration of
activities by your Bank. Out of which, owned facilities, your Bank is making home loans in Tier-II and Tier-III cities.
an amount of `194.78 Crore is allocated continuous efforts to develop a green y Furthermore, IT has developed ‘SBI-
to SBI Foundation for undertaking CSR ecosystem. Under this initiative, your Easy ride’, an end-to-end digital
activities in project mode. Bank’s prominent establishments viz product which enables two-wheeler
Corporate Office, Global IT Centre and financing without the need to visit any
Your Bank has developed an ESG 6 of the Local Head Offices (LHOs) have branch for sanction or disbursement.
financing framework aligned with shifted to green power through green
sustainable finance guidelines and y I n case of personal loan products, your
tariff policy or through open access
principles. This framework serves Bank has integrated Digital Document
channels via solar/wind.
as a guide for our future bond and Execution into Xpress Credit loans,
loan issuance programs, ensuring In line with the country’s vision for utilising e-stamping and e-signature
that proceeds are used to finance or scaling up Renewable Energy (RE) for real-time document execution to
refinance eligible assets and projects power generation, your Bank is also make it customer-centric.
with environmental or social benefits. It facilitating RE financing in a big way. y For the benefit of its NRI clientele,
has received a Second Party Opinion to Your Bank has availed lines of credit from your Bank has launched a number
validate its robustness and adherence to multilateral agencies viz. the World Bank, of services in FY2023 including tie-
policy prescriptions. up with ‘Remitly’ to facilitate swift

17
Chairman’s Message

remittance to India, remittance y Your Bank has launched a Fund growth in Individual New business
facility using UPI Application, launch Management Solution to meet the premium of 26.7% vis-à-vis the industry
of NRE non-callable deposit scheme, requirements of Government of India growth of 15.4% with a private market
increase of daily limit for forex outward pertaining to Centrally Sponsored share of 24.3% & Industry market share
remittances through FX-Out (INB Schemes (CSS) under Single Nodal of 14.5%. The company generated a PAT
Channel) from NRE Account to US$ Account (SNA) covering 433 schemes of `1,721 Crore in FY2023 against `1,506
25000, among others. of 23 States/UTs and Central Sector Crore in FY2022.
Scheme through Central Nodal
y Your Bank has introduced SBI e-Forex SBI Cards and Payment Services
Account (CNA) mechanism covering
facility in the YONO Business - Limited registered PAT of `2,258 Crore
124 schemes.
Android app to enable customers to in FY2023 as compared to `1,616 Crore
book foreign exchange rates on the go. in FY2022, an increase of 40% YoY.
Subsidiaries
The same is expected to be rolled out
SBI Funds Management Limited is the
shortly for the iOS platform as well. Through its subsidiaries, your Bank
fastest growing AMCs with a growth of
y External benchmark (T-Bill Rate) linked provides a complete bouquet of financial
over 10.83% against the industry average
interest rates have been rolled out to products and services to its customers.
of 5.55% in FY2023. It has one of largest
WCL and LC Bill Discounting facilities On a consolidated basis, SBI Capital investor bases with over 121.80 Lakh
to incentivise top-rated borrowers and Markets Limited has posted a profit after live investor folios with about 27 Lakh
encourage the utilisation of their limits. tax (PAT) of `725.39 Crore for FY2023 new investor folios added in FY2023.
To stay competitive, this option is even as against `635.42 Crore in the previous The company posted a PAT of `1,331.20
offered for Rupee Export Packing year. SBICAP Securities Limited (SSL), a Crore for FY2023 as against `1070.65
Credit facilities. wholly owned subsidiary of SBI Capital Crore earned during FY2022.
y Project Kuber was launched in your Markets Limited and broking arm of the
SBI Global Factors Limited, a leading
Bank, which is driving a special focus SBI Group posted a net profit of `308
NBFC factor providing both Domestic
on marketing of current account Crore during the year ended FY2023 as
and Export Factoring services under
deposits and various transaction against `233 Crore in FY2022.
one roof, registered a turnover of `5,544
banking products in CCG vertical.
With a total Gross Written Premium Crore for FY2023 as compared to
y Your Bank recognises the contribution (GWP) of `10,888 Crore and a YoY turnover of `4,773 Crore in FY2022.
of its ex-employees, whose dedicated growth of 18%, the SBI General
lifelong services brought your Bank SBI Pension Funds Private Limited
Insurance Company Limited achieved
to its present height. It initiated has earned net profit of `53.51 Crore
the milestone of `10,000 Crore GWP
‘Project SBI Cares’ for automation and for FY2023. The total Assets Under
in FY2023. SBI General increased its
streamlining of various pre-retirement Management (AUM) of the company as
market share from 4.15% in FY2022
and post-retirement benefits and on 31st March 2023 is `3,39,006 Crore
to 4.21% in FY2023. The company’s
processes through its HRMS portal. (YoY growth of 20.01%). The company
presence has grown from 17 locations in
maintains lead position among 10 PFMs
y Further, your Bank has adopted a 2011 to over 141 branches across India.
in terms of AUM with market share of
branch-based model for manpower The company has served over 34 Crore
37.71%.
planning linked to productivity clients to date, with claims of `22,000
parameters at the branches. Crore handled.
Awards and Recognition
y Your Bank has been at the forefront SBI Life Insurance Company Limited has
of launching various innovative Your Bank’s efforts in various areas of
proven its market leadership in the year
solutions. Some of the initiatives taken banking were acknowledged and many
ended March 31, 2023, with numero-
during the year include development awards and recognitions were received
uno position in Individual New Business
of Internal Financial Controls over during the year. Your Bank was awarded
Premium, Individual Rated Premium,
Financial Reporting (IFCoFR) Portal, ET BFSI Best Brands award for 2022 and
Total Rated Premium and Total New
a dashboard for monitoring of gold 2023. The Global Finance Magazine also
Business Premium among the private
retention limit, and new features in SBI awarded "The Best Bank Award 2022".
insurers. The company witnessed
Digi Vault Application.

18 Annual Report 2022 – 23

Your Bank has been awarded by ET DSCI Excellence Awards 2022 awarded The conscious strategy to structurally

Company Overview
HR World Future Skill Awards, ‘Gold’ “Best Security Awareness and “Best transform your Bank through digitisation
under the category ‘Best Learning Security Operations Centre of the year”. of systems and process has progressed
Management System’ for Gyanodaya well. The Bank’s flagship digital offering
“e-learning” and askSBI, and ‘Silver’ Way Forward SBI YONO has shown growth across
under the category “High Impact products and business lines. The Bank
Overall FY2023 has been a good year
Certification Programme” for Role Based aims to be agile and imaginative in
for the Bank. Despite the geopolitical
Certifications. In HR policies, your Bank respect of its digital offerings so that

Responsible Approach
headwinds, resurgence of COVID-19
received 3-Gold Awards at ET Human YONO becomes a “Primary digital bank
in China, Indian economy showed
Capital Awards, namely HR Leader of of choice” in coming years.
remarkable resilience and the same
the Year - Large Scale Organisations;
reflects in your Banks financials. The use of business analytics and AI/
Excellence in Business Continuity
ML in decision making and operations
Planning & Management and Most Nevertheless, last financial year was
will be taken to the next logical level by
Valuable Employer during COVID-19. not without its share of surprises. The
deploying NextGen Data Warehouse
episodes of financial instability in the

Governance
Your Bank was adjudged the “Winner”, and Data Lake. Mutually beneficial
US and European banking took markets
for the fourth year in succession, in Best partnerships with fintechs and NBFCs
by surprise but did not impact the Bank.
Digital Financial Inclusion category under RBI’s co-lending framework will
However, vulnerabilities may emerge
among Large Banks in IBA Annual be explored.
as interest rates normalise from their
Banking Technology Awards 2022.
ultra-low levels. This warrants proactive Your Bank is comfortably placed in terms
In home loans, Government of India
identification and mitigation of risk in the of growth capital in the current year.
awarded “Best Performing Bank under
current financial year. With declining credit cost, opportunities

Statutory Reports
CLSS” under ‘PMAY-U Awards 2021:
for lending in sunrise sectors such as
150 Days Challenge’. Your Bank has had a healthy run of
sectors identified under PLI scheme,
reporting robust financial results
ICAI recognized your Bank’s financial renewables as well as electric mobility
successively for the last three years.
reporting standards by awarding the will be explored to diversify the portfolio.
Despite the challenges, your Bank’s
Gold Shield-Category-I for Public Sector The RBI’s guidelines on green deposits
ability to absorb unexpected losses
Banks- FY 2021-22. Additionally, your opens new opportunities on the liability
has improved. Healthy internal accruals
Bank also bagged “India’s Best Annual side to green the Bank’s balance sheet.

Financial Statements
reinforce its ability to tap capital markets,
Report Awards 2022.
if warranted, in future. Risk management Summing up, despite the economic
For its ESG initiatives, your Bank has practices have been strengthened over headwinds, your Bank has innovated well
been awarded CDP score of “B”, the the years and incremental improvements to respond to the challenges posed by the
highest score in the last 5 years by remain a perpetual work in progress. operating environment. I am more than
CDP (formerly Carbon Disclosure hopeful that the performance achieved in
Accommodating environment induced
Project), the global disclosure system FY2023 will continue in FY2024.
financial risk in the bank's overall
for companies to manage their
risk management strategy is the next “Innovation is the ability to see change as
environmental impact. The score of B
milestone that the Bank will aim for in an opportunity- not as a threat”
represents that the organisation has
FY2024. It is widely expected that RBI will
addressed the environmental impact Yours Sincerely,
make tangible progress in this direction
of their business and has ensured good
during this financial year. Your Bank
environmental management. Dinesh Kumar Khara
remains committed to incorporating
Your Bank was awarded “Issuer of principles and practices that promote
the Year Private Placement” at the 5th sustainable banking operations and the
National Summit & Awards on Corporate same reflects in our CDP score of “B” for
Bond Market 2022 by Associated FY2022, highest in last five years.
Chambers of Commerce and Industry of
India (ASSOCHAM). Further, NASSCOM

19
Environment

Banking Responsibly
Preservation of the natural environment has always been a priority for SBI, which is also
reflected in sustainability being one of your Bank's core values. However, the manifestation
of climate-related risks and opportunities has given further impetus to your Bank’s efforts
to strengthen and formalise its natural capital management.

SBI's Carbon Awarded score Highest

Disclosure Project for FY2022 is score since
(CDP) Ratings two notches inception
higher than
B previous score
C
2021 2022

ESG Financing Framework Syndicated Social Loan Renewable Energy Financing

We have developed an ESG financing We recently concluded our largest Recognising the importance of scaling
framework aligned with sustainable inaugural syndicated social loan, up renewable energy generation, we
finance guidelines and principles. This raising $1 Billion. This loan, which facilitate renewable energy financing by
framework serves as a guide for our includes a green shoe of $500 Million, availing lines of credit from multilateral
future bond and loan issuance programs, represents the largest ESG loan raised agencies like the World Bank and KfW
ensuring that proceeds are used to by a commercial bank in the Asia- German Development Bank. This allows
finance or refinance eligible assets and Pacific market. The loan emphasises us to provide financing to renewable
projects with environmental or social our commitment to supporting green energy power developers.
benefits. It has received a Second Party and social projects.
Opinion that validate its robustness and
adherence to policy prescriptions.

20 Annual Report 2022 – 23

Recycling and Environmental

Company Overview
Observances
We have installed a PET bottle-crushing
machine at our corporate centre to crush
plastic bottles, and the resulting flakes
are recycled by a vendor. Rainwater
harvesting systems have been installed

Responsible Approach
at 454 branches and offices across your
Bank. Furthermore, your bank observes
various sustainability-related days, such
as World Environment Day, International
Yoga Day, Earth Hour and conducts
donation activities during the "Joy of Shri Dinesh Khara, Chairman, State Bank of India, inaugurating the PET bottle crusher at State
Giving Week" to support marginalised Bank Bhavan.

Governance
sections of society.

Electric Vehicle (EV) Charging

Facility
In line with government policies on
electric mobility, we have partnered

Statutory Reports
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

Financial Statements
employees. We also offer a Green Car
Shri Dinesh Khara, Chairman, State Bank of India, inaugurating the EV charging station
Loan scheme with favourable terms for at State Bank Bhavan.
the purchase of electric cars.

Green Building and Renewable

Energy Initiatives
We are committed to developing a
green ecosystem. We have obtained
Indian Green Building Council (IGBC)
certifications for 32 of our premises,
ranging from platinum to silver
categories. Additionally, we are shifting
the power requirements of our major
establishments, including the corporate
office and global IT center, to renewable
energy sources. We have implemented
solar rooftop installations, rainwater
harvesting systems, and energy-efficient
measures to reduce our carbon footprint.

21
Customers

Redefining Customer Experience

The fact that we have been able to establish ourselves as the largest bank in the country
is largely due to our customer-centricity and constant dedication towards improving the
experience of our customers.

22 Annual Report 2022 – 23

CLIC (Customer Liability
Identification Centre)

Company Overview
We have established a centralised
dedicated cell, CLIC, across all 17
circles. This cell expedites the resolution
of complaints related to unauthorised
electronic debit transactions (UAED),
ensuring a swif t and ef ficient

Responsible Approach
customer experience.

Customer Engagement Metrics

To measure customer satisfaction
and loyalty, we have implemented the
following metrics:

Governance
y CSAT (Customer Satisfaction): We y CES (Customer Effort Score): We as infrastructure availability, staff
assess customer experience after evaluate the ease of use and resolution readiness, and overall branch activity.
every transaction, be it financial or of customer issues with our products The insights gathered from these visits
non-financial, on all our platforms. and services. This helps us identify were implemented to further improve
This helps us understand and improve areas where we can reduce customer customer experience.
customer satisfaction levels. effort and enhance their experience.
y NPS (Net Promoter Score): Our NPS Incognito Branch Visits
4,930

Statutory Reports
measurement enables us to gauge
customer loyalty and satisfaction, To ensure optimal service quality,
providing insights into the likelihood we conducted incognito visits to BRANCHES WHERE WE
of customers recommending our 4,930 branches across India. These CONDUCTED INCOGNITO
products and services to others. visits assessed various aspects such VISITS

Town Hall Meetings

Financial Statements
To better understand the preferences
and expectations of millennial, Gen Y,
and Gen Z customers, we organised
town hall meetings as a part of the
"Azadi Ka Amrit Mahotsav" celebrations.
Open house interactions were held at
1,488 centres across metro and district
headquarters, engaging with customers
directly. These interactions revealed
that 95.33% of customers prefer digital
channels, while the remaining 4.67% opt
for other channels.

1,488 95.33% 4.67%

CENTRES WHERE OPEN HOUSE CUSTOMERS PREFERRED CUSTOMERS PREFERRED
INTERACTIONS WERE CONDUCTED DIGITAL CHANNELS OTHER CHANNELS

23
People

Creating a Proud Workplace

At SBI, we are fully aware that our employees are the focal point of our growth engine. We
are always striving to create an environment and integrate processes that would not only
enhance employee productivity and experience, but instil a sense of pride in being a part
of the SBI family.
We are always in the process of reviewing our HR policies and making relevant adjustments
with regard to the present context. In order to enhance productivity, we have embraced
the digital wave and are integrating it across all functions to ensure a seamless experience
for our people.

2,35,858 1,09,259 94,977 31,622

TOTAL EMPLOYEES OFFICERS ASSOCIATES SUBORDINATE STAFF AND
OTHERS

24 Annual Report 2022 – 23

 Company Overview
Gender Diversity Training and Development Embracing Digitalisation

Responsible Approach
Gender diversity continues to be one of We place great emphasis on training all We have collaborated with the Indian
the major focus areas of our HR policy our employees across all aspects, which School of Business to offer a well-
and we have ensured that there is no in turn, enables them to offer superior curated digital leadership programme
discrimination based on gender within customer experience. At SBI, we have for all our General Managers and
the organisation. We have women spread placed great emphasis on adopting the Deputy General Managers. Through this
across all levels of the organisation and digital trends, alongside retaining the programme, they have been empowered
across all geographies. As we march physical training measures. We conduct to utilise their professional experience

Governance
ahead, we will continue to undertake dedicated training sessions for people in wider ways and exposed to concepts
initiatives to improve gender diversity across all levels of the organisation, at the cutting-edge of leadership
across all our branches and offices. through the legacy classroom model as research. In addition to this, we have also
well as digital mediums. initiated a multi-ATI general awareness
Read more on PG 64 intervention called Microcapsules and
Read more on PG 65 integrated digital and hybrid learning

24% 37.26 hours

tools.

Statutory Reports
Read more on PG 67
SHARE OF WOMEN TRAINING HOURS PER
EMPLOYEES IN FY2018 EMPLOYEE IN FY2020

26.78% 75.56 hours 386

SHARE OF WOMEN TRAINING HOURS PER OFFICIALS TRAINED UNDER

Financial Statements
EMPLOYEES IN FY2023 EMPLOYEE IN FY2023 THE DIGITAL LEADERSHIP
PROGRAMME BY ISB

Reservations and Equal

Opportunities
We are of the belief that every individual
has the right to work and equal
opportunities. In line with this, we Cadre SC ST OBC EWS PwBD*
diligently follow the directives set by
the Government of India on Reservation Officer 20,166 9,440 26,953 815 2,485
Policy for SC/ST/OBC/EWS/PwBD. We
have a respectable representation of Clerical 16,086 7,780 27,252 1653 2,529
SCs, STs, OBCs and PwBDs across all
levels. In addition to this, we have also
Sub-Staff 7,390 2,161 8,874 42 176
implemented reservation applicable to
‘economically weaker sections’ in direct
recruitment from the 1st of February 2019. Total 43,642 19381 63,079 2,510 5,190

Read more on PG 64 *Person with Benchmark Disability

25
Community

Contributing to our Society

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.

SOME OF OUR KEY CSR

INITIATIVES
Healthcare
We partnered with the Indian Institute of
Sciences (IISC), Bengaluru, to establish
a new Hospital cum Medical College. A
donation of ₹24 Crore will be provided to
IISC over a period of 3 years to support
the development of an Orthopaedic unit.
Under the Pradhan Mantri TB Mukt
Bharat Abhiyaan, our Amaravati Circle
Segment-wise CSR expenditure (%)
SBI concluded a supported 1,200 tuberculosis patients
by covering their food expenses for
8
9 10 Landmark US$ 1 six months. In addition to this, our

Billion Syndicated Bhubaneshwar Circle adopted 4 blocks

7
1
6 under the Ni-kshyay Mitra scheme,
Social Loan, which is investing a total of ₹10.96 Lakh.
5
Asia Pacific’s largest We also donated an amount of ₹1.59

and second largest Crore to Vision India Foundation -

Trilochan Netralaya Trust, at Sambalpur,
globally led by a Odisha, for the procurement and
4
commercial bank installation of medical equipment at the
community eye clinic, Jharsguda town.
The community eye clinic provides free

D316.76 Crore
2
3 eye care treatment to patients.

1 Healthcare 30 CSR SPEND IN FY2023 Environment

2 Livelihood & Entrepreneurship 21
As part of the Amrit Sarovar Yojana, we
3 Environment 13
contributed ₹4.26 Crore to rejuvenate
4
5
Education
Rural Development
12
9 Pan-India seven lakes in Kolar district, Karnataka.
6 PwD Welfare 4 COVERAGE We have demonstrated our commitment
7 Women Empowerment 4 to environmental sustainability by
8 War veterans 3 donating 10 electric vehicles for
9 Protection of National 3
~54 Lakh
transportation of patients and their
Heritage & Misc
dependents at AIIMS, New Delhi. We
10 Sports 1
CSR BENEFICIARIES have also installed electric charging
infrastructure to support this initiative.

26 Annual Report 2022 – 23

Livelihood Women Empowerment Armed Force Veterans

Company Overview
We have provided support to individuals We have made a donation of ₹87.22 SBI has donated ₹2.00 Crore to the
affected by the landslide in Joshimath by Lakh to the Bhartiya Sankalp Path Armed Forces Battle Casualties Welfare
donating ₹2 Crore to the Uttarakhand Foundation, Lucknow Circle, for the Fund and ₹3.30 Crore to the Army Central
State Disaster Management procurement and distribution of 100 Welfare Fund. These contributions aim
Authority, focusing on livelihood and laptops and 1,305 sewing machines to to financially support Palliative Care
rehabilitation efforts. women who completed skill training Centers in Delhi Cantt and Jalandhar.

Responsible Approach
under the flagship programme ‘Pradhan
To promote rural skill development, An advanced life support ambulance has
Mantri Kaushal Vikas Yojana’ (PMKVY).
we have contributed ₹30.11 Crore to been procured for Army Hospital (R&R),
SBI RSETI Societies for completion of New Delhi, with a donation of ₹94.94
construction, including building and Protection of National Heritage Lakh to support armed forces veterans,
boundary walls, as well as acquiring We actively participated in the Har Ghar battle casualties, and their dependents.
essential training equipment. Tiranga campaign by distributing flags
We have donated ₹2 Crore to the iTNT
to underprivileged sections of society. Swacchhata Pakhwada

Governance
Approximately, ₹1.75 Crore has been
hub (Tamil Nadu Technology hub), an We actively participated in the
invested in the distribution of around
incubator that receives support from Swacchhata Pakhwada campaign,
5,00,000 flags.
the State Government. The vision of organised by the Government of India.
iTNT hub is to establish a governance We have supported the repairs and The Bank conducted various cleanliness
model as a Public-Private Partnership renovation of heritage buildings located activities such as surrounding cleanups,
(PPP), ensuring government oversight in Connaught Place, New Delhi, through beach cleaning, distribution of Jute bags,
while being bolstered by the collective a donation of ₹3.19 Crore to the Indian no-plastic campaigns, and construction

Statutory Reports
strength of academia and industry. The National Trust for Art and Cultural of toilets across the country during the
hub aims to foster the growth of 200 new Heritage (INTACH). months of September-October 2022 and
start-ups and empower 200 innovators January 2023.
within the first five years of its operation.

We have also extended our support to

the victims affected by floods in the

Financial Statements
states of Assam, Andhra Pradesh, and
Telangana. Our Guwahati, Amaravati,
and Hyderabad Circles have provided
essential relief aid, including groceries
to the underprivileged residents of the
flood-affected villages. This assistance
aims to alleviate their hardships and
contribute to their recovery process.

27
Governance

Leading from the Front

Good governance is the cornerstone of every well-functioning and successful organisation.
At SBI, governance is imbibed across all levels, and is actively overseen by our Board of
Directors. We possess a strong and effective set of Board of Directors, who ensure that all
employees and stakeholders are aligned with Bank's values and goals.

CENTRAL BOARD OF DIRECTORS AS ON 31.03.2023

Shri Dinesh Kumar Khara

Chairman

Shri Challa Sreenivasulu Setty Shri Swaminathan J. Shri Ashwini Kumar Tewari Shri Alok Kumar Choudhary
Managing Director Managing Director Managing Director Managing Director

Shri B. Venugopal Dr. Ganesh Natarajan Shri Ketan S. Vikamsey Shri Mrugank M. Paranjape
Shareholder Director Shareholder Director Shareholder Director Shareholder Director

Shri Prafulla P. Chhajed Dr. Vivek Joshi Shri Anil Kumar Sharma
Director Nominated by GoI Secretary (FS), DFS, GoI Executive Director, RBI
Director Nominated by GoI Director Nominated by GoI

28 Annual Report 2022 – 23

 Company Overview
CHAIRMAN

Responsible Approach
Shri Dinesh Kumar Khara

MANAGING DIRECTORS
Shri Challa Sreenivasulu Setty
Shri Swaminathan J.

Governance
Shri Ashwini Kumar Tewari
Shri Alok Kumar Choudhary

DIRECTORS ELECTED UNDER SECTION 19(c) OF SBI ACT

Shri B. Venugopal
Dr. Ganesh Natarajan

Statutory Reports
Shri Ketan S. Vikamsey
Shri Mrugank M. Paranjape

DIRECTORS UNDER SECTION 19(d) OF SBI ACT

Shri Prafulla P. Chhajed

Financial Statements
DIRECTOR UNDER SECTION 19(e) OF SBI ACT
Dr. Vivek Joshi

DIRECTOR UNDER SECTION 19(f) OF SBI ACT

Shri Anil Kumar Sharma

29
Committees of the Board
as on 31.03.2023

Executive Committee of the Central Board (ECCB) Stakeholders Relationship Committee (SRC) cum
Shri Dinesh Kumar Khara, Chairman - Chairman of the Committee Customer Service Committee of the Board (CSCB)
Shri Challa Sreenivasulu Setty, MD (IB, GM & T) - Member Shri B. Venugopal, Independent Director - Chairman of the Committee
Shri Swaminathan J, MD (CB & S) - Member Dr. Ganesh Natarajan, Independent Director - Member
Shri Ashwini Kumar Tewari, MD (R, C & SARG) - Member Shri Ketan S. Vikamsey, Independent Director - Member
Shri Alok Kumar Choudhary, MD (RB & O) - Member Shri Prafulla P. Chhajed, Independent Director – Member
Director nominated under Section 19(f) of the SBI Act, 1955 and Shri Challa Sreenivasulu Setty, MD (IB, GM & T) - Member
all or any of the other Directors who are normally residents, or may, (Ex-Officio)
for the time being, be present at any place within India where the Shri Alok Kumar Choudhary, MD (RB & O)- Member (Ex-Officio)
meeting is held.
Nomination & Remuneration Committee of the Board
Audit Committee of the Board (ACB) Shri B. Venugopal, Independent Director - Chairman of the Committee
Shri Ketan S. Vikamsey, Independent Director - Chairman of Dr. Ganesh Natarajan, Independent Director - Member
the Committee Shri Ketan S. Vikamsey, Independent Director - Member
Shri B. Venugopal, Independent Director – Member Shri Mrugank M. Paranjape, Independent Director - Member
Dr. Ganesh Natarajan, Independent Director - Member
Shri Mrugank M. Paranjape, Independent Director - Member Board Committee to Monitor Recovery (BCMR)
Shri Anil Kumar Sharma, RBI Nominee Director - Member
Shri Dinesh Kumar Khara, Chairman - Chairman of the Committee
Dr. Vivek Joshi, GOI Nominee Director - Member
Risk Management Committee of the Board (RMCB)
Shri B. Venugopal, Independent Director – Member
Shri Mrugank M. Paranjape, Independent Director - Chairman of Shri Ketan S. Vikamsey, Independent Director - Member
the Committee Shri Mrugank M. Paranjape, Independent Director - Member
Shri B. Venugopal, Independent Director - Member Shri Challa Sreenivasulu Setty, MD (IB, GM & T) – Member
Dr. Ganesh Natarajan, Independent Director - Member (Ex-Officio)
Shri Ketan S. Vikamsey, Independent Director - Member Shri Swaminathan J, MD (CB & S) – Member (Ex-Officio)
Shri Prafulla P. Chhajed, Independent Director – Member Shri Ashwini Kumar Tewari, MD (R, C & SARG) – Member
Shri Swaminathan J, MD (CB & S)- Member (Ex-Officio) (Ex-Officio)
Shri Ashwini Kumar Tewari, MD (R, C & SARG) - Member Shri Alok Kumar Choudhary, MD (RB & O) – Member (Ex-Officio)
(Ex-Officio)
Corporate Social Responsibility Committee (CSRC)
IT Strategy Committee of the Board (ITSC)
Shri Challa Sreenivasulu Setty, MD (IB, GM & T) – Chairman of the
Dr. Ganesh Natarajan, Independent Director - Chairman of
Committee (Ex-Officio)
the Committee
Shri Alok Kumar Choudhary, MD (RB & O) – Member (Ex-Officio)
Shri B. Venugopal, Independent Director – Member
Shri B. Venugopal, Independent Director - Member
Shri Ketan S. Vikamsey, Independent Director - Member
Dr. Ganesh Natarajan, Independent Director - Member
Shri Prafulla P. Chhajed, Independent Director – Member
Shri Mrugank M. Paranjape, Independent Director - Member
Shri Challa Sreenivasulu Setty - MD (IB, GM & T) - Member
Shri Prafulla P. Chhajed, Independent Director – Member
(Ex-Officio)
Shri Ashwini Kumar Tewari, MD (R, C & SARG)- Member (Ex-Officio)
Review Committee for Identification of Wilful Defaulters/
Special Committee of the Board for Monitoring of Large Non- Cooperative Borrowers
Value Frauds (SCBMF) Shri Ashwini Kumar Tewari, MD (R, C & SARG) - Chairman of the
Shri Prafulla P. Chhajed, Independent Director – Chairman of Committee (Ex-Officio)
the Committee Shri B. Venugopal, Independent Director – Member
Dr. Ganesh Natarajan, Independent Director - Member Dr. Ganesh Natarajan, Independent Director - Member
Shri Ketan S. Vikamsey, Independent Director – Member Shri Ketan S. Vikamsey, Independent Director - Member
Shri Mrugank M. Paranjape, Independent Director – Member Shri Prafulla P. Chhajed, Independent Director – Member
Shri Ashwini Kumar Tewari, MD (R, C & SARG) – Member
(Ex-Officio)
Shri Alok Kumar Choudhary, MD (RB & O)- Member (Ex-Officio)

30 Annual Report 2022 – 23

Members of Central Management Committee
as on 31.03.2023

Shri Dinesh Kumar Khara Shri Sanjay D. Naik

Company Overview
Chairman Deputy Managing Director
(International Banking Group)
Shri Challa Sreenivasulu Setty
Managing Director
Shri Subrata Biswas
(International Banking, Global Markets & Technology) Deputy Managing Director
(Stressed Assets Resolution Group)

Responsible Approach
Shri Swaminathan J.
Managing Director
Shri R. Viswanathan
(Corporate Banking & Subsidiaries) Deputy Managing Director
(Internal Audit)
Shri Ashwini Kumar Tewari
Shri Om Prakash Mishra
Managing Director
(Risk, Compliance & SARG) Deputy Managing Director (HR) &
Corporate Development Officer

Governance
Shri Alok Kumar Choudhary
Shri B Raghavendra Rao
Managing Director
(Retail Business & Operations) Deputy Managing Director
(Global Markets)
Shri Prakash Chandra Kandpal
Shri Nitin Chugh
Deputy Managing Director
Deputy Managing Director &

Statutory Reports
(Retail - Personal Banking & Real Estate)
Head (Digital Banking & Transformation)
Shri S. Salee
Shri Sankar Bala Bhadrapatruni
Deputy Managing Director &
Chief Credit Officer Deputy Managing Director &
Chief Operating Officer
Shri Rana Ashuthosh Kumar Singh
Smt. Ruma Dey

Financial Statements
Deputy Managing Director
(Transaction Banking & New Initiatives) Deputy Managing Director &
Group Compliance Officer
Shri Sureddi Srinivasa Rao
Smt Vidya Krishnan
Deputy Managing Director &
Chief Risk Officer Deputy Managing Director
(Information Technology)
Shri Vinay M. Tonse
Shri Gulshan Malik
Deputy Managing Director
(Corporate Accounts Group) Deputy Managing Director
(Commercial Clients Group)
Smt. Saloni Narayan
Shri Pravin Raghavendra
Deputy Managing Director
(Finance) Deputy Managing Director
(Retail – Agri, SME & Financial Inclusion)

31
Members of Local Boards
Other than Managing Director (Retail Business & Operations) - Nominated by Chairman in terms of Section 21(1)(a) of SBI
Act, 1955 as on 31.03.2023

Ahmedabad Kolkata
Shri Surender Rana Shri Prem Anup Sinha
Chief General Manager (Ex-Officio) Chief General Manager (Ex-Officio)

Amaravati Lucknow
Shri Naveen Chandra Jha Shri Sharad Satyanarayan Chandak
Chief General Manager (Ex-Officio)
Chief General Manager (Ex-Officio)

Maharashtra
Bengaluru
Dr. Ganesh Natarajan
Shri Nand Kishore Director*
Chief General Manager (Ex-Officio)

Shri Arvind Kumar Singh

Bhopal Chief General Manager (Ex-Officio)
Shri Binod Kumar Mishra
Chief General Manager (Ex-Officio) Mumbai Metro
Shri B. Venugopal
Bhubaneswar Director*

Shri Chander Shekhar Sharma

Shri Ketan S. Vikamsey
Chief General Manager (Ex-Officio) Director*

Chandigarh Shri Prafulla P. Chhajed

Director*
Shri Vinod Jaiswal
Chief General Manager (Ex-Officio)
Shri G S Rana
Chief General Manager (Ex-Officio)
Chennai
Shri R Radhakrishna New Delhi
Chief General Manager (Ex-Officio) Shri Kalpesh Krishnakant Avasia
Chief General Manager (Ex-Officio)
Guwahati
Shri Vincent M D Patna
Chief General Manager (Ex-Officio) Shri Shiva Om Dikshit
Chief General Manager (Ex-Officio)
Hyderabad
Thiruvananthapuram
Shri Amit Jhingran
Chief General Manager (Ex-Officio) Shri Venkata Ramana Bayireddy
Chief General Manager (Ex-Officio)

Jaipur
Shri Rajesh Kumar Mishra
Chief General Manager (Ex-Officio)

*Directors on the Central Board nominated on the Local Boards as per Section 21(1) (b) of SBI Act 1955.

32 Annual Report 2022 – 23

Bank’s Auditors

M/s A S A & Associates LLP M/s Suri & Co.

Company Overview
Chartered Accountants Chartered Accountants

M/s Guha Nandi & Co. M/s K C Mehta & Co LLP

Chartered Accountants Chartered Accountants

M/s Prem Gupta & Co. M/s Gokhale & Sathe

Chartered Accountants Chartered Accountants

M/s M.C. Bhandari & Co. M/s M.K. Aggarwal & Co.

Responsible Approach
Chartered Accountants Chartered Accountants

M/s Talati & Talati LLP. M/s Ravi Rajan & Co. LLP
Chartered Accountants Chartered Accountants

M/s V Singhi & Associates M/s JLN US & Co.

Chartered Accountants Chartered Accountants

Governance
Statutory Reports
Financial Statements

33
Our Group Structure

The World of SBI

NON-BANKING SUBSIDIARIES / JOINT VENTURES

100% SBI Capital Markets Limited

65% SBI-SG Global Securities
y SBICAP Securities Limited
y SBICAP Ventures Limited Services Private Limited
y SBICAP Trustee Company Limited

62.53% SBI Funds Management Limited

SBI Mutual Fund Trustee
100% y SBI Funds Management (International)
Company Private Limited Private Limited

State Bank Operations Support

100% 55.45% SBI Life Insurance Company Limited
Services Pvt. Ltd. (w.e.f. 26.07.2022)

100% Oman India Joint Investment

SBI Global Factors Limited 50%
Fund-Management Co. Private Limited

92.51% SBI Pension Funds Private Limited Oman India Joint Investment
50%
Fund- Trustee Co. Private Limited

SBI Payment Services 49% C-Edge Technologies Limited

74%
Private Limited

Macquarie SBI Infrastructure

45%
72.17% SBI DFHI Limited Management Pte. Limited
y Macquarie SBI Infrastructure
Trustee Limited

SBI General Insurance

69.95% SBI Macquarie Infrastructure
Company Limited 45%
Management Private Limited

68.98%
SBI Cards & Payment SBI Macquarie Infrastructure
45%
Services Limited Trustee Private Limited

34 Annual Report 2022 – 23

OVERSEAS BANKING SUBSIDIARIES / JOINT OVERSEAS NON-BANKING

Company Overview
VENTURES / ASSOCIATES SUBSIDIARIES

State Bank of India Servicos

100% State Bank of India (California) 100%
Limitada, Brazil

Responsible Approach
100% SBI Canada Bank

Governance
100% State Bank of India (UK) Limited

Statutory Reports
100% Commercial Indo Bank LLC, Moscow

99.56% PT Bank SBI Indonesia Challenge the world

Financial Statements
with GLOBAL ED-VANTAGE

96.60% SBI (Mauritius) Limited

55% Nepal SBI Bank Limited

y Nepal SBI Merchant Banking Limited
FASTER! LIGHTER!
Apply Online Attractive Interest Rate

HIGHER! EASIER!
Up to `1.5cr EMI Over 15 Years

20% Bank of Bhutan Limited EARLY APPROVAL! TAX BENEFIT!

before I20/Visa under section 80(E)
T & C apply

For more details, visit bank.sbi or call: 1800 1234 Follow us on

35
Statutory Reports and
Financial Statements
Contents
Statutory Reports
Directors’ Report
- Economic Backdrop and - Subsidiaries 92
Banking Environment 38
- Management Discussion
- Financial Performance 39 & Analysis (MDA) 102
- Core Operations - Responsibility Statement 102
y Retail & Digital Banking Group 40 - Acknowledgment 102
− Personal Banking 41
− Any Time Channels 47
y Small & Medium Enterprises 49
Corporate Governance Report 104
y Rural Banking 51
y Government Business 53 - Secretarial Audit Report 134
y Digital & Transaction - Certificate of Non
Banking (D&TB) Marketing 54 Disqualification of Directors 137
y Corporate Banking 55 - Auditor’s Certificate on
− Corporate Accounts Group 55 Corporate Governance 138
− Treasury Operations 55
- Business Responsibility and
− International Operations 57
Sustainability Report 139
y Commercial Clients
Group (CCG) 60
y Stressed Assets Management 61
Financial Statements
- Support and Control Operations
Standalone 140
y Human Resources and Training 64
y Information Technology 69 Consolidated 228
y Risk Management 77 Pillar 3 Disclosures (Consolidated) 290
y Official Language 83
y Marketing and Communication 84
y Vigilance Mechanism 84 Notice 328
y Asset & Liability Management 85 Green Initiative 336
y Ethics & Business Conduct 86
y Corporate Social Responsibility 86
Directors’ Report

ECONOMIC BACKDROP AND India’s Economic Scenario on headline inflation during FY2023.
Domestic economic activity exhibited Average CPI inflation stood at 6.7% as
BANKING ENVIRONMENT
resilience in H2 FY2023. The National compared to 5.5% in FY2022.
Global Economic Scenario Statistical Office’s (NSO) provisional
The FY2023, in hindsight, could best be estimates placed real Gross Domestic Banking
remembered as the year of paradoxes, Product (GDP) growth at 7.2% for Credit growth continued to see double-
with the ebbing of surge in virulent FY2023, driven by investment and digit growth and has become broad
infections, coupled with considerable private consumption. On the supply based across sectors. In FY2023,
easing of supply chains. However, side, activity was supported by ASCB’s bank credit grew by `17.8
continued geopolitical conflicts in buoyant agriculture and services Lakh Crore (15.0% YoY) to `136.75
Europe and subsequent escalation sectors, while manufacturing was Lakh Crore, as against `10.4 Lakh
in the Taiwan/Korean peninsula has restrained under the pressure of high Crore (9.6% YoY) in FY2022. Aggregate
infused volatility in global energy input costs. India continues to be the deposits of ASCB grew by `15.7 Lakh
and commodity prices. The central fastest-growing economy for the third Crore (9.6% YoY) to `180.43 Lakh
banks have acted in unison, raising time in succession. Crore compared to last year growth of
key policy rates to counter unyielding `13.5 Lakh Crore (8.9% YoY).
Gross Value Added (GVA) in agriculture
inflation. Benchmark yields and
and allied activities posted a growth During the reporting period, RBI
equities remained volatile. There are no
of 4.0% in FY2023, even as kharif increased the policy repo rate by
indications of a firm change in pivot by
production was dented by below normal 250bps in 6 tranches and banks have
central banks in AEs towards a reversal
rainfall in key rice producing states and also transmitted it to both deposit and
in rate regime even though there are
excess rains during the harvesting credit rates.
now signs of inflation cooling and
stage. Food grains production touched
slowdown in job openings. The asset quality of ASCBs improved
a new record in FY2023. Industrial
during 2022-23, with gross NPA ratio
Matters nosedived further in March activity remained sluggish in FY2023
declining to 4.5% in December 2022,
this year with the collapse of certain (grew by 4.4%), driven by muted growth
compared to 5.8% in March 2022,
mid-tier banks in the US. The aftermath in manufacturing sector GVA. The
primarily due to the quality improvement
of such a shake-up should likely have services sector held up well in FY2023
across all the major sectors.
a cascading impact of altering deposits and grew by 9.5% owing to an impetus
patterns in banking system across AEs. from contact-intensive services. The With digital payments, India has been
Additionally, de-dollarisation appears contact-intensive services, viz., trade, witnessing new milestones on the
to have become a durable theme with hotels, transport, and communication back of the robustness of our payment
most jurisdictions using alternate grew by 14.0% in FY2023. Robust GST ecosystem and acceptance by a wide
payment and settlement mechanisms collections point towards an ongoing stratum of consumers. Among all, UPI
in local currency. revival of domestic trading activity. has emerged as the most popular
and preferred payment mode in India
As per IMF projections, global growth India’s merchandise exports rose by
accounting for ~75% of the total
is expected to fall from 3.4% in 2022 about 6% to a record US$447 Billion
digital payments.
to 2.8% in 2023, before settling at on account of healthy growth in the
3.0% in 2024. AEs are expected to outbound shipments of sectors such
Outlook
see an especially pronounced growth as petroleum, pharma and chemicals/
slowdown, from 2.7% in 2022 to 1.3% marine products. Imports also grew by The domestic situation has coped
in 2023 (CY). Global headline inflation 16.5% to US$714 Billion in FY2023 as well with exogenous external shocks.
is set to fall from 8.7% in 2022 to 7.0% against US$613 Billion in FY2022. The The real GDP growth for FY2024 is
in 2023 due to lower commodity prices current account deficit stood at 2.1% of projected at 6.5%, which is the highest
but underlying (core) inflation is likely GDP in FY2023, mirroring the trend in in the world. Inflation, which started
to decline more slowly. Inflation’s merchandise trade deficit. on a positive note in April (4.70%) is
return to target seems unlikely before expected to remain in the moderate
A combination of adverse supply- zone for the ongoing fiscal, despite
2025 in most cases.
side shocks and the pass-through certain shocks from adverse climate
of pending input costs to output changes impact due to the likely return
prices exerted sustained pressures

38 Annual Report 2022 – 23

of El Nino this year. However, the Net Interest Income Assets ratio (including AUCA) of your
expectation of a record rabi food grain Net interest income increased by Bank as on 31st March 2023 is 91.91%
production bodes well for the food 19.99% to `1,44,840.50 Crore in (Previous Year 90.20%).

Company Overview
prices outlook and growth in general. FY2023, from `1,20,707.59 Crore
Provision Coverage
171bps
We expect, in FY2024, average CPI in FY2022. Total interest income
would be around 5%-5.2%, compared Ratio
increased from `2,75,457.29 Crore
to 6.7% in FY2023, giving some much- (incl. AUCA) (%)
in FY2022 to `3,32,103.06 Crore
needed comfort to regulators. in FY2023 registering a growth of FY2021 87.75

The RBI monetary policy actions 20.56%. Total interest expenses FY2022 90.20

during FY2023 have been frontloaded. increased from `1,54,749.70 Crore in FY2023 91.91

Responsible Approach
The notable development during
the year includes RBI’s thrust
FY2022 to `1,87,262.56 in FY2023.
Interest expenses on deposits during 91.91
towards accommodating climate FY2023 recorded an increase of
14.99%, compared to the previous year. Assets and Liabilities
induced financial risk in banks’ risk
management framework. Total assets of your Bank saw a 10.61%

Against this backdrop, your Bank’s Net Interest Income 19.99% increase to `55,16,978.53 Crore as of
end-March 2023, from `49,87,597.41

Governance
business has adapted quite well to (` in Crore)
Crore at end-March 2022. During the
evolving situation. Your Bank made FY2021 1,10,710 period, the loan portfolio increased by
record profits in FY2023, and internal FY2022 1,20,708 17.02% to `31,99,269.30 Crore from
accruals are used judiciously so FY2023 1,44,841 `27,33,966.59 Crore. Investments
that the business growth and risk
buffers objectives are met as per the 1,44,841 increased by 6.00% to `15,70,366.23
Crore from `14,81,445.47 Crore. A major
satisfaction of all stakeholders. With portion of investment in the domestic

Statutory Reports
the continued demand for credit, Other Income market was in government securities.
banking businesses are expected to
grow in double digits in FY2024.
Other income decreased by 9.73%
to `36,615.60 Crore in FY2023, from
Loan Portfolio (Net)
(` in Crore)
17.02%
`40,563.91 Crore in FY2022.
FINANCIAL PERFORMANCE FY2021 24,49,498

Net Profit and Operating Profit Operating Expenses FY2022 27,33,967

Operating expenses (excluding FY2023 31,99,269

Financial Statements
Net profit increased by 58.58% to
`50,232.45 Crore in FY2023 from
`31,675.98 Crore in FY2022. The
exceptional item) of your Bank
increased by 13.68% to `97,743.13
31,99,269
operating profit of your Bank for Crore in FY2023, from `85,979.13
FY2023 increased by 11.18% to Crore in FY2022. Your Bank’s aggregate liabilities
`83,712.97 Crore from `75,292.37 (excluding capital and reserves) rose
Crore in FY2022 (excluding exceptional Provisions and Contingencies by 10.24% to `51,89,370.08 Crore as
item of Nil in FY2023 and `(7,418.39) Total provision and contingency on 31st March 2023 from `47,07,509.35
Crore in FY2022). decreased by 7.51% to `33,480.51 Crore as on 31st March 2022.
Crore in FY2023 from `36,198.00 Crore Deposits rose by 9.19% and stood at
in FY2022. Major provisions made in `44,23,777.78 Crore as on 31st March
Net Profit
(` in Crore)
58.58% FY2023: Provision of `9,143.93 Crore
for non- performing assets (as against
2023 against `40,51,534.12 Crore as on
31st March 2022. Borrowings showed a
14,086.85 Crore in FY2022) and 15.75% increase to `4,93,135.15 Crore
FY2021 20,410 by end-March 2023, from `4,26,043.38
Investment depreciation of `1,513.84
FY2022 31,676 Crore on end- March 2022.
Crore (as against `3,440.10 Crore in
FY2023 50,232
FY2022) was made during the year. The
50,232 Provisioning to Gross Non-Performing

39
Directors’ Report

Deposits
(` in Crore)
9.19% Recognised by
of total branches, and makes up
95.03% of the entire human resources
MOHUA of your Bank comprising eight
FY2021 36,81,277 strategic business units. Your Bank is
FY2022 40,51,534 BEST PERFORMING committed to customer delight at all its
FY2023 44,23,778 BANK UNDER CLSS branches. The ever-evolving customer

44,23,778 preferences, especially those of the

younger population, coupled with an
increased focus on enhanced customer
Reserves and Surplus
convenience, are transforming the
An amount of `15,069.74 Crore (as retail banking landscape.
against `9,502.79 Crore in FY2022) PMAY-U
was transferred to Statutory Reserves. The customer base of your Bank is
Awards-2021
An amount of `232.81 Crore (as steadily widening in the country,
against `538.16 Crore in FY2022) was making Retail Banking the most prolific
CORE OPERATIONS
transferred to Capital Reserves. An segment, both in terms of deposit
amount of `4,575.43 Crore in FY2023 Retail Business and Operations mobilisation as well as extending
(as against `4,647.87 Crore in FY2022) The Retail Business and Operations customised credit. Your Bank
was transferred to the Investment (RB&O) Group is the largest business continues to be the largest Home Loan
Fluctuation Reserve. Group of your Bank with 98.96% and Education Loan provider in the

Dividend Key Initiatives and Vendor Verification Module

Your Bank has declared a dividend of across all centres has been
As a part of its commitment to
`11.30 per share @ 1130% for the year beneficial in creating uniform
sustainable development, your
ended 31st March 2023. underwriting standards, seamless
Bank has incorporated rooftop solar
delivery and fully-digitised products
photo voltaic systems financing as
Progress of Implementation to ensure customer delight. To
a component of the Home Loan
of Ind AS further increase the Home Loan
project cost. This, coupled with
business and strengthen the
RBI vide Circular DBR.BP.BC. an extensive micro-market study
market share, YONO and RAAS
No.29/21.07.001/2018-19 dated 22nd and the opening of 133 processing
are being promoted extensively
March 2019 deferred implementation of centres across India, have enabled
as digital platforms. Document
Ind AS till further notice. However, RBI greater penetration of Home
Management Solution (DMS) has
requires all banks to submit Proforma Loans in Tier-II and Tier-III cities,
also been rolled out to digitise
Ind AS financial statements every half thus contributing to your Bank’s
and centralise Home Loan-related
year. Accordingly, the Bank is preparing ambition of becoming the ‘No. 1
documents to ensure customer
and submitting to RBI Proforma Ind AS Choice of Customers for Home
convenience.
financial statements every half year Loans’.
after approval of Steering Committee Earlier, pricing was dependent
Your Bank has significantly
headed by MD (R,C & SARG) formed on a multitude of factors such as
boosted its Home Loan portfolio
for monitoring of implementation of Ind loan amount, risk grade score,
by on-boarding projects under
AS in the Bank. profession of the borrower and
Builder Tie-Up (BTU). This also
has improved sourcing quality LTV. Now, pricing is solely based
besides improving TAT. To date, on the credit score of the borrower.
1,130% 13,184 residential projects (RERA This simplified pricing has received
approved) have been approved wide acceptance. To strengthen
DIVIDEND ON THE FACE
with a penetration of 29.04% in relationships with customers, a
VALUE OF ` 1/SHARE
BTU projects. credit card for existing as well as
new Home Loan customers has
The country-wide introduction of been launched under the name
Retail Loan Management Solution ‘Happy Home Card’.

40 Annual Report 2022 – 23

country, demonstrating its unflinching The Home Loan portfolio constituted Housing and Urban Affairs (MOHUA).
commitment to serve society at large. 23.08% of total Domestic advances As CNA for the PMAY-CLSS scheme,
and 36.03% of NBG advances, while 12,204 subsidy claims aggregating to
Your Bank is committed to creating

Company Overview
Priority Sector Lending stands at `255 Crore in FY2023 were processed
an environment of increased risk
31.62% of the total portfolio. by your Bank. In addition to this, to
awareness at all levels. Also, your Bank
expand outreach to the under-served
will offer end-to-end digitisation for all Proactive monitoring and soft contact
population, your Bank signed an MOU
its retail banking products through its with customers enabled us to keep
with 5 housing finance companies for
large network of branches. NPA in Home Loans at a low level (only
co-lending.
0.69% as on of 31st March 2023).
Your Bank continues to be at the
Home Loan Portfolio

Responsible Approach
forefront of the digital banking domain Your Bank has outpaced the industry
(` in Trillion)
with a steady stream of technology- growth and garnered an overall
driven innovations across various industry wide market share of 21.77% FY2019 4.00

channels–digital, mobile, ATM, internet, as on 30th September 2022, and 33.09% FY2020 4.56

social media and branches. It has a among All Scheduled Commercial FY2021 5.03

multi-channel delivery model, offering Banks (ASCB) as on 31st March 2023. FY2022 5.61

customers a wide range of choice. FY2023 6.41

Your Bank was the only commercial
6.41

Governance
bank nominated as the Central Nodal
A. Personal Banking
Agency (CNA) by the Ministry of
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

Statutory Reports
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

Financial Statements
Home Loan provider in the country.
The strategic steps taken in recent
years have enabled your Bank to cross
the `6 Trillion mark in its Real Estate
portfolio. Now, it stands at `6.41 Trillion
as on March 2023, with a YoY growth Shri Prakash Chandra Kandpal, DMD (Retail-PB & RE), signed the MOU with Vice
Admiral Suraj Berry, AVSM, NM, VSM on the occasion of launching ‘Shaurya Flexi Home
rate of 14.07%. In FY2023, your Bank
Loan’ for Naval Personnel in presence of Chairman Shri Dinesh Khara and Admiral
disbursed around `1.73 Trillion of home Radhakrishnan Hari Kumar, PVSM, AVSM, VSM, ADC, Chief of Naval Staff.
loans and home-related loans.

#1 33.09% 14.07% 3.58+ Lakh

HOME LOAN MARKET SHARE IN YOY GROWTH IN HOME NEW CUSTOMERS WHO
PROVIDER IN INDIA HOME LOAN SEGMENT LOANS IN FY2023 AVAILED HOME LOANS
AMONG ASCB

41
Directors’ Report

Auto Loans FY2023, your Bank disbursed `43,954

Crore of auto loans. Key Initiatives
India is a growing market for automobiles
driven by rising income levels, numerous A combination of increased
Your Bank’s constant proactive
buying options, and significant untapped manpower for loan distribution,
monitoring and follow-up and best-in-
potential evidenced by the ratio of 22 partnerships with major car
class underwriting resulted in an NPA
cars per 1000 people, compared to 900+ OEMs for instant in-principle
of 0.43%, compared to 0.69% in the
in USA and 200+ in China. Your Bank is sanction, pre-approved offerings
previous year, making it one of the best
one of the top players in new car loans, and ‘Green Car Loan’ agreements
in the industry.
achieving success through various at a concessionary rate, your
initiatives and services. Auto Loan Portfolio Bank is expected to make 5.86
(` in Crore) Lakh new customers happy over
Performance the year.
FY2019 71,884
Your Bank achieved YoY growth of FY2020 72,662 Furthermore, IT has developed
23.2% in auto loans of `18,375 Crore FY2021 76,322 ‘SBI-Easy Ride’, an end-to-end
in FY2023, and an overall market share FY2022 79,148 digital product that facilitates
of 19.40%. The high-value car loan FY2023 97,523 two-wheeler financing without
segment loan amount >= `25 Lakh
registered a YoY growth of 160%. In 97,523 the need to visit any branch for
sanction or disbursement.

Chairman SBI celebrating with MDs & DMDs for crossing `5 Trillion mark in PBBU Advances.

19.40% 23.2% 160% 5.86+ Lakh

MARKET SHARE IN GROWTH IN AUTO GROWTH IN THE HIGH- NEW CUSTOMERS WHO
AUTO LOAN SEGMENT LOANS IN FY2023 VALUE CAR LOAN SEGMENT AVAILED AUTO LOANS

42 Annual Report 2022 – 23

Education Loans
Your Bank takes pride in its position
as the nation’s largest education loan

Company Overview
provider, accounting for 33.18% of the
market share as on 31st March 2023, and
37.70% of disbursement targets amongst
All Scheduled Commercial Banks.

Performance
Your Bank has achieved YoY growth

Responsible Approach
of 21.9% in education loans of `5,776 Smt. Saloni Narayan, DMD, SBI signed MOU with BSF on retail products.
Crore in FY2023. In FY2023, your Bank
disbursed `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

Governance
DFS, GOI.

Education Loan Portfolio

(` in Crore)

FY2019 20,777
FY2020 22,833

Statutory Reports
FY2021 23,504
FY2022 26,357
FY2023 32,133

32,133
Key Initiatives y Shortlisted top-rated premier y To ensure better tracking of
and reputed institutions to loan applications and faster

Financial Statements
Your Bank has helped 1,13,793
meritorious students realise their extend education loans under sanctioning of loans, your Bank’s
dreams by sanctioning loans the Scholar Loan Scheme at Loan Origination System was
amouting to `15,086 Crore during relaxed norms and concessional integrated with Vidya Lakshmi
the year. Of this, 41% of the loans interest rates. Portal and Jan Samarth Portal of
were extended to female students. y Penetration of SBI flagship Government of India.
To broaden the scope of education product ‘Global Ed-vantage
loans, ensure quality business and Education Loans’ for studies
enhance customer satisfaction, abroad was improved through
your Bank has taken various steps: extension of door-step services
in select cities.

#1 33.18% 21.9% 1,13,793

EDUCATION LOAN MARKET SHARE IN GROWTH IN EDUCATION STUDENTS WHO AVAILED
PROVIDER IN INDIA EDUCATION LOAN SEGMENT LOANS IN FY2023 EDUCATION LOANS DURING
THE YEAR

43
Directors’ Report

Personal Loans Performance Personal Loan Portfolio

Your Bank is the market leader in Personal Loan portfolio (Xpress credit (` in Crore)

personal loans, including secured and Pension loan) crossed `3 Lakh FY2019 1,25,965
and unsecured loans. These loans are Crore to reach `3,49,988 Crore in FY2020 1,66,528
offered to the salaried, pensioners and FY2023. During the year, your Bank FY2021 2,22,966
self-employed customers of your Bank, has provided personal loans (Xpress FY2022 2,85,987
and salaried customers of other Banks credit and pension loan) to more than FY2023 3,49,988
through SBI Quick Personal Loans 87 Lakh customers.
(CLP Platform) and SBI Elite. 3,49,988
Key Initiatives
Several modifications have been foreclosure charges. Your Bank is currently implemented in 22
made to personal loan products has integrated Digital Document states and, as on 31st March 2023,
to make them customer-centric. Execution into Xpress Credit has processed 1,41,334 personal
These include time-bound loans, utilising e-stamping loan agreements.
concession in the interest rate and e-signature for real-time
and waiver of prepayment/ document execution. This feature

Consumer Durable Loans customers are informed of their

for e-Commerce Purchases eligibility.
Your Bank offers two e2e Modifications in the product
products: POS EMI Loan and features of Debit Card EMI
Online EMI Loan. While the Loan were rolled out on 23rd
former is being offered through December 2022, which include
Pine Labs POS machines increasing the maximum loan
at various shops, malls, and amount from `1 Lakh to `2
showrooms, the latter has been Lakh, reducing the minimum
enabled via tie-ups with Bill repayment period from 6 months
Desk and PayU to be available at to 3 months, and increasing
select online shopping portals. maximum repayment period
These products are currently from 18 months to 36 months.
available to 1.18 Crore of pre-
approved customers based on Check your eligibility
their account behaviour and for personal loan
other parameters using AI/ML
technology. Through regular by sending SMS
SMS/e-mails, pre-approved ‘DCEMI’ to 567676.

#1 22.4% 0.58% 87 Lakh

PERSONAL LOAN GROWTH IN PERSONAL TOTAL NPA IN PERSONAL CUSTOMERS WHO
PROVIDER IN INDIA LOANS IN FY2023 LOANS AS ON 31ST AVAILED PERSONAL
MARCH 2023 LOANS IN FY2023

44 Annual Report 2022 – 23

Gold Loans deployment of Bank Credit as on
March 2023, your Bank had a personal Key Initiatives
Your Bank offers a general purpose
personal loan against the pledge of gold loan market share of 31.94%. Your Bank has personal gold loans

Company Overview
gold ornaments. available for SBI’s Home Loan
Gold Loan Portfolio customers through a product
Performance
(` in Crore) named ‘Realty Gold Loan’ to meet
FY2019 1,535 margin requirements, project
During FY2023, the portfolio witnessed
FY2020 3,714 cost escalation and registration
a YoY growth of 24.46%, thereby
FY2021 20,987 charges.
reaching a level of `28,705 Crore as
on 31st March 2023, with a gold loan FY2022 23,063 Also available are top-up gold

Responsible Approach
customer base of 1.4 Million. As per FY2023 28,705 loans for existing gold loan
the data released by RBI on sectoral
28,705 borrowers, who want to avail a top-
up against their gold ornaments
and jewellery, which is already
pledged to your Bank.

Governance
Liability and Investment Products
y SBI We Care Deposit scheme
(` in Crore)
with enhanced interest rates of
FY2022 FY2023 Growth Growth (%) 100 bps over card rate for the tenure
Total deposits 40,51,534 44,23,778 3,72,244 9.19 of 5 years and above extended to
Term deposits 21,45,117 23,90,667 2,45,550 11.45 senior citizens.
Savings bank deposits 15,13,205 15,81,466 68,261 4.51

Statutory Reports
CASA deposits 17,75,084 18,62,904 87,820 4.95 Doorstep Banking
P-Domestic deposits 25,67,514 27,33,625 1,66,111 6.47 To improve customer convenience and
ease of banking, your Bank is extending
doorstep banking services through
y Total Savings Bank Deposit grew by during the FY2023 as compared to agents to all customers at the top 100
`68,261 Crore (4.51%) during FY2023. 1.72 Accounts during FY2021-22. banking centres. Senior citizens above
y Total Term Deposits grew y Average Balance in Regular Savings the age of 70, and differently-abled

Financial Statements
by `2,45,550 Crore (11.45%) Bank Accounts has increased persons get the option of doorstep
during FY2023. to `49,915 as on March 2023 banking services.
y Bank opened 124.41 Lakh Regular as compared to `48,661 as on
Doorstep banking services include:
Savings Bank Accounts during the March 2022.
FY2023 as compared to 98.75 Lakh y SBI Sarvottam non-callable deposit y Cash deposit and withdrawal.
accounts during the FY2021-22. scheme launched. y Life Certificate through Jeevan
y CASA Deposits of Bank grew  by y Amrit Kalash Deposit scheme Pramaan .
`87,820 Crore (4.95%) during FY2023. launched with 400 days tenure at an y Pickup of Nomination Form and
y Bank opened 2.13 Regular Savings attractive rate of interest of 7.10%. Fund transfer Request.
Bank Accounts per day per Branch y Pick up of Cheque Book Requisition
Slip .

31.94% 1.4 Million 24.46%

MARKET SHARE IN PERSONAL GOLD LOAN CUSTOMER BASE GROWTH IN GOLD LOANS IN
GOLD LOAN SEGMENT FY2023

45
Directors’ Report

y Pick up of cheques for collection / Digital Personal Loan Offerings NRI Business
clearing, IT / Government / GST Your Bank has ensured customer Your Bank has 434 dedicated
challan with cheque. convenience and portfolio growth specialised NRI Branches/NRI
y Delivery of Statement of Account, through a comprehensive range of Intensive Branches in India, foreign
Term Deposit Advice and TDS and products on multiple platforms, with offices in 29 countries, 227 global
Form 16 Certificate. higher profit margins. YONO offers banks as Correspondent Banks, and
digital loans in real-time, eliminating has tie-ups with 45 Exchange Houses
Video Customer Identification the need for physical documentation or and five banks in the Middle East to
Process (V-CIP) visiting a branch. Additionally, real-time facilitate remittances.
To make banking more convenient for pre-approved personal loan eligibility
To provide a one-stop service to
customers, your Bank has introduced by sending SMS has been introduced.
NRI Customers, a Global NRI Centre
the V-CIP digital process, which (GNC) has been set up in Ernakulam to
allows account opening from home, DIGITAL LOANS SANCTIONED oversee all non-financial services.
eliminating the need to visit branches. BY NUMBER
NRI deposit base stood at US$
11.63 Lakh 29.88 Billion (March 2023), driven by
4.70 Lakh IN FY2022 increasing Indian diaspora across the
globe and the trust that your Bank
CUSTOMERS WHO OPENED 13.39 Lakh has among NRIs. Your Bank increased
SAVINGS BANK ACCOUNTS its FCNR(B) Deposit market share to
IN FY2023
THROUGH V-CIP 26.06 %, up by 135 bps from last year.
DIGITAL LOANS SANCTIONED
BY VALUE Initiatives
Salary Package Accounts Your Bank has launched the following
Your Bank is focused on sourcing
21,560 Crore services in FY2023 for the benefit of its
of Salary Package Accounts across IN FY2022 NRI clientele:
segments, including Defence, Central
Government, State Governments and 24,314 Crore y Training on NRI Products and
services to operating staff of
Corporates, with customised salary IN FY2023
NRI Branches.
packages. Total salary accounts
increased to 181.27 Lakh in FY2023, y Tied up with ‘Remitly’ to facilitate
Digital loan variants include:
with 4.02 Lakh new accounts added swift remittance to India.
during the year. y Real Time Xpress Credit Loans y Cross Border Remittance facility
y PAPL (Pre-Approved Personal Loan) using UPI Application.
Digital Account Openings y PAXC (Pre-Approved Xpress Credit) y SBI WhatsApp banking facility.
As a result of the various initiatives y PAPNL (Pre-Approved Pension Loan) y OTP over email in addition to
taken by your Bank, 64% of the registered mobile number.
y INSTA Top-up for Xpress Credit
total regular savings bank accounts
y Insta Pension Loan y Launched NRE non-callable
aggregating 78.6 Lakh were opened
deposit scheme.
digitally through YONO in FY2023. y Insta Home Top Up
y PA2WLR (Pre-approved Two Wheeler
Loan)

1,724 304 35.24 Lakh

NEW TIE-UPS WITH CORPORATES DEDICATED SALARY PACKAGE NRI CUSTOMERS
FOR SALARY PACKAGES IN FY2023 MICROSITES CREATED

46 Annual Report 2022 – 23

y Increased daily limit for forex Wealth Management Business to `2,95,860 Crore (17.70% growth)
outward remittances through Your Bank is the first public sector for the same period. The number of
FX-Out (INB Channel) from NRE bank to offer wealth management clients also increased from 2,97,246 to

Company Overview
Account to US$25,000. services to its esteemed clients. SBI 3,59,480 (20.94% growth).
y Increased visibility of NRI products Wealth caters to the investment needs Your Bank, on a pilot basis, launched
and services at airports in India and of affluent clients through a bouquet of Premier Banking Services in three
abroad through advertisements, investment products such as Mutual circles–Mumbai Metro, Delhi and
social media campaigns and Funds, Insurance, PMS, Bonds and AIF Hyderabad–to provide personalised
videos on YouTube and Facebook, as per their risk profile. banking and investment related
among others. services to Corporate Salary Package

Responsible Approach
The Wealth team comprising
y Introduced the option of availing car of dedicated and personalised (CSP) customers– Platinum category.
loans with a resident Indian (close relationship managers is in constant
relative) as co-borrower. touch with clients for their investment B. Anytime Channels
y Joined Account Aggregator and banking needs. Doorstep banking ATMs and ADWMs
framework . services are also extended through
Your Bank has one of the largest ATM
customer relationship executives.
Precious Metal networks in the country, with 65,627
The key elements of offer value

Governance
ATMs, including 12608 Automated
In FY2023, your Bank mobilised proposition to clients are flexibility in
Deposit and Withdrawal Machines
1,730 kg of gold (~`919.30 Crore) choosing multiple delivery channels,
(ADWMs), as on 31st March 2023. It
under the Sovereign Gold Bonds in-depth research and analysis and
is present even in the most remotest
Scheme and 2,016 kg of Gold under open architectures.
locations. There is a floating ATM at
the Gold Monetization Scheme by the
Your Bank’s wealth management Dal Lake in Srinagar, on the jetties
Government of India.
services are offered at 100 major of Ernakulam and Vypeen in Kerala,

Statutory Reports
Your Bank offers metal gold loans centres across the country through a new ATM lobbies in the tea gardens
to jewellers manufacturing gold network of 230 wealth hubs. of Assam, on the islands of Andaman
ornaments for domestic and export & Nicobar, Lakshadweep, and at
Your Bank has shown exponential
purposes. During FY2023, your Bank Khardungla in Ladakh, which has the
growth in terms of investment AUM
extended metal gold loans of 17,829 highest motorable road in the world.
and investment active clients during
kg. Your Bank also extends Sale of Gold Your Bank’s domestic market share
the FY2023. Investment AUM has
(SOG) scheme to jewellers/traders. in the number of installed ATMs and
increased from `14,317 Crore to

Financial Statements
During FY2023, your Bank sold 3,950 ADWMs is ~30% and handles the
`20,580 Crore (43.75% growth), and
kg of gold under this scheme. highest share of cash dispensation
the number of investment active clients
(34%) in the country. On an average,
increased from 93,726 to 1,18,569
over 1.32 Crore transactions are
(26.50% growth) during FY2023. The
recorded every day at your Bank’s
AUM increased from `2,51,351 Crore

Key initiatives during the Year y Pro-active Reversal of failed and the above services are also
y Implemented enhanced cash transactions to customers. available on WhatsApp banking.
dispensation logic in ATM for y 15000 new GCC machines installed. y Display of “Cash not available”
small denomination notes at all y 49,719 sites have been covered on ATM Screen whenever the
Bank’s ATMs. under electronic surveillance ATMs are out of Cash (Before the
y OTP based Cash withdrawal – solutions (eSS). transactions are undertaken by the
addition of new feature – 30 sec customers).
y SMS is being sent to customers
Timer display on ATM screen to for availing free Balance Enquiry
make customer aware about the & Mini Statement from SBI ATMs
time available for entering the OTP
and avoid time out.

47
Directors’ Report

ATMs/ADWMs, and 5.66 Lakh cash offering a range of financial services and relied on need-based selling to
deposit transactions at ADWMs. and products, all under one roof. As a strengthen customer loyalty.
financial superstore, your Bank provides
ATMs and ADWMs With an emphasis on better customer
mutual funds, general insurance,
50,757 experience and offerings tailored to
FY2019 life insurance, credit cards, National
7,658 customers’ needs, your Bank remains
Pension Scheme and Demat accounts
45,279 a leader in marketing of financial
FY2020 through its pan-India network. As part
13,276 products services with earning revenue
of your Bank’s digital transformation,
49,380 of `3,641 Crore in FY2023.
FY2021 it has made on-boarding simpler
13,237

52,158 The revenue contribution of each product is as under:

FY2022
12,872 (` in Crore)

53,019 % Change
FY2023 Product FY2022 FY2023
12,608 YoY
ATMs ADWMs
SBI LIFE 1,568 2,040 30
SBI MF & Others 767 916 19
SBI GENERAL 319 398 25
SWAYAM Kiosks SBI CARDS 199 264 33
Your Bank has deployed 20,137 SSL 5 5 -
Barcode Based Passbook Printing NPS 10 18 80
Kiosks (SWAYAM) at 17,643 branches TOTAL 2,868 3,641 27
and 13 Lakh transactions are processed
on daily basis, migrating ~3.65 Crore Initiatives and successes: for AUM. Digital mobilisation of business
passbook printing transactions every FY2023 are mentioned below: is easing the process for customers
month from branch counters. The re- as well as the operating staff. 76% of
print functionality for the last 90 days SBI Life
Lumpsum transactions and 92% of
has also been enabled, on a pilot basis, SBI Life Insurance is the No. 1 private fresh SIPs are being mobilised through
for five branches from each circle. player in Individual Rated Premium the digital mode.
since FY2018. The persistency ratio has
Green Channel Counter (GCC) improved from 84.07% to 84.12% YoY SBI General
Your Bank has deployed 33,077 GCC in March 2023. The protection share
A direct impact of the pandemic was a
terminals at 21,446 retail branches for for SBI Life in individual rated premium
surge in health insurance. It resulted in
transactions through debit cards to stood at 7.17% as on YoY March 2023.
an increased share of health insurance
promote Green Banking. Digital sourcing rate of SBI Life Banca
business from 20% in March 2022 to 22%
is 99.70%.
Cyber cell in March 2023. The number of specified
persons for general insurance also
To combat cybercrimes, the Ministry of SBI Mutual Fund:
increased to 31,017 on 31st March 2023
Home Affairs has rolled out a dedicated SBI remains the No. 1 Mutual as against 27,060 on 31st March 2022.
cybercrime reporting portal (www. Fund Distributer, having more than
cybercrime.gov.in) and a helpline `1.48 Lakh Crore in Assets Under SBI Card
number 1930. Cybercrime cells at 17 Management (AUM) as on March
circles work in multiple shifts to attend SBI has been at the forefront when
2023. Further, SBIMF leads the rank
to customer concerns regarding cyber it comes to credit cards. With
amongst AMCs and has crossed
fraud. During FY2023, a total of 3,04,450 the increasing trend of the use of
`7.12 Lakh Crore as on March 2023 in
complaints have been attended, and an
amount of `51.50 Crore has been put
on hold.
#1 #1
Customer Value Enhancement PRIVATE PLAYER IN INDIVIDUAL MUTUAL FUND
Your Bank is dedicated to increase value RATED PREMIUM IN INDIA DISTRIBUTOR IN INDIA
for its customers and stakeholders, by

48 Annual Report 2022 – 23

plastic money, your Bank is meeting total domestic advances. The portfolio exception. Under YONO, Pre-Approved
customers’ demand and making credit registered a growth of 17.59% YoY Business Loan (PABL) has recorded a
cards available to them at the remotest in FY2023. YoY growth of 926% to `3,558 Crore

Company Overview
of the locations. In FY2023, 23.48 Lakh in FY2023.
(till March 2023) cards were issued, A. Customer Convenience
Digital Document Execution (DDE)
as against total 16.54 Lakh issued
About 2001 RMs (SME) and 833 involves digital contract formation,
in FY2022.
dedicated SME-intensive branches are e-stamping, e-signature or its variants,
NPS functioning across India. Your Bank as per applicable laws and through
has rolled out Supply Chain Finance authorised government agencies,
Your Bank continues to be the leading
Centralised Processing Centres (SCF providing a safe and accurate

Responsible Approach
bank in NPS registrations with a market
CPCs) across 16 circles in India. All recording of the financial information,
share of 22%. Your Bank has also
new proposals above `10 Crore (SME and authentication and verification of
qualified to be the top Performing Point
and Builder Finance) are handled by the contents and the customer.
of Presence (PoP) under campaign
Centralised Processing Centres (CPCs)
observed by PFRDA. It offers the As a pilot, DDE was first launched
for appraisal. As on 31st March 2023,
complete digital registration journey in Uttar Pradesh in August 2022
323 proposals amounting `14,912
through Internet Banking (INB) and the for PABL accounts. Going by its
Crore have been sanctioned.

Governance
YONO app. Around 80% of the total success, your Bank is now extending
NPS accounts were opened digitally. this project to seven more states:
B. Digital Offerings
Odisha, Chhattisgarh, Tripura, Kerala,
SBI SSL Your Bank uses technology in every Maharashtra, Himachal Pradesh
Your Bank has sourced over 10 Lakh aspect of the value proposition– and Meghalaya in Phase 2. Further
accounts in FY2023. An e2e Demat and from business, designing products, expansion is underway.
trading account journey is available on streamlining processes, and improving
Following initiatives have been

Statutory Reports
the YONO app and INB. delivery to monitoring. Several
implemented during the year:
initiatives have been instated to build
Small & Medium Enterprises an SME portfolio in a risk-mitigated
1. New digital products under
manner, and significant changes have
Your Bank provides a comprehensive development in collaboration with
been implemented to ensure ease
package of products and services to Fintech/ AA/ GST
of banking.
the MSMEs to meet requirements such y MSME SAHAJ Seller’s Invoice
as cash management, transactions YONO Business addresses all Financing on Yono Business

Financial Statements
and credit needs for domestic and corporate banking needs and acts as providing digital loan and financing
export sales. a one-stop solution for the customer. of GST invoice.
Your Bank deploys the most advanced
Your Bank is a pioneer and market y Seller’s Invoice Financing Scheme
technologies like artificial intelligence,
leader in SME financing with over 19 under GST Sahay, a GoI initiative,
machine learning and business
Lakh customers. The SME portfolio of provides digital loan through GST
analytics, among others, to augment
your Bank crossed the `3 Trillion mark Sahay app, which is a market place.
its product offerings and enhance
in FY2023 to `3,59,270 Crore, and
customer delight each time without
accounts for 12.94% of your Bank’s

23.48 Lakh #1 10+ Lakh 17.59% 19+ Lakh

TOTAL CREDIT LEADER IN NPS TOTAL DEMAT GROWTH IN SME MSME
CARDS ISSUED IN REGISTRATIONS IN ACCOUNTS SOURCED PORTFOLIO IN CUSTOMERS
FY2023 INDIA DURING FY2023 FY2023

49
Directors’ Report

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 `2,940.24 Crore, with ticket sizes
between `1 Lakh and `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.
year. New e-DFS limits of `6,395 Crore for on-boarding dealers/vendors and
4. Supply Chain Finance for 6,224 new dealers and `2,352 broadening the channel finance base.
By leveraging technology and branch Crore for e-VFS were sanctioned
network, your Bank has been a major during FY2023. Your Bank has already C. Green Energy Initiatives
player in supply chain finance while implemented CLP for e-DFS and
Your Bank is committed to lowering
strengthening corporate relationships e-VFS.
its carbon footprint through many
across sectors. During FY2023, supply Your Bank has also simplified the e-VFS green energy initiatives. During the
chain finance was extended to 34,592 processes. It has introduced Supply year under review, we launched the
dealers with total sanctioned limits Chain Finance Centralised Processing following products:
of over `44,565 Crore under e-DFS Centres to reduce TAT for proposal
(Electronic Dealer Financing Scheme) processing. To  ring-fence the supply 1. Surya Shakti Solar Finance
and `16,437 Crore e-VFS (Electronic chain portfolio, it has implemented This special product was launched
Vendor Financing Scheme) respectively. suitable risk mitigation measures for financing ‘Term Loans for Solar
Your Bank entered into 16 new e-DFS and risk-based pricing. Your Bank is Projects’ for captive use, with capacities
and 37 new e-VFS tie-ups during the also introducing various campaigns of up to 1 MW. It entails a maximum loan

50 Annual Report 2022 – 23

amount of `4 Crore and a comfortable F. Trade Receivables the Kisan Samriddhi Rin (KSR) product.
repayment option of up to 10 years. A Discounting System (TReDS) It addresses the credit requirements
dedicated Surya Shakti Cell has been of large farmers/corporates/FPOs/
Your Bank is the first Public Sector Bank

Company Overview
created for centralised loan processing cooperatives of farmers based on the
to register as a financier on the TReDS
and quick TAT. MOUs have also been realistic cost of end-to-end farming
platform and is present on all the
signed with reputed companies like for all types of crops including those of
three TReDS platforms in the country–
Tata Power Solar Systems Ltd., Waaree high-value export importance and use
RXIL, M1 Exchange and Invoicemart–
Energies Ltd., Mahindra Solarize Pvt. hi-tech / scientific / modern methods
to provide finance to MSMEs.
Ltd. and Havells India Ltd. to finance of farming.
companies that need solar PV systems. FY2023, your Bank discounted 26,973
Your Bank has achieved a remarkable

Responsible Approach
bills amounting to `9,800 Crore,
milestone this financial year with its
2. Finance to Biofuel Projects registering an YoY growth of 144%.
lending to farming and agricultural
Your Bank launched a new product for activities crossing `2,58,612 Crore,
extending credit to all forms of biofuels Rural Banking
the highest offered by any Bank. This
mentioned in the ‘National Policy of A. Agri Business extends assistance to more than
Biofuels 2018’, viz. ethanol, bio-diesel, Your Bank has come out on top in 1.45 Crore farmers. In addition, the
advanced biofuels and bio-CNG, Nationwide One Branch One Loan agriculture gold loan portfolio has

Governance
among others, in a bid to promote (NOBOL) campaign and Bankers grown significantly from `73,600 Crore
the Government of India’s initiative of Enabling Sustainable Transformation on 31st March 2022 up to `83,000 Crore
increasing biofuels projects. (BEST) campaign for Agri Infra as on 31st March 2023.
Biomass suppliers and aggregators Fund run by Ministry of Agriculture
To further support Aatmanirbhar Bharat
who supply pellets/briquettes to and Farmers Welfare. Further, your
schemes like Agri Infrastructure Fund
thermal power plants for substitution Bank has launched a new product
(AIF), Animal Husbandry Infrastructure
of coal are also financed under this named Agri Enterprise Loan (AEL) for

Statutory Reports
Development Fund (AHIDF) and PM
product. The product has long door- catering to the credit needs of agri-
Formalisation of Micro Food Processing
to-door repayment tenure of up to 15 based enterprises engaged in various
Enterprises (PM FME), your Bank has
years and an option of a term loan or agriculture, allied, agri infrastructure
disbursed loans to 6,954 borrowers
regular working capital facility. and ancillary activities, which will be a
for an aggregate sum of `1,543 Crore
growth driver in the investment credit
during the current financial year.
D. Export Credit portfolio. Your Bank has also launched

Financial Statements
The MSMEs play a pivotal role in the The credit disbursement to the farmers over the years is as follows:
Government of India’s objective of (` in Crore)
increasing exports. During FY2023, Flow of Credit to Agriculture
your Bank’s export credit to the MSME Year Target Disbursement % Achievement
segment increased by 17.20% and FY2019 1,16,315 1,56,385 134
reached `15,672 Crore. Your Bank has FY2020 1,27,947 1,77,473 139
put in place strategies for maximising FY2021 1,74,468 1,98,268 114
business potential in export finance. FY2022 1,92,500 2,19,396 114
FY2023 2,11,750 2,54,617 120
Various digital initiatives to improve
customer experiences are in the pipeline. B. Micro Credit
Your Bank holds the highest market Since the inception of Deendayal
E. Co-lending with NBFCs share in SHG loans among all banks. Antyoday Yojana–National Rural
Your Bank has entered into co-lending Your Bank’s portfolio under SHG Livelihood Mission in 2013, your Bank
agreements with 5 NBFCs. loans crossed `34,000 Crore as on 31st has financed 32.60 Lakh SHGs under
March 2023 covering more than 98 Bank-SHG Linkage and disbursed
Lakh women members. Your Bank’s `94,815 Crore up to 31st March 2023.
J39,000+ Crore market share of loans under National
Your Bank disbursed more than
DISBURSEMENT UNDER Rural Livelihood Mission is the highest
`39,000 Crore in Mudra Loans, and
MUDRA LOAN among all PSBs, accounting for 28% as
has sanctioned more than 20,000
on 31st March 2023.

51
Directors’ Report

proposals under the Stand-Up-India D. Financial inclusion E. Imparting Financial Literacy

scheme during the year, which is more (FLCs)
Your Bank has aligned its business goal
than half of all PSBs put together.
with national priorities, and focused Your Bank has set up 341 FLCs across
In FY2023, your Bank disbursed attention is given to a range of financial the country to impart free financial
3.34 Lakh loans, amounting to `561 inclusion activities. Your Bank has literacy, credit counselling, and the
Crore to Street Vendors under PM undertaken significant strides towards propagation of electronic payment
SVANidhi Scheme. financial inclusion through a vast systems. FLCs have conducted
network of Business Correspondents 38,162 camps in which ~12.50 Lakh
C. Digital and Collaborations (BCs) and Customer Service Points people participated. Furthermore, as
(CSPs). As on 31st March 2023, your part of the RBI initiative to propagate
Your Bank is revamping its agri-tech Bank has 76,089 CSPs, providing access awareness of financial products among
stack for loan processing to agriculture
to 32 banking products and services in the rural masses, your Bank has also set
and allied activities, significantly
unbanked areas while reducing footfalls up 440 Centres for Financial Literacy
reducing the TAT for credit delivery.
in the branches. The BC/CSP channel (CFLs) at the block level which are also
Your Bank has also embarked upon
has recorded around 53.32 Crore instrumental in exploring innovative
digitising all customer journeys in the
agriculture segment. transactions amounting to `3,30,389 and participatory approaches to
Crore during FY2023. On an average, financial literacy.
Your Bank has signed MoUs with 18 around 25-30 Lakh transactions per day
NBFCs/HFCs under its co-lending are routed through the BC/CSP channel. F. Rural Self Employment
model to enhance its reach to the Training Institutes (RSETIs)
unserved and underserved populace. BC/CSP channel is increasingly
Under this model, your Bank has becoming one of the most crucial drivers Your Bank has set up 152 RSETIs
sanctioned loans to more than 1,52,000 of financial inclusion initiatives of your spread across 26 states and 3 Union
borrowers amounting to `865 Crore, Bank. The channel has opened 14.69 Territories. RSETIs act as social change
of which more than 1,49,000 accounts Crore BSBD accounts with `50,091 Crore agents, empowering rural youth
were sanctioned in completely digitised deposits and has brought the unbanked/ towards sustainable livelihood through
mode (loans up to `1 Lakh). underprivileged sections of society under skill development and training, helping
Your Bank is actively looking to partner the ambit of the formal banking system. them establish their micro-enterprises,
with agri-techs and start-ups to cater to As part of social security measures, low- and thereby creating rural employment
the financial needs across the agriculture cost microinsurance products (PMJJBY, and wealth creation.
value chain. To start with, your Bank has PMSBY) and pension schemes (APY),
From 1st April 2022 to 31st March 2023,
conducted an agri start-ups and agri- are provided to the unorganised sector
these RSETIs have trained 99,438
techs meet at Bengaluru in December in a significant way.
candidates and achieved ~103%
2022 to discuss and deliberate the
Your Bank is the undisputed market against the annual training target of
support and growth of the sector.
leader in customer enrolment for 96,616 candidates set by the Ministry
To further penetrate the agriculture government-sponsored social security of Rural Development (MoRD).
and rural market, your Bank has schemes viz, PMJJBY, PMSBY and APY.
floated State Bank Operations Support During the recently concluded Annual
The share of Bank in PMJJBY, PMSBY
Services, which is expected to help your Grading Exercise for FY2022 by MoRD,
and APY is 43.83%, 40.85% and
Bank reach out to a larger populace, all 152 RSETIs of your Bank secured
31.78% respectively, among all Public
and record improved efficiency in outstanding grading (AA), with 101 of
Sector banks.
sourcing and collection of loans. them scoring 200/200.

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

52 Annual Report 2022 – 23

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

Company Overview
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:

CIRCLE OF RISE ABOVE LEADERSHIP APY BIG

EXCELLENCE THE REST PINNACLE BELIEVER

Responsible Approach
Award of Exemplary award of Exemplary award of Award of
par excellence par excellence par excellence par excellence
(1st October - 14th November 2022) (15th November - 31st December 2022) (2nd January - 14th February 2023) (15th February – 31st March 2023)

Governance
Government Business 1. PM Kisan Samman Nidhi Yojana unified interface for all offices of MoD
Your Bank is at the forefront of conducting As accredited Bank to Ministry of for lodging, processing and payments
Government Business, with a market Agriculture & Farmers’ Welfare, your Bank of Bills. Your Bank has integrated its
share of 65.92% in Central Government has facilitated distribution of `40,477 Crore digital platform with PRABAL.
turnover, and is an accredited Banker to under the scheme as a sponsor bank.
26 major Central Government Ministries y Armed Forces Battle Casualties
and Departments. 2. Direct Benefit Transfer (DBT) Welfare Fund (Maa Bharti ke Sapoot):

Statutory Reports
All the major schemes of Direct Benefit Launched by the Hon’ble Defence
Turnover and Commission
(` in Crore)
Transfer (DBT) of GoI and State Govts are Minister, the Armed Forces Battle
being implemented through your Bank Casualties Welfare Fund account was
Particulars FY2022 FY2023
on a pan-India level. State Bank of India set up to receive online donations
Turnover 55,18,281 60,35,342
is the sole Banker for processing Direct through the SBI payment gateway on
Commission 3,713 3,953
Benefit Transfer of LPG subsidy (DBTL). 14th October 2022.

Financial Statements
Your Bank is continuously engaged
Your Bank has successfully rolled out
in developing customised technology 4. Ministry of Railways
the ePA (Electronic Payment Advice)
solutions, to support the Government’s y Indian Railways e-Procurement
mechanism for the digital authorisation
digital initiatives facilitating transition System (IRePS):
of payments originating through Public
to the online mode, providing greater
Financial Management System (PFMS). The VAN solution on IRePS was
efficiency and transparency, resulting in
ease of doing business & ease of living made live allowing participation in
3. Ministry of Defence (MoD) leasing and other auctions. Now
for the citizens.
y PRABAL: (PFMS Raksha Budget IRePS bidders have option to choose
Following initiatives have been Aaharan and Lekhankan) either Lien module or VAN solution
implemented during the year: as a payment option to submit EMD
Launched by MoD to bring all CDAs
(Controller of Defence Accounts) (Earnest Money Deposit).
under single platform. This will act as

53.32 Crore #1
TRANSACTIONS RECORDED MARKET LEADER IN GOVERNMENT
UNDER THE BC/CSP CHANNELS BUSINESS IN INDIA

53
Directors’ Report

y Parcel Management System: y Your Bank successfully conducted y Close monitoring of 20 districts/
Railway has a computerised Parcel a nation-wide campaign for the centres with high potential and low
Management System (PMS) under submission of Digital Life Certificates market share.
which details of Parcels are fed into at 35 centres across India, which were y Training on YONO, CKYC, Online CA
the system. Your Bank has taken up identified by the Ministry of Personnel, opening, other digital products and
digitalisation for fee collection and Public Grievances and Pensions, soft skills for RMCAs.
entered into an MoU with Railways. Department of Pension & Pensioners’
Welfare (DoPPW), New Delhi. Process:
5. Centrally Sponsored Schemes y Two new services were launched by y Digital (Online) CA opening facility
(CSS) under Single Nodal Account the Ministry of DoPPW on Bhavishya for all entities to provide an omni-
(SNA) mechanisms and Central Portal of GoI. Form 16 (part B) and Life channel experience to the customers
Sector Schemes (CSS) under Central Certificate Status have been made and reduce TAT in opening
Nodal Account (CNA) mechanisms available to the Central Government of accounts.
Your Bank has developed and rolled out pensioners in the Portal. y Re-imagined Journey through YONO
the necessary solutions for all the models business to simplify and improve CA
prescribed by PFMS to implement SNA 7. Small Savings Schemes opening journey.
and CNA mechanism. The customised Your Bank services more than 88.32 y CKYC for Digital transmission of
SNA solutions have been rolled out for Lakh PPF, 25.66 Lakh Sukanya AOF and KYC documents and help in
Govt. of Rajasthan (IFMS application) Samriddhi Yojana (SSA) accounts, improving TAT in CA opening.
and Karnataka (Khajane application). and 12.73 Lakh Senior Citizen Savings
y Various dashboards, including
Schemes (SCSS) accounts, making it
campaign dashboards for better
6. Pension Payments the highest among all the authorised
performance monitoring.
y Your Bank has been administering banks. During FY2023, 5.13 Lakh PPF
accounts, 2.93 Lakh SSA accounts and y Enhanced CA visibility on SBI
pension payments to 43 Lakh
2.09 Lakh SCSS were added. corporate website.
pensioners. New pension accounts
of 2.54 Lakh pensioners were added y Project Drishti and Kuber with
in FY2023. Digital & Transaction Banking external consultant for improving
(D&TB) – Marketing and revamping CA and CMP (Cash
y Your Bank has launched Pension
1. Current Accounts Management Product) Business.
Seva Mobile App for pensioners to
avail of all the services. Current Account (CA) balances y Integration with FinTechs to provide
contribute directly to the profitability of industry/sector specific offerings.
y Video Life Certificate made available
on Pension Seva Mobile App for your Bank by reducing Cost of Deposits
Products:
regular and family pensioners. and improving Net Interest Margin. CA
remains critical component of the CASA y Integration of MCA SPICe Form for
y Pension slip through SBI WhatsApp CA opening.
deposits. Your Bank has a bouquet of
Banking was launched on 5th
CA products that are competitive in the y Revamping of RERA products.
November 2022.
market and meet the requirements of
y Your Bank has integrated Bhavishya different customer segments. 2. Transaction Banking-
Portal of GoI with SBI Pension Seva Marketing
Portal for ease of services to the Your Bank has taken the following
Central Government Pensioners. initiatives for improving the CA business: TB Marketing, formerly Transaction
Banking Unit (TBU), employs cutting-
People: edge technology to offer clients
comprehensive transaction-related
#1 y Created an exclusive position of
products and solutions. Your Bank’s TB
Relationship Manager Current
MARKET LEADER IN Account (RMCA) to focus on the business seeks to take advantage of new
SMALL SAVINGS SCHEMES marketing of CA business and cater technology initiatives and meet clients’
AMONG AUTHORISED to existing high-value CA customers. bulk transaction needs, in addition to
BANKS IN INDIA customised MIS, ERP integration and a
dedicated Client Support Cell. Its study
and analysis of transaction patterns

54 Annual Report 2022 – 23

allows it to devise unconventional ways The relationship strategy is anchored B. Treasury Operations
of meeting clients’ other banking needs on delivering integrated and
Treasury operations
like Credit, Fund Management, Cross comprehensive solutions to clients,

Company Overview
Selling and others services. including structured products within Global Markets Unit (GMU) performs
a specified time frame. The prime the domestic treasury operations of your
Your Bank’s commitment to offering Bank and is responsible for deployment
objective is to make SBI the first choice
customer satisfaction drives us to of surplus funds to achieve desired risk-
of top corporates. A regular review of
improve its technology continuously. adjusted returns. The Global Markets’
each corporate relationship by senior
Your Bank has recently implemented portfolio comprises investments in
management sets the benchmark for
new solutions such as VAN-based Statutory Liquidity Ratio (SLR) and Non-
relationship management in CAG BU.
Cash and Cheque Collections to

Responsible Approach
SLR Securities, Publicly Traded Equities,
extend TB across all branches, Digi Apart from various core credit Venture Capital Funds, Private Equity, and
Voucher, and provide a multi-channel products, CAG BU offers an array of Strategic Investments. Additionally, it offers
delivery model for transactions. customer-specific products like Cash multiple products and services that cater
Customers  across Corporates, Mid- Management Product, Treasury/ to its customers’ foreign exchange and
Corporates, Government Departments, Forex products and Merchant Banking risk management requirements.
Financial Institutions such as NBFCs, products in association with other BUs
Insurance Companies, Banks, Mutual and subsidiaries of SBI. The Client FY2023 began with the conflict in

Governance
Funds and SME Clients can benefit Service Teams at CAG Branches also Ukraine, which, combined with the
from these TB products designed aid customers in the selection and removal of the lockdown, led to
to facilitate, automate and optimise delivery of a wide variety of products another round of high inflation across
fund management. and services offered by associates and the globe, just as the pandemic-
subsidiaries of SBI. induced supply chain issues started
Corporate Banking to resolve. Developed countries saw
To align with the changing banking unprecedented tightness in labour
A. Corporate Accounts Group

Statutory Reports
landscape, your Bank has created two markets, leading to a round of sharp
Corporate Accounts Group (CAG) is a specialised units within CAG BU: rate hikes by central banks. US 2-year
dedicated Business Unit (BU) of your Corporate Solutions Group (CSG) treasury yields, which were around
Bank and handles SBI’s ‘high-value –To address the entire ecosystem of 0.25% in 2021, shot up to 5%+ levels
credit’ portfolio as a specialised and banking related requirements of credit as the US Federal Reserve hiked its
efficient delivery platform. CAG BU has light corporate customers in significant policy Fed funds rate by 475 basis
four specialised Branches headed by sectors such as FMCG, Auto, IT, Pharma points (including a 25 basis points hike

Financial Statements
General Managers located in India’s and Agri with a focused thrust on new- in March 2022), the fastest pace of hikes
top three commercial centres, namely to-bank as well as existing customers. since the 1980s. In India, CPI touched a
Mumbai (2), New Delhi (1), and Chennai high of 7.79% in April 2022, well above
(1). Major top corporates of the country Financial Institutions Group (FIG)–To the upper level of RBI’s target band of 4%
and Navratna PSUs are esteemed address credit, transactional, general to 6%. RBI started hiking the policy repo
customers of CAG BU. banking and non-banking requirements rate from May 2022 to curb inflation, with
of financial Institutions such as 6 consecutive hikes totalling 250 basis
CAG BU is an exclusive one-stop Insurance Companies, Brokerage Firms, points during FY2023.
shop that provides the entire range Banks (Private and Foreign), Mutual
of financial services and products to Funds, FDI and FPI entities. Rupee Markets
top-rated corporates and their foreign
associates and subsidiaries. The The total loan portfolio (Fund Based 1. Interest Rate Markets : SLR and
business model of CAG BU is based and Non Fund Based) of CAG BU as on Non-SLR Portfolio
on the relationship management 31st March 2023 stands at `6.50 Lakh Rate hikes by RBI led to a jump in bond
concept. Each client/business group is Crore as against `6.18 Lakh Crore on market yields, with the benchmark 10 year
mapped to a relationship manager who 31st March 2022. Demand for credit touching a high of 7.62% in June 2022, up
spearheads a cross-functional client picked up in the second half of FY2023 from 6.84% at the end of March 2022. Your
service team consisting of highly skilled resulting in growth of 0.56 Lakh Crore in Bank took prudent investment decisions
credit and operations functionaries. fund-based advances at CAG BU. that helped contain the impact of rising
interest rates on the investment portfolio.

55
Directors’ Report

Fresh investments were also made at

Key Initiatives appropriate levels to augment interest
Customer Value Creation income. Your Bank’s liquidity position
remains comfortable, and it is well placed
y Your Bank has introduced SBI product, FXOut, have been made. to handle any moderation in liquidity.
e-Forex facility in the YONO An SMS and email facility to track
Business-Android app to enable outward remittances has been 2. Equity Markets
customers to book foreign introduced, and a new currency In FY2023, the Indian market
exchange rates on the go. The ‘NZD’ has been added to the outperformed other global emerging
same is expected to be rolled out currencies that can be remitted. markets, driven by the country’s robust
shortly for the iOS platform as well. y A centralised processing cell has economic outlook despite multiple
y Your Bank has removed the been set up for opening FCNR global headwinds. Your Bank actively
minimum transaction size in deposits, to speed up the process participated in the rally in the equity
e-Forex and has increased the and for better customer experience, markets, calibrating the investment book
maximum transaction size limit. at GMU Kolkata. as per market dynamics. There was
This will allow SME customers to y Submission of LC/BG application moderation in IPOs during the second
book the smallest foreign exchange as well as Purchase Order/ Invoice half of the year, with listing gains for the
transactions through the platform, through email has been waived for issuances remaining muted. But your
while providing more flexibility for applications submitted through the Bank actively participated in the primary
larger customers. YONO business platform. market during the first half, including in
y Further improvements in your InvITs and REITs, generating high returns.
Bank’s online outward remittance 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 start-
ups through direct equity participation
as well. During the year, it has
sanctioned investments of more than
`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

56 Annual Report 2022 – 23

in USD-Rupee Spot and USD-Rupee Swaps (CCS), USD/INR options Your Bank’s ‘Policy for Derivatives’
Forward markets and has a high and Cross Currency Options. These prescribes market risk parameters
market share in merchant foreign products and their customised versions (Greek limits, loss limits, cut-loss

Company Overview
exchange flows. Your Bank is the are offered to your Bank’s customers triggers, open position limits, Duration,
leader in providing liquidity in CCIL to hedge their interest rate and foreign Modified Duration, PV01, amongst
Fx Clear platform. The volume traded exchange exposures. others), as well as customer eligibility
in currency futures puts your Bank in criteria (Credit Rating, sanctioned
Post-liberalisation of derivative
the bracket of leading client banks of limits, and CAS rating as per Customer
guidelines by RBI, your Bank has started
exchange houses. Your Bank is actively Appropriateness and Suitability
offering a larger bouquet of hedging
on-boarding customers on the Fx-Retail policy) for entering into derivatives
solutions to its customers, including

Responsible Approach
platform rolled out by CCIL. FX-All and transactions. Risk on interbank counter-
barrier options, and has started doing
e-Forex platforms are made available parties is monitored through limits set
Foreign Currency Settled Overnight
to customers to meet their foreign for the purpose. These counter-parties
Index Swap (FCS-OIS) transactions.
exchange requirements. Your Bank is have also executed ISDA with your Bank.
also a major player and a market maker
in offshore USD-Rupee NDF market or
Non-deliverable Derivative Contracts C. International Operations

Governance
(NDDCs).
Share Holding
Foreign Banking Subsidiaries/Associates
Your Bank also has treasury marketing (%)
units in 8 major cities and 10 Subsidiaries
satellite centres spread across the State Bank of India (California) 100.00
country to help customers with their SBI Canada Bank 100.00
requirements. They conduct meetings
State Bank of India (UK) Limited 100.00
and conferences with exporters, trade

Statutory Reports
Commercial Indo Bank LLC 100.00
industry bodies and large corporate
customers to understand their needs SBI (Mauritius) Limited 96.60
and discuss about foreign exchange Bank SBI Indonesia 99.56
markets and the various products of Nepal SBI Bank Limited 55.00
your Bank. During the year, we have Foreign Non-Banking Subsidiary
opened a new satellite centre at Surat.
SBI Servicos Limitada, Brazil 99.99
Your Bank also has a specialised desk

Financial Statements
Associate
to take care of the requirements of FPI/
FDI/ODI customers. Bank of Bhutan Limited 20.00

Derivatives In its endeavour to become a truly International Bank, your Bank has realigned
Your Bank currently deals in Over- its focus to enhance its penetration in overseas local markets and India-based
the-Counter (OTC) interest rate and businesses to support the Indian diaspora and global Indian corporates spread
currency derivatives, along with across various geographies.
exchange-traded currency derivatives
and Interest Rate Futures. The interest Global Presence
rate derivatives traded by your Bank Your Bank’s first global footprint was with the branch of Bank of Madras in
are Rupee Interest Rate Swaps (Rupee Colombo, Sri Lanka in July 1864 (a first amongst Indian Banks). With presence
IRS), Rupee Interest Rate Futures (IRF), across all time zones through its 235 offices in 29 countries, State Bank of India
Foreign Currency Interest Rate Swaps has gradually spread its wings globally and has become a pioneer of International
(IRS), Foreign Currency to Rupee Banking among the Indian PSBs. International Banking Group (IBG) is managing
Interest Rate Swaps (Modified MIFOR), the overseas operations of SBI.
Forward Rate Agreements (FRA), Caps,
Floors and Collars. Currency derivatives
dealt by your Bank are Cross Currency

57
Directors’ Report

The details of offices opened/closed are furnished in the table below: through syndicated deals in conjunction
with other Indian and Foreign Banks,
As on Opened Closed As on and through bilateral arrangements, it
Business
Overseas Offices March during during March
Volume has also been increasing its presence
2022 the year the year 2023
in Local Credits by partnering with
Branches/Sub-offices/ 55 1 0 56
USD 74 local / global Banks.
Other Offices
Billion
Total no. of Subsidiaries (8) 0 0 (8) Your Bank sanctioned Foreign
- Offices of Subsidiaries 161 8 0 169 Currency loans of USD 12.81 Billion
Representative Offices 6 0 1 5
to India-related corporates and USD
Net Profit 11.95 Billion to overseas entities
JV/ Associates/Managed 5 0 0 5 USD 334 during FY2023.
Exchange Cos / Million
Investments
Total 227 9 1 235
Your Bank acted as the
lead arranger in Syndicated
During FY2023, your Bank opened one Despite the macroeconomic
India Visa Application Centre (Other Loan facility of three
headwinds, shrinking of spreads,
Offices) at Khulna (Bangladesh) and etc., IBG has maintained profitability Fortune 500 companies in
5 branches and 3 extension counters during the year. This was achieved the US.
through its overseas subsidiary in Nepal. by enhancing cost efficiencies and
IBG has been gradually adapting to bringing down expenditure ratio. It is 2. Trade Finance
the dynamics of the post-COVID world continuing to leverage new income Your Bank is supporting Indian
while continuing to grow at a healthy streams like Merchant Banking and importers and exporters by offering
rate. It has adapted well to optimise its Invoice Financing to supplement them a bouquet of Trade Finance
cost of resources in the rising interest its profitability. products and services through an
rate scenario by diversifying its liability Strategic focus of IBG: extensive, well-equipped branch
base. It has also leveraged its digital network that operates in India
a. Growth in balance sheet size while
offerings like SBI YONO by launching and abroad.
maintaining assets quality
in new geographies to improve
b. Focus on booking of assets with The Global Trade Department (GTD) of
penetration through contactless
reasonable margins IBG supports Bank’s Foreign Offices
offerings for raising retail deposits.
(FOs) for an orderly growth of Trade
c. Optimising cost of resources
IBG has maintained its focus on Finance portfolio, formulates policies
business by registering good growth d. Enhancing digital offerings and and innovates new products for FOs as
in its overseas credit portfolio during using technology across processes. per the market demands and changing
the year while maintaining the quality e. Boosting fee income to regulatory norms.
of assets with a reduction in both improve profitability
The GTD facilitates trade credits to
Gross NPAs and Net NPAs. Besides f. Compliance to be the top focus, Indian corporates for their imports
meticulous credit monitoring, IBG with zero tolerance on compliance/ by the centralised handling of quote
has been agile in managing assets regulatory issues. process and plays an important role in
showing signs of stress to minimise
synergising business flows between
the possibility of losses due to further The specialised departments of IBG
domestic and foreign offices for
deterioration in asset quality. Further, have played a vital role in sustaining
maximising returns. It also organises
it has maintained its connect with the the momentum by contributing across
trade-related workshops/conferences,
clientele through various outreach various fronts:
by partnering with trade bodies viz.
initiatives with exporters, banks, etc., to
BAFT (Bankers Association for Finance
reinforce the existing relationships and 1. Credit Contribution
and Trade), GTR (Global Trade Review)
also to forge new ones. While your Bank is an active supporter etc. Workshops are also organised
of Indian corporates in their global in partnership with ICC, FIEO etc. to
growth strategy, by arranging debt provide a platform to network with
in Foreign Currency by way of ECBs exporters/regulators/industry majors.

58 Annual Report 2022 – 23

 has created Merchant Banking desks 5. Retail Strategy
at Singapore and London.
Your Bank was awarded Through its specialised retail and
remittance products, your Bank has
‘The Best Trade Finance Your Bank has drawn out an

Company Overview
ESG (Environmental, Social and been a ‘Window to India’ for NRIs
Provider (India) – 2023’ residing in different parts of the world.
Governance) framework this year,
for the 11th consecutive which captures how we manage Notable achievements for the year are:
year by the Global Finance risk and opportunities around y YONO SBI has now been extended
Magazine, New York. sustainability issues. to customers at overseas offices. It
has been successfully launched in

Responsible Approach
the UK, Canada, Mauritius, Nepal,
Your Bank became the Maldives, Bangladesh, South Africa,
3. Overseas Treasury Management
first PSU Bank having Sri Lanka, and Bahrain, with remote
Treasury Management Group (TMG)
at International Banking Group duly vetted ESG financing account opening facility operational
in the UK and in Canada. More than
undertakes following functions for the framework on which a
1,25,000 overseas customers have
Foreign Offices: social syndicated loan for been on-boarded through YONO.
y Liquidity Management USD$1 Billion was raised

Governance
y Fully digital online account opening
y Dealing Room Operations during FY2023. journeys deployed at SBIUK and at
y Investments SBI Canada Bank.
The loan became the largest ESG loan y GIC account: The product enables
TMG-IBG manages overall liquidity by a commercial Bank in Asia Pacific students travelling to Canada (for
portfolio of IBG and also monitors asset and second largest social loan globally. studying) to open GIC account with
liability management ratios. TMG is This was also the largest overseas our SBI Canada Bank in YONO

Statutory Reports
the nodal department for raising long syndicated loan concluded by your Canada App.
and medium-term funds through Bond Bank at an attractive pricing.
y The ‘One View’ feature of YONO
Issuance (MTN/Standalone 144A), Global allows international
Syndicated Loans, etc. In addition to 4. Global Payments and Services
customers to view their domestic
this, TMG also utilises various means of Global Payments & Services (GP&S) SBI Accounts, practically merging all
borrowings, to keep the cost of resources facilitates Online Inward Remittances enquiry features of Domestic YONO
in check. TMG is actively engaged with and SWIFT-based Remittances SBI with its global version. Over

Financial Statements
Multilateral/Supranational entities in from Overseas locations to India, 5,500 SBI Foreign Office customers
arranging foreign currency finance/ Foreign Currency Cheque collection, are already using this feature.
refinance at competitive pricing. Opening and Maintenance of Vostro
Accounts and Asian Clearing Union 6. Financial Institutions Group
During the financial year, your Bank
(ACU) Transactions. (FIG)– Correspondent Relations
raised more than USD$1 Billion long-
term resources from different multilateral The highlights of the year are: FIG facilitates linkages between your
agencies. Your Bank has done a Club Bank and international stakeholders
y During the year, GP&S entered into
deal in self syndication format and viz. Financial Institutions (FIs), Foreign
a new tie up with M/s. Remitly Inc.
raised USD$500 Million for 3 years. Govt. Agencies and Developmental
USA for channelising remittances
Financial Institutions (DFIs), etc.
Currently, there are five major dealing from various countries viz., US, UK,
and establishes a synergy between
rooms at London, New York, Hong Canada, Europe etc. to India under
IBG and other business verticals
Kong, Bahrain, and the Gift City in Rupee Drawing Arrangement.
such as Corporate Accounts Group,
Gandhinagar, that work on a hub and y As per the provisions of RBI for Commercial Clients Group, Retail
spoke model to help smaller Foreign settlement of trades in INR through Banking Group and Global Markets.
Offices in their operations. Your Bank Special Rupee Vostro Accounts,
is also working to develop Gift City GP&S has opened five SRV FIG functions as a pivot in maintaining
Gandhinagar banch as another fund- accounts during the year with the and reviewing Correspondent Banking
raising centre. Your Bank is expanding approval of RBI. relationship with a network of 224 Banks
its wings in Debt Capital Market and in 55 countries. It also maintains RMAs

59
Directors’ Report

(Relationship Management Application) and trading community, by acting as a with enhanced features like
established by both domestic and robust link between them. online account opening, real-time
foreign offices. Your Bank has more payments enabled via QR codes, bill
IBD facilitates growth of export credit
than 4,200 RMAs with 850+ Banks in payments, etc. Some of the major
by actively involving with branches,
114 countries, as on 31st March 2023. new features added include INR
trade bodies and other stakeholders.
remittance for non-customers at
UK Operations, 24/7*365 inter-bank
4,200+ 8. Technology Initiatives at
fund transfer functionality through
Overseas Offices
TOTAL RMAs ESTABLISHED integration with Instant Payment
Your Bank continues to leverage System at Mauritius, etc.
BY DOMESTIC AND FOREIGN
technology solutions to automate
OFFICES AS ON 31ST y Your Bank has also embarked upon
processes, enhance customer
MARCH 2023 a complete revamp of its e-Banking
experience and manage risk. The
web platform in consonance with
initiatives undertaken at overseas
latest functionalities and industry
7. International Banking offices includes:-
standards. This has been completed
-Domestic(IBD) across 6 geographies namely, USA,
y Your Bank has been consistently
Your Bank is well-equipped to provide UK, Mauritius, Maldives, Sri Lanka &
leveraging digital channels
exporters and importers with a wide Bangladesh during the year.
to provide an omni-channel
range of products and services y Your Bank has completed the roll-
experience to its customers across
through an extensive domestic and out of the new revised version of the
all geographies. YONO Global App
international branch network. sanctions screening solution having
has emerged as the prime fulcrum
IBD serves as a single point of contact for providing Banking services to improved features including AI/ML
between the Domestic Offices and retail customers. The registrations capability. The revised AML/CFT
Foreign Offices in areas related to Trade of the YONO Global App have solution with enhanced features like
Finance and International Banking. IBD crossed the 1 Lakh landmark. With peer profiling, improved compliance
aims at improving synergies and trade almost 50% of customer base dashboards and case workflow
flows between Domestic Offices and using the App to access banking enhancements has also been
Foreign Offices/Correspondent Banks services, the platform has evolved completed at all FOs in FY2023.

Commercial Clients Group (CCG)

CCG services the credit needs of mid CGMs in the CCG are assigned as the 51
and large corporates through a network group relationship owners in order to BRANCHES THROUGH WHICH
of 51 branches across 30 cities in improve the quality of coverage and to CCG SERVICES THE CREDIT
the country, and includes specialised enable an integrated view on exposure NEEDS OF ITS CUSTOMERS
branches like the Diamond branch, and earnings across the group. Your
Capital Market branch, and others. It has Bank has set up an experienced team
an experienced team of credit specialists of credit specialists to support large 30
to support large credit proposals. credit proposals CITIES OF PRESENCE
CCG performance
(` in Crore) Key initiatives
Levels Mar’21 Mar’22 Mar’23
Export Credit Growth: External
Non-food Advances 4,08,110 4,20,276 4,87,989
CASA Deposit (%) 23.56 24.91 26.43 benchmark (T-Bill Rate) linked interest
Avg. Business per Employee 168.96 185.42 226.76 rates have been rolled out to WCL and
Other Income 3,163 3,819 3,900 LC Bill Discounting facilities in order
(excluding income from AUCA recovery) to incentivise top-rated borrowers and
Pre-TPM Operating Profit 32,623 29,113 32,916 encourage utilisation of their limits. To stay
New Credit Customer added: competitive, this option is even offered for
(i) No. of Customers 128 304 232
Rupee Export Packing Credit facilities.
(ii) Limits Sanctioned during FY2022 59,965 75,552 49,101
To further reinforce awareness about

60 Annual Report 2022 – 23

your Bank’s services among exporters, Your Bank has an experienced team and maintain its leadership position in the
we are organising various informational to support, deal structuring for high project lending space.
meets in India. Additionally, with the value proposals across lending, bonds,
International Banking, and Structured/ Stressed Assets Management

Company Overview
implementation of Trade Regulatory
Reporting and Compliance Solution Mezzanine Finance. Today, Stressed Assets Resolution
(TRRACS) Software, the backlog of Group (SARG) stands as one of the most
The government has stepped up
EDPMS/IRMs/Export advances entries important verticals of your Bank, and
investment in infrastructure space
has dropped significantly. the GNPA of your Bank is on the course
and have increased outlay on capital
DIPAK Pricing: Digital Interface on expenditure in FY2024 budget to `10 of a downward journey. Resolution of
Pricing and Knowledge (DIPAK), a Lakh Crore. A lot of activity is also seen Stressed Assets by SARG presents
the following latent income generating

Responsible Approach
pricing tool has been made available to in the emerging sectors such as electric
operating functionaries and sanctioning vehicle, electric batteries, battery energy avenues for your Bank:
committees to enable data-driven pricing storage system, semi-conductors and
y Cash recovery in NPA and AUCA
of Corporate Loans. data centres, among others.
y Reduction in Loan Loss Provisions
Others: Based on effective connect with y Contribution to your Bank’s bottom line
y Project Kuber was launched in your the clients, Government Ministries, y Unlocking the lendable funds for
Bank, which is driving a special focus Authorities, and expertise developed credit growth

Governance
on the marketing of current account over the years, your Bank is well poised
deposits and various transaction to garner more business opportunities
banking products in CCG vertical.
y As on 31st March 2023, the gross
The movement of NPAs in SBI and recovery in written-off accounts during the last
advance level of CCG increased by
six financial years:
16.11% on a YoY basis. Major sectors
(` in Crore)
which contributed to the growth are
Infra, NBFC, Mining, Services, CRE, Particulars FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

Statutory Reports
Power, Chemical, and Engineering. 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%
y ESG initiatives in renewable energy, Net NPA 1,10,855 65,895 51,871 36,810 27,966 21,467
ethanol, EVs and city gas distribution Net NPA% 5.73% 3.01% 2.23% 1.50% 1.02% 0.67%
remained in focus. Fresh Slippages + 1,00,287 39,740 54,510 29,332 26,776 19,223
Increase in O/s
Project Finance and Structuring
Cash Recoveries / 14,530 31,512 25,781 17,632 21,437 16,258
Strategic Business Unit
Up-gradations

Financial Statements
Your Bank’s Project Finance and Write-Offs 40,196 58,905 52,387 34,403 19,705 24,061
Structuring Strategic Business Unit Recoveries in 5,333 8,345 9,250 10,297 7,782 7,097
(PF&S SBU) deals with the appraisal, AUCA
structuring and syndication of funds for PCR 66.17% 78.73% 83.62% 87.75% 90.20% 91.91%
large projects in infrastructure such as
power, roads, ports, railways and airports,
among others, and non-infrastructure Your Bank is taking all pre-emptive the NCLT under the Code. The cases
such as refinery, metals, glass, fertilisers, measures by extending assistance to the referred to NCLT are also monitored
cement, and oil & gas, with certain borrowers for maintaining asset quality. by NCLT Cell at SARG. A total of 1075
threshold on minimum project cost. The cases (Whole Bank) were referred to
The current level of NPA has come
PF&SSBU also supports other verticals the NCLT as on 31st March 2023, out of
down significantly over the years due to
for vetting their large- ticket term loan which 882 cases have been admitted.
consistent recovery efforts viz.,
proposals. It provides inputs from the Furthermore, 196 cases have been
lender’s perspective to various ministries y Insolvency and Bankruptcy Code (IBC) resolved, including some high-value
of Centre/State Governments and RBI, 2016 for resolution of stressed assets accounts from 1st & 2nd reference
provides inputs and suggestions on draft has provided Bank with a time-bound, lists of RBI.
agreements and contracts like Model transparent, and effective mechanism y Compromise Settlement is also offered
Concession Agreements, and takes up to tackle Stressed Assets. Resolution to all eligible cases to recover sticky
broader issues faced in infrastructure has been achieved in some of the loans. Bank’s Board approved OTS
finance with various stakeholders. high-value NPA accounts referred to Scheme, which is non-discretionary

61
Directors’ Report

and non-discriminatory, is also offered Sector Specific Targeted Approach: Industry-wise

to all eligible borrowers for recovery/ SARG focusses on prioritising the distribution of the
resolution. resolution of NPAs through a Sector- NPA portfolio (as on 31.03.2023):
y Prudential Framework for Resolution specific approach. Currently, SARG
of high-value Stressed Assets by RBI is headed by the Deputy Managing 1 2
has provided an avenue for time- Director, supported by the Chief General
Managers overseeing the Sector-wise 3
bound resolution of these accounts
(outside the NCLT process). Your portfolio, NPA portfolio across SARG
Bank is exploring this option in all the branches and accounts under liquidation. 4
eligible cases. With effect from 1st August 2022, SARG
5
y In non-NCLT cases, recovery is has been reorganised by creation of
explored through action under 4 SAM Regional Offices (SAMROs) at
6
the SARFAESI Act and suit filing Hyderabad, Kolkata, Mumbai and New 12
7
in DRTs and Courts. The sale of Delhi, covering the entire country. 8
9
mortgaged properties is explored 10
SARG controls 16 Stressed Assets 11
through a common e-Auction
Management Branches (SAMBs) and
platform https://ibapi.in (‘e-B ’
48 Stressed Assets Recovery Branches 1 Power 5%
-Indian Banks Auction Properties
(SARBs) across the country handling 2 Telecom 3%
Information) under the aegis of IBA.
50.48% of Bank’s NPAs and 88.03% of 3 Trading 9%
AUC Accounts of your Bank. 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.

62 Annual Report 2022 – 23

Recovery (` in Crore) made through process. Wilful Defaulter Management services through digital modes/
Various Modes (NPA+AUCA) and System (WDMS) Application has also channels in a paperless, efficient, safe
percentage share in total recovery been developed for digitalisation of and secured environment.

Company Overview
(31.03.2023) Wilful Default examination process
1
for better monitoring and achieving 3. Start-up Branch
operational excellence.
Your Bank has decided to open
7 SARG also conducted a Conclave specialised start-up branches to
with a theme ‘Rapid Resolution & exclusively cater to the banking
Recovery’. The address/direction and non-banking needs of start-
by the top management heightened up ecosystem and 4 branches have

Responsible Approach
2
the performance spirit of SARG been opened in Bangalore, Chennai,
functionaries. Also, there were Gurugram and Mumbai Metro.
brainstorming sessions by SARG
6 functionaries with deliberations on 4. Accessibility to Divyangjans
the present and future prospects. The
94.68% of Bank’s branches have been
3 sessions by External Domain Experts
made accessible to divyangjans along
5 4 also provided a knowledge enriching

Governance
with provisioning of doorstep banking
experience to the participants.
1 Misc Recovery 3% services. Additionally, wheelchairs are
2 Compromise 35% available at branches where divyangjan
Redesign Studio
3 SARFAESI 7% customers have been registered.
4 DRT 1% 1. Opening of Branches
5 Sale to ARC 15% and Retail Assets Central 5. Rationalisation of processes
6 NCLT 14% Processing Centres (RACPC) at Liability Central Processing
during FY2023

Statutory Reports
7 Normal Recovery 25% Centre (LCPC)
Innovation for Resolution of A total of 159 branches were opened Image-based processing of accounts
Stressed Assets during the year with a focus on has started at LCPC. This has led to
Unbanked Rural Centres, where 79 reduction in TAT for account activation
Resolution under IBC is a market- branches were opened. Also, 128 of individual accounts to less than T+2
oriented mechanism where competing RACPCs/RACCs were opened. days in FY2023. For non-individual
bidders for a particular Stressed
accounts, the average TAT of debit

Financial Statements
Corporate Debtor bring better valuation New branch openings in FY2023 activation of new-to-bank customers
and higher recovery. SARG has set
was less than T+3 days in FY2023.
up a marketing team to reach out to a 11
broader investor base and showcase 23
6. Developing culture of
Stressed Asset portfolio covering 28
Business with Compliance
assets undergoing IBC resolution or 97
outside IBC. To imbibe the culture of doing
Metro 11
things right the first time and to
The transfer of eligible assets to
Urban 23
avoid wastage of resources, various
NARCL is also being monitored by
Semi-urban 28
campaigns were launched to create
SARG and the requisite enablers are
Rural 97 a culture of being first-time right
in place to ensure smooth migration of
Total 159 and always fully compliant with the
identified assets.
present regulations. The campaign
Robust IT initiatives have been rolled has led to employee engagement and
2. Digital Banking Units (DBUs)
out, including LITMAS (Litigation widespread enthusiasm in reducing
Management System), to monitor To celebrate 75 years of independence TAT for account activation.
legal recourse undertaken in the of progressive India and to give boost
Stressed Accounts for expediting to the digital economy, your Bank has 7. Project SBI DIGI Vault
resolution. It will further strengthen opened 12 DBUs across seven states
This project has been rolled out with
the transparency and efficiency of the and one UT. The DBUs provide banking
the objective to digitise all types of

63
Directors’ Report

documents pertaining to Loans and Your Bank completed streamlining its Recruitment
Deposits, with the facility to provide promotion and transfer process in the Your Bank has streamlined the
viewing/download rights. It will also first quarter of the financial year under recruitment process with the
facilitate off-site audit for internal review, thereby providing the required implementation of a regular recruitment
audit, compliance, statutory audit and assurance and stability to the branches calendar. During the year, it has
supervisory audit, etc. and other units to actively focus on recruited probationary officers, circle-
business activities. based officers and junior associates for
SUPPORT AND CONTROL
Your Bank is developing a ‘HR Super entry-level positions. It is also actively
OPERATIONS recruiting specialised talent on a
App’, which will integrate all staff
Human Resources and Training requirements, along with process lateral and contractual basis in wealth
of relevant employee-specific management, IT, information security,
Your Bank acknowledges the fact that
business requirements in a single risk, credit, and marketing, among
human capital is at the core of any
app. The  application will provide the others, to stay ahead of the curve and
organisation’s growth engine. Your
employees with a Single Sign-On (SSO) meet the regulatory requirements.
Bank possesses a balanced mix of
young and experienced employees. platform for all their requirements. With a comprehensive policy in
This results in a perfect blend of Your Bank’s Career Development place for engagement of retired
energy and innovation on one hand, System (CDS) ensures a transparent, officers/employees of your Bank/
and experience on the other. It’s HR credible data-backed performance other PSBs on a contract basis/short
policies are reviewed regularly and evaluation process for assessment terms assignment basis for identified
adjusted to make it more relevant in of employee’s performance. The assignments such as Channel
the present context. In addition to this, system ensures objectivity, business Management, Concurrent Audit,
the processes are also being moved to orientation, performance visibility and Marketing, Recovery Facilitators etc.,
digital platforms to ensure seamless greater alignment between individual your Bank has continued to engage
user experience and reduce the TAT and organisational goals. retired staff. This not only serves the
for employees, which would result in purpose of filling up the skill gap, if any,
increased employee productivity. Your Bank has defined career path but also ensures that the knowledge
for its officers from Scale-II to V as and experience gained by the retired
The summarised HR profile of your per seven job families viz. Credit & staff while working is utilised to the
Bank as on 31.03.2023 are as: Risk, Sales, Marketing & Operations, optimum level. This also helps your Bank
HR, Finance & Accounts, Treasury in reducing its expense ratio without
Category 31.03.2022 31.03.2023
& Forex, IT and Analytics, to ensure compromising on productivity aspect.
Officers 1,11,549 1,09,259
deep domain knowledge and to further
Associates 99,259 94,977 fostering the expertise. Gender Diversity
Subordinate 33,442 31,622
Staff & Your Bank has instated a policy on Gender sensitivity and inclusiveness
Others succession planning for the senior have always been the cornerstone of
Total 2,44,250 2,35,858 leadership positions to ensure smooth your Bank’s HR policy. Out of the total
transition at all the critical executive work force, the representation of women
level positions. This has resulted in is 26.78% who are spread across all
Productivity Enhancement
consistent, open and transparent geographies and levels of hierarchy.
Initiatives
manner to prepare and update
Your Bank adopts a branch manpower development/ training programmes Reservations and Equal
model for manpower planning to ensure and to take staffing decisions during Opportunity
optimal utilisation of human resources. posting, including the relative priority Your Bank meticulously follows the
The model is based on the productivity of the developmental assignments that GOI directives on Reservation Policy
parameters at the branches like benefit the officer and your Bank. for SC/ST/OBC/EWS/PwBD. It has a
identified work-drivers of operations,
Your Bank has introduced ‘SBI GEMS’ significant representation of SCs, STs,
transaction load factors, number of
to promote recognition and OBCs and Person with Benchmark
advance accounts, feedback from the
develop organisation memory of Disability across all levels of the
operating units and organisational
such recognitions. organisation. It has also implemented
structure, among others.
reservation applicable to ‘economically

64 Annual Report 2022 – 23

weaker sections’ in direct recruitment reframed its training programmes Mid-career Programme: Your Bank
w.e.f. 1st February 2019 in terms of the to meet the multifaceted knowledge has covered 1,539 SMGS-V officials
GOI guidelines. requirements of a sustainable workforce. under the comprehensive Mid-Career

Company Overview
This has been carried out through its Training Programme that tests officials
Industrial Relations and Staff
six top-notch Apex Training Institutes on the nuances and finer details of
Welfare
(ATIs) and 51 State Bank Institutes of functional banking and preventive
Your Bank has a harmonious Learning and Development (SBILDs). vigilance, grooms them for higher
relationship with the staff and officers’ leadership roles and is linked to their
federations, with constant emphasis Precision Classroom Training role transition and career elevation.
on a healthy work environment, mutual Making Business Performance the
Programme on KYC, AML & CFT:

Responsible Approach
respect and empathy at workplace. Goal of Training: Your Bank continued
An exclusive programme on KYC,
Your Bank took a slew of transformative with e-Role-Based Certifications
AML and CFT was organised for the
initiatives in the areas of staff welfare for threshold domain knowledge
Board Members on 29th March 2023.
and woman empowerment at the across the board. In addition to this,
The programme was attended by the
workplace. These are crucial steps to it has also initiated a precise skilling
Chairman, all Managing Directors and
ensure that your Bank remains in the intervention for identified ‘transitional-
5 Independent Directors.
forefront of banking in India and our roles‘ for deeper infusion of business-

Governance
employees are equipped to meet the related skillsets. Trainings for Future Leaders: Your
challenges of tomorrow. Bank organised Specialized Training
Training to 1st time Branch Managers
Programmes (STPs) for the top 330
(BMs): This programme, targeted
Care and Assistance for Retired executive grade officials in the niche
upskilling 2,337 BMs new to the role.
Employees areas of international banking and
Training to 1st time Relationship global markets, human resources and
Your Bank recognises the contribution
Managers MSMEs and Credit digital banking and IT. This coupled
of its ex-employees, whose dedicated

Statutory Reports
Support Officers: Comprehensive with Individual development Plans
lifelong services brought your Bank
classroom training was provided to (IDPs) (a six-month individualised
to its present position. It initiated
all officers transitioning to the role intensive intervention) was imparted
‘Project SBI Cares’ for automation and
of MSME credit for powering ease of to 923 TEG officials to cultivate
streamlining of various pre-retirement
credit availability to SME clientele. leadership pipeline.
and post-retirement benefits and
processes through its HRMS portal. ‘Samanvay’: This comprehensive External Training to Executives: 14
programme was rolled out for first-time officers in the top executive grade

Financial Statements
In addition to this, your Bank’s
Regional Managers (RMs) with practical were deputed for external training
e-Pharmacy facility provides attractive
inputs to provide an understanding programmes to some of the most
discounts on medicines and delivers at
of the big picture and inculcate the reputed institutes / business schools
the doorstep of the retiree without any
behaviours and skillsets essential in like London Business School, Harvard
extra cost.
becoming a cultural change-driver in Business School, Wharton Executive
the region, as well as achieving a long- Education and Centre for Creative
Training and Development
term and holistic business impact. Leadership, to provide them with better
Through a mix of classroom and digital 92% eligible RMs were imparted with understanding and insights about the
training, your Bank has rebooted and this training, and experienced a high- global trends in various domains and
powered experience sharing and hone their leadership skills.
interaction with the top management
of your Bank.

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

65
Directors’ Report

Orientation programme for JIBOs the prescribed e-lessons on KYC-AML programme stressed on instilling the
and IBOs: Officers based out of India, CFT Compliance, IS and Cybersecurity, values of ethics, compliance, and
who are manning the branches abroad and Sustainability, employees were customer centricity, and a sense of
have a dual purpose to perform. Apart provided the option of completing pride in your Bank’s illustrious heritage.
from being ambassadors of our nation, two e-lessons of choice as per their
‘Prerak’: This was designed for about
they also are crucial developers of knowledge needs and aspirations. The
70,000 employees above the age of 40
business overseas. Thus, they are staff also had the facility of selecting
years. It focuses on recognising the
critical to the success of our branches an RBC aligned to their current or
stellar efforts of this group of people
abroad and also improve the standing envisaged role from 43 in-house
for their role in sustaining Bank’s
as a Global Bank. A specialised training RBCs and 158 external RBCs. As on
leading position in the industry. Their
programme was crafted for their role 31st March 2023, a total of 1,72,258
contribution in the transition of your
relevant training. eligible employees (92.70%) completed
Bank from manual to digital, and for
their mandatory e-RBC and 98.84%
Building Effectiveness in New effectively managing various changes
of eligible Officers and 93.77% of
Recruits: A one-week Management happening in the Banking and Finance
eligible Award staff had completed all
Development Programme is part Sector are recognised. In FY2023,
their specified e-lessons. In addition, a
of Onboarding training for POs, 20,773 employees were imparted
repository of 600+ in-house developed
TOs, CBOs and Systems Officers to ‘Prerak’ values.
e-lessons are available to the
enhance their effectiveness and impart
employees for knowledge enrichment. High Profile Power Talks: Your
leadership traits. The programme
Bank convenes several high-profile
covers topics like team building, Aspirational e-courses: A basket of
workshops, e-panel discussions and
team priorities, building bonds, and 10 e-courses have been crafted for all
power talks, where distinguished
effective delegation, among others, the employees to help them in career
academicians, CXOs and industry
to sensitise about the importance of progression by providing knowledge in
experts share their expertise for
teams at the workplace. It also covers the areas of SME Credit, Data Analysis
enhancing employee knowledge.
areas like emotional intelligence, stress and Interpretation, International
Two such events were: a Digital &
management and work life balance to Banking, Personal Development and
Business Leadership Workshop by
prepare the participants to deal with Soft Skills, Fundamentals of Marketing,
Dr. Ram Charan, an International
critical situations effectively without Invest SMART for Financial Wellbeing,
Business Advisor, Speaker and Coach
hampering their personal health and NRI Business & Compliance and
for 92 top executives of your Bank;
well-being. In FY2023, 4,808 POs, TOs Digital Empowerment for Effective
and a Power Talk by Dr. Krishnamurthy
and CBOs were imparted MDP. 6,073 Management of Branch, among others.
V. Subramanian, India’s Executive
POs, TOs and CBOs were imparted As on 31st March 2023, the courses have
Director at the IMF on ‘Money: A Zero
onboarding trainings and another been viewed by 18,657 employees.
Sum Game’.
4,278 employees administered the
confirmation examination. Fuelling Employee Productivity ‘Yes, I Can Bring Change’: Employees
through Deeper Engagement possess a wealth of knowledge
Learner-driven trainings Your Bank believes that engagement and talent that can be harnessed to
Armed with the understanding that in a initiatives can play a critical role in create a positive work culture, build
fast-paced financial world, the window fuelling employees productivity by a corporate memory, and identify
of training needs to be a rapidly fostering a sense of ownership and practical solutions for operational
evolving one, your Bank has shifted commitment towards the organisation. issues. To leverage this potential, your
the immediate role-related learning When employees feel connected to the Bank introduced an Annual Success
decisions closer to the frontlines to Company’s vision, values, and goals, Story campaign aimed at collecting
increase efficacy of training. they are more likely to be motivated the most innovative, inspiring, and
and perform their best. actionable transformation stories from
Elective Topics for Mandatory our employees. This initiative had
Learning: It is mandatory for all ‘Samarthya’: This was initiated to received over 80 success stories during
employees to complete one Role Based focus on employee engagement upto FY2022, which were duly recognised
Certification (e-RBC) and a basket of the age-group of 40 years. Covering and celebrated.
e-lessons. In FY2023, in addition to over 1.03 Lakh employees, this
t wo - day,‘smar t- classroom’-based

66 Annual Report 2022 – 23

‘SBI Wizards’: STU institutionalised a programme has helped officers utilise including diverse perspectives,
family quizzing event ‘SBI Wizards’ in their existing skillset gained over experiences, and identities. It
FY2021 to boost positivity and enhance decades of experience in wider ways, goes beyond merely meeting legal

Company Overview
resilience. The event for FY2023 was and exposed them to concepts at the requirements to foster a culture
conducted in a hybrid (online/offline) cutting-edge of leadership research. of equity, fairness, and belonging,
format with 1,802 teams participating The 5-day, in-person classroom where everyone feels respected and
in the virtual preliminary rounds. programme covered 386 officials. empowered to reach their full potential.
The grand finale was held in-person
Microcapsules: In FY2023, the Training Interventions for
at SBI’s Corporate Centre Mumbai,
following micro-learning initiatives Women Employees
and broadcast live to employees
were launched by our ATIs: a series of

Responsible Approach
across your Bank through MS Teams y ‘Samya’ is a flagship intervention
general awareness snippets on BFSI
and social media platforms (FB and that focuses on reinforcing
called ‘Do You Know’; Understanding
YouTube). gender parity and sensitivity at
Risk’, a micro-knowledge series on risk
workplace. The initiatives under
management, micro-videos on topics
Ground Zero Innovations ‘Samya’ includes fortnightly case-
like cybersecurity etc, for knowledge
Your Bank took learning to ground based quizzes disseminated on
inputs to employees.
zero to empower employees the intranet, webinars to acquaint

Governance
through individualised delivery of Digital and Hybrid learning tools operating personnel with the
knowledge inputs. for on-point learning: Apart from provisions of the Prevention of
the instructor-led, in-classroom Sexual Harassment (POSH).
Sarthak: To ensure the safety, training, the fast pace of changes have y Exclusive 3-day classroom
reputation and investor confidence, necessitated a digital approach for programme for women in
your Bank believes that the Audit and continuous reskilling. Some of your business leadership positions:
Compliance process should lead to Bank’s popular digital tools includes Women employees in business
transformative changes in the work

Statutory Reports
a virtual Case Study Discussion operations are an extremely high
culture rather than being a tick- Board (1.11 Lakh unique visitors) for potential group of business leaders.
box exercise. Therefore, in FY2023, facilitating online community-based Accordingly, an exclusive 3-day
your Bank has launched a coaching deliberations on real-life banking classroom training was designed
intervention for branch staff to improve cases, My Quest Today–the daily quiz for 2078 women business leaders of
compliance culture, enhance risk platform available on the intranet (1.09 your Bank. The first such programme
awareness, and foster a habit of doing Lakh participations in FY2023), Audio was delivered in February 2023. The
things right the 1st time.

Financial Statements
Podcasts on different banking topics, programme will continue in FY2024.
‘Samunnati’ and Quality Circle: viz. SBSC-on-Air (119 episodes with
Institutionalised in FY2021 to augment 26,000+ cumulative listens), Gurukul Training to Retirees: Transition to
the competency of our workforce, Vani (35 audio files on credit, risk and Retirement (TTR) Programme is a 4-day
these participative one-to-one NPA with 97,000+ cumulative listens) flagship classroom training of your
coaching interventions were rolled out and Gyan Chetana (6 episodes on HR Bank for all officials due for retirement,
during the year in 638 critical branches. matters with 640+ cumulative listens), a with the objective to help them manage
Under the initiative, your Bank’s faculty Gamified app for checking knowledge the paradigm shift in their life after
addressed these branches with an aim levels, askSBI, a Google-like internal retirement. The programme covers
to align the training to the business search engine where employees can financial planning, tax planning, health
and make them self-reliant in problem raise questions and search for related for senior citizens, post-retirement
solving/quality improvement. responses, and Theme-based Fridays career prospects, cyber security
–webinars hosted every Friday by our awareness, spiritual well-being and
Digital Leadership Programme at ATIs on a rotational basis on their some behavioural science inputs. TTR
Indian School of Business (ISB), respective domain-specific topics. is being conducted by all SBILDs and
Hyderabad: Your Bank’s senior
SBIL, Kolkata
functionaries in the grade of GMs and Holistic Inclusivity
DGMs were given access to a curated Training to VI/HI employees: A
Holistic inclusivity encompasses
digital leadership programme by the specialised training programme for
creating a work environment that values
Indian School of Business (ISB). The VI-HI employees was conducted, in
and embraces individual differences,

67
Directors’ Report

collaboration with SBI Foundation. 274 ET HR World Future Skill Awards: YONO Business is our integrated
employees have been covered under Your Bank was awarded Gold under platform (available on both desktop and
specialised training in FY2023. This the ‘Best Learning Management mobile app) designed to serve a whole
includes training to visually impaired System’ category for Gyanodaya range of banking needs –Trade Finance,
new recruits in the use of Job Access -e-learning and askSBI, and the Silver Forex, Cash Management, Internet
with Speech (JAWS) and hearing- under the category ‘High Impact Banking, API Banking, Pre-Approved
impaired employees in sign language. Certification Programme” for Role- Business Loans (PABL), and Supply-
Based Certifications’. chain finance-for corporate customers
Training to Apprentices: Your
across categories, from the biggest
Bank engaged with more than 2,455
Digital Transformation and conglomerates to emerging start-ups.
apprentices under the Apprentices
e-Commerce
Act, 1961. The process of engagement YONO Krishi is a comprehensive
of 6160 fresh apprentices for the year The traditional banking model is multilingual platform for agriculture
2023 has started. being reimagined as innovations segment customers offering simplified
in technology continue to redefine finance, including Agri Gold Loan, KCC
Training to value chain partners: Banking Industry. With our Digital-First Review, SAFAL Dairy pre-approved
16 training programmes for 376 approach, it has been a continuous Agri Loan, market intelligence-related
BC Supervisors, 1,029 CSP Udaan endeavour of our Bank to provide services (Mitra), online marketplace
workshops for 53758 CSP Kiosk cutting edge & innovative digital for agri-products (Mandi), and Bachat,
Operators and 92 orientation trainings banking solutions to all our customers. a financial super store for farmers’
for all Feet-On-Street (SBOSS) were
With this objective, YONO was investment and insurance needs.
conducted in FY2023.
launched in 2017 and during FY2023, a Your Bank has provided transformational
Milestones critical milestone of the 5th anniversary journeys like Real-Time Xpress Credit
of the successful launch of the YONO (RTXC) and Account Aggregator in Car
Risk and Portfolio Management
was achieved. YONO, our flagship Loan for new customers, development
Round table organised in association
mobile banking, and lifestyle app, of Personal Finance Management with
with International Association of
is a one-stop-shop offering not Account Aggregator services, updation
Credit Portfolio Managers (IACPM)
just financial services but also a of subvention flag during KCC review,
The programme was attended by about
gamut of investment, insurance, and NPS Enhancement, Sampoorna Arogya,
80 CRO/CCO and top risk officials from
shopping solutions. SBI Life Smart Platina Plus, etc. Over
over 50 National and International
Banks and FIs, including IFC, ADB, 135 journeys/enhancements were done
YONO during FY2023.
NABFID, PFC, HDFC, PNB, BOB, PNB,
JP Morgan, Standard chartered, Asian YONO app has been a key driver for
The overarching guiding focus of YONO
Infrastructure and Investment Bank, customer acquisition. YONO has
has been to deliver exceptional customer
Exim, BRICS Bank (NDB) etc. helped your Bank to reposition its
experience and leveraging technology
Brand image as New Generation Bank,
A Symposium on Insolvency to deliver superior value proposition
with a single touch point and one-stop
and Bankruptcy Code 2016: This to our customers across our product
solution for the customer’s various
was attended by Shri Ravi Mital, segments. YONO has integrated state-
Banking, Financial and Lifestyle needs
Chairperson IBBI, Shri Sunil Mehta, of-the-art technology to offer a gamut
through a convenient, intuitive, and
Chief Executive, IBA and Shri Ashwini of products pertaining to Insurance,
omnichannel interface. Customers can
Kumar Tewari, Managing Director Credit Cards, Investment products, and
also access various financial products
(Risk, Compliance & SARG). services of your Bank’s JVs.
from your Bank’s Joint Venture
MSME Conclave on 17th November Companies comprising of SBI Life, SBI The scale of impact of YONO can be
2022 was attended by 50 Directors, Caps, SBI Cards, SBI Mutual Fund and gauged from the fact that YONO has a
CFOs, CROs and Top Executives of SBI General Insurance. cumulative registered user base of more
various domestic and international than 6.07 Crore users as on 31st March
YONO Cash, a game-changer
banks identified. It was also attended 2023 and has helped to improve the
functionality, allows customers to
by Top Executives of your Bank. productivity of your Bank through end-
make cardless withdrawals from SBI
to-end digitisation.
ATMs, Point of Sale (POS) Terminals
and Customer Service Points (CSPs).

68 Annual Report 2022 – 23

The industry-wide growth of UPI-based Information Technology Your Bank is one of the nine banks
payments continues to be astonishing. Network Infrastructure identified by RBI for participation
To increase your Bank’s market share Improvement in CBDC pilot. Accordingly, CBDC

Company Overview
in the payments space, we propose Wholesale and CBDC Retail were
extensively leveraging technology- Your Bank is relentlessly working launched on 1st November 2022 and 1st
based innovations like enabling non- to improve the network experience December 2022, respectively.
SBI customers to use our UPI services. and minimise branch isolations. Your
Bank has completed the deployment Complaint Management System
To further cement your Bank’s of optical transport network (OTN) (CMS 2.0) for CVC
leadership in the digital banking space devices at Data Centers by BSNL,
and to enable YONO to scale greater The application can handle end-to-end

Responsible Approach
which supports bandwidth on-demand
heights and emerge as one of the most processing of all complaints received
up to 100 Gbps and automatic routing
successful digital banking platforms at CVC, making the process completely
of traffic at BSNL network cloud.
in the world, your Bank has started paperless. The CMS 2.0 application
working on the next generation of was launched by the honourable Prime
Software Factory
YONO, which envisages a total revamp Minister of India Shri Narendra Modi on
of YONO not only in terms of features Your Bank has been at the forefront 3rd November 2022 as a part of CVC’s
and functionality, but also in terms of of launching various innovative annual Vigilance Awareness Week.

Governance
ease of use and customer experience. solutions. Some of the initiatives taken
during the year include development Pool Purchase
The focus of the next generation of YONO of Internal Financial Controls over Your Bank has developed in-house
shall be on customer-centric design, hyper Financial Reporting (IFCoFR) Portal, enterprise level application using the
- personalised experience, innovative a dashboard for monitoring of gold latest technology stack and open-
product offerings, modernisation of tech retention limit, and new features in SBI source tools to completely digitise
stack, and leveraging AI/ML, Cloud and Digi Vault Application. Additionally, and automate the management of

Statutory Reports
Data Analytics for digital transformation your Bank has successfully addressed portfolio purchases & proposals to
in order for benchmarking YONO GoI requirements by launching the remove dependence on your Bank’s
with the best of Global/Indian digital following initiatives: Core Banking System (CBS) for
banking propositions.
accounting purposes.
Central Bank Digital Currency
(CBDC) Benefits to Customers and Bank
Salary Account Opening CBDC is a digital form of currency notes y Burden on CBS has been reduced

Financial Statements
using V-CIP issued by a central bank. CBDC, being by ~13% (in terms of number
Your Bank launched end-to-end a sovereign currency, holds unique of accounts) by managing pool
digitised salary account opening advantages of central bank money, accounts outside CBS.
journey using Video Customer viz. trust, safety, liquidity, settlement y Business worth `13,306 Crore is
Identification Process. Salaried finality and integrity. CBDCs can take being managed by the application.
customers can open their salary on various forms or models based on
y Repayments over `8000 Crore has
account through a seamless and their application. The main models
been calculated and processed post
paperless video KYC process are Retail CBDC, Wholesale CBDC
data validation.
without visiting the branch. This and Cross-Border CBDC. These
functionality provides ease and models have potential benefits in y Income leakage worth `85.97 Crore
hassle-free banking experience. acting as a catalyst for innovation and has been plugged.
development of financial ecosystems. y Processing time has been reduced
by 93%.

4.1 6.07+ Crore 143+ Million

RATING AT PLAY STORE YONO REGISTERED CUSTOMERS YONO DOWNLOADS

69
Directors’ Report

y Risk of Manual errors has been than 6.19 Crore transactions involving prescribed by the SWIFT for Customer
reduced to zero. more than `364.16 Lakh Crore. Security Compliance Framework.

Your Bank holds a significant share in Your Bank has centralised three modules
RBI Bonds Application
CTS Clearing with 8.69 Crore inward of NACH into Integrated Payment Hub
Your Bank has developed an in-house transactions with 12.51% market share (IPH) of your Bank. Your Bank has a total
application that handles end-to- and 6.08 Crore outward transactions 17.15 Lakh active outward mandates.
end digitisation including issuance, with 8.75% market share. Value-wise Fresh mandates totalling 5.42 Lakh of
maintenance, and redemption of RBI inward clearing transactions amount to outward mandates were registered during
Bonds. It facilitates Dealing Branches, `10.16 Lakh Crore with a market share the current financial year, and 95.66 Lakh
Settlement Branches and Nodal branches of 14.53% and outward transaction transactions relating to NACH Debit
to centrally process all Interest payments, amount to `7.96 Lakh Crore with a outward (EMI Recovery) were processed
Principal payments, Brokerage payments market share of 11.39%. during the current financial year.
and Claims from RBI. The system caters
to both SBI and non-SBI customers Your Bank uses the SWIFT messaging
Foreign Office
through branch Channel. system for cross-border financial
message transmission. Your Bank YONO Global Applications
Benefits to Customers and Bank has processed 40.91 Lakh financial YONO Global app expands the digital
y Real-time accounting and detailed messages. Your Bank has fully footprint across geographies and
MIS and regulatory RBI reporting for complied with all the 23 mandatory streamlines the user experience. The app
user convenience. controls and 9 advisory controls has been rolled out in the UK, Maldives,

y In-built service request module

for basic operations like nominee
update, address update, repayment
accounts update, etc.
y 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

70 Annual Report 2022 – 23

Mauritius, Canada, Bahrain, South Africa, ATM blocking and reissuance of debit card
Bangladesh, Sri Lanka and Nepal. Your Bank’s ATM department is through IVR Agent are provided to
PCIDSS-compliant, a benchmark customers. Along with INB/YONO/

Company Overview
Enhancements / Customer-centric security standard for the payment card YONO-Lite services, provision of Card
Functionalities industry, serving 27.05 Crore active Transaction Flags (ON/OFF) are also
Your Bank has implemented following debit card users. The following new made available at ATM and IVR to
enhancements in digital journeys of facilities were rolled out during the provide more option to card holders.
foreign offices: fiscal year: POS EMI Real-Time Account opening
functionality has been launched in lieu
y OTP over email to YONO Mobile a. Revamp of cash withdrawal screens. of T+1 a/c opening.

Responsible Approach
App Customers. b. KYC updation through ATM
Rupee Prepaid Cards: Your Bank
y R
etrieve forgotten User ID from & ADWM.
provides Rupee-denominated Prepaid
YONO MB App. c. Consideration of all Debit Card Cards like Gift Card, e-Z Pay Cards,
y ATM Green PIN generation from International Txns through ATM/E- Imprest Cards, and Achiever Cards,
YONO Global MB App. COM & POS for TCS (Tax Collected targeted for various customers and
y Integration of eChannels with Local at Source) through a Centralised business segments.
Payment to enable customers for LRS (Liberalised Remittance

Governance
Scheme) database. Rupee Contactless Prepaid Cards:
interbank fund transfer like IPS
Your Bank has developed the contactless
in Mauritius. d. Card tokenisation to enhance security
variant of Rupee Prepaid Cards as
y Customer feedback for INB/ of the entire payment infrastructure.
per the best market practices. This
MB experience in YONO e. PCI-PIN Certification for its feature comes along with robust Card
Mobile Application. ATM network. Control tools that enable a cardholder
y Biller Module in Nepal YONO f. Customer Satisfaction Index allows to enable or disable the contactless

Statutory Reports
Global App. customers to submit feedback mode of payment. It will encourage
y Remittance for Noncustomers immediately after the completion the cardholders to use their prepaid
(NTB) of UK in YONO App. of transaction. cards more frequently at Merchant
g. Revamping of cash Dispense Logic at Establishments as it provides ease of use
On-boarding to Local Payment ATM/ADWM for supporting spread for making card-based payments.
System of denomination to accommodate State Bank Foreign Travel Card
Your Bank has on-boarded SBI all available denominations. (SBFTC): Your Bank is issuing State

Financial Statements
Singapore onto the local 24x7 FAST h. Rollout of new customer feedback Bank Foreign Travelers Card (SBFTC),
payment network. This will facilitate screens with a new format having which is an EMV chip and PIN-
instant transfer of funds between 4-pointer (PAGO) rating in a compliant prepaid card in foreign
accounts of top 20 participating banks linear scale. currencies providing safety, security,
in Singapore on round the clock basis. i. Multi-currency on Visa Prepaid and convenience to outbound travellers
Participation in FAST puts SBI Singapore Card (FTCs). (valid worldwide except in India, Nepal
on a level-playing field when it comes to and Bhutan). SBFTC is available as
inter-bank funds transfer facility. a single currency and multicurrency
card. It is available in nine currencies
Adoption of ISO 20022 Messaging 27.05 Crore –US Dollar, British Pound Sterling,
Standards ACTIVE DEBIT CARD USERS Euro, Canadian Dollar, Australian
Your Bank has implemented Finacle Dollar, Japanese Yen, Saudi Arab Riyal,
Messaging Hub (message converter Singapore Dollar, and UAE Dirham.
from MT to MX and vice versa) in South Metro and Transit Projects: Your
Africa, Singapore and Australia for Payment Solutions
Bank has participated in various
local RTGS payment as per regulatory Debit Cards: Your Bank has ensured metro and transit projects to digitise
timelines. This will take care of all the deactivation of expired debit micropayments rapidly. Your Bank
incoming cross boarder payment MX card automatically upon activation has been awarded Nagpur Metro,
messages for our foreign offices. of renewed debit card. Facility of Noida Metro, Chennai Metro, Kanpur

71
Directors’ Report

Metro and MMRDA Line 2A and Line y Electronic retailer finance facility for y Reporting unauthorised transactions.
7 metro projects to implement qSPARC industry’s major retailers. y Customer Satisfaction Survey
technology on the RuPay platform. y Digital Retailer Finance scheme for through YONO business.
Bank has issued 1,74,000 prepaid ITC corporate retailers.
cards in metro projects. SBIePay Lite (formerly SBMOPS-
y RBI Bond subscription for
Proactive Risk Manager (PRM): Your HUF customers. State Bank Multi-options Payment
Bank has deployed fraud monitoring System)
y MCA SPICE integrated current
solution i.e, PRM, for monitoring of account opening facility for Your Bank has rolled out SBIePay
suspicious and fraudulent transactions, newly registered companies with Lite to facilitate collection through
committed on various digital channels. enhanced features. various modes using the site-to-site
Presently PRM is integrated with ATM integration with e-commerce and other
Cash, POS, E-COM, Retail INB, Corporate YONO Business merchant entities. A total of 576 active
INB, Merchant, YONO, YONO-Lite, UPI, direct merchants have been integrated
Your Bank’s YONO Business offering
Kiosk Banking and Fastag channels. through SBIePay Lite.
integrated platform for MSME and
corporate customers with following Following significant changes have
Internet Banking
additional features were rolled out this been implemented:
Your Bank’s Internet Banking provides year. It digitally serves various Banking
seamless online experience by offering y Merchant UI Revamp (MOPS Page).
interface requirements of all types of
secure and diverse banking services to non-individual entities, right from a y Sponsor Bank API eMandate.
1,107 Lakh Retail Users and ~36 Lakh small proprietorship/MSME to large y eMandate for repayment of EMIs.
Corporate Users. multinational corporates to central and y Various integrations with
Several new services were also rolled state governments. government entities and
out for retail customers like online The YONO business product consist of e-Commerce merchants.
account opening for pre-approved the following new offerings: Implemented 6-digit OTP for
personal loans, enabling OTP over merchant transactions.
email for financial transactions, e-KYC y Reimagined online current account
y Various integrations with
through internet banking, online opening journeys for all entities.
government entities and
updation of customer profile and y New-age banking solution eCommerce Merchants.
enabling NZD currency for foreign through API.
outward remittance. y Banking with file and form- SBI UNI PAY
Many new services were rolled out for based payment for corporate Your Bank has developed a SBI Unipay
corporate customers via Corporate and aggregators. application for Bill payments through
Internet Banking, and YONO Business. y Digital on-boarding for API Banking. BBPS services hosted by NPCI, which
Some of them are: y YONO business mobile app with went live in July 2021. In the SBI Unipay
Import LC approval. platform, Bank provides the facility of
y PFMS integrated electronic
BBPS and Non- BBPS bill payments.
payment authorisation facility for y Forex rate booking facility through
Government entities. YONO Business Mobile App. y Total number of billers onboarded
y Integrated Cheque Deposit Kiosk y New reimagined intuitive payments as on March 2023 is 654 which
for CINB customers for collection. journey for Saral and corporates includes 3 online billers and 651
with new feature of Quick Transfer offline billers.
y Stock statement upload facility for
Saral and corporate customers. facility for corporate customers. y 2 Agent Institutions were made live

1,74,000 1,107 Lakh 36 Lakh

TOTAL PREPAID CARDS RETAIL INB USERS CORPORATE INB USERS
ISSUED IN METRO PROJECTS

72 Annual Report 2022 – 23

Agent Institution portal and Agent y Tokenisation changes implemented y Foreign Inward Remittance/
portal were developed enabling MIS in IPAY PG: Processing of VISA/ Foreign Outward Remittance:
access, Complaint management and MasterCard/Rupay card-based Enablement of foreign inward

Company Overview
MIS dashboard functionality for Agent token e-commerce transactions remittance (FIR)/foreign outward
Institutions, which are available along acquired in IPAY PG. remittance (FOR) in the India-
with Bill payment transaction module y Implementation of EMV 3DS Singapore corridor using UPI.
for Agents in Agent Portal. 2.0 as an Acquirer for VISA and y UPI Lite: SBI customers can now
MasterCard networks. use the UPI Lite, a feature which
ePay and PG facilitates low-value transactions
y Implementation of Application
Your Bank works both as a payment Monitoring (APM) Tool for IPAY without utilising your Bank’s CBS

Responsible Approach
aggregator and payment gateway for PG application. in real-time. The UPI Lite feature
facilitating seamless e-commerce ensures transactions in a safe and
transactions between businesses, Mobile Banking secure manner while providing a
merchants, Customers, and financial great user experience.
institutions for various payment Your Bank’s Mobile Banking
y UPI Number: SBI customers can
modes. The platform is provided department is the largest alternate
now create their own UPI number (8
through our Payment Aggregator channel by volume. It handles various
to 10 digit number) which may also

Governance
(SBI e-Pay) and Payment Gateway critical customer-facing mobile
be the customers registered mobile
(SBIPG) applications by integrating applications/Services like UPI, YONO,
number. UPI transactions can now
with thousands of merchants on one YONO Lite, YONO Business, SBI Quick,
be initiated without the need to
end and large number of Payment SBI WhatsApp and SBI Secure OTP.
input the entire virtual payment
Channels such as Banks, Wallets and Unified Payments Interface (UPI): address (VPA) or UPI handle.
Cards at the other end. BHIM SBIPay is one of the flagship y Online Dispute redressal system:
SBIePay (your Bank’s Payment applications of your Bank which allows Your Bank also rolled out the

Statutory Reports
Aggregator Solution) is PCIDSS and interoperable, seamless and real-time Unified Dispute & Issue resolution
ISO27001:2013 certified. During the transactions through UPI. Various system (UDIR) to enable customers
financial year, SBIePay added 468 new features like UPI Number, Foreign to view the updated status of
new merchants including prestigious inward and outward remittances, failed transactions real time
merchants such as NIT Puducherry, Merchant tab, voice alerts for thereby facilitating fast reversal of
Indian Army Agniveer, IIT Tirupati, merchants, Online dispute resolution failed transactions.
West Bengal GRIPS, MEA Vishwa feature, etc.

Financial Statements
y E-Rupi projects: Your Bank
Hindi Sammelan, etc. As on 31-03- During FY2023, your Bank recorded has extended e-₹UPI service to
2023, 1974 merchants are integrated successful processing of peak volume Direct Benefit Transfer / welfare
with SBIePay. of UPI transactions, approximately 165 programmes of various State
SBIPG is a PCIDSS-certified Million every day. Your Bank has an Government Departments and Centre
application that processes all card- overall UPI registration (UPI handles) Government Departments viz. Seed
based transactions of Payment base of over 35 Crores. Subsidy disbursement (Government
Aggregators, SB Collect, SBI-MOPS of Odisha), PMSMA (Pradhan
and YONO. During the financial year, Mantri Surakshit Matritva Abhiyan)
SBIPG added 13,390 sub-merchants. ~165 Million Project of National Health Mission
As on 31st March 2023, 83,352 sub- (Government of Uttar Pradesh),
UPI TRANSACTIONS
merchants and 17 aggregators are National Health Authority PMJAY
RECORDED DAILY
integrated with SBIPG. scheme (Central Government),
Agriculture Mechanisation -
Following major developments were Horticulture (Government of
rolled out during the year: The following features were rolled out Karnataka), Distribution of mobile
y Finalisation and selection of New for customer convenience: phones to State Village Lambardars
PG Solution. (Government of Haryana) etc.

73
Directors’ Report

WhatsApp Banking: SBI WhatsApp Executive Support System y Revamp of Internal Ombudsman (IO)
Banking facility has been launched on journeys for better customer service.
Customer Relationship
1st July 2022 through which your Bank y CLIC (Customer Liability Identification
Management (CRM)
is providing a plethora of services to Centre) was established for identifying
our customers, viz: 1) Account Balance Your Bank’s CRM Solution helps
customer liability in case of unauthorised
2) Mini statement 3) Pension slip service to build and maintain strong, loyal
transactions, which helps in early
4) Information on Loan products (Home relationships with existing and
resolution of complaints.
loan, Car loan, Gold loan, personal prospective customers. It has been
loan, Education loan) 5) Information on implemented and continuously getting
Data Governance
Deposit products (Savings, Recurring enhanced to engage with customers
throughout the lifecycle of sales, In line with the emerging trend
deposit, Term deposit) 6) Information
service, and marketing. worldwide, Data Governance in your
on NRE services (NRE account,
Bank too is going beyond regulatory
NRO Account, NRE & NRO savings CRM Solution has customised Lead or compliance requirements and
interest rate, FCNR deposit interest modules for all Business Units and creating enablers for strategic use
rate) 7) Information on Digital Banking other critical departments, integrated of data and insights. Consistent
products (YONO Lite, YONO Business, with other sources such as OCAS, efforts are being made by your Bank
YONO, FAQ section) 8) Information on YONO, LOS, LLMS, Bank’s website, to leverage the internally available
opening of Instant account 9) Contact etc. It also has a sophisticated and data while combining them with
helplines and helpline numbers advanced Complaint Module, i.e., the insights available externally to
10)  Information on pre-approved loan CRM-CMS wherein the customer’s create new business opportunities
(Personal/Car/Two wheeler loan) entire trail of previous complaints to serve customers optimally and
11)  Bank holiday calendar 12) Option and other details are captured in the boost the revenue streams. The Data
to download various Banking forms application giving ease to users and Management function of your Bank
(Internet Banking forms, Account customers for complaint lodgement, is giving heightened importance to
opening forms, Form 15G/H, Form tracking and resolution. the business-critical data across all
60, PPF/Loan A/c linking, Aadhaar
The platform has been made available domains and taking proactive steps to
linking, PPF, Nomination forms, etc.
over bank-registered mobile devices create a lean, agile and redundancy-
13)  Information on debit card usage
securely for enabling your Bank free ecosystem. This also involves
14)  Information on lost /stolen cards
employees to perform certain services creating the right atmosphere
15) Deregister option
anywhere. A few customer-centric across the organisation for better
YONO Lite: YONO Lite has a total projects initiated during the year were: engagement with stakeholders like
user base of 2.12 Crore. Following Customers, Regulators, Employees,
developments have been done in y Enrichment of Customer 360 Management etc.
YONO Lite mobile banking app during for one view of Retail, as well as
the year: Corporate Customers/ product Core and Special Projects
recommendations and CRM, Leads
y IMPS Limit Enhancement from `2 through Analytics based outputs. Core Banking
Lakh to `5 Lakh. Your Bank has rolled out many customer
y Enablement of Hybrid Call Centre-
y YONOLite Uniform OTP Length Centre with both CC agents & service initiatives / developments
(6-Digit). Bank employees. during the year as under:
y PRM integration of Financial y Customer Request & Complaint
Transactions (Self Account, Bharat y Net Promoter Score to capture
Form (CRCF) is introduced in Hindi
QR & RD/TDR) to enhance the risk customer ratings on services
Language for the benefit of Hindi-
mitigation process. rendered by any of your
speaking customers.
Bank’s branches.
y Net Promoter Score (NPS) is
y Introduction of System based
introduced to understand and
Cheque security features through
2.12 Crore analyse the customers’ experience
Random Alphanumeric code
with banking transactions.
YONO LITE USER BASE verification to prevent frauds.

74 Annual Report 2022 – 23

y Realtor’s Current Account- among Large Banks in IBA Annual Other Regulatory compliance:
Collection and Sweep Functionality Banking Technology Awards 2021-22. Implementation of FMR+FIR XML
to make funds available on the template in UIDAI authentication
BC channel is an important mode of

Company Overview
same day. process for AePS as per UIDAI
providing a wide range of Banking
y Printing solution has been rolled out guidelines was completed on 31st July
services to unbanked and remote areas.
in CBS in 10 more Indian Languages 2022 and your Bank was the first large
To enhance customer convenience
viz. Assamese, Bengali, Gujarati, PSB to implement the same. FRM-
and customer delight, your Bank has
Kannada, Malayalam, Marathi, PRM integration with Kiosk Banking
introduced the following new facilities
Odia, Punjabi, Tamil, and Telugu application for Real-time (RT) and
through BC Channel during FY2023:
in addition to existing facility of Near-Real-Time (NRT) transaction

Responsible Approach
printing in Hindi and English. Instant generation of account at monitoring was also completed on 1st
Customer Service Point (CSP) outlet: September 2022.
y System has been enabled for
Functionality for instant account
Conversion of non-personal PM Kisan Samman Nidhi
opening for Customers having Aadhar
eligible Current Account into CC/ Disbursement through DBT: Under
with same address, valid mobile no,
OD Product. 11th, 12th and 13th Installments of PM
PAN card and authenticated by e-KYC
Kisan Samman Nidhi, SBI processed
is enabled through BC channel at CSP
IT-Retail Loans 2.43 Crore, 1.83 Crore and 1.84

Governance
outlet. This has enabled the CSP to
IT Retail Loans cater to end-to- Crore transactions respectively as
open customer account in real time
end credit processes. Your Bank is Destination Bank in a single day on 31st
and provide the account number to
promoting “RAAS”- the lead acquisition May 2022, 17th October 2022 and 27th
customer instantaneously without any
Solution- for retail loan products for February 2023.
branch intervention.
Home and Auto Loan products. RAAS
is also available for outsourcing entities NEFT facility at CSP outlet: Facility IT-Special Projects
to gain maximum share in various retail of NEFT for the customers through Your Bank has rolled out many

Statutory Reports
loan products. BC Channel at CSP outlets has been initiatives/ developments as under
enabled. This has made available one during the year:
IT-Corporate & SME Loans more avenue in addition to IMPS mode
for transfer of funds to other Bank DigiGov
Your Bank’s entire journey of Corporate
customers through CSP outlets.
and SME Loans is captured through an Your Bank has launched a Fund
in-house Loan Life Cycle Management Lead generation facility for various Management Solution to meet the

Financial Statements
System (LLMS) Portal, leading to loans at CSP outlet: Facility of lead requirements of Government of India
standardisation of the credit process, generation for six services (Home pertaining to Centrally Sponsored
enhanced risk management and Loan, Vehicle Loan, Personal Loan, Schemes (CSS) under Single Nodal
improved user experience and TAT. Agri Gold Loan, P-Segment Gold Loan Account (SNA) covering 433 schemes
and Mudra Loan) for the customers of 23 States/UTs and Central Sector
Your Bank has simplified Credit
through BC Channel at CSP outlets Scheme through Central Nodal
appraisal formats in LLMS to improve
has been enabled. CSP will be able to Account (CNA) mechanism covering
TAT and appraisal quality. Pratham
capture lead for above six services and 124 schemes of 7 States/UTs.
App has been rolled out for RM-SMEs
the lead will be available to the linked Your  Bank has rolled out customised
for lead detail capturing. In addition,
branch in CRM for further processing. solution for Member of Parliament
CLP-assisted journeys have been
Local Area Development Scheme
introduced for passing the lead from Aadhar Seeding and Deseeding
(MPLAD).
CLP to LLMS. facility at CSP outlets: Enablement
of facility for Aadhaar Number Seeding
NETC FASTag
Financial Inclusion and and De-seeding in CBS through Kiosk
Government Schemes (FI&GS) application at any CSP Outlets. Aadhaar Online Issuance of FASTag: Your Bank
Number Seeding and De-seeding has initiated facilitating customers
Your Bank was adjudged the “Winner”,
facility at CSP Outlets will be available online purchase of SBI FASTag, thereby
for the fourth year in succession, in Best
for both, FI and Non-FI customers into reducing their hassle and improving the
Digital Financial Inclusion category
their saving bank account.

75
Directors’ Report

onboarding process. This functionality Pensionseva Mobile App delivery channels and identification of
was rolled out in December 2022. Your Bank has facilitated pensioners money mule in AMLOCK application,
to access all their Pension related as per FATF recommendations on
Balance Enquiry through SMS and
information with more ease through “NEW TECHNOLOGIES” & RBI
Missed Call: Your Bank has enabled
Mobile app (available for Android and advisory dated 10th August 2022, to
the facility for SBI FASTag Customers
iOS both). Life certificate submission mitigate terror financing and money
for balance enquiry along with
through Video is now enabled for both laundering risk, emerging from virtual
checking of last 5 transactions done via
Regular and Family Pensioners. asset activities and the activities or
NETC FASTAG.
operations of VASP. To counter the
Fastag Integration with Proactive Integration of Pension application money laundering efforts, some New
Risk Management (PRM): Your with GOI Bhavishya Portal Red Flag Indicators were recently
Bank has enabled the functionality for implemented in AMLOCK resulting
Your Bank is the first bank to integrate
monitoring the transactions and alert in upgraded transactional monitoring
with Bhavishya portal of Govt of India
the Customers against probable fraud. systems in your Bank.
for providing various pension related
services. The public pensioners of your
Government Business Software IT-Trade Finance
Bank who are registered in Bhavishya
Solution (GBSS) EXIM Enterprise/Customer
portal can avail the services seamlessly
Your Bank has enabled the facility from Bhavishya portal itself without Enterprise
for bulk upload for any instrument in any further login. Your Bank has embarked on redefining
GBSS solution (Single Debit, Multiple the trade finance processes by
Credit) through State Government AML-CFT – AMLOCK Solution:
leveraging the latest technology.
Generic Module. Use of AI-ML for Enhanced transaction These digitalisation initiatives
monitoring: Your Bank is the first bank include centralising all trade finance
Cross Selling in India to pioneer the usage of AI-ML transactions to 2 apex trade processing
SBI Life and SBI General Insurance in transaction monitoring for AML- cells (GTFC) and leveraging AI/ML-
Proposal Form Storage in Bank: As per CFT activities and implement AI-ML based solutions to minimise TAT,
the regulatory requirement of IRDAI, model score in AMLOCK. The benefits operational risks and costs.
your Bank has fully automated with derived are:
The Customer Enterprise has been
end-to-end encryption process for a. Data driven risk scoring augments revamped to ease the corporate
SBI Life and SBI General Insurance prioritising alert investigation customer interactions with your Bank.
Proposal Form Storage. process with better insights on Document upload facility in all journeys
customer behaviour. and dashboard for EDPMS & IDPMS,
b. Enhanced due diligence and filing C2B MT798 for LC and BG have already
1st of quality Suspicious Transaction been rolled out.
Report with FIU-IND.
BANK TO INTEGRATE WITH
c. The additional attributes data for EDPMS/IDPMS
BHAVISHYA PORTAL OF
GOVERNMENT OF INDIA the AIML score would supplement Reconciliation percentage are
the alert investigation process 97.48 and 96.35 as on 31/03/2023
reducing the drudgery of searching respectively which is among the best
Swayam Reprint through Kiosk CBS and other applications for STR in the industry.
data points.
Your Bank has rolled out functionality
d. Reduction in manpower as data Centralised Swift Interface
for customers to re-print passbook
driven decision will be put in use to Gateway (CSIG)
through Swayam Kiosks in self-service
mode with date prior to 90 days from deal with Alerts over the period. CSIG is a centralised messaging
current system date. system for cross-border transactions
New Features introduced in AMLOCK over the SWIFT network. During the
Solution for Enhanced Transaction year, the average daily transactions
Monitoring: Your Bank has introduced included 22,000 incoming and 7500
enhanced monitoring of digital outgoing messages.

76 Annual Report 2022 – 23

 Customer Experience Incognito Visit to 4930 branches:
Awards won by your Bank Enhancement Department Your Bank arranged for incognito
during FY2023
Your Bank has embarked on the visits to 4930 branches across India

Company Overview
Your Bank has been adjudged process of Standardisation of conducted during the period April
winner of the following awards Customer offerings across all Customer 2022 to June 2022. Various aspects
under IBA Banking Technology touchpoints of your Bank with a view to including availability of infrastructure,
Awards 2022-23: enhance Customer Experience. staff readiness and activity were
y The Best Financial Inclusion- observed and actionable insights
Winner. Key Initiatives: were implemented.
CLIC (Customer Liability

Responsible Approach
y The Best Fintech Collaboration-
Identification Centre) Town Hall meetings:
Winner.
Your Bank has rolled out CLIC Your Bank conducted Town hall
y The Best Digital Sales &
(Customer Liability Identification meetings with Millennial/Gen Z &
Engagement- Special Prize.
Centre) a centralised dedicated cell at Gen Y Customers to have better
y The Best IT Risk and understanding of their preferences and
all 17 Circles to fast track resolution of
Management- Special Prize. expectations to commemorate “Azadi
complaints arising out of Unauthorised
y The Best AI and ML Bank of the Electronic Debit Transactions (UAED). Ka Amrit Mahotsav” celebrations.

Governance
Year- Special Prize. Open  house interactions at 1488
Metrics for various engagement centres were held across all metro
Your Bank has won the following with Customers: Centres and District headquarters
awards under IDC Future Enterprise during the month of November 2022.
Your Bank has rolled out measurement
Awards 2022: 95.33 % prefer the digital channels
of the following metrics for obtaining
and the remaining 4.67 % prefer
y Recommendation Engine/ Next feedback from Customers.
other channels.

Statutory Reports
Best Product in category Best in
Future of Intelligence. y C
 SAT: This initiative aims to
y Data Lab and Self-Service BI understand Customer Experience, Your Bank achieved
post completion of customer
in category Best in Future of
induced transaction (financial &
1st Rank in promotion
Operations.
y Automation of Asset Liability
non financial) on all platforms of of Door Step Banking
your Bank.
Management (ALM) for Services for the under

Financial Statements
Overseas Operations of SBI y N
 et Promoter Score: This is a
in category Best in Future of tool for measurement of Customer noted Campaigns
Digital Innovation. Loyalty and satisfaction and helps promoted by PSB
to gauge likelihood of a customer
recommending organisation’s Alliance Private Limited.
products or services to others.
y C
 ustomer Effort Score (CES): This Risk Management
Three-Way Reconciliation Utility measures a product or service’s A. Risk Management Overview
For SWIFT Transactions (TRUST) ease of use to customers. This
Risk Management at your Bank includes
The application acts as an outward reflects amount of effort a customer
risk identification, risk assessment, risk
SWIFT message aggregator and had to exert to use a product or
measurement and risk mitigation, with
reconciliation system with appropriate service, or get an issue resolved.
Control frameworks. It provides
an integrated view of the SWIFT
Outward message and corresponding
underlying CBS accounting entries 1st Rank 1st Rank
with an auto-match indicator. DSB SUVIDHA CAMPAIGN DSB LAKHSHYA CAMPAIGN

77
Directors’ Report

its main objective to minimise negative for industry and growth appetite for 38 which are interfaced with CIBIL/CIC
impact on profitability and capital. identified industries and sectors, which and RBI defaulters’ lists.
constitute close to 64% of your Bank’s
Your Bank is exposed to various risks Your Bank has a framework for Risk-
total advances (excluding retail and
that are an inherent part of any banking Adjusted Return on Capital (RAROC),
agriculture) as on 31st March 2023.
business. The major risks are credit, and the Customer level RAROC
market, liquidity, and operational risks, Events such as government policies or calculation has also been digitised.
including IT risks. regulatory guidelines changes, power
Your Bank conducts Stress Tests
shortages, and supply chain issues
Your Bank is committed to creating every half-year on its Credit portfolio.
in these industries are monitored
an environment of increased risk Stress Scenarios are regularly updated
continuously. Special studies for its
awareness at all levels. It also aims in line with RBI guidelines, industry
implications are conducted, which are
at constantly upgrading controls and best practices and changes in macro-
shared with the business groups to
security measures, including cyber economic variables.
enable them to make informed credit
security measures, to avoid or mitigate
decisions. Furthermore, knowledge- Your Bank undertakes specific
various risks. Your Bank has policies
sharing sessions as well as industry analytical studies to identify trends
and procedures to systematically
workshops are conducted to benefit in the movement of NPAs, a quarterly
measure, assess, monitor, and manage
the operating staff at various levels. review of loan sanctions etc., to keep
risks across all its portfolios.
Additionally, monthly/bi-monthly/ track of the asset quality.
An independent Risk Governance quarterly dashboards covering the top
RBI has allowed your Bank to participate
Structure, in line with international 18 industries are provided to business
in the parallel run process for Foundation
best practices, has been put in place units detailing the developments in
Internal Ratings Based (FIRB) under the
to separate duties and ensure the these critical industries and sectors
Advanced Approaches for Credit Risk.
independence of Risk Measurement, to keep them updated on the latest
The data under parallel run of FIRB
Monitoring and Control functions. This information/ developments.
is being submitted to RBI. Models for
framework visualises the empowerment
Your Bank uses various internal estimation of Probability of Default (PD),
of Business Units at the operating
Credit Risk Assessment Models and Loss Given Default (LGD) and Exposure
level, with technology being the key
scorecards for assessing borrower- at Default (EAD) are hosted in OFSAA
driver, enabling the identification and
wise credit risk. Models for internal for computation of IRB capital.
management of risk at the place of
credit ratings of the borrowers were
origination. The various risks across your Your Bank conducts risk-return analysis
developed in-house. They are reviewed
Bank and the SBI Group are monitored of critical portfolios at periodical
through cycles of comprehensive
and reviewed through the Executive Level intervals to assess the adequacy of
validation and back testing frameworks
Committees and the Risk Management return vis-à-vis the risk associated
including external validation/review.
Committee of the Board (RMCB), which with the exposures. Your Bank has
Considering the ESG Risk, Bank has
meets regularly. Risk Management also initiated measures for objective
put in place an Environment, Social
Committees at the Operational unit and and sustained assessment of evolving
and Governance (ESG) Rating Model
Business unit level are also in place. risk of corporate exposures. In this
which rates large borrowers on various
regard Bank has devised a framework
objective ESG criteria.
1. Credit Risk Mitigation for Integration of Dynamic Review
Measures: Your Bank also has a ‘Dynamic of internal rating with Early Warning
Your Bank has established robust Review of Internal Rating’ framework, Signal Triggers and has completed the
credit appraisal and risk management which facilitates early identification IT implementation of the framework
frameworks for identifying, measuring, of stress and triggers the appropriate and the same has been rolled out.
monitoring, and controlling the risks mitigation mechanisms.
in credit exposures. The industrial 2. Market Risk Mitigation
Your Bank has adopted an IT platform
environment is scanned, researched, Measures:
for credit appraisal processes through
and analysed in a structured manner a Loan Origination Software/Loan Your Bank’s market risk management
by a dedicated team to decide its Lifecycle Management system (LOS/ consists of identifying and measuring
outlook, Credit Rating threshold based LLMS). Models developed by your risks, control measures, monitoring,
on outlook and probability of default Bank are hosted on these platforms, and reporting systems. Market risk is

78 Annual Report 2022 – 23

managed through a well-defined Board 3. Enterprise Risk Mitigation by identifying and managing climate-
approved Investment Policy, Trading Measures: related risks and opportunities.
Policy, Market Risk Management Policy Enterprise Risk Management aims to Accordingly, your Bank has developed

Company Overview
and Market Risk Limit Policy that caps put a comprehensive framework to Climate Change Risk Management
risk in different trading desks or various manage and align risk with strategy at Policy which will serve as a guidepost
securities through trading risk limits/ your Bank level. It encompasses global in supporting its journey towards a low-
triggers for effective and judicious best practices such as establishing a carbon and climate-resilient future. The
management of investment funds. Risk Appetite Framework, Risk Culture policy aims to integrate climate-related
These risk measures include position Assessment Framework, and Material risk (and opportunity) considerations
limits, gap limits, tenor restrictions, Risk Assessment Framework. within day-to-day operations, lending

Responsible Approach
and sensitivity limits, namely, PV01, portfolios and overall decision-making.
Modified Duration, Value-at-Risk (VaR) As a part of your Bank’s vision to
Limit, Stop Loss Trigger Level, NOOP, transform the role of risk into a strategic 4. Group Risk Mitigation Measures:
Forex Daylight Limit, LMAT, UMAT function, a Board-approved Enterprise
Group Risk Management aims to
and Options Greeks are monitored on Risk Management (ERM) Policy is
establish standardised risk management
an end-of-day basis. Further, the risk in place.
processes in group entities. Policies
limits are reviewed periodically based The Risk Appetite Framework relating to Group Risk Management,

Governance
on the risk appetite of your Bank. incorporates limits for significant Group Liquidity and Contingency
Value at Risk (VaR) is a tool for risks with monitoring parameters. To Funding Plan (CFP), maintaining arm’s
monitoring risk in your Bank’s trading promote a strong risk culture in your length requirements for intra group
portfolio. Enterprise level VaR of your Bank, a Risk Culture Assessment transactions and exposures are in
Bank is calculated daily and back- Framework has been operationalised. place. The consolidated prudential
tested daily. The Stressed VAR for As a part of the Material Risk exposures and group risk components
market risk is also computed daily. This Assessment Framework, periodic are regularly monitored.

Statutory Reports
is supplemented by a Board approved analysis of risk-based parameters for
stress testing policy and framework Credit Risk, Market Risk, Operational 5. Basel Implementation:
that simulates various market risk Risk and Liquidity Risk, amongst others, The RBI Guidelines on Basel III Capital
scenarios to measure stress losses and is presented to the Enterprise and Regulations have been implemented,
initiate remedial measures. Group Risk Management Committee and your Bank is adequately capitalised
(EGRMC)/Executive Committee of the as per current requirements, including
The market risk capital charge of Central Board (ECCB). maintaining the required level of Capital

Financial Statements
your Bank is computed using the
Your Bank conducts a comprehensive Conservation Buffer (CCB). Your Bank
Standardised Measurement Method
Internal Capital Adequacy Assessment is identified as D-SIB by the Regulator
(SMM) applying the regulatory factors.
Process (ICAAP) exercise on a yearly and is accordingly required to keep
Your Bank undertakes risk-adjusted basis with respect to the adequacy additional Common Equity Tier 1 (CET1)
performance analysis of its domestic of Capital under normal and stressed of 0.60% of RWAs from 1st April 2019.
and overseas portfolios. It also analyses conditions at solo and group levels.
the credit rating migration of non-SLR B. Internal Control
bonds as a tool for decision-making. In the ICAAP, besides the Pillar 1 risks,
such as Credit Risk, Market Risk and Internal Audit (IA) in your Bank is an
Forward-looking analysis based on
Operational Risk, Pillar 2 Risks, such independent activity and has sufficient
the future outlook of Interest Rate Risk
as Liquidity Risk, Interest Rate Risk in standing and authority within your
and its probable impact on your Bank’s
Banking Book (IRRBB), Concentration Bank. The IA Department (IAD), headed
trading portfolio is being carried out
Risk and others are also assessed, and by a Deputy Managing Director, works
regularly as a prudent risk practice.
capital is provided where required. under the guidance and supervision of
Your Bank has Model Risk Management New and emerging risks are identified the Audit Committee of the Board. Your
Framework, which enables Bank to and discussed in the ICAAP. Bank’s IA function works in close co-
assess, measure, monitor and mitigate ordination with the Risk Management
Model Risk. Your Bank is committed to reducing the and Compliance Departments to
carbon footprint of its operations by evaluate the effectiveness of controls,
addressing climate change concerns assess compliance with controls and

79
Directors’ Report

adherence to internal processes and y System-driven off-site monitoring the businesses of the counterparty and
procedures. The IA function undertakes of transactions. measuring effectiveness of the control
a comprehensive risk-based audit of y Concurrent Audit of business systems for monitoring inherent risks. The
the operating units of your Bank, in line units to ensure contemporaneous Audit also suggests remedial measures
with regulatory guidelines relating to scrutiny of compliances. for controlling credit risks for high value
Risk Based Supervision. loan portfolios.
y Early Review of Sanctions to assess
critical risks of all eligible sanctioned ‘Credit Audit Division’ (CAD) provides
Key Initiatives: credit proposals. assurance to the ‘Management’ and to
External Assessment of y Self-audit by branches for self- the ‘Board’ on the quality of your Bank’s
IAD assessment and vetting by controllers. credit portfolio. The Audit recommends
External Assessment of the corrective actions for improving credit
functioning of Internal Audit As part of RFIA, IAD conducts various quality, credit administration and
Department was carried out by an audits, viz. Risk Focused Credit Audit, credit skills for the staff handling large
external audit firm as per Internal Information Systems Audit, Cyber advances with exposures of above `20
Audit Policy. The report dated Security Audit, Home Office Audit (of Crore annually.
22nd June 2022 stated that your Foreign Offices), Concurrent Audit,
Bank’s Internal Audit Department FEMA Audit, Audit of Outsourced Early Review of Sanction (ERS)
“Generally Conforms” with the Activities, Expenditure Audit, A review of all eligible sanctioned
Institute of Internal Auditors (IIA) Compliance Audit, Early Review of proposals with total domestic credit
Standards which is the top rating Sanctions, Management Audit and exposure of above `1 Crore each or
judged in conformance with the Audit of Corporate Centre Departments. exposure of US$ 1 Million & above in
standards. respect of International Banking Group, is
Branch Audit carried out under ERS. ERS captures the
ISO 9001:2015
The domestic branches are broadly critical risks in sanctioned proposals at
Internal Audit Department (IAD) an early stage and apprises the Business
segregated into four groups (Group I
of your Bank has been awarded Units of such critical risks for mitigation
Special, Group I, Group II and Group
ISO 9001: 2015 certification for thereof. ERS facilitates in improving
III) based on business profile and
Quality Management System the quality of sourcing, pre-sanction
advances exposures. Your Bank has
benchmarking with global best and sanction processes. ERS activity is
initiated a system-driven process for
practices to continuously deliver centralised and the sanctioned proposals
identification of branches for audit,
high-quality services in line with are reviewed by in-house internal audit
whereby analytical algorithms are
internal audit policy, processes officials. The entire ERS process is system
deployed to identify units displaying
and regulatory guidelines. driven and carried out through the Loan
significantly different behavioural
patterns. This enables your Bank Lifecycle Management Solution (LLMS).
to step in with a prioritised audit to
identify the causative factors at the FEMA Audit
Keeping pace with rapid digitalisation in
your Bank, the IA function has initiated outlier branches and flag the underlying The branches that are authorised to deal
technological interventions to provide problem areas for early intervention. (Authorised Dealers) in Foreign Currency
enhanced efficiency and effectiveness. transactions, including Trade Finance
During FY2023, the IA Department Centralised Processing Cells (TFCPCs)
A few key initiatives include has completed RFIA of 15,134 units are subjected to FEMA audit. All “A” &
the following: of Domestic Branches & Central “B” category branches are audited once
y Risk Focused Internal Audit (RFIA) Processing Centres (CPCs) as on in a year. In addition, branches linked to
for assessing compliance with 31st March 2023. TFCPCs are also covered to the extent
controls at a granular level. of 50% in a year. As on 31st March 2023,
Risk Focused Credit Audit 498 such branches/units of your Bank
y Remote evaluation of data
Risk Focused Credit Audit is an integral part had been subjected to FEMA Audit.
for continuous assessment of
compliable controls. of ‘Risk Focused Internal Audit’ system. It
is aimed at identifying risks inherent to

80 Annual Report 2022 – 23

Information Systems Audit, at all Centralised Processing Centres adequate systems and procedures
Cyber Security Audit, Information to ensure monitoring of transactions are in place to mitigate legal, financial,
Systems Concurrent Audit and contemporaneous with their and reputational risks arising from

Company Overview
Audit of IT Outsourced Activities occurrence. Concurrent Auditors outsourced activities (Non-IT).
Your Bank is subjected to Information also cover Currency Chest Branches,
Audit of Non-IT outsourced activities
System Audit (“IS Audit”) to assess Treasury Operations, and other Special
in your Bank covers audits of vendors
the IT-related risks. IS Audit of Outfits. Your Bank has covered 3,445
engaged in providing ATM services, ATM
Centralised IT and Corporate Centre branches/Units under Concurrent
e-surveillance, ATM Cash Replenishment
establishments is also carried out by Audit during FY2023.
Agents (CRAs), Corporate Business
internal team of qualified IS Auditors. Correspondents (BCs), Customer Service

Responsible Approach
During FY2023, Information Systems Off-site Transaction Monitoring
Points (CSPs), Recovery and Resolution
(IS) Audit was carried out in respect System (OTMS)
Agents, Doorstep Banking, Cheque
of 312 applications and Annual Cyber Offsite Transaction Monitoring Book Printing, Collateral Management,
Security Audit was conducted for System (OTMS) was introduced by Marketing of Loan proposals, Registrar
52 internet facing IT applications. your Bank in June 2013 as a measure and Transfer Agents, Document
Further, 225 IT applications of Global of strengthening transaction audit in Archival Centre (DAC), Cash Efficiency
IT Centre (GITC) were subjected your Bank and to meet the regulatory Project (CEP) and Floor Coordinators

Governance
to be monthly IS Concurrent Audit requirements to introduce off-site amongst others.
(ISCA) and IT Outsourced Activities surveillance of transactions passing
Audit was conducted for 472 IT through your Bank’s Core Banking During FY2023, your Bank has
activities supported by Third Party IT System. Process re-engineering of completed audit of all 34,248 CSPs
Service Providers. the system was carried out last year to as per the audit plan. As for the other
make the system more effective. non-IT outsourced activities (other
Foreign Offices Audit than CSPs) audit of 842 vendors had

Statutory Reports
Foreign Offices are subjected to Legal Audit been completed as on 31st March 2023.
Home Office Audit (HOA) in addition Legal Audit in your Bank covers
to Internal Audit conducted locally scrutiny of the loans and security RFIA of Corporate Centre
by reputed International Audit Firms related documents of loans amounting Departments
and Local Based Officers/India to `5 Crore and above. The Legal The Corporate Centre Audit wing
Based Officers under the oversight Audit is a control function, carried out of IAD carries out Risk Focused
of Internal Audit Department Home through a panel of advocates and 10% Internal Audit (RFIA) of Corporate

Financial Statements
Office Audit at 33 Foreign Offices and of such reports, are examined by the Centre Departments of your Bank to
Management Audit of 6 Subsidiaries, internal auditors on a sample basis, to strengthen the overview of the audit
5 Representative Offices, 4 Regional/ ensure that there are no shortcomings of its aggregate risk assessment
Country Head Offices have been in the documents or creation of security processes at macro level.
completed during FY2023. in favour of your Bank. Legal Audit
Process is automated in Loan Lifecycle In addition, it undertakes various audits
Concurrent Audit System (CAS) Management System (LLMS) and as viz., Thematic Audit, Validation Audit
on 31st March 2023, Legal audit has and Audit to verify compliance of the
Concurrent Audit System in your
been carried out for 17,286 accounts. RBI Directions and other Regulatory
Bank covers risk sensitive areas, as
guidelines and also at the request of
prescribed by the Regulatory Authority.
Audit of Outsourced Activities the Central Board, Auditee Committee
Branches are categorised as Extremely
(Non-IT) of the Board and various Business
High Risk/Very High Risk/High Risk/
Units and Departments at Corporate
Medium Risk/Low Risk based on the Your Bank recognises the need of
Centre. The Corporate Centre Audit
Risk Categorisation model developed service providers engaged to be
wing is also engaged in the validation
by your Bank as per RBI guidelines. compliant with the legal and regulatory
of RBI-Tranche-III-DCTs, RAR/
All Extremely High Risk, Very High requirements as your Bank itself.
RMP observations.
Risk and High-Risk branches are Therefore, the Audit of Outsourced
covered under Concurrent Audit. activities (Non-IT) is also conducted
Concurrent Auditors are also placed at regular intervals to assure that

81
Directors’ Report

Management Audit CFT. Your Bank is providing special risk for clients, country, geographic
The core function of Management Audit training to Compliance Officials through areas, products, services, transactions,
is to assess effectiveness of control external agencies for dissemination delivery channels, etc.
and governance process at apex level of Compliance information through
Your Bank has implemented a robust
in accomplishing overall corporate Blogs, Newsletters etc. To increase the
system containing a combination
objectives. Management Audit of your awareness on Compliance, your Bank
of manual and system-enabled
Bank covers Circle’s Local Head Offices, has introduced internal compliance
methodology to ensure KYC compliance.
sponsored Regional Rural Banks and newsletters titled Anuvartan &
No account is opened in anonymous or
select Corporate Centre Departments. Compliance Capsule. Also, various
fictitious/benami name or where the
In its endeavour to enhance the activities i.e. Quiz, Compliance Talk
Branch/Business unit is not able to apply
effectiveness of Management Audit, in have been held to spread awareness of
appropriate Customer Due Diligence
the FY2023, your Bank has revamped Compliance Culture in your Bank.
(CDD) measures. Bank does not open
the audit process by redefining rating Compliance Risk Management accounts for transacting in or settling
methodologies and revising the risk Committee comprising of Senior transactions of virtual currencies.
weightages and parameters used for Executives from business verticals However, while implementing the policy,
Management Audit. and support functions, maintains your Bank takes care that it should
oversight on all compliance related not result into the denial of banking
C. Compliance Risk Management issues. The Compliance Department services to those who are financially or
Your Bank gives utmost priority to at Corporate Centre has obtained socially marginalised.
meeting Regulatory and Statutory necessary certification and is now
Your Bank has launched Video
Compliances. Your Bank has ISO.9001:2015 compliant.
KYC facility to facilitate contactless
communicated down the line that customer onboarding. New customers
Compliance needs to be at the core of D. KYC/ AML-CFT Measures
can open fully functional accounts
every decision and activity undertaken Your Bank has been taking using this process without visiting any
by your Bank. Compliance is focused comprehensive steps for the Branch. KYC updation through INB,
on in your Bank to avoid the risk of legal implementation of KYC norms/ YONO and ATM has been rolled out for
and regulatory sanctions and potential guidelines. Your Bank has an approved customers having CKYC number and
loss to reputation. Policy on Know Your Customer (KYC) there is no change in the status of their
To further strengthen the compliance Standards, Anti-Money Laundering KYC. This will enable the customers to
in your Bank, a separate set up of (AML) and Combating of Financing perform KYC updation with ease and
compliance officials has been identified of Terrorism (CFT) Measures, in line without physically visiting a branch.
in your Bank at each of the Controllers’ with the extant RBI Master Direction
AML CFT Department of your Bank
level. i.e. LHO, Administrative Offices, on KYC.
manages ongoing due diligence
Regional Business Offices. The activities The policy contains Banks framework through transaction monitoring. Bank
of these Compliance Officials are being for Customer Acceptance, Risk follows a risk-based approach wherein
monitored from Corporate Centre. Your Management, Customer Identification Customers are categorised as low,
Bank has endeavoured to develop a and Monitoring of Transactions. medium, and high risk based on the
compliance culture ensuring adherence Bank has taken steps to implement assessment and risk perception. Bank
to laws, rules and regulations and for provisions of the Prevention of takes care of filing obligatory reports to
preventing our banking channels from Money-Laundering Act, 2002 and Financial Intelligence Unit-India (FIU-
being misused for money laundering the Prevention of Money-Laundering IND). Suitable reports are also filed on
and terror financing activities. (Maintenance of Records) Rules, 2005, priority in cases of accounts, suspected
We are also making sustained efforts as amended from time to time. of having terrorist links.
in improving the compliance culture Your Bank, has been carrying out Your Bank conducts special audit on
in your Bank by increasing awareness ‘Money Laundering (ML) and Terror KYC to ensure compliance with KYC/
amongst the employees about Financing (TF) Risk Assessment’ AML/ CFT matters. Several initiatives
Compliance. All employees (including exercise periodically to identify, assess are put in place to bring greater
Top Executives) are mandated to and take effective measures to mitigate awareness amongst the staff. Training
complete the e-lesson on KYC/ AML- money laundering and terror financing of personnel in KYC/ AML/ CFT areas

82 Annual Report 2022 – 23

is an ongoing process in your Bank. Our frontline staff are trained and Agriculture is the heartbeat of our
Employee training programmes are proficient in the local languages. They country. Yono Krishi App provides all
regularly conducted to adequately train communicate with customers in the the facilities to farmers, traders and

Company Overview
staff in KYC/ AML/ CFT matters. local language and all information in consumers in their native language.
our branches are displayed in local Customers are taking advantage
E. Insurance languages, Hindi and English. All forms, of all the facilities like YONO Lite,
slips, booklets etc. are being made Online SBI and SBI Quick in their
Your Bank is procuring insurance policies
available to the customers in Hindi and native languages.
to cover its assets and mitigate risks.
English, as well as in local language. We
Insurance covers cash and valuables, We have been developing technical
have published ‘Lets Learn Regional
properties of your Bank, fraudulent subjects like banking in Hindi and other

Responsible Approach
Language’ in 10 languages namely:
transactions under Debit Card/Electronic Indian languages. Role-based manuals,
Gujarati, Tamil, Telugu, Malayalam,
banking, and Cyber Risk, amongst others. Vigilance Manuals 2022, Right to
Punjabi, Marathi, Assamese, Bengali,
Information Act 2005 and Garima
Kannada and Oriya for Hindi-speaking
F. Premises (Prevention of Sexual Harrasment)
officers posted in different states.
have been published in Hindi. All our
As a responsible corporate, your Bank
Through our various banking channels, computers are equipped to work in
has always incorporated environmental
we are spreading Indian languages in Hindi. Role Guide cum certification

Governance
management practices in its functioning.
accordance with the spirit of Article 351 Manual for Service Managers, Retail
With an intent and commitment for
of the Constitution. In line with the spirit Credit (Part-I), Retail Credit (Part-II)
a greener world much in alignment
of digital India, our call centres speak Role manual have also been published
with national priorities, your Bank has
to customers in the language of their in Hindi.
initiated various initiatives.
choice, using the latest technology.
We are active participants in the Town
y Achieving a milestone of getting
Various facilities of Core Banking Official Language Implementation
IGBC green building ratings to our

Statutory Reports
Solution (CBS) are available in all Committees (TOLIC) constituted
14 prestigious buildings during this
languages. Our customers can print by the Ministry of Home Affairs,
financial year, making it to total 32.
passbooks in Hindi. They can even Government of India. We also support
y Installation of PET Bottle Crushing get SMS alerts of their transactions various offices of the Government of
machine in Corporate Centre. in Oriya, Gujarati, Kannada, Tamil, India through this platform. TOLICs of
y Installation of EV Charging Station Assamese, Punjabi, Bengali, Maithili, Jabalpur, Surat, Indore and Nalgonda
at State Bank Bhavan Building. Marathi, Malayalam, Telugu, Hindi and have been awarded by MHA.

Financial Statements
y Signed MOU with M/s Tata Power English, as per their choice.
Your Bank continuously organises
for installation of 48 EV Charging various programmes for the
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
Shri Om Prakash Mishra, DMD (HR) & CDO, SBI attending meeting of Parliamentary
expectations are paramount to us.
Committee on Rajbhasha on 8th October 2022.

83
Directors’ Report

dissemination and promotion of communications, digital marketing, services of your Bank to every corner of
languages like Hindi Day, World advertising, and public relations. the Country. Different media channels
Hindi Day, Marathi Day and Kannada such as print, social media, digital
During the year, it carried out various
Day. Discussions, seminars, etc. are platforms, websites, ATMs, etc. were
media campaigns across digital
organised on the contributions of great used for the campaigns. The Department
platforms/social media to strengthen
litterateurs. Your Bank had organised also promoted your Bank’s several
your Bank’s brand image by projecting
a grand programme in Mumbai on sustainability initiatives and CSR activities
the uniqueness, highlighting presence
the occasion of Premchand Jayanti. through various media platforms.
across remote locations, showcasing
The celebration of World Hindi Day
the contributions to the society at large Going forward, along with the other
in more than 200 offices abroad is an
and establishing your Bank as the front marketing initiatives, your Bank plans
innovative effort to carry the glow of
runner in the space of social media. to further promote its various digital
Indian culture abroad.
initiatives along with its flagship
The focus of M&C Department was to
product YONO. The thrust of the M&C
Seminar/Gyan Varta promote your Bank’s digital initiatives
Department is to constantly redefine
for safety of customers and staff. Your
A Gyan Varta was organised on and reinvent all its marketing initiatives
Bank undertook various initiatives to
‘Importance of Mother Tongue’, to stay relevant and act as a change
increase the download and consistent
‘Leadership and Hindi Literature’, catalyst so that your Bank can maintain
use of digital banking channels like
‘Premchand Ki Kahani Aapki Zubani’ the glory of being one of the most
YONO, SBI BHIM Pay, Yono Lite, etc.
and ‘Bhasha ka Sarlikaran’. Your Bank vibrant and trusted brands.
The M&C department engaged with
has published print and digital editions
your Bank’s customers to increase
of the quarterly home magazine Vigilance Mechanism
the awareness of alternate channels
‘Prayas’. The vigilance department is headed by
and their usage in a safe manner. Your
Your Bank also participated in the Bank also undertook various brand/ a Chief Vigilance Officer of MD’s rank
Official Language Conference held in marketing initiatives like ‘Banker To appointed by the Government of India in
Surat from the 14th to 15th of September Every Indian’, ‘SBI is Your BFF’, ‘State consultation with the CVC who reports
2022, under the chairmanship of Bank Of Happiness’, ‘Khushiyon KI to the Chairman. The CVO assists
Hon’ble Home Minister, Shri Amit Tayari’ etc. on social media platforms the top management in formulating,
Shah. Official language fortnight was for creating customer awareness about implementing and reviewing Bank’s
organised in all branches and offices your Bank’s products and services. policy on all vigilance matters. To
between 16th September 2022 and assist CVO in his task of supervision of
The M&C team also launched major Vigilance matters in Circles/ Verticals/
30th September 2022.
marketing campaigns for products Subsidiaries, the Government of India
such as Home Loans, Personal Loans, has appointed six (6) Additional Chief
Marketing and Communication
NRI Services, Digital Products, etc. The Vigilance Officers on a deputation
The Marketing and Communications Department also initiated one of its kind, basis in SBI at various locations.
(M&C) Department is responsible for media-outreach programme for the
your Bank’s initiatives towards branding, customers and took the products and
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 The CVC and Chairman unveiling the updated version of the Vigilance Bulletin.

84 Annual Report 2022 – 23

There are three aspects to the IO, which were attended by 16,993 probable loan losses. The assumptions
vigilance function- Preventive, Punitive officers. Suo-moto investigations relating to non-contractual assets and
and Participative. Based on past were conducted in 1,355 branches, liabilities are periodically reviewed,

Company Overview
experiences/incidences, system/ including complaint-prone branches, back-tested and revised as per the
process improvements are being branches where the RFIA Auditor outcomes of the latest studies.
undertaken continuously by leveraging observed serious irregularities
The stock of High-Quality Liquid
technology, and your Bank guidelines and High-Risk and Very High-Risk
Assets (HQLA) and cash outflows
are being streamlined as a preventive branches identified by AI/ML engine.
are monitored daily under a dynamic
vigilance measure. y The number of cases categorised market environment to ensure the
Key activities during the year included: as vigilance have come down maintenance of LCR as prescribed

Responsible Approach
from 1,332 to 956 YoY, which is an by the Regulator and Bank’s internal
y This year, from 31st October 2022 to 6th impressive improvement of 28% Policy benchmarks. Your Bank has
November 2022, Vigilance Awareness over the last year. implemented the NSFR guidelines of
Week was celebrated with the theme
RBI, measuring the long-term resilience
“Corruption Free India for a Developed FY2022 FY2023
of your Bank in terms of liquidity.
Nation; ^ «ï>mMma ‘wº$ ^maV - {dH${gV ^maV ”. Cases 1,332 956
Bank staff members took Integrity categorised Your Bank identifies the inherent risks

Governance
Pledge as a part of the celebration. SBI as vigilance associated with changing interest
Times, ATMs, CDMs, Internet Banking, rates on its Balance Sheet (On/Off)
Facebook, Twitter, Instagram and Asset & Liability Management exposures from both short-term and
LinkedIn were effectively employed to Effective Assets and Liabilities long-term perspectives. For this
broaden awareness among employees Management (ALM) is essential for purpose, the impact of change in the
and in the wider community. In a bank’s sustainable and qualitative interest rates on Earnings at Risk (EaR)
addition, mass awareness initiatives growth. Your Bank’s ALM strives to and Market Value of Equity (MVE) is

Statutory Reports
were conducted for students at strengthen the Balance Sheet by assessed with pre-defined tolerance
educational institutions and in villages reviewing the market dynamics, picking limits, enabling the management to
through Gram Sabhas. up signals emanating therefrom, and initiate appropriate preventive steps
y The Top Management met during maintaining regulatory requirements in a likely scenario of erosion in NII/
Vigilance Awareness Week to while creating value. Net Worth.
discuss Preventive Vigilance. CVC To encourage branches to garner stable
As a part of commitment for sound
and Chairman unveiled the updated funds and assess their profitability
Risk Management practices, your Bank

Financial Statements
version of the Vigilance Manual & based on the cost of funds, a matched
regularly reviews its Internal Policies on
Bulletin. They also felicitated 7 staff maturity-based Funds Transfer Pricing
‘Interest rate on Deposits, ‘Asset and
members who had taken vigilant was adopted by your Bank. Your Bank
Liability Management’, ‘Stress Test on
actions at branch level. constantly strives to ensure adequate
Liquidity and Interest Rate Risks’ to adapt
y The Complaint Portal, inaugurated to changes in market conditions. Your monetary policy transmission through
by Prime Minister on 3rd November Bank further undertakes Stress Tests and its benchmark lending rates.
2022 in New Delhi, was lauded Reverse Stress Tests to address any risks Your Bank’s Asset Liability
by CVC for contribution of SBI in that may arise as a worst-case scenario. Management Committee (ALCO)
it’s development.
Studies are carried out at regular monitors and manages Liquidity and
y An Annual Sectoral Review Meeting Interest Rate risks by modulating
intervals to assess customer behaviour
was held between CVC and SBI the asset-liability mix in the Balance
to impart proper treatment of non-
at SBIL, Kolkata on 22nd July 2022, Sheet and recalibrating the pricing
contractual assets and liabilities
wherein the Hon’ble Member Lokpal of liabilities and assets from time to
while evaluating liquidity position.
stressed the need for transparency time. The ALCO, inter alia, regularly
Behavioural studies are conducted
and accountability to fight corruption reviews the interest rate scenarios, the
at half-yearly intervals to ensure the
and urged society’s participation in growth pattern of liability products,
proper placement of outflows/inflows
preventing it. credit growth, competitive advantages,
in liquidity and interest rate sensitivity
y Vigilance Department had conducted statements, which may result from evolving liquidity conditions, adherence
834 preventive vigilance programmes Off-Balance Sheet (OBS) exposures or to regulatory prescriptions, etc.
and 90 training sessions for EO/PO/

85
Directors’ Report

With automation of Regulatory Reports/ Your Bank is committed to nurturing an introduced by the Securities and
Returns pertaining to ALM, your Bank inclusive, secure, and safe environment Exchange Board of India (SEBI).
is well-positioned in monitoring and for its women employees. A dedicated
Some of the key initiatives
compliance regarding Liquidity and Garima (POSH) framework covers the
undertaken towards the promotion
Interest Rate Risk Management. entire process, from raising awareness to
of Sustainability, inter-alia, includes:
escalation and empowerment on matters
Ethics & Business Conduct
relating to gender sensitivity and sexual y To demonstrate commitment
The Ethics & Business Conduct harassment. The year saw the revision of towards ESG approach and to
Department of your Bank is committed the Garima (POSH) policy with updated bring synergy between existing
to the mission of integrating ethics operational guidelines to streamline the policies and products, your Bank
and morality into all operational process at functional levels. To increase has developed an ESG financing
areas. To further this agenda, your knowledge, webinars on Ethics and framework to be used as a handbook
Bank conducted activities throughout Garima POSH have been organised for for Bank’s future bond/loan
FY2023. These include issuing a target groups. Workshops were held issuance programmes under green,
comprehensive Anti-Bribery & Anti- for Internal POSH Committees on your social and sustainable criteria.
Corruption Policy to protect the Bank’s Garima Policy and the Sexual Proceeds so raised shall be used
interests of all its stakeholders and Harassment of Women at Workplace for financing/refinancing eligible
developing a Staff Accountability Portal (Prevention, Prohibition and Redressal) assets/projects with environmental
to comply with RBI’s risk assessment Act, 2013. With the commitment to or social benefits. The framework
report. This system-driven process empower its women employees, your has been aligned with Sustainable
monitors and streamlines reporting Bank conducted a webinar ‘Be a woman finance guidelines and principles
of staff accountability post account with voice’, one of its kind, with audience and has been provided with Second
classification as NPA. This Portal has of around 20,000 women employees Party Opinion on its robustness and
increased transparency in the reporting across India, addressed by the adherence to policy prescriptions.
process and strengthened the conduct DMD (HR & CDO). y To further the journey on wider ESG
of staff accountability in eligible cases.
spectrum and to underscore Bank’s
Your Bank regularly conducts Corporate Social Responsibility long-standing commitment to
capacity-building workshops for Sustainability supporting green and social projects,
various role holders in discipline your Bank concluded its largest
Sustainability has been identified as one
management to promote a healthy inaugural Syndicated Social loan of
of your Bank’s core values and guides
environment of compliance as well $1 Billion ($500 Million + green shoe
us in operations and strategic decision-
as to have comprehensive guidelines of $500 Million) making it the largest
making. Your Bank believes in the co-
prescribing the processes for environment, social and Governance
existence of profitability with social
bringing standardisation in the staff (ESG) loan raised by a commercial
and environmental responsibility and
accountability exercise. Bank in the Asia-Pacific market.
endeavours to strike the right balance to
create value for all its stakeholders. y Your Bank has been awarded
The Ethics and Business CDP score of “B”, the highest
Your Bank has Board approved
Conduct Department of Sustainability and Business
score in the last 5 years by CDP
(formerly Carbon Disclosure
your Bank, through an Responsibility (BR) Policy outlining Project), the global disclosure
the approach taken to manage
array of initiatives and Bank’s economic, environmental, and
system for companies to manage
their environmental impacts. CDP,
policy measures, has social performance in an integrated looked upon as gold standard of
manner. A Sustainability report as
further strengthened per Global Reporting Initiative (GRI),
environmental reporting by world’s
economy, awards score providing a
your Bank’s resolve to an internationally accepted standard, snapshot of a company’s disclosure
is published annually. For FY2023,
reach the pinnacle of your Bank has also complied with the
and environmental performance.
The score of B represents that the
ethical standards mandatory Business Responsibility organisation has addressed the
and Sustainability Reporting guidelines environmental impacts of their

86 Annual Report 2022 – 23

 business and has ensured good y To reduce carbon footprint, your Fund, the proceeds of which will
environmental management. Bank is actively undertaking the be utilised for sustainable activities.
y In line with the Government’s implementation of solar rooftop Since the inception of this fund

Company Overview
policies on electric mobility, installations at offices, branches and initiative in October 2019, more than
increased customer interest in ATMs and has set internal targets 239 Lakh reward points have been
migrating to sustainable mobility for energy efficiency, installation of redeemed for contribution to the
solutions and to augment the green rainwater harvesting, green building fund till 31st March 2023.
mobility ecosystem, your Bank has certifications and reduction in the y Pet bottle-crushing machine has
partnered with Tata Power to set up use of diesel generator sets. As on been installed at State Bank Bhavan
EV charging facility at some of the 31st March 2023, the total capacity for crushing plastic bottles used at the

Responsible Approach
identified premises of your Bank, of solar installations is >22MW. Your Corporate Centre. The plastic flakes
including the corporate office, Bank also owns 10 windmills with generated are taken back by the
local head offices and residential an installed capacity of 15 MW for vendor, who in turn provides recycled
premises across the country. Your captive use. products made from these flakes.
Bank has signed a MoU with Tata y In line with the country’s vision for y Total of 454 rainwater harvesting
Power to install 48 state-of-the-art scaling up Renewable Energy (RE) systems have been installed at
charging infrastructures covering power generation, your Bank is also Bank’s branches/offices across

Governance
both four-wheelers passenger cars facilitating RE financing in a big the circles.
and two-wheelers. The initiative is way. Your Bank has availed line of
y A total of 12.34 Lakh pre-approved
in line with your Bank’s dedication credits from multilateral agencies
personal loan accounts have been
to promote sustainable mobility and viz. the World Bank, KfW German
opened through YONO app thereby
will encourage the use of electric Development Bank etc., for onward
saving 32 pages of paper per
vehicles among its employees. SBI lending to RE Power developers.
account. Approximately total paper
also promotes cleaner mobility y To develop a culture of learning saved by using YONO application is

Statutory Reports
through the Green Car Loan scheme amid the growing importance 394.88 Lakh pages.
by offering a longer repayment of Sustainability in the present
period of up to eight (8) years and y To percolate the spirit of
scenario, your Bank has mandated
concession of 25 bps in the interest sustainability among staff and the
the completion of online
rate for the purchase of electric cars public, your Bank also observed
certification on Sustainability for
various days having Sustainability
y Taking cognizance of importance specified officers and award staff.
relevance viz. World Environment
of managing the efficiency of More than 1.8 Lakh staff members

Financial Statements
Day, International Yoga Day, World
Bank’s owned facilities, your Bank have completed the training during
Soil Day, Earth Hour etc. Your Bank
is undertaking dedicated efforts FY2023. The lesson covered
also conducts ‘Joy of Giving Week-
towards developing a green a preliminary understanding
Daan Utsav’ annually across your
ecosystem. As on 31st March 2023, of Sustainability, Sustainable
Bank, through which donation
Bank’s Thirty-Two (32) premises Development Goals and your Bank’s
activities were carried out to support
have been certified by Indian Green initiatives in the area.
marginalised sections of society.
Building Council (IGBC) under y Your Bank has also taken
different categories (Platinum/Gold/ digitisation in a big way to bring not CSR Activities
Silver). Your Bank is also striving only greater ease of business but
to shift the power requirements also strengthen the sustainability Your Bank has been a pioneer for
of its large establishments to agenda. Bank’s flagship digital app welfare activities in India, after having
renewable energy sources. Under -YONO, apart from significantly introduced the idea in the form of
this initiative, your Bank’s prominent facilitating the conduct of business ‘Innovative Banking’ in 1973. Its social
establishments viz Corporate Office, and enriching customer experience, focus is to make a meaningful and
Global IT Centre and 6 of the Local has also contributed immensely measurable impact on the lives of
Head Offices (LHOs) have shifted towards reducing paper usage. economically, physically, and socially
to green power through green tariff Further, to motivate Bank’s digital challenged communities.
policy or through open access channel customers, Bank is offering
channels via solar/wind. green reward Points which can be
redeemed for credit to SBI Green

87
Directors’ Report

Key initiatives undertaken across the Country by your Bank during FY2023 lakes identified for rejuvenation in
the Kolar district, Karnataka, your
Number of Number of Bank has supported rejuvenation of
Amount Schools/ students/
7 lakes under CSR at total budget of
(in `Lakh) Anganwadi/ people
PHC benefitted `4.26 Crore.
Transformation of Primary Schools: Setting up 574.62 115 61,225 y As a part of Green Initiatives of your
of smart classrooms, computer lab, science Bank, 10 Electric Vehicles have been
lab, school toilet construction, painting, etc. donated for transport of patients
Anganwadi Transformation: Painting, providing 352.50 344 30,132 and their dependants at AIIMS, New
for new furniture & fixtures, smart TV, etc. Delhi. Electric Charger has also
PHC transformation: Providing medical 780.60 95 9,76,437 been installed for the purpose.
equipment, computer, new furniture and
fixtures, etc. Livelihood
Sanitary pad distribution 464.94 2.25 Lakh sanitary kits
y Support has been provided to the
distributed to around 2
Lakh girl children in 750+ people affected by the landslide
schools across the Country at Joshimath by donating to
Uttarakhand State Disaster
Management Authority. An amount
The focus areas of your Bank’s y As a part of Pradhan Mantri TB Mukt
of `2.00 Crore shall be donated
CSR activities include healthcare, Bharat Abhiyaan, Amaravati Circle
towards providing livelihood and
education, livelihood, rural and slum supported 1200 TB patients towards
rehabilitation of the affected people.
area development, skill development, their food expenditure for a period of
environment, protection of national 6 months. As a part of same program, y As a part of rural skill development
heritage, empowerment of women, Bhubaneshwar Circle has adopted programmes, your Bank has donated
youth and senior citizens, animal 4 blocks under Ni-kshyay Mitra an amount of `30.11 Crore to SBI
welfare and sports, among others. For scheme at a total cost of `10.96 Lakh. RSETI Societies to meet the shortfall
the current financial year, an amount in capital expenditure for completion
y An amount of `1.59 Crore has been
of `316.76 Crore has been allocated of construction of RSETI building/
donated to Vision India Foundation
for undertaking CSR activities by boundary walls and acquiring other
- Trilochan Netralaya Trust, located
your Bank. Out of which, an amount essential training equipment.
at Sambalpur, Odisha towards
of `194.78 Crore is allocated to SBI procurement and installation of y An amount of `2.00 Crore has been
Foundation for undertaking CSR medical equipment at community donated to iTNT hub (Tamil Nadu
activities in project mode. eye clinic, Jharsguda town. The Technology hub) – an incubator
community eye clinic provides for supported by the State Government.
Major CSR initiatives undertaken free eye care treatment to patients. The vision of the iTNT hub is to set
during the year: up the governance of iTNT as PPP
Health Environment model so that the organisation
will have Government oversight,
y To boost the Medical Research in y The Amrit Sarovar Yojana was
supported by the Academia and
the Country, your Bank has tied-up announced by the Hon’ble Prime
Industry. It aims to support 200
with Indian Institute of Sciences Minister as an initiative wherein
new start-ups and facilitate 200
(IISC), Bengaluru for setting up of 75 lakes in every district of the
innovators over the first five years
new Hospital cum Medical College. country would be rejuvenated to
of operation.
An amount of `24 Crore shall be mark the occasion of 75 years of
donated to IISC over a period of 3 India’s Independence (Azadi Ka y Support has been provided to
years towards Orthopaedic unit. Amrit Mahotsav). Out of the 75 flood victims, who are affected by

J316.76 Crore 854 54 Lakh 19,074

TOTAL AMOUNT SPENT CSR ACTIVITIES PEOPLE BENEFITTED/ TOTAL NO OF
UNDERTAKEN LIVES TOUCHED VILLAGES COVERED

88 Annual Report 2022 – 23

 the floods in the states of Assam, Fund towards upliftment of Palliative Assam, Bihar, Jharkhand, Maharashtra,
Andhra Pradesh and Telangana. Care Centers located at Delhi Cantt Uttarakhand and Uttar Pradesh.
Guwahati, Amaravati and and Jalandhar.

Company Overview
Hyderabad Circles have provided y An amount of `94.94 Lakh has been SBI Youth for India Fellowship
groceries and other essentials to the donated to Army Hospital (R&R), SBI Youth for India is a 13-month rural
poor villagers residing in the flood New Delhi towards procurement development fellowship programme
affected villages. of State-of-the-art advanced life which provides a framework for bright
support ambulance. The said young minds from urban areas to join
Women Empowerment donation is carried out as a part of hands with rural communities in their
y An amount of `87.22 Lakh has been your Bank’s initiatives to support struggles and aspirations.

Responsible Approach
provided to Bhartiya Sankalp Path armed forces veterans, battle
Foundation, Lucknow Circle towards casualties and their dependants. y 6 alumni ventures and 17 Fellows of
procurement and distribution of 100 the 2021-22 batch across 14 partner
laptops and 1305 sewing machines Swacchhata Pakhwada NGOs, were awarded grants as a
at Varanasi. The beneficiaries of As a part of Swacchhata Pakhwada part of the Youth for India Sahyog,
sewing machines and laptops shall campaign launched by the an initiative to provide handholding
be the women, who completed the Government of India, your Bank has support to innovative and promising

Governance
skill training under the flagship undertaken various initiatives across pilots and ventures.
skill training programme “Pradhan the Country during the months y The programme also collaborated
Mantri Kaushal Vikas Yojana – of September- October 2022 and with Dastkar for their Winter Bazaar
PMKVY”. January 2023. Swacchhata activities in Delhi and Bangalore in December
include, arranging for cleanliness 2022 and provided a platform for YFI
Protection of National Heritage of surroundings, beach cleaning, alumni entrepreneurs to showcase
y As a part of Har Ghar Tiranga distribution of Jute bags, organising their work at the exhibition.

Statutory Reports
campaign, your Bank has no-plastic campaigns, construction of
undertaken distribution of flags toilets etc. Centre of Excellence (CoE) for
to underprivileged sections of Persons with Disabilities (PwD)
the society across the Circles. An SBI Foundation Centre of Excellence for Persons with
amount of `1.75 Crore spent on Disabilities (CoE) was conceptualised
SBI Foundation was established by the
distribution of 5 Lakh (approx.) flags and launched in 2017 with the goal
State Bank of India as a section VIII
to the needy people to be a centralised support centre

Financial Statements
company under the Companies Act
y Your Bank has supported the (2013) to undertake the CSR Activities for Persons with Disabilities. CoE
initiatives of New Delhi Municipal of State Bank Group in a planned and conducted 17 offline training programs
Council (NDMC) towards repairs focused manner. for 352 PwD employees in SBI, RBI and
and renovation of heritage buildings Punjab & Sind Bank.
located at Connaught Place, New SBI Gram Seva Programme
Delhi. Towards this, an amount of `3.19 Impactful Projects for promoting
SBI Gram Seva is an integrated rural
Crore has been donated to Indian Inclusion and Empowerment of
development programme for making
National Trust for Art and Cultural PwDs
villages self-reliant (Atma-Nirbhar).
Heritage (INTACH), New Delhi. y D
ialogue in the Dark: Visual
SBI Foundation has adopted 150 Simulation project.
Armed Force Veterans villages across 25 States, in 5 phases,
y G
ROW PwD: Skill Development
y Your Bank has always been in the impacting over 1.75 Lakh lives.
Training for Persons with
forefront supporting for the cause of ‘SBI Gram Saksham’ is a sub-project Disability and support them with
armed forces veterans. An amount focused mainly on rural livelihoods job placement.
of `2.00 Crore has been donated to empower communities beyond y E
 liminating Clubfoot in
to Armed Forces Battle Casualties the adopted villages. So far, Gram Uttar Pradesh.
Welfare Fund. In addition to that, Saksham has been rolled out in a total
an amount of `3.30 Crore has been y P
 roject Inclusive India 2.0: Creating
of 115 villages across 6 States, namely
donated to Army Central Welfare entrepreneurial ecosystem.

89
Directors’ Report

y S
risti Farm Academy: Imparting 4. Anugraha Key Programmes
learning about agri and An initiative for hospice and y S
BIF ILM - Government School
allied activities. palliative care, geriatric support and Project, Uttar Pradesh
y Comprehensive Lifecycle Approach rehabilitation services for seriously y SBIF ILM - Asha Scholarship Program
project benefiting 6000 PwDs at ill and bedbound patients in rural
y S
 BIF ILM - Learn Play
Raichur, Karnataka. Coimbatore, Tamil Nadu.
Grow, Meghalaya
y E
nabling children with Mental &
5. Project Eye Care y SBIF ILM - Future Women Leaders
Multiple Disabilities to become self-
reliant. An initiative to provide medical y SBIF ILM - Asha Scholarship Phase 2
y P
 roject SAMEIP: Skilling and equipment support by setting up y SBIF ILM - Smart Lachen
Upskilling of 650 PwDs. an advanced eye OPD unit and y S
 BIF ILM - Centre for Knowledge and
conducting eye care camps in Information Dissemination (C-KID)
y Training in Culinary Arts.
Nagpur, Maharashtra.
y E
 arly Intervention for Children
Livelihood and Entrepreneurship
with visual impairment and 6. Project Manas Accelerator Programme (LEAP)
multiple disabilities.
An initiative for decentralised mental Foundation’s flagship program, LEAP,
y S
BIF CoE: Swavlamban focus on health services, strengthening strives to develop, foster, and sustain
enterprise promotion and scaling- community-based mental health robust and inclusive livelihood models,
up in Anand, Kheda, Gandhinagar, programs in Gadchiroli, Maharashtra. entrepreneurial ecosystems, and
Ahmedabad and Arvalli Districts
strategic collaborations in order to uplift
of Gujarat. 7. Medical Facilities for destitute incomes and empower marginalised
y S
 BIF, CoE: Assistive Aids for Persons women communities, thus contributing to
with Disabilities. 8. Project Sahyog bridging the development gap and
Charitable Neuro Rehabilitation Centre breaking the poverty cycle in the country.
Jivanam
providing support to 200 victims of
Jivanam, the Foundation’s healthcare traumatic brain and spine injuries in 1. SBIF LEAP - Project Prayas
vertical, makes healthcare accessible Delhi/ NCR. An initiative for providing rehabilitation
and affordable for the most vulnerable and support for 270 marginalised
sections of society. It has impacted 9. Project Forever Smiles individuals in criminal and juvenile justice
over 6.6 Lakh lives so far, contributing in districts of Gujarat and Maharashtra.
Supporting 1000 lifesaving
to 3 SDGs-Good Health and Well-
cleft surgeries, in 50 Districts of
Being, Clean Water and Sanitation, and 2. SBIF LEAP - Development of a
Uttar Pradesh.
Industry, Innovation and Infrastructure. climate-resilient livelihood model
10. TB Mukt Gujarat Promotion of diversified livelihood
1. SBIF Sanjeevani
The project aims to ensure early options at 10 flood-affected villages
Providing primary healthcare services covering 4600 residents in Chamoli
detection of TB.
in rural, tribal & remote areas at the District of Uttarakhand.
doorstep of communities through a
11. Project Amrut
mobile medical unit. 3. SBIF LEAP - Formation and
Setting up of a nuclear medicine
Expansion of 18 New Farmer
2. SBIF Sanjeevani – Nirantar Seva diagnostic facility for early detection &
Cooperatives in Andhra Pradesh
treatment for cancer patients.
An initiative for providing emergency
healthcare services to the victims 4. SBIF LEAP - Accelerating
Integrated Learning Mission (ILM) Entrepreneurship through Social
of road accidents on the Mumbai-
Ahmedabad highway. ILM is the education vertical of the Innovation
Foundation, set up to make quality Youth and women in 6 Districts from
3. Suraksha education accessible for all children. Eastern Uttar Pradesh and 1 District
An initiative for providing 1600 helmets from Madhya Pradesh
to Mumbai Police Personnel for 5. SBIF LEAP - Initiation support to
safe riding. 250 SME startups

90 Annual Report 2022 – 23

6. SBIF LEAP - Exotic Vegetable 4. SBIF CONSERW - Transforming state-of-the-art sports infrastructure,
Cultivation Small Towns into Model Sanitation creating and nurturing strategic
An initiative to empower 1000 farmers Towns in Karnataka partnerships with the flag bearers

Company Overview
through the introduction of exotic Through holistic planning and of sporting excellence in India like
vegetable cultivation and the formation implementation of the Swachh Bharat ex-Olympians and sportspersons of
of farmer producer companies in Mission 2.0. International repute.
Khordha and Cuttack Districts, Odisha.
5. SBIF CONSERW - Mitigating Holistic Athlete Support
7. SBIF LEAP - Innovators for Human-Elephant Conflict (HEC) An initiative for providing support
Bharat - Climate Resilient An initiative to mitigate Human-Elephant to 100 athletes at 5 Abhinav Bindra

Responsible Approach
Agriculture Livelihoods Conflict through the restoration of Foundation Trust Centres.
An initiative to provide incubation degraded habitats, facilitate effective
support to 15 startups working to monitoring and empower local Para Athlete Grant Program
devise climate-resilient agriculture communities in Baksa and Udalguri Supporting 100 para-athletes for a
solutions. Districts of Assam. period of 1 year.

8. SBIF LEAP - Integrated 6. SBIF CONSERW - Solar Olympic Development Program

Governance
Livestock Development Technology for Eradication Poverty SBIF Sports Science Centre in Yamuna
10 villages of the Champawat District An initiative to increase the income Nagar, Haryana.
in Uttarakhand for a period of 3 years. of 2,000 small and marginal women
farmers from 100 villages in Odisha Women Empowerment
9. SBIF LEAP - Centre of Excellence and Bihar through the promotion of 1. Project Naya Savera
for Deep Science Entrepreneurship Renewable and Clean Energy.
Sensitisation programme on Menstrual

Statutory Reports
Providing incubation and acceleration Health and Hygiene.
support to 12 startups. 7. SBIF CONSERW - Wildlife
Conservation in Madhya Pradesh
2. Project Sashakta
CONSERW - Conservation To promote wildlife conservation
Supporting health and development
through Sustainable Engagement, through the donation of 5 wildlife
needs of women in Thane, Maharashtra.
Restoration and Wildlife rescue vehicles and equipment in
Protection Madhya Pradesh.
3. Project Unnati

Financial Statements
CONSERW is the Foundation’s flagship
SBIF ACE Empowering 4,100 women belonging
programme to ensure environmentally
to SC & ST communities, and women
conscious production and consumption, Ace is the Foundation’s flagship
with disabilities.
clean energy adoption, restoration of programme in the domain of sports. It
ecosystems and natural resources and comprises key interventions in building
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 Shri Om Prakash Mishra, DMD (HR) & CDO, Donating Equiment to Medical Directorate,
Government of Manipur

91
Directors’ Report

REGIONAL RURAL BANKS with deposits growing by 9.17% Significant Developments in

(RRBs) and advances by 15.41% YoY. RRBs FY2023:
expanded their Housing and Gold loan The year under review witnessed
With two-thirds of our country’s
exposure by 22.54% and 38.20% (YoY), several significant events, some of
population living in rural areas, it
respectively, as a part of its strategy to which are listed as under:
presents a vast yet under-tapped
diversify the portfolio.
opportunity for the Indian Banking
sector. Our extensive network of The RRBs posted a Net-Profit of y Introduction of Asset Management
sponsored Regional Rural Banks `2,301.91 Crore as against a Net-Profit Hubs (AMHs) - a centralised
(RRBs) has a distinct competitive of `1,659.53 Crore as on 31st March credit processing system for
advantage due to their large account 2022, despite providing substantial Loans & Advances, for an efficient
base and decades of trust-earning provision for pension of `1,071 Crore. underwriting process at all RRBs.
service tradition. The RRBs continue to focus on y Launch of mobile app by eight RRBs
improving earnings from their core for digital account opening with
SBI has sponsored 14 Regional Rural Banking business, strengthening the video KYC facility. Apart from Branch
Banks operating at regional levels in 14 fee income streams and maintaining Channel, services of digital account
different States/UTs. These RRBs have control of operating costs. opening with Video KYC facility
a combined branch strength of 4,751
The combined Gross Non-performing have been extended to the Business
spread across 223 Districts. These
Assets ratio of the RRBs has decreased to Correspondent channel in 8 RRBs.
RRBs are on the CBS platform and
4.21% as against 4.64% as on 31st March y To improve treasury yields/
offer banking services at par with any
2022. The Net NPA stands at 0.82% as returns, the services of SBI Fund
other commercial banks in the country.
against 1.22% as on 31st March 2022. Management Limited for non-
Business Highlights of FY2023: Business per employee during the year discretionary Portfolio Management
The aggregate deposits and advances improved to `11.68 Crore as against Services have been engaged at all
of the 14 RRBs sponsored by your Bank `10.76 Crore as on 31st March 2022. the 14 RRBs.
as on 31st March 2023 stood at `1,23,907
Crore and `85,117 Crore, respectively, SUBSIDIARIES
as against `1,13,502 Crore and `73,755 `2,301.91 Crore SBI Capital Markets Limited (SBICAPS)
Crore as on 31st March 2022. incorporated in 1986, is one of India’s
NET PROFIT POSTED BY
During the year under review, REGIONAL RURAL BANKS leading domestic Investment Bank
despite the persistently challenging (RRBS) and is registered with SEBI as a
macroeconomic environment, the Category I Merchant Banker and
RRBs improved their business, Research Analyst. SBICAPS offers the
entire bouquet of Investment Banking
Associates: and Corporate Advisory Services to
Group’s Stake (%) its clients.
Sr. Country of
Name of the Associate (RRB) Previous Year Current Year
No. Incorporation SBICAPS is ranked No. 1 with a market
(2021-22) (2022-23)
1 Andhra Pradesh Grameena Vikas Bank India 35.00% 35.00% share of 76.2% as Mandated Lead
2 Arunachal Pradesh Rural Bank India 35.00% 35.00% Manager for India Borrowers Loans in
3 Chhattisgarh Rajya Gramin Bank India 35.00% 35.00% INR during the calendar year 2022.
4 Ellaquai Dehati Bank India 35.00% 35.00%
5 Jharkhand Rajya Gramin Bank India 35.00% 35.00% On a consolidated basis, the Company
6 Madhyanchal Gramin Bank India 35.00% 35.00% has posted a profit after tax of `725.39
7 Meghalaya Rural Bank India 35.00% 35.00% Crore for FY2023 as against `635.42
8 Mizoram Rural Bank India 35.00% 35.00% Crore in the previous year.
9 Nagaland Rural Bank India 35.00% 35.00%
10 Rajasthan Marudhara Gramin Bank India 35.00% 35.00% During the period, the Company
11 Saurashtra Gramin Bank India 35.00% 35.00% completed and has been involved in
12 Telangana Grameena Bank India 35.00% 35.00% several marquee transactions, a few of
13 Utkal Grameen Bank India 35.00% 35.00% which are listed below:
14 Uttarakhand Gramin Bank India 35.00% 35.00%

92 Annual Report 2022 – 23

SBI CAPITAL MARKETS LIMITED (SBICAPS) 3 and Tier-4 cities. Presently, it has a
(` in Crore) presence in 296 locations in FY2023 as
Ownership % of Net Profit compared to 194 locations in FY2022.
Name of the subsidiary company

Company Overview
(SBI Interest) ownership (Losses) FY2023 Also, SSL Auto Loan team has improved
SBI Capital Markets Ltd. 58.03 100 334 its presence in 503 locations in FY2023
SBICAP Securities Limited (SSL) 308 as compared to 396 locations in FY2022.
SBICAP Ventures Limited (SVL) NOT APPLICABLE 62 The monthly average productivity of
SBICAP Trustee Co. Limited (STCL) 29 the team in Home Loan has increased
from `1.14 Crore per person in FY2022
y Navi Mumbai International Airport y Yamuna International Airport to `1.21 Crore per person in FY2023.

Responsible Approach
Private Limited- Syndication of debt Private Limited - Debt syndication In Auto Loan, the monthly average
facilities for international airport aggregating `3,725 Crore- productivity of the team has improved
project at Navi Mumbai. Transport Deal of the Year – Airport from `1.26 Crore per person in FY2022
y Jindal Steel & Power Limited- – Sustainable Infrastructure to `1.74 Crore per person in FY2023.
Syndication of debt facilities for Awards 2022.
Home Loan business clocked `43,679
steel project capacity expansion at
Crore during FY2023, with a growth
Angul in Odisha.
of 42.30% YoY. Auto Loan business

Governance
y Financial advisory for financing Air reached an all-time high of `38,186
India Ltd. Crore during FY2023, up by 98% YoY,
y Kutch Copper Limited- Syndication supporting SBI in gaining market share.
of Debt facilities for proposed
In Third Party Products, the revenue
0.5 MTPA integrated copper
from insurance and investment products
smelting and refinery complex by
increased from `30 Crore in FY2022 to
Adani Group.

Statutory Reports
Launch of New redesigned Logo along `44 Crore in FY2023. Similarly in IPO,
y Shapoorji Pallonji Roads Private with new tag line: ‘Complete Investment the revenue grew to `9 Crore in FY2023
Limited-M&A Sell Side Advisory Banking Solutions’, in the presence of from `3 Crore in FY2022.
and Debt Advisory. SBI Chairman, Shri Dinesh Khara.

y Advisory to State Government on Key Initiatives

Auction of 4 Iron Ore blocks in Goa. A. SBICAP SECURITIES
Digital Customer Acquisition
y IPO offering of Life Insurance LIMITED (SSL)
and On-boarding Journey

Financial Statements
Corporation of India which fetched SBICAP Securities Ltd (SSL), a wholly Enhancement
`20,557 Crore to the Government, is owned subsidiary of SBI Capital Markets
India’s biggest IPO to date. The Company has enhanced
Ltd., started its operations in 2006 to
its account opening journey by
y Lead Manager for the Green provide primary and secondary capital
integrating with SBI Internet
Bond issue by Indore Municipal market access to the retail customers
Banking.
Corporation - First Public Issue and became the broking arm of the
of Municipal Bonds by any State Bank of India (SBI) Group. Digital Initiatives – Mobile
Municipal Corporation. Releases
In Retail Broking, the market share
y Lead Manager for Maiden Public increased to 1.56% in FY2023 as SSL has focussed on creating
issue of Secured, Rated, Listed, compared to 1.46% in FY2022. The investment offerings by curated
Redeemable Non-Convertible Company has also improved the Mutual Fund Investment. The
Debentures (“NCDs”) by the market share in the Derivative segment investment menu has been
National Highways Infra Trust. to 0.30% in FY2023 as compared to upgraded with Corporate
y Pune IT City Metro Rail Limited 0.12% in FY2022. The market share in Fixed Deposits, 54 EC Bonds,
– Down selling of `4,790 Crore of account acquisition improved to 4.49% Sovereign Gold Bonds, Non-
underwritten exposure- Transport in FY2023 with a growth of 217 bps as Convertible Debentures, New
Deal of the Year – Railway – compared to FY2022. Fund Offerings, IPO & FPO.
Sustainable Infrastructure
In Retail Assets, the SSL Home Loan
Awards 2022.
team has increased its reach in Tier-

93
Directors’ Report

NEEV II (SVL-SME) is a SEBI registered SVL has earned a gross revenue of

Awards and Recognition Category - I AIF which had its first close `141.71 Crore for FY2023 as against
received during the year in June 2021 at `480 Crore. The target `91.75 Crore for FY2022 and a net profit
include: corpus is `1,000 Crore with a green of `61.82 Crore for FY2023 as against
shoe option of `1,000 Crore. The Fund `32.28 Crore for FY2022.
y The SBI Securities Trading &
had made commitment of `525 Crore
Investment App was awarded C. SBICAP TRUSTEE CO.
in four investments against the actual
the ‘Best Mobile App Initiative LIMITED (STCL)
investment aggregating to `255 Crore
– Stock Broking Company’ at
till March 2022. STCL is a wholly-owned subsidiary
the 2nd Annual NBFC and Fintech
Excellence Awards 2023. SWAMIH is a SEBI registered Category of SBI Capital Markets Limited. STCL
- II AIF which had its first close on commenced the Security Trustee
y Awarded the ‘Enterprise Mobility business on 1st August 2008.
6th December 2019 at `10,037.50 Crore
Award’ at BFSI Technology
with the Government of India, Public The Company acts as a Security Trustee
Conclave 2022.
Sectors Banks and Institutions as to the Lenders for Corporate and Project
y Awarded ‘Digital Customer investors in the Fund. The Fund achieved Finance Loans. It performs the role of a
Experience Transformation its final close with an aggregate capital Debenture Trustee for the Debentures
Initiative Award’ at the Technology commitment of `15,530 Crore. It has a /Bonds issued by Corporates, Banks,
Excellence Awards 2022. mandate to provide last-mile funding to PSUs and Municipal Corporations. It
stalled Housing Projects. The fund has is registered with SEBI as a Debenture
y Awarded with the ‘Excellence
disbursed `5,112 Crore in 101 projects Trustee. STCL also provides other
in Team Building Engagement
where the committed amount is `10,142 related services like Share Pledge
Award 2023’ at ET Human
Crore. The Fund has returned `757.3 Trustee, Escrow Trustee, AIF Trustee
Capital Awards.
Crore back to investors through 11 and ESOP Trustee, among others.
complete exits and partial exits in 15
projects till March 2023. STCL posted net profit growth of 83%
B. SBICAP VENTURES LIMITED
on a YoY basis. (`28.73 Crore for FY2023
(SVL) UKIDCF Fund is SEBI registered against `15.71 Crore for FY2022).
SBICAP Ventures Limited (SVL), a Category - II AIF with a corpus of The fee income from the businesses
wholly owned subsidiary of SBI Capital `5000 Crore and had its first close in has shown an increase of 52% on a
Markets Limited, presently manages June 2021 at `253 Crore. The Fund has YoY basis.
NEEV Fund I (Neev), NEEV II (SVL-SME) given commitments in two identified
Fund & SWAMIH Investment Fund I downstream funds aggregating to Product enhancements:
(SWAMIH). The Company is also the `117 Crore and invested `24.7 Crore.
y STCL has come out with the new
investment manager for three Funds of The Fund would identify 2-3 daughter
product Virtual Data Room (VDR),
Funds: Self Reliant India (SRI) Fund, UK funds every year and deploy its corpus
which provides cloud storage and
India Development Cooperation Fund across the daughter fund over the next
an easy retrieval facility for users.
(UKIDCF) and Trilateral Development 2-3 years.
y STCL is in the process of
Co-operation Fund (TDCF). SRI Fund has been set up in Oct 2021 by starting a new business vertical
Neev I is a SEBI-registered Category National Small Industries Corporation i.e., ‘Securitization Trusteeship
- I AIF with a mandate to invest in (NSIC) on behalf of the Ministry of MSME Business’ during the year.
infrastructure development of eight with corpus of `10,000 Crore upto
y STCL is negotiating for extending its
low-income states. SVL is a General March 2022. Final approval has been
ancillary services to SBI and HDFC
Partner in the fund with net investment given for 46 investments in daughter
Bank wherein the role of the Security
of `52.26 Crore till March 2023. The fund funds amounting to `5,910 Crore. The
Trustee would be coordinating with
has fully invested its investible corpus Fund has also provided preliminary
empanelled Advocates & Valuers of
of `450.10 Crore across 10 portfolio recommendations (subjected to
banks and obtaining Valuation and
companies of which one has been fully diligence and final approval) to another
TIR reports.
exited in FY2022. 5 investments aggregation of about
`390 Crore till March 2023.

94 Annual Report 2022 – 23

Awards and Recognition
received during the year

Company Overview
include:
y Awarded with the prestigious Times
ascent Global HR Excellence
Award: Best HR Organisation to
work for by the World HRD Congress.

y Debenture Trustee business-

Responsible Approach
Ranking has improved by one
notch to #3 in prime database in
terms of AUM.

Governance
SBI CARDS & PAYMENTS
SERVICES LIMITED (SBICPSL)
SBI Cards and Payment Services Spends @ 18.2% (FY2022 19.2%),
Limited (SBICPSL) is a subsidiary Transactions @18.2% (FY2022 Awards and Recognition
of the State Bank of India wherein 19.8%) [as per RBI report available received during the year include:
your Bank holds a 68.98% stake. SBI till Mar’23].

Statutory Reports
Cards and Payment Services Limited
y Growing Portfolio: Cards-in- y Recognised as ‘The Economic Times
(SBI Card) is a non-banking financial
Force of 1.68 Crore at 22% YoY, Best Brand’ for the year 2022.
company that offers an extensive credit
card portfolio to individual cardholders Spends `262,498 Crore at 41% y Received ‘Reader’s Digest Trusted
and corporate clients. YoY, Receivables `40,722 Crore at Brand award.
30% YoY.
The Company registered Profit after y Certified by COPC® Inc for Quality
Tax (PAT) of `2,258 Crore in FY2023 as y Asset quality: GNPA @2.35%, processes in Customer Services.

Financial Statements
compared to `1,616 Crore in FY2022. NNPA @0.87%, GCL @5.9% v/s
8.3% for FY2022. y Winner of Gold & Silver Stevie
awards in 2023 for Sales &
Performance Highlights y Adequate liquidity: Diversified Customer Services.
(FY2023) borrowing mix, adequate banking
limits available. Healthy CAR y Winner of Golden Peacock
y Profitable operations: PAT `2,258
@23.1%, T-1 @20.4%. National Training Award in
Crore, at 40 % YoY, ROAA at 5.6% up
Financial Sector for Excellence in
by 20 bps YoY, ROAE at 25.3% up by y New Products: New products Training & Development.
245 bps YoY. launched in FY2023:
y Winner of MarTech Leadership
y Market share: #2 in both Spends − Cashback SBI Card award in the category “Use
and Cards for FY2023; Cards in
− PSB SBI Card of Technologies - Best Data
force @19.7% (FY2022 18.7%),
Enablement Campaign”.
(` in Crore)
Net Profit
Name of the Subsidiary Ownership % of
(Losses)
Company (SBI Interest) ownership
in FY2023
SBI Cards and Payment 652.63 68.98% 2,258
Services Limited

95
Directors’ Report

SBI DFHI LIMITED (SBI DFHI)

Key Initiatives
SBI DFHI Limited is one of the largest State Bank of India group holds 72.17%
standalone Primary Dealers (PD) (SBI-69.04%, SBICAP-3.13%) share y Conducted seminar on STRIPS
with a pan-India presence. As a in the Company. It posted a Net profit (Separate Trading of Registered
Primary Dealer (PD) it is mandated to of `20.26 Crore for FY2023 as against Interest and Principal
support the book-building process in a profit of `142.06 Crore for FY2022. Securities) for Insurance &
primary auctions and provide depth The total balance sheet size is `17,268 other long-term investors.
and liquidity to secondary markets in Crore as on 31st March 2023 as against y Conducted seminar for
G-Sec. `13,078 Crore as on 31st March 2022. Cooperative Bank in Bengaluru
(` in Crore)
on 24th June 2022 on various
aspects of the financial markets.
Net Profit
Name of the Subsidiary/ Ownership % of At the end of the meeting,
(Losses)
Company (SBI Interest) ownership participants were more aware
in FY2023
SBI DFHI Limited 131.52 69.04% 20 and informed and geared up
for contributing towards the
development of the government
securities market.
y 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.

SBI GENERAL INSURANCE COMPANY LIMITED (SBI GENERAL) Equity Fund – Series 1A (0.23%) during
(` in Crore) the current year.
Net Profit
Name of the subsidiary/ Ownership % of Currently, SBI owns 69.95%, Napean
(Losses)
company (SBI Interest) ownership Opportunities LLP owns 16.00%,
in FY2023
SBI General Insurance Co. Ltd. 151.00 69.95 184 Honey Wheat Investment Ltd. owns
9.98%, PI Opportunities Fund-1 owns
2.35%, IIFL Special Opportunities
SBI General Insurance Company PI Opportunities Fund - I (2.35%) and
Fund - Series 9 (1.04%), IIFL Special
Limited (‘the Company’) was Axis New Opportunities- AIF-I (1.65%).
Opportunities Fund - Series 10 (0.12%),
incorporated on 24th February 2009 Further, IAG, the erstwhile JV partner
IIFL Large Value Fund - Series 2
as a public limited company under with a 26% stake made a complete
(0.02%), IIFL Large Value Fund - Series
the Indian Companies Act, 1956 exit in March 2020, thereby divesting
4 (0.03%), IIFL Large Value Fund -
(‘the Act’) and was originally a joint its entire stake of 26% to Napean
Series 11 (0.03%), IIFL Large Value
venture between State Bank of India Opportunities LLP (16.01%) and
Fund - Series 12 (0.04%), Avendus
(SBI) and IAG International Pty Honey Wheat Investments Ltd (9.99%).
Future Leaders Fund I &II owns 0.38%
Limited, a subsidiary of Insurance Further, Axis New Opportunities- AIF-I
and other shareholders own 0.07% in
Australia Group Limited. Out of the out of its balance stake of 1.27% has
SBI General Insurance. The Company
74% stake in the Company, SBI had sold to IIFL Special Opportunities Fund
is registered with the Insurance
in mid of 2018 divested a 4% stake to - Series 9 (1.04%) and IIFL India Private

96 Annual Report 2022 – 23

Regulatory and Development Authority all conceivable client touchpoints, with
of India (‘IRDAI’) with a certificate over 31,600 agents, 28,000+ banking Awards and Recognition
of registration No. 144 dated 15th touchpoints, 400+ brokers, alliances, received during the year

Company Overview
December 2009 and is in the business and digital partners.
of General Insurance in India.
The Company established an y Award for ‘Best General Insurance
With a total GWP of `10,888 Crore and independent health vertical with Company of the Year’ at the ‘Third
a YoY growth of 18%, the Company the goal of becoming a prominent Emerging Asia Insurance Awards’
achieved the milestone of `10,000 participant in the health insurance organised by the ‘Indian Chamber
Crore GWP in FY2023. SBI General market in India. The health vertical of of Commerce’.
increased its market share from 4.15%

Responsible Approach
the Company today serves 21 Lakh y Recognised as the ‘Best Ethical
in FY2022 to 4.21% in FY2023. The members, including group customers, Procurement Company of the
business has advanced in the rankings, and has a comprehensive centralised Year’.
and among Pvt. players, SBI General underwriting and claims set-up based
is now ranked 6th in comparison to 7th in Pune. The Company has 12,500+ y Recognised as a ‘Smart Insurer’
in FY2022. network hospitals empanelled and in the ‘Large Non-Life Insurance’
over 4,000 health agents have been category at The Economic Times
The Company’s presence has grown
onboarded in FY2023. Insurance 9th Annual Summit

Governance
from 17 locations in 2011 to over 141
& Awards.
branches across India. The Company The Company generated a net profit of
has served over 34 Crore clients to date, `184 Crore in FY2023, representing a y Recognised as one of the
with claims of `22,000 Crore handled. YoY increase of 40%. ‘Most  Preferred Workplaces
SBI General is present and available at in BFSI 2022-23’ presented by
Marksmen Daily.

Statutory Reports
SBI GLOBAL FACTORS LIMITED (SBIGFL)
(` in Crore)
Net Profit
Name of the subsidiary Ownership % of
(Losses)
company (SBI Interest) ownership
in FY2023
SBI Global Factors Ltd. 159.89 100% 31

Financial Statements
SBIGFL is a leading NBFC factor FY2023 against Profit Before Tax
providing both Domestic and Export (PBT) of `43.49 Crore for FY2022.
Factoring services under one roof. It y Profit After Tax (PAT) for the FY2023
is a wholly owned subsidiary of State is `31.17 Crore against Profit
Bank of India and is regulated by After Tax (PAT) of `25.26 Crore y Turnover in Export Factoring-2
Reserve Bank of India. for FY2022. Factor Model for the period ended
31st March 2023 is equivalent to
The Company’s services are especially y Turnover for the period ended March
EUR 40.16 Million (Previous year:
suitable for MSME sector clients for 2023 is `5,544 Crore as compared
Eur 40.04 Million). In INR terms,
freeing up resources locked in book to the turnover of `4, 773 Crore in
the Export Factor turnover touched
debts and provide require liquidity. By the previous year
`338.24 Crore for the period ended
virtue of its membership of Factors y Fund in use (FlU) as on 31st March March 2023, as against `344.38
Chain International (FCI), the SBIGFL is 2023 is `1,277 Crore as compared to Crore in previous year March 2022.
able to alleviate Credit risk from export `1,205 Crore as on 31st March 2022.
receivables under the 2-factor model.
y Turnover in TReDS for the period
y The Company has reported a Profit ended March 2023 is `1,655 Crore,
Before Tax (PBT) of `46.18 Crore for as against `1,737 Crore in the
previous year

97
Directors’ Report

SBI LIFE INSURANCE COMPANY LIMITED (SBILIFE) Value (IEV) of the Company stands at
(` in Crore) `46,044 Crore with a growth of 16%.
Net Profit For FY2023, the Value of New Business
Name of the subsidiary Ownership % of
(Losses) (VoNB) stood at `5,067 Crore with a
company (SBI Interest) ownership
in FY2023 growth of 37%. VoNB’s margin stood at
SBI Life Insurance Company Ltd. 555 55.45 1,721 30.1%.

SBI Life has a multi-channel distribution premium of 26.7% vis-à-vis the industry In FY2023, the Company tied up with
network comprising an expansive growth of 15.4% with a private market Karur Vysya Bank (KVB) enabling SBI
Bancassurance Channel, including share of 24.3% & Industry market share Life to expand the insurance market
State Bank of India, the largest of 14.5%. across your Bank’s presence in the
Bancassurance partner in India, a country. A tie-up arrangement with
large and productive individual agent Key Initiatives Paschim Banga Gramin, a Regional
network comprising 208,774 agents as Rural Bank will help make footprints
Various products launched
on 31st March 2023, as well as other stronger in the East. The Company has
by SBI Life:
distribution channels including direct also executed a tie-up with India Post to
sales and sales through corporate Smart Platina Plus, a improve its penetration in rural markets
agents, brokers, insurance marketing guaranteed product with long- and enable customers, particularly
firms and other intermediaries. term income from weaker sections and living in
unbanked and underserved areas.
During the year ended 31st March 2023, Smart Annuity Plus, with the
the Company operated in a sound and deferred option
stable manner, with its sole objective of Awards and Recognition received
Retire Smart Plus, with a
increasing insurance penetration and during the year include:
choice of 7 varied fund options
targeting a balanced product mix with
a focus on non-par savings and annuity Smart Lifetime Saver, y ‘Most Trusted Private Life
segment with an active and prudent guaranteed returns and Insurance Company’ of the
strategy, sales team maintaining protection for a lifetime Year award at the 2nd Edition of
the quality as well as quantity and Navabharat BFSI Conclave and
Group Micro Shield, Insurance Awards 2022.
established a firmer market position.
leading to financial inclusion.
The Company has proven its market y Awarded Gold medal for being
leadership in the year ended 31st March the Team of the Year at The TISS
2023, with numero-uno position in Leapvaul CLO Awards 2022.
Individual New Business Premium, SBI Life generated a PAT of `1,721 Crore
Individual Rated Premium, Total Rated in YTD Mar 23 against `1,506 Crore in y Gold Award in Environment
Premium and Total New Business YTD Mar 22. The AUM of the Company Protection Initiative of the Year-
Premium among the private insurers. crossed `3 trillion and recorded a Integrated Health & Wellness
growth of 15% at `307,339 Crore as (IHW) Annual Awards.
The Company witnessed a 16.2%
on 31st March 2023 as compared to y Awarded Insurance Industry
growth in Total New Business Premium
`267,409 Crore as on 31st March 2022. Award - Insurer of the Year 2022
(NBP) vis-à-vis the industry growth of
For FY2023, the Indian Embedded by FICCI.
17.9%. The market share of SBI Life in
Total New Business Premium (NBP)
among all private players for the year
ended 31st March 2023 is 21.3%. Total
New Business Premium of the Company
for the year ended 31st March 2023,
stands at `29,589 Crore. Individual New
Business stands at `20,906 Crore and
Group New Business Premium stands
at `8,683 Crore, for the year ended 31st
March 2023. The Company witnessed
growth in Individual New business

98 Annual Report 2022 – 23

SBI FUNDS MANAGEMENT LIMITED (SBIFML)
(` in Crore) Awards and Recognition
Name of the subsidiary Ownership % of
Net Profit received during the year

Company Overview
company (SBI Interest) ownership
(Losses) include:
in FY2023
SBI Funds Management Ltd. 18.90 62.53 1,331 y Awarded SBI Banking & Financial
Services in the Equity Sector
SBI Mutual Fund Trustee 0.10 100.00 1
Company Pvt. Ltd. Financials category (5 years) in
the Lipper Fund Awards Ceremony
SBI Funds Management 100% owned by 62.53 4
(International) Pvt. Ltd. SBIFML of 2022.

Responsible Approach
y SBI Magnum Children’s Benefit
SBI Funds Management Ltd. (formerly as the ETF manager in the country with Fund was the winner in the Mixed
known as SBI Funds Management Pvt. a 46.82% market share. Asset INR Conservative (5 & 10
Ltd.) the Asset Management Company years) in the Lipper Fund Awards
SBI Funds Management Ltd. posted a Ceremony of 2022.
of SBI Mutual Fund, is the fastest
PAT of `1,331.20 Crore for FY2023 as
growing AMCs with a growth of over y SBI Magnum Gilt Fund-Growth
against `1070.65 Crore earned during
10.83% against the industry average was the winner in the in-Bond
FY2022. The average “Assets Under

Governance
of 5.55% in FY2023. In the last three INR Government category (10
Management” (AUM) of the Company
years, SBIFML has achieved a CAGR years) in the Lipper Fund Awards
during the quarter ended March 2023
of 24.29% against the industry average Ceremony of 2022.
was `717,161 Crore with a market
of around 14.45% in terms of Average
share of 17.70% as against the average y SBI Funds Management Ltd was
AUM growth. In FY2023, the Fund
Assets Under Management of `647,967 the winner under Overall Group
House has further consolidated the 1st
Crore with a market share of 16.86% Award in the Lipper Fund Awards
Rank position for three years. SBIFML
during the quarter ended March 2022.

Statutory Reports
has one of largest investor bases with Ceremony of 2022.
The Company has a fully owned foreign
over 121.80 Lakh LIVE investor folios y SBI Funds Management Ltd was
subsidiary viz. SBI Funds Management
with about 27 Lakh new investor folios the winner under Mixed Asset
(International) Private Limited, which
added in the financial year ending Mar Group in the Lipper Fund Awards
is based in Mauritius and manages
2023. The Fund House has 24.15 Lakh Ceremony of 2022.
Offshore Funds. SBIFML also provides
direct live investors and over 2.55 Lakh
Portfolio Management Services (PMS)
institutional investors. SBIFML has
and manages Alternative Investment

Financial Statements
maintained its top leadership position
Funds (AIF).

SBI PENSION FUNDS PRIVATE LIMITED (SBIPFPL)

(` in Crore)
Net Profit
Name of the subsidiary Ownership % of
(Losses)
company (SBI Interest) ownership the license to operate as PoP (Point
in FY2023
of Presence) in the year 2019 for on-
SBI Pension Funds Private 18 60 54
boarding of NPS subscribers.
Limited. *
*SBI Capital Markets Limited and SBI Funds Management Limited are holding 20% equity each The Company has earned net profit
in the Company. of `53.51 Crore for FY2023. The total
Assets Under Management (AUM) of
SBIPFPL has been appointed as the Regulatory & Development Authority the Company as on 31st March 2023
Pension Fund Manager (PFM) to (PFRDA) for the management of is `3,39,006 Crore (YoY growth of
manage the pension corpus under Pension Funds under the NPS for 20.01%) against `2,82,476 Crore on 31st
the National Pension System (NPS). Central Government (except Armed March 2023. The Company maintains
SBIPFPL is one of the three PFMs Forces) and State Government lead position among 10 PFMs in terms
appointed by the Pension Fund employees The Company has got of AUM with market share of 37.71 %.

99
Directors’ Report

SBI PAYMENT SERVICES PRIVATE LIMITED (SBI PAYMENTS) initiatives taken by the Company during
(` in Crore) the financial year are the launch of the Self-
Net Profit Onboarding functionality on the YONO
Name of the subsidiary Ownership % of
(Losses) SBI Merchant Application (SoftPoS),
company (SBI Interest) ownership
in FY2023 the acquisition of 26 toll plazas on the
SBI Payments 4.50 74 159 Mumbai-Nagpur Samriddhi Mahamarg,
offering customised solutions to various
SBI Payments is one of the largest SBI Payments has facilitated the merchant categories for digitisation
acquirers in the country with more acceptance of e-`UPI prepaid vouchers payment collection for utility bills, temple
than 2.93 Million Merchant Payment through the YONO SBI Merchant ticket bookings temple donations, etc.,
Acceptance Touch Points and over 1.14 application (SoftPoS) for Direct Benefit and the introduction of WhatsApp
Million PoS machines as on 31st March Transfer projects initiated by many State Servicing which permits merchants
2023 distributed across geographies Governments. In addition to existing to raise service requests for their PoS
(Tier 1 to Tier 6). channels for merchant onboarding, the terminals directly through WhatsApp,
Company has started partnering with etc. The Company has posted a net profit
During FY2023, in order to encourage
major Payment Facilitators to expand its of `159.34 Crore for FY2023.
the Government’s vision of a less cash
reach pan India. Some of the other key
economy and promote digital payments,

SBI SG GLOBAL SECURITIES SERVICES PRIVATE LIMITED (SBI-SG)

(` in Crore)
Ownership % of Net Profit (Losses)
Name of the subsidiary company
(SBI Interest) ownership in FY2023
SBI SG Global Securities Services Pvt. Ltd. 52 65 88

SBI-SG is a joint venture between SBI-SG maintains high-quality

the State Bank of India and Société standards as evidenced by various
Générale with 65% equity holding certifications like ISAE 3402, ISO
by SBI. The company commenced 27001:2013 and ISO 9001:2015.
commercial operations in 2010 and
provides custodial services with
end-to-end support on clearing & Awards and Recognition
settlement, Cash & forex solutions, received during the year
asset servicing, derivatives clearing, include:
gold custody for gold ETFs to Domestic y Rated as Market Outperformer,
(MFs, AIF, PMS, Banks, Corporates) Global Outperformer and
and Foreign Investors (FPI, FDI, FVCI). Category Outperformer in the
Agent Banks Emerging Markets
The company is managing AUC (Assets
Survey -2022 by Global Custodian,
under Custody) of `15,29,613 Crore and
a renowned magazine.
AUA (Assets Under Administration)
of `11,33,448 Crore as on 31st March y Received an Award for Consistent
2023. The Company’s Net Profit stands outperformance at the “Leaders in
at `87.55 Crore for FY2023. Custody” event.

SBI-SG plays a crucial role in the overall y Received the award “Best Local
start-up strategy of the SBI group by Custodian in India” at the Best
providing custody and fund accounting of Best Awards event of Asia
services to the AIF players. Asset Management.

100 Annual Report 2022 – 23

STATE BANK OPERATIONS SUPPORT SERVICES PVT LTD (SBOSS)
(` in Crore)
Net Profit

Company Overview
Name of the subsidiary Ownership % of
(losses)
company (SBI Interest) ownership
9M FY2023
State Bank Operations Support 10 100 3
Services Pvt. Ltd.

State Bank Operations Support doorstep services to customers at a

Responsible Approach
Services Pvt Ltd (SBOSS) is a wholly competitive cost. It is providing support
owned subsidiary of SBI set up in July to more than 5000 RUSU branches
2022 for providing operations support across 17 Circles of your Bank. This
services at RUSU branches of SBI. facilitates greater Financial Inclusion
SBOSS has its Registered Office in through the provision of appropriate
New Delhi. The subsidiary is providing credit linkages as a part of its national
support services to SBI in Agri/MSME/ development goals.
Microloans and will also work as a

Governance
The company has developed a robust
Corporate Business Correspondent
Pan India “High Tech”, “High Touch”
of SBI.
and “Low Cost” model for providing
SBOSS deploys Feet-On-Street (FOS) multidimensional support to operations
at RUSU Branches of your Bank with in Agri & SME segments.
appropriate technology support for

Statutory Reports
Financial Statements

Awarded “India’s Best Annual Report Award - 2022”

101
Directors’ Report

MANAGEMENT DISCUSSION & ANALYSIS (MDA) ACKNOWLEDGEMENT

In terms of compliance with the SEBI (Listing Obligations & Disclosure During the year, Shri Ashwani Bhatia,
Requirements) (Amendment) Regulations 2018, following ratios have changed by Managing Director, superannuated on
more than 25%, as per details given below: 31st May 2022 and Shri Alok Kumar
Choudhary was appointed as Managing
Variation
(in %) Mar 22 Mar 23 % Change Director on the Board w.e.f. 7th June
(bps)
2022. Dr. Vivek Joshi was nominated as
Net Profit Margin 10.02 13.62 360 35.92
Director on the Board u/s 19 (e) of SBI
ROE 13.92 19.43 551 39.60
Act, 1955, w.e.f. 15th November 2022
vice Shri Sanjay Malhotra. Shri Sanjeev
Net Profit Margin: to give a true and fair view of the Maheshwari retired from the Board on
Net Profit registered YoY growth of state of affairs of your Bank as on 19th December 2022 upon completion
58.58% (from Net profit of `31,676 the 31st March 2023, and of the of his term.
Crore in FY2022 to Net Profit of `50,232 profit and loss of Your Bank for the
The Directors place on record their
Crore in FY2023) as against YoY year ended on that date;
appreciation for the contributions
growth of 16.68% in Total Income iii. that they have taken proper and made by Shri Ashwani Bhatia, Shri
(from `3,16,021 Crore in FY2022 to sufficient care for the maintenance Sanjay Malhotra, and Shri Sanjeev
`3,68,719 Crore in FY2023). of adequate accounting records in Maheshwari to the deliberations of
accordance with the provisions the Board.
Return on Net worth (ROE): of the Banking Regulation Act,
The Directors welcome Shri Alok
Net Profit registered YoY growth of 1949 and State Bank of India Act,
Kumar Choudhary and Dr. Vivek Joshi
58.58% (from Net profit of `31,676 1955 for safeguarding the assets
as new Directors on the Board.
Crore in FY2022 to Net Profit of of your Bank and preventing
`50,232 Crore in FY2023) as against and detecting frauds and The Directors also express their
YoY growth of 14.99% in Net Worth other irregularities; gratitude for the guidance and
of your Bank (from `2,40,502 Crore in co-operation received from the
iv. 
that they have prepared the
FY2022 to `2,76,563 Crore in FY2023). Government of India, RBI, SEBI,
annual accounts on a going
IRDA and other government and
concern basis;
RESPONSIBILITY STATEMENT regulatory agencies.
v. that the internal financial controls
The Board of Directors hereby states: The Directors also thank all the valued
had been laid down, to be
clients, shareholders, Banks and
i. 
that in the preparation of the followed by your Bank and that
financial institutions, stock exchanges,
annual accounts, the applicable such internal financial controls
rating agencies and other stakeholders
accounting standards have are adequate and were operating
for their patronage and support and
been followed along with effectively; and
take this opportunity to express their
proper explanation relating to vi. 
that proper system had been appreciation for the dedicated and
material departures; devised to ensure compliance committed team of employees of
ii. 
that they have selected such with the provisions of all your Bank.
accounting policies and applied applicable laws and that such
them consistently and made systems were adequate and For and on behalf of the
judgements and estimates as are operating effectively. Central Board of Directors
reasonable and prudent, so as
- Chairman
Date: 18 May 2023
th

102 Annual Report 2022 – 23

 Corporate
Governance Report
Corporate Governance Report

THE BANK’S PHILOSOPHY ON decision-making, monitoring, The Bank’s Central Board draws
CODE OF GOVERNANCE control and reporting. its powers from and carries out its
y Providing free access to the Board to functions in compliance with the
State Bank of India is committed to the
all relevant information, advices and provisions of SBI Act & Regulations
best practices in the area of Corporate
resources as are necessary to enable 1955. Its major roles include, among
Governance, in letter and in spirit. The
it to carry out its role effectively. others,
Bank believes that good Corporate
Governance is much more than y Ensuring that the Chairman has y Overseeing the risk profile of
complying with legal and regulatory the responsibility for all aspects the Bank;
requirements. Good governance of executive management and y Monitoring the integrity of its
facilitates effective management and is accountable to the Board for business and control mechanisms;
control of business, enables the Bank the ultimate performance of the
y Ensuring expert management, and
to maintain a high level of business Bank and implementation of the
ethics and to optimise the value for all policies laid down by the Board. y Maximising the interests of its
its stakeholders. The objectives can be The role of the Chairman and the stakeholders.
summarised as: Board of Directors are also guided
by the SBI Act, 1955 with all The Central Board is headed by the
y To protect and enhance Chairman, appointed under section
relevant amendments.
shareholder value. 19(a) of SBI Act. Four Managing
y Ensuring that a senior executive
y To protect the interest of all other Directors are appointed as members
is made responsible in respect
stakeholders such as customers, of the Board under section 19(b) of
of compliance issues with all
employees and society at large. SBI Act. The Chairman and Managing
applicable statutes, regulations
y To ensure transparency and integrity Directors are Whole Time Directors.
and other procedures, policies
in communication and to make As on 31st March 2023, there were
as laid down by the GOI/RBI and
available full, accurate and clear seven Non-Executive Directors on the
other regulators and the Board, and
information to all concerned. Board who are eminent professionals
reports deviations, if any.
representing Technology, Accountancy,
y To ensure accountability for
Finance, Economics and Academics.
performance and customer service The Bank has complied with the
The composition of the Central Board,
and to achieve excellence at provisions of Corporate Governance
as on 31st March 2023, was as under:
all levels. as per SEBI (Listing Obligations &
y To provide corporate leadership Disclosure Requirements) Regulations, y Chairman appointed by the Central
of highest standard for others 2015 (as amended from time to time) Government in consultation with the
to emulate. except where the provisions of these RBI u/s 19(a)
regulations are not in conformity y four Managing Directors, appointed
The Bank is Committed to: with SBI Act and SBI General by the Central Government in
Regulations, 1955 and the directives consultation with the RBI u/s 19(b)
y Ensuring that the Bank’s Board of issued by RBI/GOI. A report on the
Directors meets regularly, provides y four directors, elected by the
implementation of these provisions of
effective leadership and insights in Shareholders under Section 19(c),
Corporate Governance in the Bank is
business and functional matters and furnished below: y one director, nominated by the
monitors Bank’s performance. Central Government under Section
y Establishing a framework of Central Board: Role and 19(d),
strategic control and continuously Composition y one director, nominated by the
reviewing its efficacy. Central Government under Section
State Bank of India was formed in
y Establishing clearly documented 19(e), and
1955 by an Act of the Parliament, i.e.,
and transparent management The State Bank of India Act, 1955 (SBI y One director, nominated by the
processes for policy development, Act). A Central Board of Directors was Central Government on the
implementation and review, constituted according to the Act. recommendations of the RBI under
Section 19(f).

104 Annual Report 2022 – 23

The composition of the Board complies A brief resume of each of the Meetings of the Central Board

Company Overview
with provisions laid down in Regulation Non- Executive Directors is given
The Bank’s Central Board is required
17(1) of SEBI (Listing Obligations & in Annexure-I. Particulars of the
to meet a minimum of six times in a
Disclosure Requirements) Regulations, directorships/ memberships held by
year. During the year 2022-23, fifteen
2015 to the extent that they don’t all the Directors in various Boards/
Central Board Meetings were held. The
violate the provisions provided u/s 19 Committees are given in Annexure II
dates of the meetings and attendance
of SBI Act, 1955. There is no inter-se and the details of their Shareholding in
of the directors are as under:
relationship between Directors. the Bank are mentioned in Annexure III.

Responsible Approach
Dates & Attendance of Directors at Board Meetings During 2022-23
No. of Meetings held: 15

Dates of the Meetings: 11.04.2022, 27.04.2022, 13.05.2022, 22.06.2022, 20.07.2022, 06.08.2022, 17.09.2022, 10.10.2022,
05.11.2022, 14.12.2022, 23.12.2022, 23.01.2023, 03.02.2023, 04.03.2023, 29.03.2023

Governance
No. of Meetings held after nomination/
Name of the Director No. of Meetings attended
election / during incumbency
Shri Dinesh Kumar Khara, Chairman 15 15
Shri Challa Sreenivasulu Setty, MD 15 15
Shri Ashwani Bhatia, MD (upto 31.05.2022) 03 02
Shri Swaminathan J, MD 15 13

Statutory Reports
Shri Ashwini Kumar Tewari, MD 15 15
Shri Alok Kumar Choudhary, MD (w.e.f. 07.06.2022) 12 12
Shri B. Venugopal 15 15
Dr. Ganesh Natarajan 15 12
Shri Ketan S. Vikamsey 15 15
Shri Mrugank M. Paranjape 15 12

Financial Statements
Shri Sanjeev Maheshwari (upto 19.12.2022) 10 09
Shri Prafulla P. Chhajed 15 15
Shri Sanjay Malhotra (upto 15.11.2022) 09 02
Dr. Vivek Joshi (w.e.f. 15.11.2022) 06 04
Shri Anil Kumar Sharma 15 07

Executive Committee of the terms of SBI Act, ECCB consists of the of Directors and Constitution of
Central Board Chairman, the Managing Directors, Committees of the Board’, the Chair
The Executive Committee of the the Director nominated under Section of the ACB is not a part of the ECCB.
Central Board (ECCB) is constituted 19(f) of the SBI Act, and all or any of The ECCB meetings are held weekly as
in terms of Section 30 of the SBI Act, the other Directors who are normally per the SBI Act. During the year 2022-
1955. The State Bank of India General residents, or may, for the time being, 23, fifty two meetings of the ECCB
Regulations (46 & 47) provide that, be present at any place within India were held. The details of attendance of
subject to the general or special where the meeting is held. Further, ECCB Meetings during the year 2022-
directions of the Central Board, ECCB in terms of RBI Guidelines dated 23 are as under:
may deal with any matter within the 26th April 2021 on ‘Corporate
competence of the Central Board. In Governance in Banks -Appointment

105
Corporate Governance Report

Attendance of Directors at ECCB Meetings During 2022-23

No. of Meetings held: 52

No. of Meetings held after nomination/

Directors No. of Meetings attended
election/ during incumbency
Shri Dinesh Kumar Khara, Chairman 52 51
Shri Challa Sreenivasulu Setty, MD 52 47
Shri Ashwani Bhatia, MD (upto 31.05.2022) 08 06
Shri Swaminathan J, MD 52 43
Shri Ashwini Kumar Tewari, MD 52 44
Shri Alok Kumar Choudhary, MD (w.e.f. 07.06.2022) 43 37
Shri B. Venugopal 52 42
Shri Mrugank M. Paranjape 52 37
Shri Sanjeev Maheshwari (upto 19.12.2022) 37 26
Shri Prafulla P. Chhajed 52 43
Shri Anil Kumar Sharma 52 23
Directors who are normally not residents of the place of Meetings but were present on the day at the place where the meeting
was held/ participated through Video conferencing:
Dr. Ganesh Natarajan - 37

Other Board Level Committees: redressal of customer grievances, Audit Committee of the Board
In terms of the provisions of SBI Act and Technology Management, Corporate The Audit Committee of the Board
General Regulations, 1955 and Govt./ Social Responsibilities, Oversight on (ACB) was constituted on 27th July
RBI/SEBI guidelines, the Central Board Recovery of Loans and Advances, 1994 and last re-constituted on
has constituted other nine Board Level Review of identification of Wilful the 23rd December 2022. The ACB
Committees viz. Audit Committee Defaulters/ Non-Co-operative functions as per RBI guidelines and
of the Board, Risk Management Borrowers and arrive at the ‘fit and complies with the provisions of SEBI
Committee of the Board, Stakeholders proper’ status of candidates filing (Listing Obligations & Disclosure
Relationship Committee cum Customer nominations for election of Directors. Requirements) Regulations, 2015, as
Service Committee of the Board, While the Nomination & Remuneration amended from time to time to the extent
Special Committee of the Board for Committee (NRC) meets at least that they do not violate the directives/
Monitoring of Large Value Frauds, IT once a year, the other Committees guidelines issued by RBI.
Strategy Committee, Corporate Social meet periodically, once in a quarter
Responsibility Committee, Nomination generally, to deliberate on policy issues Functions of ACB
& Remuneration Committee of the and/or review domain performance, as
a. 
ACB provides direction and also
Board, Board Committee to Monitor per the calendar of reviews approved
oversees the operation of the
Recovery and Committee to Review by the Central Board. The Committees
total audit function in the Bank.
the Identification of Wilful Defaulters/ also call external specialists, besides
Total audit function implies the
Non- Co- operative Borrowers. drawing upon the services of top
organisation, operationalisation
These Committees provide effective executives from the Bank, as and
and quality control of internal audit
professional support in Board when needed.
and inspection within the Bank and
Oversight in key areas like Audit The minutes and proceedings follow-up on the statutory/external
& Accounts, Risk Management, containing brief reports on the audit, compliance of RBI inspection.
resolution of Shareholders’/Investors’ discussions held at the meetings of It also appoints Statutory Auditors
grievances, Fraud Review and Control, the Committees are placed before the of the Bank and reviews their
Review of customer service and Central Board. performance from time to time.

106 Annual Report 2022 – 23

b. ACB reviews the Bank’s financial, 06.03.2019 in line with the of Reviews to be submitted to the

Company Overview
Risk Management, IS Audit SEBI (LODR) Amendments Audit Committee is also in place,
Policies and Accounting Policies/ Regulations, 2018 which were which is updated periodically, the
Systems of the Bank to ensure effective from 1st April 2019. last revision effected from 27th
greater transparency. April 2022.
d. 
It obtains and reviews reports
c. 
ACB reviews the internal
from the Compliance Department Composition & Attendance
inspection/ audit plan and
in the Bank. During 2022-23

Responsible Approach
functions in the Bank – the system,
its quality and effectiveness e. ACB follows up on all the issues The ACB has five non-executive
in terms of follow-up. It also, raised in RBI’s Risk Based Directors as members as on 31.03.2023.
especially, focuses on the follow Supervision under Section 35 of The ACB has a regular chairperson
up of : Banking Regulation Act, 1949 and is chaired by a Non-Executive
and Long Form Audit Reports of Independent Director. The constitution
y KYC-AML guidelines; and quorum requirements, as per RBI/
the Statutory Auditors and other
y Major areas of housekeeping; Internal Audit Reports. It interacts SEBI guidelines, are complied with.

Governance
y Compliance of SEBI (Listing with the external auditors before During the year, twelve meetings of
Obligations & Disclosure the finalisation of the annual/ ACB were held to review the various
Requirements) Regulations, quarterly financial accounts and matters connected with the internal
2015. The terms of reference reports. A formal ‘Audit Charter’ or control, systems and procedures and
and role of the Audit Committee ‘Terms of Reference’ of the Audit other aspects as required in terms of
was reviewed by the Central Committee has been approved by RBI/SEBI guidelines.
Board at its meeting held on the Central Board and a calendar

Statutory Reports
Dates of Meetings of ACB Held & Attendance of Directors During 2022-23
No. of Meetings held: 12

Dates of the Meetings: 13.04.2022, 12.05.2022, 15.06.2022, 13.07.2022, 05.08.2022, 07.09.2022, 03.10.2022, 04.11.2022,
07.12.2022, 04.01.2023, 03.02.2023, 15.03.2023

Financial Statements
No. of Meetings held after nomination/
Directors No. of Meetings attended
election/ during incumbency
Shri Ketan S. Vikamsey (Chairman of the Committee) 12 12
Shri B. Venugopal 12 11
Dr. Ganesh Natarajan 12 06
Shri Mrugank M. Paranjape 12 11
Shri Sanjeev Maheshwari (Member upto 19.12.2022) 09 07
Shri Anil Kumar Sharma (Member w.e.f. 23.12.2022) 03 00

Risk Management Committee of operational risk. The Committee was During 2022- 23, six meetings of the
the Board last reconstituted on 23rd December RMCB were held. The terms of reference
The Risk Management Committee of 2022 and has seven members. The and role of RMCB was reviewed by the
the Board (RMCB) was constituted on Non- executive Independent Director is Central Board on 06.03.2019 in line
23rd March 2004, to oversee the policy and the Chairman of the Committee. RMCB with the SEBI (LODR) Amendments
strategy for integrated risk management meets a minimum of four times a year, Regulations, 2018 which were effective
relating to credit risk, market risk and once in each quarter. from 1st April 2019.

107
Corporate Governance Report

Dates of Meetings of RMCB Held & Attendance of Directors During 2022-23

No. of Meetings held: 06

Dates of the Meetings: 17.06.2022, 02.09.2022, 04.10.2022, 29.11.2022, 24.01.2023, 24.03.2023

No. of Meetings held after nomination/
Name of the Director No. of Meetings attended
election / during incumbency
Shri Mrugank M. Paranjape (Chairman of the Committee) 06 06
Shri Ashwani Bhatia, MD (Member upto 31.05.2022) 00 00
Shri Swaminathan J, MD 06 01
Shri Ashwini Kumar Tewari, MD, (Member w.e.f. 07.06.2022) 06 05
Shri Challa Sreenivasulu Setty, MD (As Alternate Member) -- 01
Shri Alok Kumar Choudhary, MD (As Alternate Member) -- 04
Shri B. Venugopal 06 04
Dr. Ganesh Natarajan 06 03
Shri Ketan S. Vikamsey 06 06
Shri Sanjeev Maheshwari (Member upto 19.12.2022) 04 04
Shri Prafulla P. Chhajed 06 06

Stakeholders Relationship receipt of interest on bonds/declared of the Board (CSCB) was approved by
Committee (SRC) Cum dividends, etc. The Customer Service the Central Board in its meeting dated
Customer Service Committee of Committee of the Board (CSCB) was 25.06.2020 and the merged Committee
the Board (CSCB) constituted on the 26th August 2004, was named as Stakeholders Relationship
In pursuance of Regulation 20 of SEBI to bring about ongoing improvements Committee cum Customer Service
(Listing Obligations & Disclosure on a continuous basis in the quality of Committee of the Board and became
Requirements) Regulations, 2015, customer service provided by the Bank. effective from 26.06.2020. The Committee
Stakeholders Relationship Committee In line with the view expressed in the was last reconstituted on 23rd December
(SRC) [earlier known as Shareholders’/ RBI’s Discussion Paper on “Governance 2022 and has six members. It is chaired by
Investors’ Grievance Committee of the in Commercial Banks in India” published a Non- Executive Independent Director.
Board (SIGCB), formed on 30th January on its website on 11th  June 2020, and The composition of the Committee and its
2001] was formed to look into the with a view to rationalise the number of role complies with the SEBI Regulations.
redressal of Shareholders’ and Investors’ Board Level Committees, the merger of The Committee i.e., Stakeholders
complaints regarding transfer of shares, Stakeholders Relationship Committee Relationship Committee cum Customer
non-receipt of annual report, non- (SRC) and Customer Service Committee Service Committee of the Board met four
times during 2022-23.

Dates of Meetings of SRC cum CSCB Held & Attendance of Directors During 2022-23
No. of Meetings held: 4

Dates of the Meetings: 14.06.2022, 19.09.2022, 20.12.2022, 14.03.2023

No. of Meetings held after nomination/

Name of the Director No. of Meetings attended
election / during incumbency
Shri B. Venugopal, Chairman of the Committee 04 04
Dr. Ganesh Natarajan 04 03
Shri Ketan S. Vikamsey 04 04
Shri Sanjeev Maheshwari (upto 19.12.2022) 02 02
Shri Prafulla P. Chhajed 04 01
Shri Challa Sreenivasulu Setty, MD 04 03
Shri Swaminathan J, MD (Member upto 21.06.2022) 01 01
Shri Alok Kumar Choudhary, MD (Member w.e.f. 22.06.2022) 03 03

108 Annual Report 2022 – 23

Number of Shareholders complaints received during the year: 289

Company Overview
Number not solved to the satisfaction of shareholders: Nil
Number of Pending Complaints: (Complaints which are sub-judice): Nil
Name and designation of Compliance officer: Smt. Shima Devi
(AGM Compliance & Company Secretary)

Special Committee of the Board The major functions of the Committee quickly, reviewing the efficacy of remedial
for Monitoring of Large Value are to monitor and review all large value action taken to prevent recurrence of

Responsible Approach
Frauds frauds with a view to identifying systemic frauds and putting in place suitable
The Special Committee of the Board lacunae, if any, reasons for delay in preventive measures. The Committee was
for monitoring of Large Value Frauds detection and reporting, if any, monitoring last reconstituted on the 23rd December
(SCBMF) was constituted on the progress of CBI/Police investigation, 2022 and has six members and is
29th March 2004. recovery position, ensuring that staff chaired by a Non-Executive Director. The
accountability exercise is completed Committee met six times during 2022-23:

Governance
Dates of Meetings of (SCBMF) Held & Attendance of Directors During 2022-23
No. of Meetings held: 6

Dates of the Meetings: 17.05.2022, 23.06.2022, 17.08.2022, 26.09.2022, 06.12.2022, 16.02.2023

No. of Meetings held after nomination/

Name of the Director No. of Meetings attended
election / during incumbency
Shri Sanjeev Maheshwari (Chairman of the Committee upto 05 05

Statutory Reports
19.12.2022)
Shri Prafulla P. Chhajed (Chairman of the Committee w.e.f. 06 06
23.12.2022)
Shri B. Venugopal (Member upto 21.06.2022) 01 01
Dr. Ganesh Natarajan (Member w.e.f. 23.12.2022) 01 01
Shri Ketan S. Vikamsey 06 05
Shri Mrugank M. Paranjape (Member w.e.f. 22.06.2022) 05 03

Financial Statements
Shri Challa Sreenivasulu Setty, MD (Member upto 21.06.2022) 01 01
Shri Swaminathan J, MD (Member upto 21.06.2022) 01 01
Shri Swaminathan J, MD (As Alternate Member) -- 01
Shri Ashwini Kumar Tewari, MD (Member w.e.f. 22.06.2022) 05 04
Shri Alok Kumar Choudhary, MD (Member w.e.f. 22.06.2022 05 04

IT Strategy Committee of the (i) approving IT strategy and policy (iv) 

evaluating effectiveness of
Board documents, ensuring that the management’s monitoring of IT
With a view to tracking the progress management has put an effective risks and overseeing the aggregate
of the Bank’s IT initiatives, the Bank’s strategic planning process funding of IT at the Bank level; and
Central Board constituted a Technology in place;
(v) 
reviewing IT performance
Committee of the Board on 26th August (ii) ensuring that the IT Organisational measurement and contribution of
2004. The Technology Committee has structure complements the IT to businesses (i.e. delivering the
been renamed as IT Strategy Committee business model and its directions; promised value).
of the Board w.e.f. 24th October 2011.
The Committee has played a strategic (iii) ensuring IT investments represent The Committee was last reconstituted
role in the Bank’s technology domain. a balance of risks and benefits on the 23rd December 2022 with six
The Committee is entrusted with the and that budgets are acceptable; members and is chaired by a Non-
following roles and responsibilities: Executive Director. The Committee met
five times during 2022-23.

109
Corporate Governance Report

Dates of Meetings of ITSC Held & Attendance of Directors During 2022-23

No. of Meetings held: 5

Dates of the Meetings: 24.05.2022, 23.08.2022, 27.10.2022, 12.12.2022, 06.03.2023

No. of Meetings held after nomination/

Name of the Director No. of Meetings attended
election / during incumbency
Dr. Ganesh Natarajan, Chairman of the Committee 05 05
Shri Challa Sreenivasulu Setty, MD (Member w.e.f. 22.06.2022) 04 04
Shri Swaminathan J, MD (Member upto 21.06.2022) 01 01
Shri Ashwini Kumar Tewari, MD 05 04
Shri B. Venugopal 05 04
Shri Ketan S. Vikamsey 05 05
Shri Mrugank M. Paranjape (Member upto 21.06.2022) 01 01
Shri Prafulla P. Chhajed 05 05

Corporate Social Responsibility of good corporate governance to December 2022 and has six members.
Committee review the activities undertaken by The Senior Managing Director on the
The Corporate Social Responsibility the Bank under Corporate Social Committee chairs the proceedings.
Committee (CSRC) was constituted on Responsibility Policy. The Committee During the year 2022-23, five meetings
the 24th September 2014 as a measure was last reconstituted on the 23rd of the Committee were held.

Dates of Meetings of CSRC Held & Attendance of Directors During 2022-23

No. of Meetings held: 05

Dates of the Meetings: 19.04.2022, 11.08.2022, 01.11.2022, 06.12.2022, 13.02.2023

No. of Meetings held after nomination/

Name of the Director No. of Meetings attended
election / during incumbency
Shri Challa Sreenivasulu Setty, MD (Chairman of the Committee) 05 04
Shri Ashwani Bhatia, MD (upto 31.05.2022) 01 01
Shri Alok Kumar Choudhary, MD (Member w.e.f. 22.06.2022) 04 03
Shri Swaminathan J. (As Alternate Member) - 01
Shri B. Venugopal 05 04
Dr. Ganesh Natarajan 05 03
Shri Ketan S. Vikamsey (Member upto 21.06.2022) 01 01
Shri Mrugank M. Paranjape 05 03
Shri Prafulla P. Chhajed 05 05

Nomination and Remuneration Committee (NRC) and accordingly a criteria/ framework for evaluation of
Committee of the Board single NRC was constituted w.e.f. 25th performance of the Board, Board Level
RBI vide its Master Direction DBR. October 2019. Committees, and the Directors. The
Appt. No: 9/29.67.001/2019-20 dated Committee was last reconstituted on
The Committee carries out necessary
2nd August 2019, ,and Government 23rd December 2022. The Committee
due diligence and arrive at the ‘fit and
of India vide its letter No. F. No has four non- executive Directors as
proper’ status of candidates filing
16/19/2019-BO.I dated 30.08.2019 members. The Committee meets at
nominations for election for the post
have directed the Bank to constitute a least once a year. In FY2023, NRC
of shareholder Director. In addition,
single Nomination and Remuneration met once.
NRC also, inter alia, formulates the

110 Annual Report 2022 – 23

Dates of Meetings of NRC Held & Attendance of Directors during 2022 - 23

Company Overview
No. of Meetings held: 1

Dates of the Meetings: 07.12.2022

No. of Meetings held after nomination/

Name of the Director No. of Meetings attended
election / during incumbency
Shri B. Venugopal (Chairman of the Committee) 01 01

Responsible Approach
Dr. Ganesh Natarajan 01 01
Shri Ketan S. Vikamsey 01 01
Shri Mrugank M. Paranjape 01 01
Shri Sanjeev Maheshwari (Member upto 19.12.2022) 01 01

Board Committee to Monitor the Borrower being a Wilful Defaulter/ Sitting Fees is guided by GoI guidelines
Recovery Non-Co-operative Borrower) and and is approved by the Central Board of

Governance
In terms of Govt. of India advice, a confirm the same for the Order to be the Bank. With effect from 25th October
Board Committee to Monitor Recovery considered final. 2019, Sitting Fees of `70,000/- is
was constituted by the Central Board paid for attending the Meetings of
The Committee met eight times during
at its meeting held on 20th December the Central Board and `30,000/- for
the year 2022-23.
2012 for overseeing Recovery of Loans attending the meetings of other Board
and Advances. The Committee was level Committees. Details of Sitting
Local Boards
last reconstituted on 23rd December fees paid during the year 2022-23 are

Statutory Reports
In terms of the provisions of SBI Act placed in Annexure-IV.
2022. It has nine members consisting of
and General Regulations 1955, at every
Chairman, four Managing Directors and
centre where the Bank has a Local Head Compliance with Bank’s Code
four Non-Executive Directors including
Office (LHO), Local Boards/Committees of Conduct
the Govt. of India Nominee Director. The
of Local Boards are functional. The
Committee met five times during the The Directors on the Bank’s Central
Local Boards exercise such powers and
year and reviewed large NPA accounts of Board and Senior Management have
perform such other functions and duties
the Bank the overall NPA management. affirmed compliance with the Bank’s

Financial Statements
delegated to them by the Central Board.
Code of Conduct for the financial year
As on 31st March 2023, Local Boards
Review Committee for 2022-23. Declaration to this effect
at two LHOs and Committees of the
Identification of Wilful signed by the Chairman is placed in
Local Boards at the remaining fifteen
Defaulters/ Non-Co-Operative Annexure-V. The Code of Conduct is
LHOs were functional. The Minutes and
Borrowers also posted on the Bank’s website.
Proceedings of the meetings of Local
The Committee was constituted by Boards/ Committees of Local Boards
the Central Board in its meeting held Developments During the Year
are placed before the Central Board.
on 17th May 2016 in terms of RBI 1. 
Number of awareness
instructions. The Managing Director– Sitting Fees programmes for the Board of
Risk, Compliance & SARG is Chairman Directors were arranged during
The remuneration of the Whole Time
of the Committee, and four Non- the year. This included emerging
Directors is prescribed by GOI from
Executive Directors are members. issues of financial sector like
time to time. Non-Executive Non-
ESG, Credit delivery to specific
The role of this Committee is to review Official Directors of the Bank are paid
sectors, Information security
the Order of the “Committee for Sitting Fee for attending the meetings
etc. In addition, the Board
Identification of Wilful Defaulters/Non- the Board/ Committees of the Board.
Members were also briefed on the
Co-operative Borrowers” (a committee No remuneration, other than the Sitting
strategies being implemented by
comprising Dy. Managing Director Fee for attending meetings of Board
the business groups, the Bank’s
and Senior Executives of the Bank to and/or its Committees, is paid to Non-
Subsidiaries, IT Developments,
examine the facts and record the fact of Executive Directors. The amount of

111
Corporate Governance Report

IT & Cyber Security, HR & for Performance evaluation of the way forward. The main purpose
Training, Corporate Governance, Directors, Chairman, Board Level of the workshop was to brainstorm
Assurance function, etc. Some Committees and Central Board as and ideate on the Bank’s strategy
of the presentations made to the a whole, and also facilitated the on ongoing five-year period
Board of Directors included: performance evaluation process. with emphasis on the emerging
The Nomination and Remuneration economic landscape, global
y Presentation on Cyber Security:
Committee of the Board had headwinds, disruptive technologies,
Incidents and Governance
approved the framework/criteria for and emerging challenges faced
y Presentation on T-Bill the said performance evaluation. from new-age players to enable the
linked pricing The parameters for evaluation and Bank in consolidating its position as
y Presentation on Emerging the overall process were aligned the premier Bank.
landscape of Banking & to the provisions of the SEBI
4. Accordingly, presentations on
Financial Markets (Listing Obligations and Disclosure
various topics related to Digital
y Presentation on specific Requirements) Regulations, 2015
Banking & Transformation,
sectors like Real Estate, and new SEBI Guidance Note
Transaction Banking, Corporate
Renewable energy, Steel on Board Evaluation, 2017. The
Credit, Climate Finance,
industry etc. Performance Evaluation Exercise
Treasury Book & Balance Sheet,
for FY2023 was carried out during
y Presentation on NBFC Sector International Banking, Agriculture
the year.
by CRISIL and Allied Business, MSME
y Presentation on Power 
The performance evaluation of Business, Retail and Wealth
Distribution Utilities the Board has validated the Board Business, IT & Analytics, Value
of Directors’ confidence in the Creation by Subsidiaries, Stressed
y Presentation on 5G impact on
governance values of the Bank, Assets, Customer Experience
Optical Fibre
the synergy and collaboration Enhancement, Human Resources,
y Presentation on AI/ML based amongst the Board of Directors Assurance Functions etc. were
Early Warning Signals (EWS) and the Top Management. made by Senior functionaries to
the Board of Directors. The Board,

The Directors also attended 3. 
Keeping in mind the Bank’s
during the workshop, laid down
Seminars/ Meetings convened endeavour to stay ahead of the
appropriate strategies and set
by Government of India and curve in the dynamic financial sector
goals for Business Growth and
Professional bodies like IDRBT/ environment and to implement the
Key financial parameters.
CAFRAL (sponsored by RBI) global best practices in Corporate
during the year. Governance, a Strategy Workshop 5. During the Strategy workshop, a
(Vision 2027) was organised at renowned speaker on financial
Performance
2.  Evaluation of Kovalam, Thiruvananthapuram sector also addressed the
the Board: With an objective to on 9th and 10th January 2023 to participants on “Ever evolving
continuously improve corporate keep the Board members and the banking services in the country
governance, a reputed external Top Management of the Bank in and the likely shape it may take
consulting organisation assisted alignment with the latest trend in going forward”, benefitting
the Bank in laying down parameters the financial sector and to decide on the participants.

Salary And Allowances Paid to The Chairman and Managing Directors in FY2023 (`)
Name Basic DA Other Total Period
Dinesh Kumar Khara 2700000.00 999000.00 3699000.00 01.04.2022 to 31.03.2023
Challa Sreenivasulu Setty 2634300.00 974886.00 100234.00 3709420.00 01.04.2022 to 31.03.2023
Ashwani Bhatia 423200.00 143888.00 567088.00 01.04.2022 to 31.05.2022
Swaminathan Janakiraman 2611870.96 967118.97 3578989.93 01.04.2022 to 31.03.2023
Ashwini Kumar Tewari 2611870.96 967118.97 3578989.93 01.04.2022 to 31.03.2023
Alok Kumar Choudhary 2067020.01 778894.80 3850.00 2849764.81 07.06.2022 to 31.03.2023

112 Annual Report 2022 – 23

 ttendance at the
A the shareholders as per the determining ‘material’ subsidiaries

Company Overview
Annual General Meeting relaxation given by MCA and are available on the bank’s
SEBI due to Covid 19 pandemic. website www.sbi.co.in or https://
The Annual General Meeting (AGM) of bank.sbi under link: https://sbi.
the Bank is generally held in Mumbai (iii) AGM for the year 2019 - 20 was
co.in/web/ investor-relations/
where the Corporate Centre of the held on 14th July 2020 at Mumbai
disclosureunderregulation- 4 6
Bank is located. As per SBI Act, 1955 by VC / OAVM at 11.00 AM and
or https://bank.sbi/
only one agenda i.e., to discuss and e-voting facility was provided
web/ investor-relations/

Responsible Approach
adopt the Balance Sheet and Profit to the shareholders as per the
disclosureunderregulation-46.
and Loss Account of the Bank made relaxation given by MCA and
up to the previous 31st day of March, SEBI due to Covid 19 pandemic. 5. 
In terms of Regulation 25(9) of
the Director’s Report and Auditor’s SEBI (LODR) Regulations, 2015 the
Report thereon is placed before the Disclosure Central Board at its meeting held
shareholders in the AGM. SBI Act, on 27.04.2022 has taken on record
1. The Bank has not entered into any
1955 and SBI General Regulations, the Declaration and Confirmation
materially significant related party
received from Independent

Governance
1955 does not provide the postal transactions with its Promoters,
ballot facility. Directors under Regulation 25(8)
Directors or Management, their
of SEBI (LODR) Regulations, 2015
The details of the last three Annual subsidiaries or relatives, etc., that
and Independent Directors fulfill
General Meetings (AGMs) of the may have potential conflict with the
the conditions specified under
Bank are as under: interest of the Bank at large.
Regulation 16(1)(b) of SEBI (LODR)
(i) 
AGM for the year 2021-22 2. 
The Bank has complied with Regulations and are independent of
was held on 22nd June 2022, applicable rules and regulations the management.

Statutory Reports
at Mumbai by VC / OAVM prescribed by stock exchanges,
6. 
Discretionary Requirements as
at 3.00 PM and e-voting SEBI, RBI or any other statutory
specified in Part E of Schedule II of
facility was provided to the authority relating to the capital
SEBI (LODR), Regulations are as
shareholders as per the markets during the last three years.
follows: (i) The Bank has an Executive
relaxation given by MCA No penalties or strictures have been
Chairman, appointed under Section
and SEBI due to Covid 19 imposed by them on the Bank.
19(a) of the SBI Act, 1955 by the
pandemic. The following

Financial Statements
3. 
Whistle Blower Policy was Central Government in consultation
Directors attended the
introduced in your Bank vide GoI with the Reserve Bank of India (ii)
meeting: (i) Shri Dinesh
circular dated 04.11.2011 on Public The Bank prepares presentation on
Kumar Khara (ii) Shri Challa
Interest Disclosure & Protection of financial performance on quarterly
Sreenivasulu Setty (iii) Shri
Informer (PIDPI). The said policy is basis for its investors/ analysts and
Swaminathan J. (iv) Shri
reviewed from time to time. SEBI submits the copy of the same, to
Ashwini Kumar Tewari (v)
(LODR) Regulations, 2015 mandates two stock exchanges for investor’s
Shri Alok Kumar Choudhary
establishment of a mechanism information and is also made available
(vi) Shri B Venugopal (vii)
called “Whistle Blower Policy” to on Bank’s official website (iii) The
Dr. Ganesh Natarajan (viii)
report to the Management on fraud Bank has submitted a declaration
Shri Ketan S. Vikamsey (ix)
or violation of the Bank’s Code of with the stock exchanges that the
Shri Mrugank M. Paranjape
Conduct or ethic policy. The policy Statutory Auditors of the Bank have
(x) Shri Sanjeev Maheshwari
is made available on the website issued Audit Report on Audited
(xi) Shri Prafulla P. Chhajed
of the Bank on www.sbi.co.in. No Financial Results (Standalone and
(xii) Shri Anil Kumar Sharma.
personnel were denied access to Consolidated) for year ended 31st
(ii) AGM for the year 2020 - 21 the Audit Committee of the Board in March 2023 with unmodified opinion.
was held on 25th June 2021, terms of Whistle Blower Policy. (iv) The Bank has separate Internal
at Mumbai by VC / OAVM Audit Department which periodically
4. 
Policy on materiality of related
at 03.00 PM and e-voting submits its report directly to the
party transactions and policy for
facility was provided to Audit Committee of the Bank.

113
 Corporate Governance Report

7. The Bank has complied with all the Means of Communication interalia, official news releases of the
applicable mandatory requirements Bank, the Bank’s Annual Reports, Half-
The Bank strongly believes that all
of SEBI (LODR) Regulations, 2015 yearly and quarterly results and details
stakeholders should have access to
and the Bank has also complied of various product offerings. Every year,
complete information on its activities,
with the Corporate Governance after the annual / half-yearly / quarterly
performance and product initiatives. Annual,
requirements specified in results are declared, a Press- meet is held
half-yearly and quarterly results of the Bank
Regulation 17 to 27 and clauses (b) on the same day, in which the Chairman
for the year 2022-23 were published in the
to (i) of Regulation 46(2) and para addresses and answers the queries of the
leading newspapers of the country having
C, D and E of Schedule V to the media. This is followed by another meeting
wide circulation in India. The results were
extent that the requirements of the to which a number of investment analysts
also displayed on the Bank’s website www.
Clause do not violate the provisions / Investors are invited. Details of the
sbi.co.in or https:// bank.sbi. Soft copies
of State Bank of India Act 1955, the Bank’s performance are discussed with
of full Annual Report is sent to all those
rules and regulations made there the analysts / Investors in the meeting.
shareholders who have registered their
under and guidelines or directives After declaring quarterly results, press
e-mail address(es) either with the Bank
issued by the Reserve Bank of India. notifications are issued and copy of the
or with depositories and physical copy
same is submitted to the stock exchanges
8.  he securities of the Bank were not
T of Annual Report is being sent to other
along with the copy of presentation
suspended from trading during the shareholders who specifically request for
made on Bank’s performance for
Financial Year 2022–23. the same. The Bank’s website displays,
Investors/ Analysts.
General Information to Shareholders
The Annual General Meeting : Date: 27.06.2023, Time 03.00 PM Venue: State Bank Auditorium, State Bank Bhavan, Madame Cama
Road, Mumbai 400 021, through VC/OAVM.
Financial Calendar : 01.04.2022 to 31.03.2023
Dividend Payment Date : 14.06.2023
Listing of securities on : BSE Limited, Fort Mumbai and National Stock Exchange of India Limited, BKC Mumbai. GDRs are listed
Stock Exchanges on London Stock Exchange (LSE), Paternoster Square London; Dollar denominated bonds are listed in
Singapore Exchange Limited, SGX Center-1 Singapore. Listing fees have been paid upto date to all Stock
Exchanges, including LSE.
Stock Code/CUSIP : Stock Code 500112 (BSE), SBIN (NSE), CUSIP US 856552203 (LSE)
Share Transfer System : As per SEBI (LODR) Regulations, 2015, transfer of securities shall be effected only in demat form with effect
from 01st April, 2019. Further, in lieu of transmission of shares, a letter of confirmation carrying all details
of shares transmitted will be issued by the RTA as per SEBI guidelines. Quarterly share transfer audit and
reconciliation of share capital audit are regularly carried out by an independent firm of Company Secretaries.
Registrar and Transfer : M/s Alankit Assignments Ltd.
Agent (Existing)
Unit Address : 205-208, Anarkali Complex, E/7, Jhandelwalan Extension, New Delhi - 110055
Phone Numbers : 011-42541234, 7290071335
E-mail address : [email protected]
Address for : SBI, Shares & Bonds Department, Corporate Centre, 14th Floor, State Bank Bhavan, Madame Cama Road,
Correspondence Nariman Point, Mumbai 400 021.
Telephone Numbers : (022) 2274 0841 to 2274 0849
E-mail Address : [email protected] / [email protected]
Name of the debenture : IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai-400 001
trustees with full Contact No. 91-22-4080 7006 Fax Number: 91-22-6631 1776
contact details (Capital Axis Trustee Services Limited, Axis House, Bombay Dyeing Mills Compound Pandhurang Marg,
Instruments issued in Worli, Mumbai 400 025
INR) Tel: +91-22-6230 0451, Fax: +91-22-6230 0700
e-Initiative: In accordance with SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated 12th May 2020,and subsequent
SEBI Circular Nos. SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated 15th January 2021 SEBI/HO/CFD/CMD2/CIR/P/2022/62 dated
13th May 2022 and SEBI/HO/CFD/PoD-2/P/CIR/2023/4 dated 5th January 2023 the requirements of Regulations 36 (1)(b) and (c)
and Regulation 58 (1) (b) & (c) of the LODR are dispensed with and hence Annual Report will be forwarded to the shareholders at
their registered mail address through electronic mode only. Further Annual Report can be downloaded from our website https://
bank.sbi/web/investor-relations/annual-report.

114 Annual Report 2022 – 23

Investors’ Care way live webcast of the proceedings of holder of GDR desired to obtain the

Company Overview
the AGM. The webcast facility will be underlying equity shares of the Indian
To meet various requirements of the available from 02:30 PM onwards on Company, then such GDR was to be
investors regarding their holdings, the 27.06.2023 and the shareholders can converted into shares of the Indian
Bank has a full-fledged Department have access at https://www.evoting. Company, but not vice versa. Later,
- Shares & Bonds Department - at nsdl.com/ or https://bank.sbi. two-way fungibility of ADRs/ GDRs
Mumbai. The investors’ grievances, was permitted by the Government of
whether received at the Bank’s Capital Augmentation During India/ RBI. The Bank has permitted

Responsible Approach
offices or at the office of the Registrar FY2023 two-way fungibility to the Bank’s
and Transfer Agents, are redressed GDR programme.
expeditiously and monitored at the Top No equity capital was raised
Management level. during FY2023. The Bank had 89,16,095 GDRs as
on 31st March 2023 representing
Bank has decided to conduct AGM Outstanding Global Depository 891,60,950 equity shares.
through VC/ OAVM and provide Receipts (GDR)
e-voting facility to the shareholders of

Governance
the Bank. At the time of issue of GDRs in 1996,
two way fungibility was not permitted
In terms of Regulation 44 (6) of SEBI (LODR) by the Government/RBI, i.e., if the
Regulations, 2015 the Bank provides one

Unclaimed Shares

Statutory Reports
No. of Outstanding
Category of shareholder
Shareholders Shares
No. of shareholders and the outstanding shares lying in the Unclaimed Suspense account at the 1,118 2,51,646
beginning of the year
Add- No. of e-SBBJ shareholders and the outstanding shares lying in the Unclaimed 688 2,61,414
Suspense account at the beginning of the year
Total 1,806 5,13,060

Financial Statements
No. of Shareholders, who approached the issuer for transfer of shares from the unclaimed 94 49,090
suspense account during the year
No. of Shareholders, whom shares were transferred from the unclaimed suspense account 94 49,090
during the year
Aggregate No. of shareholders and the outstanding shares lying in the Unclaimed Suspense 1,712 4,63,970
account at the end of the year

The voting rights on such unclaimed disclosure-underregulation-46 under Interest rate derivatives dealt by the
shares shall remain frozen till the the tab “Codes & Policies”. Bank are Rupee Interest Rate Swaps
rightful owner of such shares claims (OIS), Foreign Currency Interest Rate
the shares. Qualitative Disclosure on Swaps (IRS), Forward Rate Agreements
Derivative Transactions (FRA), Caps, Floors and Collars.
Dividend Distribution Policy Financial Year 2022-23 Currency Derivatives dealt by the Bank
are Currency Swaps (CIRS / CCS),
The Bank has a Dividend Distribution The Bank, at present, deals in over the
USD/INR Options and CrossCurrency
Policy approved by the Central Board. counter (OTC) derivatives to hedge
Options. The Bank also does NDO and
The Policy is available on the Bank’s against interest rate and currency risks.
NDF trades as permitted by RBI.
website under the link: https:// It also deals in exchange traded Interest
sbi.co.in/ web/investor-relations/ Rate Futures, Currency Futures and
Currency Options.

115
Corporate Governance Report

The products are offered to Bank’s terms of CSA, collateral is posted or 2. 

In terms of Regulation 24A of
customers for hedging their exposures. transferred with swap counterparties Listing Regulations a secretarial
These are also used for reducing to mitigate the credit risk arising from audit report for financial year
Bank’s Balance Sheet Risk. Trading ‘in the money’ derivative positions. ended 31.03.2023 is annexed to
/ Arbitrage activities on Derivatives the Annual Report.
The Asset Liability Management
are done selectively within prescribed
Committee (ALCO) of the Bank 3. There is no revision in credit rating
risk limits whenever opportunities
oversees efficient management of of the debt instruments.
are sighted.
these risks. The Bank’s Market Risk
4. During FY2022 the Bank did not
The Bank runs USD/INR Option Book Management Department (MRMD)
raise capital through Preferential
and manages Greek limits efficiently. identifies, measures and monitors
Allotment or Qualified Institutional
The Bank also runs MIFOR book for market risk associated with derivative
Placement. Therefore a Nil
making USD / INR swap prices. transactions. MRMD assists ALCO in
statement of deviation/ variation
controlling and managing these risks
Derivative transactions carry market in utilisation of funds raised was
and reports compliance with policy
risk i.e., the probable loss the Bank may filed with the Stock Exchanges
prescriptions to the Risk Management
incur caused by adverse movements in under Regulation 32(1)of SEBI
Committee of the Board (RMCB) at
interest rates and / or exchange rates. (LODR), Regulations, 2015.
regular intervals.
A derivative position also carries credit
5. The Bank has obtained certificate
risk i.e., the probable loss the Bank The accounting policy for derivatives
under Regulation 34 and
may incur if the counterparties fail has been drawn up in accordance with
Schedule V of Listing Regulations
to meet their obligations. The Bank’s the RBI guidelines, the details of which
and none of the Directors of the
“Market Risk Limit Policy” approved by are presented under Schedule 17:
Bank have been debarred or
the Board prescribes measures to be Principal Accounting Policies (PAP).
disqualified from being appointed
taken to contain the risks. The market
by any statutory authority. (Copy
risk parameters (Greek limits, Loss Disclosures as Required under
of Certificate attached)
limits, Cut-loss triggers, Open position SEBI (LODR) Regulations, 2015
limits, VaR, Modified Duration, PV01, (as amended from time to time) 6. 
Details of familiarisation
etc.) have been clearly defined in the 1. 
The Central Board of the Bank programmes imparted for
Policy which are strictly adhered to. has reviewed and approved Independent Directors are
For containing Credit risk, the policy the terms of reference/ role/ disclosed on the website of
stipulates customer / counterparty reconstitution of various Board the Bank under the web link:
eligibility criteria [credit rating, tenure level committees viz Audit, https://sbi. co.in/web/corporate-
of relationship, availability of CEL Stakeholders Relationship, governance/ corporate-
limit, Customer Appropriateness & Risk Management and the governance under the tab
Suitability (CAS) testing etc.] which are Nomination and Remuneration “Regulatory Disclosures”
strictly complied. Appropriate limits are Committee, respectively, in 7. 
Total fees paid to existing
set for the corporate counterparties by terms of amendment in SEBI Statutory Central Auditors
respective Business Units considering (LODR) Regulations. The terms (SCAs) during FY2022 as per
their ability to honour obligations. The of reference/ role of Board Level the Schedule V Para C, Clause
Bank executes ISDA agreement with Committees was last reviewed by 10 (k) of Listing Regulations, is
each derivatives counterparty – both the Central Board on 06.03.2019 `5,72,01,589.00 only.
corporate as well as interbank. in line with the SEBI (LODR)
For each of the Interbank counterparty, Amendments Regulations,
a counterparty exposure limit is put in 2018. The last reconstitution
place by the Risk vertical. The Bank has of the Board Level committees
executed CSA (Credit Support Annex) was approved by the Central
– a part of ISDA Master Agreement Board in its meeting held on 23rd
with a few counterparties. As per the December 2022.

116 Annual Report 2022 – 23

Share Price Movement

Company Overview
The movement of the SBI share price (Lows & Highs) along with BSE Sensex / NSE Nifty is presented in the following graphs.

Stock Performance at BSE (FY2023)

650.00 63500.00
640.00 63000.00
630.00 62500.00
620.00 62000.00

Responsible Approach
610.00 61500.00
600.00 61000.00
590.00 60500.00
580.00 60000.00
570.00 59500.00
560.00 59000.00
Share Price (in `)

550.00 58500.00

Sensex (in `)
540.00 58000.00
530.00 57500.00
520.00 57000.00
510.00 56500.00
500.00 56000.00

Governance
490.00 55500.00
480.00 55000.00
470.00 54500.00
460.00 54000.00
450.00 53500.00
440.00 53000.00
430.00 52500.00
420.00 Low Price High Price Sensex 52000.00
410.00 51500.00
400.00 51000.00
01-Apr-22

15-Apr-22

29-Apr-22

13-May-22

27-May-22

10-Jun-22

24-Jun-22

08-Jul-22

22-Jul-22

05-Aug-22

19-Aug-22

02-Sep-22

16-Sep-22

30-Sep-22

14-Oct-22

28-Oct-22

11-Nov-22

25-Nov-22

09-Dec-22

23-Dec-22

06-Jan-23

20-Jan-23

03-Feb-23

17-Feb-23

03-Mar-23

17-Mar-23

31-Mar-23

Statutory Reports
Date

Stock Performance at NSE (FY2023)

650.00 19000.00

Financial Statements
640.00 18850.00
630.00 18700.00
620.00 18550.00
610.00 18400.00
600.00 18250.00
590.00 18100.00
580.00 17950.00
570.00 17800.00
560.00 17650.00
Share Price (in `)

550.00 17500.00
Nifty 50 (in `)
540.00 17350.00
530.00 17200.00
520.00 17050.00
510.00 16900.00
500.00 16750.00
490.00 16600.00
480.00 16450.00
470.00 16300.00
460.00 16150.00
450.00 16000.00
440.00 15850.00
430.00 15700.00
420.00 Low Price High Price Nifty 15550.00
410.00 15400.00
400.00 15250.00
01-Apr-22

15-Apr-22

29-Apr-22

13-May-22

27-May-22

10-Jun-22

24-Jun-22

08-Jul-22

22-Jul-22

05-Aug-22

19-Aug-22

02-Sep-22

16-Sep-22

30-Sep-22

14-Oct-22

28-Oct-22

11-Nov-22

25-Nov-22

09-Dec-22

23-Dec-22

06-Jan-23

20-Jan-23

03-Feb-23

17-Feb-23

03-Mar-23

17-Mar-23

31-Mar-23

Date

117
Corporate Governance Report

Market Price Data

BSE (`) NSE (`) LSE (GDR) US$
Months
High Low High Low High Low
Apr-22 517.50 494.70 517.70 494.75 67.40 64.20
May-22 490.75 445.05 491.00 444.65 57.50 64.50
Jun-22 471.05 434.25 471.30 434.70 55.90 60.40
Jul-22 532.30 466.90 532.45 466.85 58.70 66.80
Aug-22 541.85 511.20 542.10 511.30 68.40 64.00
Sep-22 574.10 521.95 574.05 521.75 63.30 71.80
Oct-22 579.55 519.65 579.65 519.75 63.40 70.27
Nov-22 615.55 573.95 615.55 573.85 69.32 75.58
Dec-22 625.55 573.95 625.50 574.00 75.86 69.27
Jan-23 612.35 538.35 612.40 538.20 66.03 73.88
Feb-23 552.95 516.35 553.05 516.35 62.32 67.03
Mar-23 564.80 505.60 564.80 505.35 61.27 68.84

Note: Highs and Lows are taken from the closing price of the share, Book Value per Share `309.89 as on 31.03.2023

Shareholding Pattern as on 31st March 2023

Sr. % of Total
Description
No. Shares
1 President of India 56.92
2 Non-residents (FIIs/OCBs/NRIs/GDRs) 11.05
3 Mutual Funds & UTI 13.28
4 Private Corporate Bodies 0.64
5 Banks/ FIs/ Insurance Cos., etc. 11.69
6 Others (including Resident Individuals) 6.42
Total 100.00

Top Ten Shareholders as on 31st March 2023

Sr. % of Shares in
Name
No. Total Equity
1 President of India 56.92
2 Life Insurance Corporation of India 8.68
3 SBI Mutual Fund (though various schemes) 3.11
4 HDFC Mutual Fund (though various schemes) 1.75
5 ICICI Prudential Mutual Fund (though various schemes) 1.50
6 NPS Trust (though various schemes) 1.28
7 Government of Singapore 1.05
8 The Bank of New York Mellon 1.00
9 Nippon India Mutual Fund (though various schemes) 0.97
10 Kotak Mutual Fund (though various schemes) 0.95

118 Annual Report 2022 – 23

Dematerialisation of Shares and Liquidity: Bank’s equity shares are compulsorily traded in the electronic form. As on

Company Overview
31st March 2023, 8,86,08,82,539 shares representing 99.28% of total equity capital were held in electronic form.

Description No. Share Holders No. of Shares Share %

NSDL 12,34,425 3,50,48,00,608 39.27
CDSL 17,22,506 5,35,60,81,931 60.01
PHYSICAL 1,58,873 6,37,29,395 0.72
Total 31,15,804 8,92,46,11,934 100.00

Responsible Approach
Distribution Schedule as on 31st March 2023 (Face Value of ` 1 Each)
Range No. of Shares Total Holders % to Total Holders Total Holdings in ` % of Amount
1-5000 31,05,254 99.66 48,76,99,523 5.46
5001-10000 5,472 0.18 3,88,16,091 0.43

Governance
10001-20000 2,229 0.07 3,11,98,446 0.35
20001-30000 658 0.02 1,63,00,428 0.18
30001-40000 284 0.01 99,38,958 0.11
40001-50000 197 0.01 90,24,071 0.10
50001-100000 442 0.01 3,20,90,186 0.36
100001-ABOVE 1,268 0.04 8,29,95,44,231 93.00

Statutory Reports
Total 31,15,804 100 8,92,46,11,934 100.00

Financial Statements

119
Corporate Governance Report

ANNEXURE I
Brief Resumes of The Non- house, he gained extensive knowledge Transformation. He is also Chairman
Executive Directors on the in Information Technology, having of Honeywell Automation India
Board as on 31st March 2023 worked, initially, as a Programmer and Limited and Lighthouse Communities
Systems Analyst and, subsequently, as Foundation. He was earlier Chairman
Shri B Venugopal the head of IT for 7 years. It has been of SVP India and MD of Aptech Ltd.
his privilege to have led the teams that and Zensar Technologies Ltd. He has
Shri B. Venugopal, born in 1959,
developed and implemented most of received the Distinguished Alumnus
is a Director re-appointed by the
the path-breaking initiatives taken Award of NITIE and IIT Bombay. Two
Shareholders u/s 19 (c) of the SBI
by LIC in the field of IT, including the case studies on his work have been
Act for the period from 26th June
introduction of LIC’s Core Business written and taught at ISB, IIM Bengaluru
2020 till 25th June 2023. He is a
Solution (1995-97), setting up of the first and Harvard Business School.
former Managing Director of the
ever Metro Area Networking and IVR
Life Insurance Corporation of India
Systems of LIC(1998), the Corporate CA. Ketan S. Vikamsey
(LIC), with a work experience of
Active Data Warehouse (2005), Online
36 years in LIC and 2 years in the CA. Ketan S Vikamsey is a Director
Premium Collection (2006), Enterprise
erstwhile State Bank of Travancore. elected by the Shareholders u/s 19
Document Management Systems
A graduate of the University of Kerala (c) of the SBI Act w.e.f. 26th June 2020
(2007), and Online Underwriting
in Commerce and Cost Accounting, till 25th June 2023. Mr. Vikamsey is a
Engine & Online sale of Policies(2012),
Venugopal has undergone extensive senior partner at KKC & Associates
to name a few. During his tenure as the
training in Business strategies, Project LLP (formerly Khimji Kunverji & Co
Head of IT, LIC won the NASSCOM
Management, Finance, Marketing, LLP), Chartered Accountants, a
award for the best user of IT amongst
Information Technology, etc., from the firm established in 1936. He holds a
insurance companies in India, on
National Insurance Academy - Pune, Certification on IFRS by ICAI; Diploma
more than one occasion. Since 2009,
IIMs - Ahmedabad and Kolkata, the in Information System Audit (DISA) of
Venugopal has represented LIC on
ISB - Hyderabad, Asian Institute of ICAI; and Certification in IT and Cyber
the Boards of Directors of various
Management - Manila and FALIA – Security for Board Members by IDRBT,
Institutions in India and abroad. He has
Japan. During his career in LIC, he Hyderabad. He is registered as an
also served on the Governing Boards
has gathered vast experience in all Independent Director with the Indian
of the National Insurance Academy
areas of the institution’s working, Institute of Corporate Affairs.
and the Insurance Institute of India as
including Marketing, Administration
also as a Trustee of the LIC of India He comes with over thirty years’
and Information Technology, having
Provident Fund and the LIC of India experience in the areas of audit of
worked, inter alia, as Executive
Golden Jubilee Foundation. Currently large banks, manufacturing concerns,
Director (Information Technology),
he serves as an Independent Director Investment Banks, Insurance
Chief (IT/BPR), Regional Manager
on the Boards of the State Bank of Companies and Mutual Funds. He
(E&OS), Chennai, and Senior Divisional
India and National Commodities and is a regular Speaker/ Chairman, at
Manager in charge of Madurai and
Derivatives Exchange Ltd (NCDEX). various seminars, meetings, lectures
Coimbatore Divisions.
held by ICAI, Regional Councils of
Before taking charge as Managing Dr. Ganesh Natarajan ICAI, Branches & Study Circles of
Director, he was the Zonal Manager-in ICAI, RBI, C&AG and several other
Dr. Ganesh Natarajan is a Director
charge of the biggest of LIC’s 8 Zones organisations. He is a Trustee at
elected by the Shareholders u/s 19
– the Western Zone, comprising the Vipassana Research Institute, Igatpuri
(c) of the SBI Act w.e.f. 26th June 2020
States of Goa, Gujarat and Maharashtra and Shri V L Vidyarthigriha – a NGO
till 25th June 2023. Dr Natarajan is
and accounting for almost 25% of LIC’s operating a modern Hostel facility in
Founder and Chairman of 5F World,
Premium Income. Since LIC develops the heart of Mumbai with a capacity
a platform for Global consulting and
and maintains all its software in- of over 150 students. He is a wildlife
Investing in Digital Skills and Digital

120 Annual Report 2022 – 23

and nature lover, having keen interest He was the President of The Institute Dr. Vivek Joshi, IAS

Company Overview
in professional photography, having of Chartered Accountants of India
widely travelled across the world, with (2019-20) and was Chairman of Dr. Vivek Joshi is a Director, nominated
a passion for exploring new places and WIRC of ICAI (2007-08). He is Deputy by the Central Government, u/s 19(e) of
varied interesting cultures. President of Confederation of Asia & SBI Act w.e.f. 15th November 2022, till
Pacific Accountants (CAPA), Malaysia further order.
Shri Mrugank M Paranjape (2021-2023). He is member of Dr. Joshi joined the Indian
Professional Accountancy Organisation Administrative Service (IAS) in 1989.

Responsible Approach
Shri Mrugank M Paranjape is a Director
Development Group of International He holds a PhD in International
elected by the Shareholders u/s 19 (c)
Federation of Accountants (IFAC), Economics from the Graduate Institute
of the SBI Act w.e.f. 26th June 2020 till
New York. He is member of Board of Geneva (Switzerland). He completed
25th June 2023. He is a Bachelor in
Management of Mumbai School of his doctorate under the guidance of
Technology from the Indian Institute
Economics & Public Policy (University Prof Richard Baldwin. He is also an
of Technology Mumbai with a Post
of Mumbai). He is Governing Council alumnus of University of Roorkee
Graduate Diploma in Management from
Member and Chairman of Banking, (now, Indian Institute of Technology
the Indian Institute of Management

Governance
Finance and Information Technology Roorkee), where he did his B.E. in
Ahmedabad. He has more than 30
Committee of Maharashtra Chamber of Mechanical Engineering in 1987.
years of experience in Banking,
Commerce, Industry and Agriculture.
Capital Markets, Asset Management Dr. Vivek Joshi is currently posted as
and Stock Broking covering varied In the Past, He has served as an Secretary to the Government of India,
functional and geographic areas. He Independent Director in Insurance Department of Financial Services,
is currently the Managing Director & Regulatory & Development Authority Ministry of Finance since 1st November
Chief Executive Officer of NCDEX e (IRDA) and as member of Primary

Statutory Reports
2022. In this assignment, Dr. Joshi is
Markets Limited. Earlier he was the Market Advisory Committee of SEBI. dealing with policies, schemes and
Managing Director & Chief Executive He has served as Director in ICAI legislations related to banking sector
Officer of Multi Commodity Exchange Accounting Research Foundation, including Public Sector Banks,
of India Limited. Prior to that he held Director in Indian Institute of Insolvency insurance sector, Financial Institutions,
senior management positions at Professionals of ICAI, Director in ICAI financial inclusion, and pension reforms.
Deutsche Bank in Singapore and India. Registered Valuers Organisation, He is also serving as member on the
He has previously worked with ICICI Director in Extensible Business

Financial Statements
board of Reserve Bank of India (RBI).
Prudential AMC, India Infoline, ING Reporting Language (XBRL) India. He
Barings, and Citibank amongst others. was Chairman of Executive Committee Prior of this position, he was working
of World Congress of Accountants 2022 as Registrar General and Census
CA. Prafulla P Chhajed constituted by International Federation Commissioner, India under the Ministry
of Accountants (IFAC). He has served of Home Affairs, Government of India
CA. Prafulla P Chhajed is a Director for almost four years. He also worked
as an Independent Director in SBI
nominated by the Central Government with the Government of Haryana
Mutual Fund Trustee Company (P)
u/s 19 (d) of the SBI Act, with effect as Principal Secretary, Monitoring
Ltd and also an Independent Director
from 21st December 2021 for a period and Coordination, CEO, Gurugram
of GIC Housing Finance Limited. He
of 3 years. Mr. Chhajed is a fellow Metropolitan Development Authority,
has served on various National and
and practicing member of The Institute Gurugram; Chief Administrator,
International organisations such as
of Chartered Accountants of India Trade Fair Authority of Haryana
SAFA, IFAC SMP committee, CA
(ICAI) and member of CPA (Australia). (TFAH), New Delhi; Director Swarna
Worldwide, Integrated Reporting
He has done LLB (Gen) and holds ICAI Jayanti Haryana Institute for Fiscal
Council etc. He has widely travelled
certificate on Forensic Accounting Management, Panchkula. Prior to
across the globe and addressed many
& Fraud Detection and Certificate these assignments he has also worked
seminars and conferences both in India
on Business Responsibility and as Member Secretary, Fifth State
and Internationally.
Sustainability Report (BRSR). Finance Commission; and Divisional
Commissioner Ambala in Haryana
State (2017- 2018).

121
Corporate Governance Report

During 2014-2017, he has served of India (2001-2006), where he Shri Sharma is a former Executive
as Joint Secretary in the Ministry of advised the Ministry on WTO related Director of Reserve Bank of India
Finance, Government of India, where textiles matters, especially, Non- (Superannuated on 31.03.2023). He has
his responsibilities included advising Agricultural Market Access (NAMA) done his Masters in Economics from
the Government in formulation of and Agreement on Textile & Clothing Doaba College Jalandhar, Punjab and
public procurement policy. He was also (ATC) negotiations, Jute and Cotton was UGC Fellow at Gokhale Institute
involved with the appraisal of public Sector. He also participated in Regional of Politics and Economics, Pune before
funded projects and schemes in some Trading Agreement Negotiations, joining RBI in 1986. He holds a Diploma
key sectors of economy e.g., Road & especially related with South Asian in Treasury and Risk Management
Highways, Urban Development, UIDAL Free Trade Agreement (SAFTA) and and is a Certified Associate of Indian
Space, Atomic Energy and Railways. He India Sri Lanka FTA. Institute of Bankers.
also served as the first Administrator of
Additionally, he has been Deputy His experience in Reserve Bank lies in
Swachh Bharat Kosh (SBK) a public
Commissioner, Joint Secretary Finance the area of supervision, rural credit and
fund, created by the government to
and Director of the Treasury in the financial inclusion, customer education
achieve the objective of Clean India. He
State of Haryana. and protection, management of
has also worked as Joint Secretary to
currency and banking, among others.
the Government of India in the Ministry
Shri Anil Kumar Sharma He has also worked as member of
of Women and Child Development
faculty in Reserve Bank’s College of
(2010-2014), where he worked in area Shri Anil Kumar Sharma is a Director,
Agricultural Banking, Pune.
of Child Rights and Child Protection. nominated by the Central Government,
u/s 19(f) of SBI Act w.e.f. 13th April
He has also served as Director in
2021, till further order.
the Ministry of Textiles, Government

122 Annual Report 2022 – 23

ANNEXURE II

Company Overview
Details of Directorship in the listed entities including Bank & Chairmanships/Membership in Audit/Stakeholders Committee(s)
held by the Directors of the Bank in Listed entities including Bank as on 31.03.2023 in due compliance with Regulation 26(1) of
SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015

Number of Directorship &

Chairmanships/ Membership
Sr. Date of Appointment in the

Responsible Approach
Name of the Director Designation in Audit/Stakeholders
No. current term/ Cessation
Committee(s) held in listed
entities including Bank
1. Shri Dinesh Kumar Khara Chairman 07.10.2020 / 06.10.2023 Director (Chairman): 03
Committee Member: Nil
2. Shri Challa Sreenivasulu Setty Managing Director 20.01.2023 / 19.01.2025 Director: 01
Committee Member: 01

Governance
3. Shri Swaminathan J. Managing Director 28.01.2021 / 27.01.2024 Director: 03
Committee Member: 05
4. Shri Ashwini Kumar Tewari Managing Director 28.01.2021 / 27.01.2024 Director: 01
Committee Member: Nil
5. Shri Alok Kumar Choudhary Managing Director 07.06.2022 / 30.06.2024 Director: 01
Committee Member: 01
6. Shri B. Venugopal Non-Executive Director 26.06.2020 / 25.06.2023 Director: 01

Statutory Reports
Committee Member: 03
Chairman of Committee: 01
7. Dr. Ganesh Natarajan Non-Executive Director 26.06.2020 / 25.06.2023 Director: 03
Committee Member: 06
Chairman of Committee: 01
8. Shri Ketan S. Vikamsey Non-Executive Director 26.06.2020 / 25.06.2023 Director: 01
Committee Member: 02

Financial Statements
Chairman of Committee: 01
9. Shri Mrugank M. Paranjape Non-Executive Director 26.06.2020 / 25.06.2023 Director: 01
Committee Member: 01
10. Shri Prafulla P. Chhajed Non-Executive Director 21.12.2021 / 20.12.2024 Director: 01
Committee Member: 01
11. Dr. Vivek Joshi Non-Executive Director 15.11.2022/ till further order Director: 01
Committee Member: Nil
12. Shri Anil Kumar Sharma Non-Executive Director 13.04.2021/ till further order Director: 01
Committee Member: 01

123
Corporate Governance Report

ANNEXURE-II A
Total Number of Memberships/Chairmanships held by the Directors on the Boards / Board-level Committees of the Bank/
Other Companies as on 31.03.2023

1. SHRI DINESH KUMAR KHARA

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
1 State Bank of India Chairman Executive Committee of the Central Board – Chairman
Board Committee to Monitor Recovery – Chairman
2 SBI Life Insurance Company Ltd. Chairman --
3 SBI Cards and Payment Services Ltd. Chairman --
4 SBI General Insurance Co. Ltd. Chairman --
5 SBI Funds Management Ltd. Chairman --
6 SBI Capital Markets Ltd. Chairman --
7 SBI Foundation Chairman --
8 State Bank Operations Support Services Pvt. Ltd. Chairman --
9 SBICAP Ventures Ltd. Director --
10 Export-Import Bank of India Director --
11 Indian Institute of Banking and Finance President --

2. SHRI CHALLA SREENIVASULU SETTY

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
1 State Bank of India Managing Director Executive Committee of the Central Board – Member
Stakeholders Relationship Committee cum Customer
Service Committee of the Board – Member
Board Committee to Monitor Recovery – Member
IT Strategy Committee – Member
Corporate Social Responsibility Committee – Chairman

3. SHRI SWAMINATHAN J.
Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
1 State Bank of India Managing Director Executive Committee of the Central Board – Member
Risk Management Committee of the Board – Member
Board Committee to Monitor Recovery – Member
2 SBI Cards and Payment Services Ltd. Director Executive Committee – Chairman
Nomination and Remuneration Committee – Member
3 SBI Life Insurance Co Ltd. Director Audit Committee – Member
Investment Committee – Member
Risk Management Committee – Member
Policyholder Protection Committee – Member
Nomination and Remuneration Committee – Member
Corporate Social Responsibility Committee – Member
Stakeholders Relationship Committee – Member

124 Annual Report 2022 – 23

Sr. Chairman/ Name(s) of the Committee(s)-

Company Overview
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
4 SBI Capital Markets Ltd. Director Committee of Directors – Chairman
Audit Committee – Member
Nomination & Remuneration Committee – Member
Risk Management Committee – Member
CSR Committee – Member
Information Technology Strategy Committee – Member

Responsible Approach
5 SBICAP Ventures Ltd. Director Nomination and Remuneration Committee – Chairman
6 SBICAP Securities Ltd. Director --
7 SBI General Insurance Co Ltd. Director Investment Committee – Chairman
Policyholders Protection Committee – Chairman
Risk Management Committee – Member
Audit Committee – Member
Bancassurance Committee – Member
Corporate Social Responsibility Committee – Member

Governance
Nomination and Remuneration Committee – Member
Technology Committee – Member
8 SBI Funds Management Ltd. Director Share Allotment Committee – Member
Nomination Remuneration Committee – Member
IPO Committee – Member
9 SBI DFHI Ltd. Chairman Nomination and Remuneration Committee – Member
10 SBI Global Factors Ltd. Chairman Nomination and Remuneration Committee – Member
Audit Committee – Member

Statutory Reports
11 SBI Payment Services Pvt Ltd. Chairman --
12 SBI Pension Funds Pvt Ltd. Chairman --
13 SBI Foundation Director Executive Committee – Chairman

4. SHRI ASHWINI KUMAR TEWARI

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member

Financial Statements
1 State Bank of India Managing Director Review Committee for Identification of Wilful
Defaulters/ Non-Cooperative Borrowers – Chairman
Executive Committee of the Central Board – Member
Risk Management Committee of the Board – Member
IT Strategy Committee of the Board – Member
Special Committee of the Board for Monitoring of
Large Value Frauds – Member
Board Committee to Monitor Recovery – Member

5. SHRI ALOK KUMAR CHOUDHARY

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
1 State Bank of India Managing Director Executive Committee of the Central Board – Member
Stakeholders Relationship Committee cum Customer
Service Committee of the Board – Member
Board Committee to Monitor Recovery – Member
Special Committee of the Board for Monitoring of
Large Value Frauds – Member
Corporate Social Responsibility Committee – Member
2 State Bank Operations Support Services Pvt. Ltd. Director --
3 SBI Foundation Director Executive Committee of the Board – Chairman
CSR Committee – Chairman

125
Corporate Governance Report

6. SHRI B. VENUGOPAL
Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
1 State Bank of India Director Executive Committee of the Central Board – Member
Audit Committee of the Board – Member
Stakeholders Relationship Committee cum Customer
Service Committee of the Board – Chairman
Risk Management Committee of the Board – Member
IT Strategy Committee of the Board – Member
Nomination & Remuneration Committee – Chairman
Board Committee to Monitor Recovery (BCMR) –
Member
Corporate Social Responsibility Committee – Member
Review Committee for Identification of Wilful
Defaulters/ Non-Cooperative Borrowers – Member
2 National Commodities & Derivatives Exchange Ltd. Director Capital Raising Committee – Member
(NCDEX)
3 NCDEX e Markets Ltd. (NeML) Chairman Audit Committee – Member
Nomination & Remuneration Committee – Member
4 National Commodity Clearing Limited (NCCL) Director --

7. DR. GANESH NATARAJAN

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
1 State Bank of India Director Audit Committee of the Board (ACB) – Member
Stakeholders Relationship Committee cum Customer
Service Committee of the Board – Member
Risk Management Committee of the Board – Member
IT Strategy Committee of the Board – Chairman
Special Committee of the Board for Monitoring Large
Value Frauds – Member
Nomination & Remuneration Committee – Member
Corporate Social Responsibility Committee – Member
Review Committee for Identification of Wilful
Defaulters/ Non-Cooperative Borrowers – Member
2 Zeva Capsol Private Limited Director --
3 Global Talent Track Private Limited Director --
4 Lighthouse Communities Foundation Director --
5 5F World Private Limited Director --
6 Skills Alpha Learning Private Limited Director --
7 Kalzoom Advisors Private Limited Director --
8 Inflexion Analytix Private Limited Director --
9 Foundation To Educate Girls Globally Director --
10 Hinduja Global Solutions Limited Director Audit Committee – Member
Stakeholders Relationship and Share Allotment
Committee – Member

126 Annual Report 2022 – 23

Sr. Chairman/ Name(s) of the Committee(s)-

Company Overview
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
11 Continuum of Capital India Private Limited Director --
12 Honeywell Automation India Ltd. Director Audit Committee – Chairman
Stakeholders Relationship Committee – Member
Nomination and Remuneration Committee – Member
13 Asian Venture Philanthropy Network Ltd. Director/ Trustee HR Committee – Member
Strategy Committee – Member

Responsible Approach
14 Cornerstone Venture Partners Investment Individual Partner --
Advisers LLP

8. SHRI KETAN S. VIKAMSEY

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member

Governance
1 State Bank of India Director Audit Committee of the Board – Chairman
Stakeholders Relationship Committee cum Customer
Service Committee of the Board – Member
Risk Management Committee of the Board – Member
IT Strategy Committee of the Board – Member
Special Committee of the Board for Monitoring of
Large Value Frauds – Member
Nomination & Remuneration Committee – Member

Statutory Reports
Board Committee to Monitor Recovery – Member
Review Committee for Identification of Wilful
Defaulters/ Non-Cooperative Borrowers – Member

9. SHRI MRUGANK M. PARANJAPE

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member

Financial Statements
1 State Bank of India Director Executive Committee of the Central Board – Member
Audit Committee of the Board – Member
Risk Management Committee of the Board –
Chairman
Special Committee of the Board for Monitoring of
Large Value Frauds – Member
Nomination & Remuneration Committee – Member
Board Committee to Monitor Recovery – Member
Corporate Social Responsibility Committee – Member
2 NCDEX e Markets Ltd. (NeML) Managing Director Technology Advisory Committee – Member
& CEO Corporate Social Responsibility Committee – Member
3 Rashtriya e Market Services (ReMS) Director --
4 Meta Materials Circular Markets Pvt. Ltd. Director --

127
Corporate Governance Report

10. SHRI PRAFULLA P. CHHAJED

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
1 State Bank of India Director Executive Committee of the Central Board – Member
Stakeholders Relationship Committee cum Customer
Service Committee of the Board – Member
Risk Management Committee of the Board – Member
IT Strategy Committee of the Board – Member
Special Committee of the Board for Monitoring of
Large Value Frauds – Chairman
Corporate Social Responsibility Committee – Member
Review Committee for Identification of Wilful
Defaulters/ Non-Cooperative Borrowers – Member
2 Intercontinental Forum of Entrepreneurs and Director --
Professionals

11. DR. VIVEK JOSHI

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
1 State Bank of India Director Board Committee to Monitor Recovery – Member
2 RBI Director --

12. SHRI ANIL KUMAR SHARMA

Sr. Chairman/ Name(s) of the Committee(s)-
Name of the Bank/ Company
No. Director/ Member Chairman/ Member
1 State Bank of India Director Executive Committee of the Central Board – Member
Audit Committee of the Board – Member

(Note: Executive Committee of the Central Board consists of all or any of the other Directors who are normally residents, or may, for the time being, be
present at any place within India where the ECCB meeting is held as per regulation 46 of SBI General Regulations. Further, in terms of RBI Guidelines
dated 26th April 2021 on ‘Corporate Governance in Banks - Appointment of Directors and Constitution of Committees of the Board’, the Chair of the
ACB is not a part of the ECCB.)

128 Annual Report 2022 – 23

ANNEXURE – III

Company Overview
Details of Shareholding of Directors on the Bank’s Central Board as on 31.03.2023

Sr.
Name of Director No. of Shares
No.
1 Shri Dinesh Kumar Khara 3100
2 Shri Challa Sreenivasulu Setty 500

Responsible Approach
3 Shri Swaminathan J. 500
4 Shri Ashwini Kumar Tewari 310
5 Shri Alok Kumar Choudhary 100
6 Shri B. Venugopal 5000
7 Dr. Ganesh G. Natarajan 18218
8 Shri Ketan S. Vikamsey 5000
9 Shri Mrugank M. Paranjape 10000
10 Shri Prafulla P. Chhajed Nil

Governance
11 Dr. Vivek Joshi Nil
12 Shri Anil Kumar Sharma 800

ANNEXURE IV
Details Of Sitting Fees Paid to Directors for attending meetings of the Central Board and Board Level Committees During FY2023

Statutory Reports
Meetings of Other
Sr. Meetings of
Name of Director Board Level Total (`)
No. Central Board (`)
Committees (`)
1 Shri B Venugopal 6,40,000 18,60,000 25,00,000
2 Dr. Ganesh Natarajan 7,70,000 17,30,000 25,00,000
3 Shri Ketan S. Vikamsey 10,50,000 12,90,000 23,40,000
4 Shri Mrugank M. Paranjape 7,70,000 17,30,000 25,00,000

Financial Statements
5 Shri Sanjeev Maheshwari 6,30,000 15,90,000 22,20,000
6 Shri Prafulla P. Chhajed 8,40,000 16,60,000 25,00,000

ANNEXURE V
Affirmation of Compliance with the Bank’s Code Of Conduct (FY2023)

I declare that all Board Members and Senior Management have affirmed compliance with the Bank’s Code of Conduct for the
Financial Year 2022-23

DINESH KUMAR KHARA

CHAIRMAN
Prevention of Sexual Harassment (POSH) of Women at Workplace – Prevention,
Prohibition and Redressal – Position for the year 2022-2023

No. of complaints pending at the beginning of the year 05

No. of complaints received during the year 46
Total No. of cases 51
No. of complaints disposed of during the year 38
No. of cases pending at the end of the year 13

129
Corporate Governance Report

Details Of Skills/Expertise/Competencies Possessed by the Directors who were part of the Board on 31st March 2023
are as follows:

Sr.
Name Qualifications) Skills/Expertise/Competencies
No.
1 Shri Dinesh Kumar Khara, M.Com, MBA He is a postgraduate in Commerce from Delhi School of Economics
Chairman and an MBA from Faculty of Management Studies, New Delhi. He has
work experience in the field of Commercial Banking including Retail
Credit, Small and Medium Enterprises / Corporate Credit, Deposit
Mobilisation, International Banking Operations, Branch Management.
He has held several key positions such as MD (Global Banking &
Subsidiaries), MD (Associates & Subsidiaries), MD & CEO (SBI Mutual
Funds) and Chief General Manager – Bhopal Circle. He was also posted
in SBI, Chicago for an overseas assignment. As Managing Director, he
led the International Banking Group, Corporate Banking and Global
Treasury Operations, as well as the non-banking subsidiaries of the
Bank viz., SBI Cards, SBIMF, SBI Life Insurance and SBI General
Insurance, etc. He executed the merger of five Subsidiary Banks of SBI
and Bhartiya Mahila Bank with SBI. Additionally, he headed the Risk,
IT and Compliance functions of the Bank.
2 Shri Challa Sreenivasulu B.Sc. (Agri) He has rich experience in Corporate Credit, Retail, Digital International
Setty, MD (International banking and Banking in developed markets. Prior to taking over
Banking, Global Markets & charge as MD, Shri Setty was heading the Stressed Asset Resolution
Technology) Group of the Bank, in his capacity as Deputy Managing Director,
where he was responsible for resolving the stressed assets portfolio
of the Bank, across the country, in different sectors such as Power,
Infra, Auto, Telecom etc. He has also headed the Syndications team at
Bank’s New York Branch. Presently, he has been heading various task
forces/committees formed by the Government of India.
3 Shri Swaminathan J. MD B.Com. CAIIB Certified In a career spanning over 33 years with SBI, he has held various
(Corporate Banking & Anti Money Laundering assignments across Corporate and International Banking, Retail
Subsidiaries) Specialist (CAMS) and and Digital Banking, Finance, Branch Management and Assurance
Certified Documentary functions. He has served SBI in various capacities including DMD
Credit Specialist (CDCS) (Finance) and Chief Digital Officer. He also served in Bank’s New York
Branch as Head of Trade.
4 Shri Ashwini Kumar Tewari B.Tech. (Electrical),He has three decades of banking experience in various capacities,
MD (Risk, Compliance & CAIIB, Certified across retail, SME, transaction banking, international banking in India
SARG) Financial Planner (CFP), and abroad. Prior to appointment as Managing Director, he was MD &
Certificate course in CEO of SBI Cards and Payment Services Limited. He also served as
Management (XLRI) Country Head of US operations and Regional Head East Asia of SBI.
5 Shri Alok Kumar Choudhary B. Sc. (Hons), CAIIB, He has rich experience of working across multiple domains including
MD (Retail Business & Masters in Rural Retail Banking, Commercial Banking, MSME, Agri & Rural business,
Operations) Development. Branch Management, Human Resources and Finance. He is a
seasoned banker with over 36 years of experience in various leadership
and functional capacities at Branches, Regional Offices, Zonal Offices,
Local Head Offices and Corporate Office Level. Prior to his elevation as
Managing Director, Shri Choudhary was heading the finance vertical
of the Bank working as Dy. Managing Director (Finance) where he
was responsible for Strategic Planning and Budgeting, Performance
Analysis to support optimum business and strategic decisions, Capital
Planning and Capital Raising, Investor Relations, Financial Reporting,
Audit, Asset & Liability Management and Balance Sheet Management.
6 Shri B. Venugopal Graduate in Commerce He has more than 40 years of experience in Insurance, Finance &
Non-Executive Director & Cost Accountancy Accounts, Risk Management, IT, Information Technology (Software
Development), Business Strategies, Project Management, Marketing,
etc. He is a former Managing Director of the Life Insurance Corporation
of India (LIC), with a work experience of 36 years in LIC and 2 years in
the erstwhile State Bank of Travancore.

130 Annual Report 2022 – 23

Sr.

Company Overview
Name Qualifications) Skills/Expertise/Competencies
No.
7 Dr. Ganesh Natarajan PG in Industrial He has rich experience in the field of Information Technology with
Non-Executive Director Engineering & specialisation in Business Process Re-engineering & Technology
M a n a g e m e n t , Transformation. He is Founder and Chairman of 5F World, a platform
PhD in Knowledge for Global consulting and Investing in Digital Skills and Digital
Management (IIT, Transformation. Recipient of Distinguished Alumnus Award of NITIE
Bombay), Advanced and IIT, Bombay. Two case studies on his work have been written and

Responsible Approach
M a n a g e m e n t taught at ISB, IIM, Bengaluru and Harvard Business School.
Programme (Harvard
Business School, USA)
8 Shri Ketan S. Vikamsey Chartered Accountant He is a Chartered Accountant by profession. He comes with over thirty
Non-Executive Director from ICAI years’ experience in the areas of audit of large banks, manufacturing
concerns, Investment Banks, Insurance Companies and Mutual Funds.
He is a regular Speaker/ Chairman, at various seminars, meetings,
lectures held by ICAI, Regional Councils of ICAI, Branches & Study

Governance
Circles of ICAI, RBI, C&AG and several other organisations. He has
been member of Banking, Finance & Insurance Committee of Indian
Merchants’ Chamber, Banking & Finance Committee, Capital Markets
Committee of Bombay Chamber of Commerce & Industry and Member,
RRC Committee of the Chamber of Tax Consultants.
9 Shri Mrugank M. Paranjape B.Tech. (IIT, Bombay), He has more than 31 years of experience in Banking, Capital Markets,
Non-Executive Director PGDM (IIM, Asset Management, Stock Broking, Transaction & Retail Banking,
Ahmedabad) Risk Management, Technology, Derivatives, Policy Making, etc. He is

Statutory Reports
currently MD & CEO of NCDEX e Markets Limited. Prior to that he was
MD & CEO of Multi Commodity Exchange of India Limited. He had also
held senior management positions at Deutsche Bank in Singapore and
India and worked in ICICI Prudential AMC, India Infoline, ING Barings
and Citibank amongst others.
10 Shri Prafulla P Chhajed FCA, LLB (Gen), CPA He is a Chartered Accountant by profession. He is member of
Non-Executive Director (Australia) Professional Accountancy Organisation Development Group of
International Federation of Accountants (IFAC), New York. He is

Financial Statements
member of Board of Management of Mumbai School of Economics &
Public Policy (University of Mumbai). He is Governing Council Member
and Chairman of Banking, Finance and Information Technology
Committee of Maharashtra Chamber of Commerce, Industry and
Agriculture. In the past, he has served as Director on the Board of SBI
Mutual Fund Trustee Company Private Limited, GIC Housing Finance
Limited, Indian Institute of Insolvency Professionals of ICAI, Insurance
Regulatory & Development Authority (IRDA), Extensible Business
Reporting Language (XBRL) India and IDBI Capital Market Services
Limited. He was also a Member of SEBI’s Primary Market Advisory
Committee and Banking & Finance Committee of IMC Chamber of
Commerce.
11 Dr. Vivek Joshi PhD in International He is a 1989 batch Indian Administrative Service officer. He is currently
Non-Executive Director Economics from the posted as Secretary to the Government of India, Department of
Graduate Institute Financial Services, Ministry of Finance. In this assignment, Dr. Joshi
Geneva (Switzerland), is dealing with policies, schemes and legislations related to banking
B.E. in Mechanical sector including Public Sector Banks, insurance sector, Financial
Engineering from Institutions, financial inclusion, and pension reforms. He is also
University of Roorkee serving as member on the board of Reserve Bank of India (RBI). With
demonstrated leadership and excellence in career of over 34 years,
Shri Joshi has worked in multifarious sectors.

131
Corporate Governance Report

Sr.
Name Qualifications) Skills/Expertise/Competencies
No.
12 Shri Anil Kumar Sharma M.A. (Economics), He is a former Executive Director (ED), Reserve Bank of India. Before
Non-Executive Director Diploma in Treasury taking over as ED, he had headed the Enforcement Department of
and Risk Management, Reserve Bank of India as Chief General Manager. He has done his
CAIIB Masters in Economics from Doaba College Jalandhar, Punjab and
was UGC Fellow at Gokhale Institute of Politics and Economics, Pune
before joining RBI in 1986. He holds a Diploma in Treasury and Risk
Management and is a Certified Associate of Indian Institute of Bankers.
His experience in the Bank lies in the area of supervision, management
of currency and banking, rural credit and financial inclusion. He also
worked as member of faculty in RBI College of Agricultural Banking,
Pune.

The table below summarises the key attributes and skills matrix, identified by the Board of Directors, in line with SBI Act 1955
and RBI master circular dated 02.08.2019 as required in the context of business, which is to be considered while selecting
the Director:

1. Industry Knowledge/Experience: Industry Experience, Knowledge of sector, Knowledge of broad policy direction,
understanding of government legislation/legislative process

2. Technical Skills/Experience: Accounting, Finance, Law, marketing experience, Information technology, Public Relations,
Capital Allocation, Costing, Budgetary Controls, Strategy development and implementation.

3. Governance Competencies: Prior Director experience, Financial literacy, Compliance focus, strategic thinking/planning
from a governance perspective.

4. RBI and SBI qualification for Director: Specialisation in the fields of (i) Information Technology (ii) Payment &
Settlement Systems (iii) Human Resources (iv) Risk Management and (v) Business Management. Have special knowledge
or experience in respect of one or more of the following areas, namely: — (i) agriculture and rural economy, (ii) banking,
(iii) co-operation, (iv) economics, (v) finance, (vi) law, (vii) small-scale industry, (viii) any other area the special knowledge
of, and experience in, which in the opinion of the Reserve Bank shall be useful to the State Bank of India. Represent the
interests of depositors, represent the interests of farmers, workers, and artisans

ATTRIBUTES
DIRECTORS Industry Knowledge/ Technical skills/ Governance RBI & SBI qualification
Experience Experience Competencies for director
Shri Dinesh Kumar Khara    
Shri C. Sreenivasulu Setty    
Shri Swaminathan J.    
Shri Ashwini Kumar Tewari    
Shri Alok Kumar Choudhary    
Shri B. Venugopal    
Dr. Ganesh Natarajan    
Shri Ketan S. Vikamsey    
Shri Mrugank M. Paranjape    
Shri Prafulla P. Chhajed    
Dr. Vivek Joshi    
Shri Anil Kumar Sharma    

132 Annual Report 2022 – 23

Annual disclosure for material subsidiaries

Company Overview
31.03.2023 31.03.2023
Exceeds 10% Exceeds 10% Overall
Total Income Networth
SBI (Consolidated) 4,73,378 3,58,931
10% of Total Income/ Networth 47,338 35,893
Material Listed Subsidiary
SBI Life Insurance Co. Ltd. 80,686 Yes 13,016 No Yes

Responsible Approach
Material Unlisted Subsidiary
Nil Nil - Nil - -

Details of Material Subsidiary

SBI Life Insurance Co. Ltd.
Date & Place of Incorporation: 11.10.2000, Mumbai As on 31 March 2023

Governance
Statutory Auditors: M/s. S C Bapna & Associates and M/s. S. K. Patodia & Associates
1. Total Assets 314,686
2. Net Profit for current FY 1,721
3. Assets under Management 307,339
4. Amount of new business premium 29,589
5. Growth of new business premium 16.23%
6. New business margin 30.10%

Statutory Reports
7. Market share 8.0%
8. Solvency ratio 2.15

Education and Qualifications of Management Team

The educational qualifications of Directors on the Central Board of the Bank are given in Corporate Governance Report in the
Annual Report. The educational qualifications of the Deputy Managing Directors of the Bank are given below.

Financial Statements
Sr. No. Title Name of Officer Qualifications
1 Shri Prakash Chandra Kandpal B.Sc., M.A. (Eco), MBA(FIN.)
2 Shri Salee S. M.Sc. (Applied Electronics)
3 Shri Rana Ashutosh Kumar Singh B.Sc., PGEMP (Post. Grad. Exec. Mgmt. Prog.)
4 Shri Sureddi Srinivasa Rao M.Sc.
5 Shri Vinay M. Tonse M.Com. (Banking & Costing)
6 Smt. Saloni Narayan B.A. (Hons)
7 Shri Sanjay D. Naik B.Sc.
8 Shri Subrata Biswas B.Sc. (Physics)
9 Shri Viswanathan Ramanathan M.Sc. (Maths)
10 Shri Om Prakash Mishra M.A. (Eco.)
11 Shri Raghavendra Rao Balakrishna M.Sc. (Tech) Instrumentation Engg.
12 Shri Sankar Balabhadrapatruni B.Com, M.M.S. (Finance)
13 Shri Nitin Chugh B. Tech, PGDM
14 Smt. Ruma Dey B.Sc. (Hons)
15 Smt. Vidya Krishnan B.Sc., Master of Management Studies
16 Shri Gulshan Malik B.Com. (Hons)
17 Shri Pravin Raghavendra B.Sc. (H)

133
Secretarial Audit Report
For the period 01-04-2022 to 31-03-2023

Form No. MR-3 [Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and
Remuneration Personnel) Rules, 2014

To, ii. 
The Securities Contracts Convertible Debt Securities)
The Members, (Regulation) Act, 1956 (‘SCRA’) Regulations, 2021;
STATE BANK OF INDIA and the rules made there under;
f) The Securities and Exchange
Corporate Centre, 14th Floor, State iii. 
The Depositories Act, 1996 and Board of India (Delisting of
Bank Bhavan, Madame Cama Marg, the Regulations and Bye-laws Equity Shares) Regulations,
Mumbai, Maharashtra, 400021 Framed there under; 2021; (Not applicable to the
Bank during the period under
We have conducted the secretarial iv. 
Foreign Exchange Management
review)
audit of the compliance of applicable Act, 1999 and the rules and
statutory provisions and the adherence regulations made thereunder g) The Securities and Exchange
to good corporate practices by STATE to extent of Foreign Direct Board of India (Buyback
BANK OF INDIA (hereinafter called Investment, Overseas Direct of Securities) Regulations,
“the Bank”). Secretarial Audit was Investment and External 2018; (Not applicable to the
conducted in a manner that provided Commercial borrowing; Bank during the period under
us a reasonable basis for evaluating review)
v. 
The following Regulations and
the corporate conducts/statutory
Guidelines prescribed under the h) 
Securities and Exchange
compliances and expressing our
Securities and Exchange Board of Board of India (Investor
opinion thereon.
India Act, 1992 (‘SEBI Act’):- Protection and Education
Based on our verification of the Bank’s Fund) Regulations, 2009;
a) The Securities and Exchange
books, papers, minute books, forms
Board of India (Substantial i) 
The Securities and
and returns filed and other records
Acquisition of Shares and Exchange Board of India
maintained by the Bank and also the
Takeovers) Regulations, (Registrars to Issue and
information provided by the Bank,
2011; (Not applicable to the Share Transfer Agents)
its officers, agents and authorised
Bank during the period under Regulations, 1993 read
representatives during the conduct of
review) with the Companies
secretarial audit, we hereby report that
Act, 2013 and dealing
in our opinion, the Bank has, during b) The Securities and Exchange
with client;
the audit period covering 1st April 2022 Board of India (Prohibition of
to 31st March 2023 complied with the Insider Trading) Regulations, j) 
The Securities and
statutory provisions listed hereunder 2015 ; Exchange Board of
and also that the Bank has proper India (Depositories
c) The Securities and Exchange
Board-processes and compliance- and Participants)
Board of India (Issue of
mechanism in place to the extent, in the Regulations, 2018;
Capital and Disclosure
manner and subject to the reporting
Requirements) Regulations, 
The list of Acts, Laws and
made hereinafter:
2009; (Not applicable to the Regulations specifically applicable
We have examined the books, papers, Bank during the period under to the Bank are given below:
minute books, forms and returns filed review)
i. The Banking Regulation Act,
and other records maintained by the
d) The Securities and Exchange 1949, as amended.
Bank for the audit period 1st April 2022
Board of India (Share
to 31st March 2023 according to the ii. Master Directions,
Based Employee Benefits)
provisions of: Notifications and Guidelines
Regulations, 2021; (Not
issued by RBI from time
i. The State Bank of India Act, 1955 applicable to the Bank during
to time.
(‘the Act’) and the State Bank the period under review)
of India General Regulations, We have relied on the representation
e) 
The Securities and
1955 (‘the Regulations’) made by the Bank and its Officers for
Exchange Board of India
made thereunder; systems and
(Issue and Listing of Non-

134 Annual Report 2022 – 23

mechanism formed by the Bank for We further report that 2 Bonds Series I of `4000 Crore on

Company Overview
compliances under other applicable Private Placement Basis at 7.57%
The Board of Directors of the Bank is
Acts, Laws and Regulations to the Bank. y Allotment of Non Convertible ,
duly constituted with proper balance
We have also examined compliance of Executive Directors, Non-Executive Taxable , Reedemable, Unsecured
with the applicable clauses of Directors and Independent Directors. Fully Paid up Long term Bonds-
the following: The changes in the composition of Series I of `10,000 Crore on private
the Board of Directors that took place placement Basis at 7.51%
a) 
Secretarial Standards issued

Responsible Approach
during the period under review were y Allotment of Non- Convertivle ,
by The Institute of Company
carried out in compliance with the Taxable, Reedemable, Unsecured
Secretaries of India. (Not
provisions of the Act. Fully Paid up Long term Bonds-
applicable during the period
Series II of `9,718 Crore on Private
under review) Adequate notice is given to all directors
Placement Basis at 7.70%
to schedule the Board Meetings, agenda
b) 
The Securities Exchange Board y Allotment of Non Convertible ,
and detailed notes on agenda were
of India (Listing Obligations Taxable , Perpetual, Subordinated,
sent at least seven days in advance,
and Disclosure Requirements)

Governance
and a system exists for seeking and Unsecured, Fully Paid UP Basel iii
Regulations, 2015 (“Listing Complaint AT 1 Bonds of `4,544
obtaining further information and
Regulation”). Crore on Private Placement Basis at
clarifications on the agenda items
During the period under review the Bank before the meeting and for meaningful 8.20%
has complied with the provisions of the participation at the meeting. y Allotment of Non Convertible ,
Act, Rules, Regulations, Guidelines etc. Taxable , Perpetual, Subordinated,
Majority decision is carried through
mentioned above except the following: Unsecured, Fully Paid UP Basel
while the dissenting members’ views

Statutory Reports
iii Complaint AT 1 Bonds of `3,717
are captured and recorded as a part of
y The Bank did not comply with Crore on Private Placement Basis at
the minutes.
requirement of having at least 8.25%
one Independent Woman Director We further report that there are y Issued and allotment of Basel III
on the Central Board as required adequate systems and processes in compliant Additional Tier 1 Bonds,
under Regulation 17(1)(a) of the the Bank commensurate with the size amounting `15,133 Crore
Listing Regulations. and operations of the Bank to monitor
y Issued and allotted Basel III

Financial Statements
y The Bank did not comply with the and ensure compliance with applicable
compliant Tier 2 Bonds amounting
requirement of having at least laws, rules, regulations and guidelines.
to `4,000 Crore
half of the Board of Directors as We further report that during the y Issued and allotment long term
Independent Director as required audit period, the Bank had following Infrastructure Bonds amounting to
under Regulation 17(1)(b) of the specific events or actions which might `19,718 Crore
Listing Regulations. have a bearing on the Bank’s affairs
y Exercised call option on AT 1 Bonds
y The Bank did not comply with in pursuance of the above referred
of `2,000 Crore.
requirement of having not less than laws, rules, regulations, guidelines,
two directors to be nominated by the standards, etc.: For Ragini Chokshi & Co.
Central Government from among Company Secretaries
persons having special knowledge y Allotment of Non Convertible , Firm Registration Number: 92897
of the working of co-operative Unsecured Basel iii Compliant PR NO: 659/2020
institutions and of rural economy or Additional Tier Bond Series I of Date: 18.05.2023
Place: Mumbai
experience in commerce, industry, `6872 Crore on Private Placement
banking, or finance as required Basis at 7.75%. Puzhankara Sivakumar
under Section 19(d) of SBI Act, 1955. y Allotment of Non Convertible, (Company Secretary/Partner)
FCS No: 3050
Unsecured Basel III Complaint Tier
CP No: 2210
UDIN: F003050E000329827

135
Secretarial Compliance Report

Annexure ‘A’

To
The Members,
State Bank of India

Our Secretarial Audit Report for the Financial Year ended on 31st March 2023 of even date is to be read along with this letter.

1. Maintenance of Secretarial record is the responsibility of the Management of the Bank. Our responsibility is to express an
opinion on these Secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the
correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts
are reflected in Secretarial records. We believe that the processes and practices, we follow provide a reasonable basis for
our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Bank.

4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations
and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility
of Management. Our examination was limited to the verification of procedures on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the Bank nor of the efficacy or effectiveness
with which the Management has conducted the affairs of the Bank.

For Ragini Chokshi & Co.

Company Secretaries
Firm Registration Number: 92897
PR NO: 659/2020
Date: 18.05.2023
Place: Mumbai

Puzhankara Sivakumar
(Company Secretary/Partner)
FCS No: 3050
CP No: 2210
UDIN: F003050E000329827

136 Annual Report 2022 – 23

Certificate of Non Disqualification of Directors

Company Overview
[Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015]

To,
The Members,
State Bank of India

Responsible Approach
State Bank Bhavan,
Madame Cama Road,
Mumbai - 400 021

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of State Bank
of India (hereinafter referred to as ‘the Bank’) having Central Office at State Bank Bhavan, Madame Cama Road, Mumbai -
400021, produced before us by the Bank for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with
Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements)

Governance
Regulations, 2015. In our opinion and to the best of our information and according to the verifications (including Directors
Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us
by the Bank & its officers, we hereby certify that none of the directors on the Central Board of the Bank as stated below for the
Financial Year ending on 31st March 2023 have been debarred or disqualified from being appointed or continuing as Directors of
companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Sr. Date of appointment in the

Name of the Director DIN

Statutory Reports
No. Bank
1 Mr. Dinesh Kumar Khara 06737041 09.08.2016
2 Mr. Challa Sreenivasulu Setty 08335249 20.01.2020
3 Mr. Swaminathan Janakiraman 08516241 28.01.2021
4 Mr. Ashwini Kumar Tewari 08797991 28.01.2021
5 Mr. Alok Kumar Choudhary 08480476 07.06.2022
6 Mr. B. Venugopal 02638597 07.06.2018

Financial Statements
7 Dr. Ganesh G Natarajan 00176393 26.06.2020
8 Mr. Ketan Vikamsey 00282877 26.06.2020
9 Mr. Mrugank Paranjape 02162026 26.06.2020
10 Mr. Prafulla P Chhajed 03544734 21.12.2021
11 Dr. Vivek Joshi 02854207 15.11.2022
12 Mr. Anil Kumar Sharma 08537123 13.04.2021

Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the management of
the Bank. Our responsibility is to express an opinion n these based on our verification. This certificate is neither an assurance as to the
future viability of the Bank nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For Ragini Chokshi & Co.

Company Secretaries
Firm Registration Number: 92897
PR NO: 659/2020
Date: 18.05.2023
Place: Mumbai

Puzhankara Sivakumar
(Company Secretary/Partner)
FCS No: 3050
CP No: 2210
UDIN: F003050E000329805

137
Auditor’s Certificate on Corporate Governance
Independent Auditor’s Certificate on Compliance with the Corporate Governance requirements under SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015

To 5. 
We have examined the books Central Board as required
The Members, of account and other relevant under Regulation 17(1)(a) of
State Bank of India records and documents the Listing Regulations.
maintained by the Bank for the
1. 
This Certificate is issued in b) 
The Bank did not have at
purpose of providing reasonable
accordance with the terms of least half of the Board of
assurance on the compliance
our engagement letter dated 31st Directors as Independent
with Corporate Governance
March 2023. Director as required under
requirements by the Bank.
Regulation 17(1)(b) of the
2. We, M/s. K.C. Mehta & Co. LLP,
6. 
We conducted our examination Listing Regulations.
Chartered Accountants, the joint
in accordance with the Guidance
Statutory Central Auditors of 9. 
We further state that such
Note on Certification of Corporate
State Bank of India (“the Bank”) compliance is neither an
Governance and the Standards on
have examined the compliance assurance as to the future viability
Auditing issued by the Institute of
of conditions of Corporate of the Bank nor the efficiency
Chartered Accountants of India
Governance by the Bank, for the or effectiveness with which the
(“ICAI”), in so far as applicable
year ended on 31st March 2023, management has conducted the
for the purpose of this certificate
as stipulated in Regulations 17 to affairs of the Bank.
and as per the Guidance Note on
27 and clauses (b) to (i) [and (t)] of
Reports or Certificates for Special
sub regulation (2) of regulation 46
Purposes issued by the ICAI which Restriction on Use
and para C, D and E of Schedule 10. 
This certificate is addressed to
requires that we comply with the
V of the SEBI (Listing Obligations and provided to the members of
ethical requirements of the Code
and Disclosure Requirements) the Bank solely for the purpose
of Ethics issued by the ICAI.
Regulations, 2015 (“Listing of enabling them to understand
Regulations”). 7. 
We have complied with the the requirements of the Listing
relevant applicable requirements Regulations related to Corporate
Management’s Responsibility of the Standard on Quality Control Governance, and it should not be
3. The Management of the Bank is (SQC) 1, Quality Control for Firms used by any other person or for
responsible for ensuring that the that Perform Audits and Reviews any other purpose. Accordingly,
Bank complies with the conditions of Historical Financial Information, we do not accept or assume any
of Corporate Governance and Other Assurance and Related liability or any duty of care for
stipulated in the Listing Services Engagements issued any other purpose or to any other
Regulations. This responsibility by ICAI. person to whom this certificate is
also includes the design, shown or into whose hands it may
implementation and maintenance Opinion come without our prior consent in
of internal controls and 8. 
Based on our examination as writing. We have no responsibility
procedures to ensure compliance above and to the best of the to update this Certificate for any
with the conditions of the information and explanations events or circumstances occurring
Corporate Governance stipulated given to us and representations after the date of this Certificate.
in the Listing Regulations. provided by the management, we
certify that the Bank has complied For K C Mehta & Co. LLP
Auditor’s Responsibility with the conditions of Corporate Chartered Accountants,
4. 
Our responsibility is limited to Governance as stipulated in Firm Registration Number: 106237W /
examining the procedures and regulations 17 to 27 and clauses W100829
implementation thereof, adopted (b) to (i) of Regulation 46(2) and
by the Bank for ensuring the Paragraphs C and D of Schedule
V to the Listing Regulations Chirag Bakshi
compliance of the conditions of Partner
the Corporate Governance. It is during the year ended 31st March
2023 except that: Membership Number: 047164
neither an audit nor an expression UDIN:23047164BGVCQV7967
of opinion on the financial a) 
The Bank did not have at
statements of the Bank. least one Independent Place: Mumbai
Woman Director on the Date: 18th May 2023

138 Annual Report 2022 – 23

Business Responsibility and
Sustainability Report

About the Business No. SEBI/LAD-NRO/GN/2021/22 https://www.sbi.co.in under the link

Company Overview
Responsibility and dated 5th May 2021 mandates the Investors Relations Annual Report. Any
inclusion of Business Responsibility shareholder interested in obtaining a
Sustainability Report:
and Sustainability Report (BRSR) as copy of the same may write to the Bank
Business Responsibility Report (BRR) (email Id: [email protected] and postal
a part of the Annual Report for Top
of the Bank, is published on an annual 1000 listed entities based on market address: Deputy General Manager
basis since FY2013. Regulation 34(2) capitalisation (calculated as on 31st (CSR & Sustainability), State Bank of
(f) of Securities and Exchange Board March of every financial year) at BSE India, 9th floor, Corporate Centre, State

Responsible Approach
of India (Listing Obligations and and NSE. The Bank’s Responsibility Bank Bhavan, Madame Cama Road,
Disclosure Requirements) Regulations, and Sustainability Report with the Mumbai - 400 021).
2015 read with SEBI circular No. requisite mapping for the financial
CIR/ CFD/CMD/10/2015 dated 04th year ended 31st March 2023 has
November 2015 and SEBI Notification been hosted on the Bank’s website

Governance
Statutory Reports
Shri Dinesh Khara, Chairman, State Bank of India handing Shri Dinesh Khara, Chairman, State Bank of India Donating to
over the cheque to Govt. High School NAI JAIL, Bhopal under Pradhan Mantri TB Mukt Bharath Abhiyaan.
Transforming School Campaign.

Financial Statements

Shri Dinesh Khara, Chairman, State Bank of India Donating Ambulance to Bharat Vikas Parishad Charitable Trust, Punjab

139
 Standalone Financials

State Bank of India

Balance Sheet as at 31st March 2023

(000s omitted)

As at 31.03.2023 As at 31.03.2022
Schedule
(Current Year) (Previous Year)
No.
` `
CAPITAL AND LIABILITIES
Capital 1 892,46,12 892,46,12
Reserves & Surplus 2 326715,98,77 279195,59,89
Deposits 3 4423777,77,63 4051534,12,27
Borrowings 4 493135,15,62 426043,37,98
Other Liabilities and Provisions 5 272457,14,51 229931,84,28
TOTAL 5516978,52,65 4987597,40,54
ASSETS
Cash and Balances with Reserve Bank of India 6 247087,57,52 318265,20,71
Balances with Banks and money at call and short notice 7 60812,04,28 76287,11,40
Investments 8 1570366,22,57 1481445,46,98
Advances 9 3199269,29,68 2733966,59,29
Fixed Assets 10 42381,80,31 37708,15,83
Other Assets 11 397061,58,29 339924,86,33
TOTAL 5516978,52,65 4987597,40,54
Contingent Liabilities 12 1826574,12,43 2007083,44,06
Bills for Collection - 64531,07,67 77730,12,34
Significant Accounting Policies 17
Notes to Accounts 18

Schedules referred to above form an integral part of the Balance Sheet.

Shri Alok Kumar Choudhary Shri Ashwini Kumar Tewari Shri Swaminathan J. Shri Challa Sreenivasulu Setty
Managing Director Managing Director Managing Director Managing Director
(Retail Business & Operations) (Risk, Compliance & SARG) (Corporate Banking & (International Banking, Global
Subsidiaries) Markets & Technology)

Directors:
Shri B. Venugopal
Dr. Ganesh G Natarajan
Shri Ketan S. Vikamsey
Shri Mrugank M. Paranjape
Shri Prafulla P. Chhajed
Ms. Swati Gupta Shri Dinesh Kumar Khara
Shri Anil Kumar Sharma Chairman

Place: Mumbai
Date: 18th May 2023

140 Annual Report 2022 – 23

Standalone Financials

In terms of our report of even date

Company Overview
For K C Mehta & Co LLP For ASA & Associates LLP For Prem Gupta & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 106237W/W100829 Firm Regn. No. 009571N/N500006 Firm Regn. No. 000425N

CA Chirag Bakshi CA Prateet Mittal CA Shakun Gupta

Partner: M. No. 047164 Partner: M. No. 402631 Partner: M. No. 506838

Responsible Approach
For Guha Nandi & Co. For M C Bhandari & Co. For V Singhi & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 302039E Firm Regn. No. 303002E Firm Regn. No. 311017E

Dr. B. S. Kundu CA Nikhil Jain CA Aniruddha Sengupta

Partner: M. No. 051221 Partner: M. No. 301150 Partner: M. No. 051371

Governance
For Suri & Co. For Talati & Talati LLP For Ravi Rajan & Co. LLP
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 004283S Firm Regn. No. 110758W/W100377 Firm Regn. No. 009073N/N500320

CA V Natarajan CA Anand Sharma CA Sumit Kumar

Partner: M. No. 223118 Partner: M. No. 129033 Partner: M. No. 512555

Statutory Reports
For Gokhale & Sathe For M K Aggarwal & Co. For JLN US & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 103264W Firm Regn. No. 001411N Firm Regn. No. 101543W

CA Jayant Gokhale CA Atul Aggarwal CA Shalabh Kumar Daga

Partner: M. No. 033767 Partner: M. No. 099374 Partner: M. No. 401428

Financial Statements
Place: Mumbai
Date: 18th May 2023

141
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet as at 31st March 2023

SCHEDULE 1 - CAPITAL
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
Authorised Capital:
5000,00,00,000 shares of `1 each 5000,00,00 5000,00,00
(Previous Year 5000,00,00,000 shares of `1 each)
Issued Capital:
892,54,05,164 Equity Shares of `1 each 892,54,05 892,54,05
(Previous Year 892,54,05,164 Equity Shares of `1 each)
Subscribed and Paid-up Capital:
892,46,11,934 Equity Shares of `1 each 892,46,12 892,46,12
(Previous Year 892,46,11,534 Equity Shares of `1 each)
[The above includes 8,91,60,950 Equity Shares of `1 each
(Previous Year 10,36,05,740 Equity Shares of `1 each) represented by 89,16,095
(Previous Year 1,03,60,574) Global Depository Receipts]
TOTAL 892,46,12 892,46,12

SCHEDULE 2 - RESERVES & SURPLUS

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
I. Statutory Reserves
Opening Balance 85568,02,08 76065,22,66
Additions during the year 15069,73,61 9502,79,42
Deductions during the year - -
100637,75,69 85568,02,08
II. Capital Reserves
Opening Balance 15759,98,23 15221,82,99
Additions during the year 232,80,84 538,15,24
Deductions during the year - -
15992,79,07 15759,98,23
III. Share Premium
Opening Balance 79115,47,05 79115,47,05
Additions during the year 63 -
Deductions during the year - -
79115,47,68 79115,47,05
IV. Investment Fluctuation Reserve
Opening Balance 7695,94,74 3048,07,72
Additions during the year 4575,43,43 4647,87,02
Deductions during the year - -
12271,38,17 7695,94,74

142 Annual Report 2022 – 23

 Standalone Financials

(000s omitted)

Company Overview
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
V. Foreign Currency Translation Reserve
 Opening Balance 9960,78,78 9072,39,67
Additions during the year 2794,39,13 888,39,11
Deductions during the year - -

Responsible Approach
12755,17,91 9960,78,78
VI. Revenue and Other Reserves*
Opening Balance 51836,11,81 50483,22,45
Additions during the year 2252,30,72 1352,89,36
Deductions during the year - -
54088,42,53 51836,11,81

Governance
VII. Revaluation Reserve
Opening Balance 23377,86,71 23577,34,78
Additions during the year 4578,34,93 -
Deductions during the year 199,95,74 199,48,07
27756,25,90 23377,86,71
VIII. Balance of Profit and Loss Account 24098,71,82 5881,40,49

Statutory Reports
TOTAL 326715,98,77 279195,59,89

* Note: Revenue and Other Reserves include

i) 
`5,00,00 thousand (Previous Year `5,00,00 thousand) of Integration and Development Fund (maintained under Section 36 of the State Bank of
India Act, 1955)

ii) Special Reserve under Section 36(1)(viii) of the Income Tax Act, 1961 `17749,30,76 thousand (Previous Year `15696,95,76 thousand)

Financial Statements
iii) Investment Reserves Current Year Nil (Previous Year Nil)

SCHEDULE 3 - DEPOSITS
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
A. I. Demand Deposits
i) From Banks 3449,99,90 6551,52,93
ii) From Others 295593,04,38 270172,30,80
II. Savings Bank Deposits 1588405,52,42 1526856,80,29
III. Term Deposits
i) From Banks 6994,90,95 7909,81,63
ii) From Others 2529334,29,98 2240043,66,62
TOTAL 4423777,77,63 4051534,12,27
B. i) Deposits of Branches in India 4253570,79,60 3920200,81,67
ii) Deposits of Branches outside India 170206,98,03 131333,30,60
TOTAL 4423777,77,63 4051534,12,27

143
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet as at 31st March 2023

SCHEDULE 4 - BORROWINGS
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
I. Borrowings in India
i) Reserve Bank of India 24956,00,00 24956,00,00
ii) Other Banks 150,00,00 -
iii) Other Institutions and Agencies 88372,10,40 144073,34,11
iv) Bonds & Debentures (Other than capital Instruments) 19718,00,00 -
v) Capital Instruments:
a) Innovative Perpetual Debt Instruments (IPDI) 49842,70,00 36709,70,00
b) Subordinated Debt 39289,90,00 35289,90,00
89132,60,00 71999,60,00
TOTAL 222328,70,40 241028,94,11
II. Borrowings outside India

i) Borrowings and Refinance outside India 270806,45,22 185014,43,87
ii) Capital Instruments: - -
Innovative Perpetual Debt Instruments (IPDI)
TOTAL 270806,45,22 185014,43,87
GRAND TOTAL 493135,15,62 426043,37,98
Secured Borrowings included in I & II above 129118,98,56 178690,84,91

SCHEDULE 5 - OTHER LIABILITIES & PROVISIONS

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
I. Bills payable 27360,44,54 33431,04,90
II. Inter-office adjustments (Net) 4346,60,96 2344,61,99
III. Interest accrued 27028,92,65 17704,33,21
IV. Deferred Tax Liabilities (Net) 72 2,55,53
V. Others (including provisions)* 213721,15,64 176449,28,65
TOTAL 272457,14,51 229931,84,28
* Includes prudential provision for Standard Assets `25673,65,46 thousand (Previous Year `19972,60,99 thousand) which includes prudential provision
made on a large borrower account having an exposure of `8,500 Crore.

SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
I. Cash in hand (including foreign currency notes and gold) 21409,48,82 21742,92,83
II. Balance with Reserve Bank of India
i) In Current Account 225678,08,70 236116,27,88
ii) In Other Accounts - 60406,00,00
TOTAL 247087,57,52 318265,20,71

144 Annual Report 2022 – 23

Standalone Financials

SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE

Company Overview
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
I. In India
i) Balances with banks
a) In Current Accounts - -

Responsible Approach
b) In Other Deposit Accounts - -
ii) Money at call and short notice
a) With banks 7770,44,34 547,22,08
b) With Other Institutions - -
TOTAL 7770,44,34 547,22,08
II. Outside India
i) In Current Accounts 43379,39,74 61541,33,80

Governance
ii) In Other Deposit Accounts 1122,11,64 2772,69,44
iii) Money at call and short notice 8540,08,56 11425,86,08
TOTAL 53041,59,94 75739,89,32
GRAND TOTAL (I and II) 60812,04,28 76287,11,40

SCHEDULE 8 - INVESTMENTS

Statutory Reports
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
I. Investments in India in:
i) Government Securities 1238328,92,16 1162182,63,96
ii) Other Approved Securities - -
iii) Shares 14087,85,39 12424,39,66

Financial Statements
iv) Debentures and Bonds 213392,76,78 215804,42,59
v) Subsidiaries and/or Joint Ventures (including Associates)* 14050,23,13 14012,38,80
vi) Others (Units of Mutual Funds etc.) 29076,31,69 23582,24,18
TOTAL 1508936,09,15 1428006,09,19
II. Investments outside India in:
i) Government Securities (including local authorities) 30059,19,62 19728,93,24
ii) Subsidiaries and/or Joint Ventures abroad 5680,21,97 5028,44,04
iii) Other Investments (Shares, Debentures, etc.) 25690,71,83 28682,00,51
TOTAL 61430,13,42 53439,37,79
GRAND TOTAL (I and II) 1570366,22,57 1481445,46,98
III. Investments in India:
i) Gross Value of Investments 1524189,29,58 1439648,85,34
ii) Less: Aggregate of Provisions/Depreciation 15253,20,43 11642,76,15
iii) Net Investments (vide I above) 1508936,09,15 1428006,09,19
IV. Investments outside India:
i) Gross Value of Investments 63208,84,72 53537,57,21
ii) Less: Aggregate of Provisions/Depreciation 1778,71,30 98,19,42
iii) Net Investments (vide II above) 61430,13,42 53439,37,79
GRAND TOTAL (III and IV) 1570366,22,57 1481445,46,98
* Including Share application money

145
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet as at 31st March 2023

SCHEDULE 9 - ADVANCES
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
A. i) Bills purchased and discounted 181809,89,57 167282,62,94
ii) Cash credits, overdrafts and loans repayable on demand 836849,24,83 713526,87,72
iii) Term loans 2180610,15,28 1853157,08,63
TOTAL 3199269,29,68 2733966,59,29
B. i) Secured by tangible assets (includes advances against Book Debts) 2135804,65,54 1874674,76,97
ii) Covered by Bank/Government Guarantees 133100,11,33 114697,57,23
iii) Unsecured 930364,52,81 744594,25,09
TOTAL 3199269,29,68 2733966,59,29
C. I. Advances in India
i) Priority Sector 697644,43,51 658546,87,83
ii) Public Sector 258891,40,67 167189,34,75
iii) Banks 447,11,05 1001,87,68
iv) Others 1751489,67,48 1496980,59,45
TOTAL 2708472,62,71 2323718,69,71
II. Advances outside India
i) Due from banks 151113,59,09 119036,89,80
ii) Due from others
a) Bills purchased and discounted 42518,59,79 35342,14,75
b)
Syndicated loans 210775,60,39 182163,55,96
c)
Others 86388,87,70 73705,29,07
TOTAL 490796,66,97 410247,89,58
GRAND TOTAL [C (I) and C (II)] 3199269,29,68 2733966,59,29

SCHEDULE 10 - FIXED ASSETS

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
I. Premises (including Revalued Premises)
At cost/revalued as at 31st March of the preceding year 30453,14,11 30362,68,76
Additions:
- during the year 28,76,48 107,12,39
- for Revaluation 6407,26,03 -
Deductions:
- during the year 6,81,67 1,16,82
- for Revaluation 1828,91,10 15,50,22
Depreciation to date:
- on cost 1190,11,99 1058,70,21
- on Revaluation 1228,86,53 1028,90,79
32634,45,33 28365,53,11

146 Annual Report 2022 – 23

Standalone Financials

(000s omitted)

Company Overview
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
II. Other Fixed Assets (including furniture and fixtures)
At cost/revalued as at 31st March of the preceding year 38171,83,29 36131,54,03
Additions during the year 3354,44,78 2608,18,79
Deductions during the year 666,53,00 567,89,53

Responsible Approach
Depreciation to date 31393,47,30 29069,87,58
9466,27,77 9101,95,71
III. Assets under Construction (Including Premises) 281,07,21 240,67,01
TOTAL (I, II, and III) 42381,80,31 37708,15,83

SCHEDULE 11 - OTHER ASSETS

Governance
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
I. Inter-office adjustments (Net) - -
II. Interest accrued 39191,05,69 33675,81,75

Statutory Reports
III. Tax paid in advance/tax deducted at source 16517,16,78 22292,88,93
IV. Deferred Tax Assets (Net) 10534,22,09 6247,27,92
V. Stationery and stamps 22,56,00 18,28,40
VI. Non-banking assets acquired in satisfaction of claims 56,10 56,10
VII. Others * 330796,01,63 277690,03,23
TOTAL 397061,58,29 339924,86,33

Financial Statements
*Includes Deposits placed with NABARD/SIDBI/NHB amounting to `218591,19,47 thousand (Previous Year `195618,29,52 thousand)

SCHEDULE 12 - CONTINGENT LIABILITIES

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
` `
I. Claims against the bank not acknowledged as debts 90421,31,87 85961,67,98
II. Liability for partly paid investments/Venture Funds 1689,05,00 1982,56,16
III. Liability on account of outstanding forward exchange contracts 1039221,77,94 1212393,31,12
IV. Guarantees given on behalf of constituents
a) In India 165143,90,45 166478,97,17
b) Outside India 104910,29,06 95194,96,23
V. Acceptances, endorsements and other obligations 151795,92,04 178718,66,77
VI. Other items for which the bank is contingently liable* 273391,86,07 266353,28,63
TOTAL 1826574,12,43 2007083,44,06

*Includes Derivatives `261587,05,11 thousand (Previous Year `259459,41,01 thousand)

147
 Standalone Financials

State Bank of India

Profit and Loss Account for the year ended 31st March 2023

(000s omitted)
Year ended Year ended
Schedule 31.03.2023 31.03.2022
No. (Current Year) (Previous Year)
` `
I. INCOME
Interest earned 13 332103,06,02 275457,29,04
Other Income 14 36615,59,76 40563,91,40
TOTAL 368718,65,78 316021,20,44
II. EXPENDITURE
Interest expended 15 187262,55,56 154749,70,43
Operating expenses 16 97743,13,61 93397,51,52
Provisions and contingencies 33480,51,25 36198,00,44
TOTAL 318486,20,42 284345,22,39
III. PROFIT
Net Profit for the year 50232,45,36 31675,98,05
Add: Profit/(Loss) brought forward 5881,40,49 (3600,84,46)
TOTAL 56113,85,85 28075,13,59
IV. APPROPRIATIONS
Transfer to Statutory Reserve 15069,73,61 9502,79,42
Transfer to Capital Reserve 232,80,84 538,15,24
Transfer to Investment Fluctuation Reserve 4575,43,43 4647,87,02
Transfer to Revenue and other Reserves 2052,35,00 1168,44,00
Dividend for the current year 10084,81,15 6336,47,42
Balance carried over to Balance Sheet 24098,71,82 5881,40,49
TOTAL 56113,85,85 28075,13,59
V. EARNINGS PER EQUITY SHARE (Face value D1 per share)
Basic (in `) 56.29 35.49
Diluted (in `) 56.29 35.49
Significant Accounting Policies 17
Notes to Accounts 18

Schedules referred to above form an integral part of the Profit & Loss Account.

Shri Alok Kumar Choudhary Shri Ashwini Kumar Tewari Shri Swaminathan J. Shri Challa Sreenivasulu Setty
Managing Director Managing Director Managing Director Managing Director
(Retail Business & Operations) (Risk, Compliance & SARG) (Corporate Banking & (International Banking, Global
Subsidiaries) Markets & Technology)

Directors:
Shri B. Venugopal
Dr. Ganesh G Natarajan
Shri Ketan S. Vikamsey
Shri Mrugank M. Paranjape
Shri Prafulla P. Chhajed
Ms. Swati Gupta Shri Dinesh Kumar Khara
Shri Anil Kumar Sharma Chairman

Place: Mumbai
Date: 18th May 2023

148 Annual Report 2022 – 23

Standalone Financials

In terms of our report of even date

Company Overview
For K C Mehta & Co LLP For ASA & Associates LLP For Prem Gupta & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 106237W/W100829 Firm Regn. No. 009571N/N500006 Firm Regn. No. 000425N

CA Chirag Bakshi CA Prateet Mittal CA Shakun Gupta

Partner: M. No. 047164 Partner: M. No. 402631 Partner: M. No. 506838

Responsible Approach
For Guha Nandi & Co. For M C Bhandari & Co. For V Singhi & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 302039E Firm Regn. No. 303002E Firm Regn. No. 311017E

Dr. B. S. Kundu CA Nikhil Jain CA Aniruddha Sengupta

Partner: M. No. 051221 Partner: M. No. 301150 Partner: M. No. 051371

Governance
For Suri & Co. For Talati & Talati LLP For Ravi Rajan & Co. LLP
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 004283S Firm Regn. No. 110758W/W100377 Firm Regn. No. 009073N/N500320

CA V Natarajan CA Anand Sharma CA Sumit Kumar

Partner: M. No. 223118 Partner: M. No. 129033 Partner: M. No. 512555

Statutory Reports
For Gokhale & Sathe For M K Aggarwal & Co. For JLN US & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 103264W Firm Regn. No. 001411N Firm Regn. No. 101543W

CA Jayant Gokhale CA Atul Aggarwal CA Shalabh Kumar Daga

Partner: M. No. 033767 Partner: M. No. 099374 Partner: M. No. 401428

Financial Statements
Place: Mumbai
Date: 18th May 2023

149
 Standalone Financials

SCHEDULES
forming part of the Profit and Loss Account for the year ended 31st March 2023

SCHEDULE 13 - INTEREST EARNED

(000s omitted)
Year ended Year ended
31.03.2023 31.03.2022
(Current Year) (Previous Year)
` `
I. Interest/ discount on advances/ bills 221400,64,68 171823,73,09
II. Income on investments 95928,26,71 84877,20,42
III. Interest on balances with Reserve Bank of India and other inter-bank funds 3491,01,12 4377,91,06
IV. Others 11283,13,51 14378,44,47
TOTAL 332103,06,02 275457,29,04

SCHEDULE 14 - OTHER INCOME

(000s omitted)
Year ended Year ended
31.03.2023 31.03.2022
(Current Year) (Previous Year)
` `
I. Commission, exchange and brokerage 26244,65,58 24565,21,06
II. Profit/(Loss) on sale of investments (Net) 3290,00,26 3485,08,43
III. Profit/(Loss) on revaluation of investments (Net) (4644,43,56) (263,27,88)
IV. Profit/(Loss) on sale of land, buildings and other assets (Net) (29,78,85) (16,86,60)
V. Profit/(Loss) on exchange transactions (Net) 5284,68,59 3479,04,06
VI. Income earned by way of dividends etc., from subsidiaries/ companies and/ or joint ventures 855,10,80 718,37,49
abroad/ in India
VII. Miscellaneous Income1 5615,36,94 8596,34,84
TOTAL 36615,59,76 40563,91,40

1
Miscellaneous Income includes Recoveries made in write-off accounts `7097,30,65 thousand (Previous Year `7781,69,59 thousand).

SCHEDULE 15 - INTEREST EXPENDED

(000s omitted)
Year ended Year ended
31.03.2023 31.03.2022
(Current Year) (Previous Year)
` `
I. Interest on deposits 162418,04,53 141247,47,11
II. Interest on Reserve Bank of India/Inter-bank borrowings 18080,16,02 7779,35,70
III. Others 6764,35,01 5722,87,62
TOTAL 187262,55,56 154749,70,43

150 Annual Report 2022 – 23

 Standalone Financials

SCHEDULE 16 - OPERATING EXPENSES

Company Overview
(000s omitted)
Year ended Year ended
31.03.2023 31.03.2022
(Current Year) (Previous Year)
` `
I. Payments to and provisions for employees2 57291,84,28 57561,98,54
II. Rent, taxes and lighting 5702,00,53 5362,15,52

Responsible Approach
III. Printing and stationery 705,42,59 615,09,43
IV. Advertisement and publicity 323,38,66 316,15,73
V. Depreciation on Bank’s property 3297,27,04 3248,58,59
VI. Directors’ fees, allowances and expenses 1,56,38 1,70,49
VII. Auditors’ fees and expenses (including branch auditors’ fees and expenses) 270,79,10 270,60,67
VIII. Law charges 271,61,16 241,38,60

Governance
IX. Postages, Telegrams, Telephones etc. 536,54,31 507,66,87
X. Repairs and maintenance 1069,68,01 1036,20,89
XI. Insurance 5758,03,98 5239,81,42
XII. Other expenditure 22514,97,57 18996,14,77
TOTAL 97743,13,61 93397,51,52

Statutory Reports
2
Payments to and provisions for employees includes exceptional item of Nil (Previous Year `7418,39,00 thousand) for enhancement in Family Pension
under 11th Bipartite Settlement and Joint Note dated 11th November 2020.

Financial Statements

151
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

SCHEDULE 17: believes that the estimates used in preparation of the

SIGNIFICANT ACCOUNTING POLICIES financial statements are prudent and reasonable. Actual
results could differ from these estimates.
A. Background:
State Bank of India (SBI or the Bank) is a banking and D. Significant Accounting Policies:
financial services statutory body engaged in providing
1. Revenue recognition:
a wide range of products and services to individuals,
commercial enterprises, large corporates, public bodies, 1.1 Income and expenditure are accounted on accrual
and institutional customers. The Bank is governed by basis, except otherwise stated.
the Banking Regulation Act, 1949, and the State Bank of 1.2 
Interest/Discount income is recognized in the
India Act, 1955. Profit and Loss Account on realisation basis
Following are the Significant Accounting Policies i.e. the for following:
specific accounting principles and methods of applying i. Income from Non-Performing Assets (NPAs)
these principles in the preparation and presentation of including investments, as per the prudential
financial statements of the Bank. norms prescribed by RBI/respective
country regulators in the case of foreign
B. Basis of Preparation: offices (hereafter collectively referred to as
The accounting and reporting policies of the Bank Regulatory Authorities),
conform to Generally Accepted Accounting Principles ii. Income on Rupee Derivatives designated as
in India (Indian GAAP), comprising of regulatory norms, “Trading”.
directions & guidelines prescribed by the Reserve Bank
of India (RBI), statutory guidelines of the State Bank of 1.3 In accordance with the guidelines issued by the
India Act, 1955, and the Banking Regulation Act, 1949, Reserve Bank of India, Profit on sale of investments
Accounting Standards issued by Institute of Chartered in the Held to Maturity (HTM) category and on sale
Accountants of India (ICAI), and the accounting of Fixed Assets is appropriated to Capital Reserve,
practices prevalent in the banking industry in India. net of applicable taxes and amount required to be
transferred to Statutory Reserve.
In case of foreign offices, the statutory provisions, and
practices of the local laws of the respective foreign The discount if any, on acquisition of investments
country are followed if they are more prudent. in Held to Maturity (HTM) category is accounted
as follows:
Bank’s financial statements are prepared under the
historical cost convention, with fundamental accounting a) on interest bearing securities, it is accounted
assumptions of going concern, consistency and accrual, for at the time of sale/redemption.
unless otherwise stated. b) on zero-coupon securities, it is accounted for

The financial statements have been prepared in over the balance tenor of the security on a
accordance with requirements under the Third Schedule constant yield basis.
of the Banking Regulation Act, 1949. 1.4 Dividend income is recognized when the right to
receive the dividend is established.
C. Use of Estimates:
1.5 
Commission on Letters of Credit (LC)/Bank
The preparation of financial statements requires the Guarantee (BG), Deferred Payment Guarantee,
management to make estimates and assumptions that Government Business, ATM interchange fee
are considered in the reported amount of assets and & “Upfront fee on restructured account” are
liabilities (including contingent liabilities) as of the date recognized on accrual basis proportionately over
of the financial statements and the reported income the period. All other commission and fee income
and expenses during the reporting period. Management are accounted on a realisation basis.

152 Annual Report 2022 – 23

Standalone Financials

1.6 One time Insurance Premium paid under Special 2.2 Basis of classification:

Company Overview
Home Loan Scheme (December 2008 to June i. Investments that the Bank intends to hold till
2009) is amortised over the average loan period of maturity are categorised as “Held to Maturity
15 years. (HTM)”.
1.7 
Brokerage, Commission etc. paid/ incurred in ii. Investments that are held principally for resale
connection with the issue of Bonds/ Deposits within 90 days from the date of purchase are
are amortised over the tenure of related Bonds/ categorised as “Held for Trading (HFT)”.

Responsible Approach
Deposits and the expenses incurred in connection
with the issue are charged upfront. iii. Investments, which are not classified in above
two categories, are classified as “Available for
1.8 
The Bank derecognises its financial assets Sale (AFS)”.
when it sells to Securitisation Company (SC)/
Reconstruction Company (RC), and accounts for iv. 
An investment is classified as HTM, HFT
as under: or AFS at the time of its purchase and
subsequent shifting amongst categories is
i. If the sale is at a price below the Net Book

Governance
done in conformity with regulatory guidelines.
Value (NBV) (i.e. book value less provisions
held), the shortfall is debited to the Profit and v. Investments in subsidiaries and joint ventures
Loss Account in the year of sale. are classified as HTM except in respect of
those investments which are acquired and
ii. If the sale is for a value higher than the NBV, held exclusively with a view to its subsequent
the excess provision is written back in the disposal. These investments are classified
year the amounts are received. as AFS.

Statutory Reports
2. Investments: 2.3 Valuation:
Investments are accounted for in accordance i. The transactions in all securities are recorded
with the extant RBI guidelines on investment on a Settlement Date and cost is determined
classification and valuation, as given below: on the weighted average cost method
except for investments under HTM category
2.1 Classification: which are accounted on FIFO basis (First In

Financial Statements
As per RBI guidelines, investments are classified First Out).
into Held to Maturity (HTM), Available for Sale
a) 
Brokerage/commission received
(AFS) and Held for Trading (HFT) categories.
on subscriptions is reduced from
For disclosure in Balance Sheet, the investments the cost. Brokerage, Commission,
are classified as Investments in India and Securities Transaction Tax (STT) etc.
outside India. paid in connection with acquisition of
investments are expensed upfront and
− Under each category, the investments in India are
excluded from cost.
further classified as (i) Government Securities,
(ii) Other Approved Securities, (iii) Shares, (iv) b) Broken period interest paid/received on
Bonds and Debentures, (v) Subsidiaries and Joint debt instruments is treated as interest
Ventures and (vi) Others. expense/income and is excluded from
− The investments outside India are further cost/sale consideration.
classified as (i)  Government Securities
(ii) Subsidiaries and Joint Ventures (iii) Other
Investments.

153
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

ii. Valuation of investments classified as Held v. Valuation in case of sale of NPA (financial
to Maturity: asset) to Securitisation Company (SC)/
a) 
Investments under Held to Maturity Asset Reconstruction Company (ARC)
category are carried at acquisition cost. against issue of Security Receipts:
The premium paid on acquisition if any, a) 
The investment in security receipts
is amortised over the term to maturity on obtained by way of sale of NPA to
a constant yield basis. Such amortisation SC / RC, is recognized at lower of: (i) Net
of premium is accounted as income Book Value (NBV) (i.e. book value less
on investments. provisions held) of the financial asset;
and (ii) Redemption value of SR.
b) 
Investments (in India and abroad)
in subsidiaries, joint ventures and b) SRs issued by an SC / ARC are valued
associates are valued at historical cost. in accordance with the guidelines
A provision is made for diminution, applicable to non-SLR instruments.
other than temporary, for each Accordingly, in cases where the SRs
investment individually. issued by the SC / ARC are limited to
the actual realisation of the financial
c) Investments in Regional Rural Banks are
assets assigned to the instruments in the
valued at carrying cost (i.e. book value).
concerned scheme, the Net Asset Value,
obtained from the SC / ARC, is reckoned
iii. 
Valuation of investments classified as
for valuation of such investments.
Available for Sale and Held for Trading:
Investments classified as Available for Sale vi. 
Treasury Bills and Commercial Papers are
and Held for Trading are individually revalued valued at carrying cost.
at market price or fair value determined as
per the regulatory guidelines and the net 2.4 Investments (NPI):
depreciation if any, of each group for each i. In respect of domestic offices, based on the
category (viz. (i) Government securities, guidelines issued by RBI, investments are
(ii) Other Approved Securities, (iii) Shares, (iv) classified as performing and non-performing
Bonds and Debentures, (v) Subsidiaries and as follows:
Joint Ventures and (vi) others) is provided for
a) 
Interest/instalment (including maturity
and net appreciation is ignored.
proceeds) is due and remains unpaid for
more than 90 days.
iv. Valuation policy in event of inter category
transfer of investments: b) In the case of equity shares, in the event
a) 
Transfer of securities from HFT/AFS the investment in shares of any company
category to HTM category is carried out at is valued at `1 per company on account
the lower of acquisition cost/ book value/ of non-availability of the latest balance
market value on the date of transfer. The sheet, those equity shares would be
depreciation, if any, on such transfer is reckoned as NPI.
fully provided for. c) The Bank also classifies an investment
b) 
Transfer of securities from HTM as a non-performing investment in case
category to AFS category is carried out any credit facility availed by the same
on acquisition price/book value. On borrower/entity has been classified as a
transfer, these securities are immediately non-performing asset and vice versa. The
revalued and resultant depreciation, above is applied to Preference Shares
if any, is provided, in the Profit and where the fixed dividend is not paid.
Loss Account.

154 Annual Report 2022 – 23

Standalone Financials

d) 
The investments in debentures/bonds, loans repayable on demand, under Schedule

Company Overview
which are deemed to be advance, 9 ‘Advances’. All other Reverse Repos are
are also subjected to NPI norms as classified as Term Loans under Schedule 9
applicable to investments. ‘Advances’.

ii. In respect of foreign offices, classification and vi. 

Borrowing cost of repo transactions and
provisions for non-performing investments revenue on reverse repo transactions, with
(NPIs) are made as per the local regulations RBI or others, is accounted for as interest

Responsible Approach
or as per the norms of RBI, whichever are expense and interest income, respectively.
more prudent.
3. Loans/Advances and Provisions thereon:
2.5
Accounting for Repo/Reverse Repo transactions: 3.1 
Based on the guidelines/directives issued by

The Bank enters Repurchase and Reverse the RBI, Loans and Advances are classified as
Repurchase Transactions with RBI under Liquidity performing and non-performing, as follows:
Adjustment Facility (LAF) and with market
i. A term loan is classified as a non-performing

Governance
participants. Repurchase Transaction represents
asset, if interest and/or instalment of principal
borrowing by selling the securities with an
remains overdue for a period of more than
agreement to repurchase the securities. Reverse
90 days.
Repo Transactions on the other hand, represent
lending funds by purchasing the securities. ii. An Overdraft or Cash Credit is classified as a
non-performing asset, if, the account remains
i. 
Transactions with RBI under Liquidity
“out of order”, i.e. if the outstanding balance
Adjustment Facility (LAF) are accounted

Statutory Reports
exceeds the sanctioned limit/drawing power
for as Collateralised Lending and
continuously for a period of 90 days, or if there
Borrowing transactions.
are no credits continuously for 90 days as on
ii. 
In Repo and Reverse Repo transaction, the date of balance sheet, or if the credits are
securities sold (purchased) and repurchased not adequate to cover the interest debited
(resell) are accounted as normal outright sale during the same period.
(purchase) transactions and such movement of
iii. The bills purchased/discounted are classified

Financial Statements
securities is reflected using the Repo/Reverse
as Non-performing Asset, if the bill remains
Repo Accounts and contra entries. The above
overdue for a period of more than 90 days.
entries are reversed on the date of maturity.
iv. The agricultural advances are classified as a
iii. Balance in Repo Account is classified under
non-performing if, (a) for short duration crops,
Schedule 4 ‘Borrowings’.
where the instalment of principal or interest
iv. All type of Reverse Repos with RBI including remains overdue for two crop seasons; and (b)
those under Liquidity Adjustment Facility for long duration crops, where the principal or
are presented under sub item (ii) ‘In Other interest remains overdue for one crop season.
Accounts’ of item (II) Balances with RBI under
3.2 NPAs are classified into Sub-standard, Doubtful
Schedule 6 ‘Cash and balances with RBI’.
and Loss Assets, based on the following criteria
v. 
Reverse Repos with banks and other stipulated by RBI:
institutions having original tenors up to and
i. Sub-standard: A loan asset that has remained
inclusive of 14 days are classified as Money
non-performing for a period less than or equal
at call and short notice under Schedule 7
to 12 months.
‘Balance with Banks and Money at call &
short notice’. Reverse Repos with original ii. Doubtful: A loan asset that has remained in
maturity more than 14 days but up to 1 year the sub-standard category for a period of
are classified as Cash Credits, overdrafts and 12 months.

155
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

iii. 
Loss: A loan asset where loss has been 3.8 
Amounts recovered against debts written off in
identified but the amount has not been fully earlier years are recognized as revenue in the year
written off. of recovery.

3.3 Provisions are made for NPAs as per the extant 3.9 
In addition to the specific provision on NPAs,
guidelines prescribed by the regulatory authorities, general provisions are also made for standard
subject to minimum provisions as prescribed below: assets as per extant RBI Guidelines. These
provisions are reflected in Schedule 5 of the
Sub-standard i. A general provision of 15% on
Balance Sheet under the head “Other Liabilities
Assets: the total outstanding.
& Provisions – Others” and are not considered for
 ii. 
Additional provision of 10%
arriving at the Net NPAs.
for exposures which are
unsecured ab-initio (i.e. where 3.10 
The Bank also makes additional provisions on
realisable value of security is
specific non-performing assets.
not more than 10 percent
ab-initio). 3.11 Appropriation of recoveries in NPAs are made in
iii. 
Unsecured Exposure in order of priority as under:
respect of infrastructure
advances where certain a) Charges, Costs, Commission etc.
safeguards such as escrow
accounts are available – 20%. b) Unrealized Interest/Interest
Doubtful Assets: c) Principal
-Secured portion: i. Up to one year – 25%

However, in Compromise and Resolution/
ii. One to three years – 40%
Settlement through National Company Law
iii. More than three years – 100%
Tribunal (NCLT) cases, the recoveries are
-Unsecured portion 100% appropriated as per the terms of respective
Loss Assets: 100%. compromise/ resolution/ settlement. In case of
3.4 In respect of foreign offices, the classification of suit filed accounts, recovery is appropriated as per
loans and advances and provisions for NPAs are directives of respective courts.
made as per the local regulations or as per the
norms of RBI, whichever is more prudent. 4. Floating Provisions & Countercyclical
Provisioning Buffer:
3.5 Advances are net of specific loan loss provisions,
The Bank has a policy for creation and utilisation of
unrealised interest, ECGC claims received and
Countercyclical Provisioning Buffer in good times
bills rediscounted.
as well as for floating provisions separately for
3.6 
For restructured/rescheduled assets, provisions advances, investments, and general purposes. The
are made in accordance with the guidelines issued quantum of floating provisions and Countercyclical
by the RBI, which require that the difference Provisioning Buffer to be created is assessed at
between the fair value of the loans/advances before the end of the financial year. These provisions are
and after restructuring is provided for, in addition utilised only for contingencies under extraordinary
to provision for the respective loans/advances. The circumstances specified in the policy with prior
Provision for Diminution in Fair Value (DFV) and permission of Reserve Bank of India.
interest sacrifice, if any, arising out of the above, is
reduced from advances. 5. Provision for Country Exposure:
3.7 In the case of loan accounts classified as NPAs, In addition to the specific provisions held according
an account may be reclassified as a performing to the asset classification status, provisions are
asset if it conforms to the guidelines prescribed by also made for individual country exposures (other
the regulators. than the home country). Countries are categorised
into seven risk categories, namely, insignificant,
low, moderate, high, very high, restricted and off-

156 Annual Report 2022 – 23

Standalone Financials

credit and provisioning made as per extant RBI considered to arrive at Mark-to-Market value for

Company Overview
guidelines. If the country exposure (net) of the Bank forex Over the Counter (OTC) options.
in respect of each country does not exceed 1% of
6.5 Exchange Traded Derivatives entered in for trading
the total funded assets, no provision is maintained
purposes are valued at prevailing market rates
on such country exposures. The provision is
based on rates given by the Exchange and the
reflected in Schedule 5 of the Balance Sheet under
resultant gains and losses are recognized in the
the head “Other Liabilities & Provisions – Others”.
Profit and Loss Account.

Responsible Approach
6. Derivatives:
7. Fixed Assets, Depreciation and Amortisation:
6.1 The Bank enters in derivative contracts, such as
7.1 Fixed Assets are carried at cost less accumulated
foreign currency options, interest rate swaps,
depreciation/amortisation except for freehold
currency swaps, cross currency interest rate swaps
premises carried at revalued amount, being fair
and forward rate agreements to hedge on-balance
value at the date of revaluation less accumulated
sheet/off-balance sheet assets and liabilities or for
depreciation, as stated otherwise.
trading purposes. The swap contracts entered to

Governance
hedge on-balance sheet assets and liabilities are 7.2 Cost includes cost of purchase and all expenditure
structured in such a way that they bear an opposite such as site preparation, installation costs and
and offsetting impact with the underlying on‑balance professional fees incurred on the asset before it
sheet items. The impact of such derivative is put-to-use. Subsequent expenditure(s) incurred
instruments is correlated with the movement of the on the assets put-to-use are capitalised only when
underlying assets and accounted in accordance it increases the future benefits from such assets
with the principles of hedge accounting. or their functioning capability. The fixed assets in

Statutory Reports
domestic offices are depreciated at straight-line
6.2 
Derivative contracts classified as hedge are
method based on useful life of the assets stated
recorded on accrual basis. Hedge contracts are not
as under:
marked to market unless the underlying assets/
liabilities are also marked to market. Sr. Useful life for
Description of Fixed Assets
No. Depreciation
6.3 
Except as mentioned above, all other derivative
contracts are marked to market as per the Generally i. Computers 3 years

Financial Statements
Accepted Accounting Practices prevalent in the ii. Computer Software forming an 3 years
industry. In respect of derivative contracts that are integral part of the computer
hardware
marked to market, changes in the market value
are recognized in the Profit and Loss Account iii. Computer Software which does 3 years
not form an integral part of
in the period of change. Any receivable under
Computer hardware and cost of
derivative contracts, which remain overdue for Software Development
more than 90 days, are reversed through Profit and
iv. Automated Teller Machine/ 5 years
Loss Account to “Suspense Account Crystallised Cash Deposit Machine/ Coin
Receivables”. In cases where the derivative Dispenser/ Coin Vending
contracts provide for more settlement in future and Machine
if the derivative contract is not terminated on the v. Server 4 years
overdue receivables remaining unpaid for 90 days, vi. Network Equipment 5 years
the positive MTM pertaining to future receivables
vii. Other major fixed assets:
is also reversed from Profit and Loss Account to
Premises 60 years
“Suspense Account – Positive MTM”.
Vehicles 5 years
6.4 Option premium paid or received is recorded in
Safe Deposit Lockers 20 years
Profit and Loss Account at the expiry of the option.
Furniture & Fixtures 10 years
The balance in the premium received on options
sold and premium paid on options bought is

157
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

7.3 In respect of assets acquired during the year (for 10. Effect of changes in the foreign exchange rate:
domestic operations), depreciation is charged on 10.1 Foreign Currency Transactions:
proportionate basis for the number of days the
i. Foreign currency transactions are recorded
assets have been put-to-use during the year.
on initial recognition in the reporting currency
7.4 Assets costing less than `1,000 each are charged by applying to the foreign currency amount
off in the year of purchase. the exchange rate between the reporting
currency and the foreign currency on the date
7.5 
In respect of leasehold premises, the lease
of transaction.
premium, if any, is amortised over the period of
lease (except for premises and land on perpetual ii. 
Foreign currency monetary items are
lease) and Lease payments for assets taken on reported using the Foreign Exchange Dealers
Operating lease are recognized as expense in Association of India (FEDAI) closing (spot/
the Profit & Loss account over the lease term on forward) rates.
straight-line basis.
iii. Foreign currency non-monetary items, which
7.6 In respect of fixed assets held at foreign offices, are carried at historical cost, are reported
depreciation is provided as per the regulations/ using the exchange rate on the date of
norms of the respective countries. the transaction.
7.7 
The Bank revalue freehold immovable assets at iv. Contingent liabilities denominated in foreign
every three years. The increase in Net Book Value currency are reported using the FEDAI closing
of the asset due to revaluation is credited to the spot rates.
Revaluation Reserve Account without routing
v. 
Outstanding foreign exchange spot and
through the Profit and Loss Account. Additional
forward contracts held for trading are revalued
Depreciation on the revalued asset is charged to
at the exchange rates notified by FEDAI
the Profit and Loss Account and appropriated from
for specified maturities, and the resulting
the Revaluation Reserves to General Reserve. The
Profit or Loss is recognized in the Profit and
revalued asset is depreciated over the balance
Loss Account.
useful life of the asset as assessed at the time
of revaluation. vi. Foreign exchange forward contracts which are
not intended for trading and are outstanding
8. Leases: on the balance sheet date, are re-valued at the
The asset classification and provisioning norms closing spot rate. The premium or discount
applicable to advances, as laid down in Para 3 arising at the inception of such forward
above, are applied to financial leases also. exchange contract is amortised as expense or
income over the life of the contract.
9. Impairment of Assets: vii. Exchange differences arising on the settlement
Fixed Assets are reviewed for impairment whenever of monetary items at rates different from
events or changes in circumstances warrant those at which they were initially recorded
that the carrying amount of an asset may not be are recognized as income or as expense in the
recoverable. Recoverability of assets to be held and period in which they arise.
used is measured by a comparison of the carrying
viii. 
Gains/Losses on account of changes in
amount of an asset to future Net Discounted Cash
exchange rates of open position in currency
Flows expected to be generated by the asset. If
futures trades are settled with the exchange
such assets are impaired, the impairment to be
clearing house on daily basis and such
recognized is measured by the amount by which
gains/losses are recognized in the Profit and
the carrying amount of the asset exceeds the fair
Loss Account.
value of the asset.

158 Annual Report 2022 – 23

 Standalone Financials

10.2 Foreign Operations: c. 

Foreign currency non-monetary items

Company Overview
Foreign Branches of the Bank and Offshore Banking which are carried at historical cost are
Units (OBU) have been classified as Non‑integral reported using the exchange rate on the
Operations and Representative Offices have been date of the transaction.
classified as Integral Operations.
11. Employee Benefits:
i. Non-integral Operations: 11.1 Short-Term Employee Benefits:

Responsible Approach
a. 
Both monetary and non-monetary The undiscounted amounts of short-term employee
foreign currency assets and liabilities benefits, such as medical benefits which are
including contingent liabilities of non- expected to be paid in exchange for the services
integral foreign operations are translated rendered by employees, are recognized during the
at closing exchange rates notified by period when the employee renders the service.
FEDAI at the Balance Sheet date.
11.2 Long-Term Employee Benefits:
b. Income and expenditure of non-integral

Governance
foreign operations are translated at i. Defined Benefit Plans:
quarterly average closing rates notified a. 
The Bank operates a Provident Fund
by FEDAI. scheme. All eligible employees are
entitled to receive benefits under the
c. 
E xchange differences arising on
Bank’s Provident Fund scheme. The
investment in non-integral foreign
Bank contributes to the fund at 10%
operations are accumulated in Foreign
of employee’s basic pay plus eligible
Currency Translation Reserve until the

Statutory Reports
allowance monthly. These contributions
disposal of the investment.
are remitted to a Trust established for
d. 
The Assets and Liabilities of foreign this purpose and are charged to Profit
offices in foreign currency (other than and Loss Account. The Bank recognizes
local currency of the foreign offices) are such annual contributions as an
translated into local currency using spot expense in the year to which it relates.
rates applicable to that country on the Shortfall, if any, is provided for based on

Financial Statements
balance sheet date. actuarial valuation.

b. The Bank operates Gratuity and Pension

ii. Integral Operations:
schemes which are defined benefit plans.
a. 
Foreign currency transactions are
recorded on initial recognition in the - The Bank provides for gratuity to all
reporting currency by applying to the eligible employees. The benefit is in
foreign currency amount the exchange the form of lump sum payments to
rate between the reporting currency vested employees on retirement, or
and the foreign currency on the date on death while in employment, or on
of transaction. termination of employment, for an
amount equivalent to 15 days basic
b. 
Monetary foreign currency assets and salary payable for each completed
liabilities of integral foreign operations year of service, subject to the
are translated at closing (Spot/Forward) cap prescribed by the Statutory
exchange rates notified by FEDAI at the Authorities or Service Gratuity
balance sheet date and the resulting without cap for erstwhile Associate
Profit/Loss is included in the Profit and Bank’s employees. Vesting
Loss Account. Contingent Liabilities are occurs upon completion of five
translated at Spot rate. years of service. The Bank makes

159
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

periodic contributions to a fund Bank recognizes such annual contributions

administered by Trustees based on and interest as an expense in the year to which
an independent external actuarial they relate. Upon receipt of the Permanent
valuation carried out annually. Retirement Account Number (PRAN), the
consolidated contribution amounts are
- The Bank provides for pension to
transferred to the NPS Trust.
all eligible employees. The benefit
is in the form of monthly payments
iii. Other Long Term Employee Benefits:
as per rules to vested employees
on retirement or on death while a. All eligible employees of the Bank are
in employment, or on termination eligible for compensated absences, silver
of employment. Vesting occurs at jubilee award, leave travel concession,
different stages as per rules. The retirement award and resettlement
Bank makes monthly contribution allowance. The cost of such long-term
to the Pension Fund at 10% of employee benefits are internally funded
salary in terms of SBI Employees’ by the Bank.
Pension Fund Regulations. The b. 
The cost of providing other long‑term
pension liability is reckoned based benefits is determined using the
on an independent actuarial projected unit credit method with
valuation carried out annually actuarial valuations being carried out at
and Bank makes such additional each Balance Sheet date. Past service
contributions periodically to the cost, if any, is immediately recognized
Fund as may be required to secure in the Profit and Loss Account and is
payment of the benefits under the not deferred.
Pension Fund Regulations.
11.3 
Employee benefits relating to employees
c. The cost of providing defined benefits employed at foreign offices are valued and
is determined using the projected unit accounted for as per the respective local
credit method, with actuarial valuations laws/regulations.
being carried out at each balance
sheet date. Actuarial gains/losses are 12. Segment Reporting:
immediately recognized in the Profit and
The Bank recognizes the business segment as
Loss Account and are not deferred.
the primary reporting segment and geographical
segment as the secondary reporting segment
ii. Defined Contribution Plan:
in accordance with the RBI guidelines and in
The Bank operates a New Pension Scheme compliance with the Accounting Standard 17
(NPS) for all officers/employees joining the issued by Institute of Chartered Accountants
Bank on or after 1st August 2010, which is a of India.
defined contribution plan. (Such new joinees
not being entitled to become members of 13. Taxes on income:
the existing SBI Pension Scheme). As per the
Income tax expense is the aggregate amount of
scheme, these employees contribute 10% of
current tax and deferred tax expense incurred by
their basic pay plus dearness allowance to the
the Bank. The current tax expense and deferred tax
scheme together with Bank’s contribution at
expense are determined in accordance with the
14% of basic pay plus dearness allowance.
provisions of the Income Tax Act, 1961 and as per
Pending completion of registration
Accounting Standard 22 – “Accounting for Taxes
procedures of the employees concerned,
on Income” respectively after considering taxes
these contributions are retained as deposits
paid at the foreign offices, which are based on the
in the Bank and earn interest at the rate
tax laws of respective jurisdictions. Deferred Tax
applicable to Provident Fund balance. The

160 Annual Report 2022 – 23

 Standalone Financials

adjustments comprises of changes in the deferred 15.2 No provision is recognized for:

Company Overview
tax assets or liabilities during the year. Deferred tax
i) 
any possible obligation that arises from
assets and liabilities are recognized by considering
past events and the existence of which will
the impact of timing differences between taxable
be confirmed only by the occurrence or
income and accounting income for the current year
non‑occurrence of one or more uncertain
and carry forward losses. Deferred tax assets and
future events not wholly within the control of
liabilities are measured using tax rates and tax laws
the Bank; or
that have been enacted or substantively enacted

Responsible Approach
at the balance sheet date. The impact of changes ii) any present obligation that arises from past
in deferred tax assets and liabilities is recognized events but is not recognized because:
in the profit and loss account. Deferred tax assets
a) 
it is not probable that an outflow of
are recognized and re-assessed at each reporting
resources embodying economic benefits
date, based upon management’s judgement
will be required to settle the obligation; or
as to whether their realisation is considered
as reasonably certain. Deferred Tax Assets are b) 
a reliable estimate of the amount of

Governance
recognized on carry forward of unabsorbed obligation cannot be made.
depreciation and tax losses only if there is virtual
Such obligations are recorded as Contingent
certainty supported by convincing evidence that
Liabilities. These are assessed at regular intervals
such deferred tax assets can be realised against
and only that part of the obligation for which an
future profits.
outflow of resources embodying economic benefits
is probable, is provided for, except in the extremely
14. Earnings per Share:
rare circumstances where no reliable estimate can

Statutory Reports
14.1 The Bank reports basic and diluted earnings per be made.
share in accordance with AS 20 –“Earnings per
Share” issued by the ICAI. Basic Earnings per 15.3 Provision for reward points in relation to the debit
Share are computed by dividing the Net Profit after card holders of the Bank is being provided for on
Tax for the year attributable to equity shareholders actuarial estimates.
by the weighted average number of equity shares 15.4 Provisions for onerous contracts are recognized
outstanding for the year. when the expected benefits to be derived by

Financial Statements
14.2 
Diluted Earnings per Share reflect the potential the Bank from a contract are lower than the
dilution that could occur if securities or other unavoidable costs of meeting the future obligations
contracts to issue equity shares were exercised under the contract. The provision is measured
or converted during the year. Diluted Earnings per at the present value of the lower of the expected
Share are computed using the weighted average cost of terminating the contract and the expected
number of equity shares and dilutive potential net cost of continuing with the contract. Before a
equity shares outstanding at year end. provision is established, the Bank recognizes any
impairment loss on the assets associated with
15. Provisions, Contingent Liabilities and that contract.
Contingent Assets: 15.5 
Contingent Assets are not recognized in the
15.1 In conformity with AS 29, “Provisions, Contingent financial statements.
Liabilities and Contingent Assets”, issued by the
Institute of Chartered Accountants of India, the 16. Bullion Transactions:
Bank recognizes provisions only when it has a The Bank imports bullion including precious metal
present obligation because of a past event, and bars on a consignment basis for selling to its
would result in a probable outflow of resources customers. The imports are typically on a back-
embodying economic benefits will be required to to-back basis and are priced to the customer
settle the obligation, and when a reliable estimate based on price quoted by the supplier. The Bank
of the amount of the obligation can be made. earns a fee on such bullion transactions. The fee

161
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

is classified under commission income. The Bank Bank has passed a resolution approving creation of
also accepts deposits and lends gold, which is the reserve and confirming that it has no intention
treated as deposits/ advances as the case may to make withdrawal from the Special Reserve.
be with the interest paid/ received classified as
interest expense/ income. Gold Deposits, Metal 18. Share Issue Expenses:
Loan Advances and closing Gold Balances are Share issue expenses are charged to the Share
valued at available Market Rate as on the date of Premium Account.
Balance Sheet.
19. Cash and cash equivalents:
17. Special Reserves:
Cash and cash equivalents include Cash and

Revenue and other Reserve include Special Balances with RBI, Balances with Banks and
Reserve created under Section 36(i)(viii) of the money at call and short notice.
Income Tax Act, 1961. The Board of Directors of the

162 Annual Report 2022 – 23

 Standalone Financials

SCHEDULE – 18: NOTES TO ACCOUNTS

Company Overview
18.1 Regulatory Capital
a) Composition of Regulatory Capital (As per Basel III)
(` in Crore)
Sr. As at As at
Items
No. 31st March 2023 31st March 2022
i) Common Equity Tier 1 capital 2,85,834.97 2,46,360.79

Responsible Approach
ii) Additional Tier 1 capital 49,692.70 36,709.70
iii) Tier 1 capital (i + ii) 3,35,527.67 2,83,070.49
iv) Tier 2 capital 73,051.40 59,721.52
v) Total capital (Tier 1 + Tier 2) 4,08,579.07 3,42,792.01
vi) Total Risk Weighted Assets (RWAs) 27,83,058.70 24,78,703.46
vii) CET 1 Ratio (%) 10.27% 9.94%

Governance
(CET 1 as a percentage of RWAs)
viii) Tier 1 capital ratio (%) 12.06% 11.42%
(Tier 1 capital as a percentage of RWAs)
ix) Tier 2 capital ratio (%) 2.62% 2.41%
(Tier 2 capital as a percentage of RWAs)
x) Capital to Risk Weighted Assets Ratio (CRAR) (%) 14.68% 13.83%
(Total capital as a percentage of RWAs)

Statutory Reports
xi) Leverage ratio 5.52% 5.09%
xii) Percentage of the Shareholding of Government of India 56.92% 56.92%
xiii) Amount of paid-up equity capital raised during the year $ --
xiv) Amount of non-equity Tier 1 capital raised during the year: 15,133.00 13,974.00
Basel III compliant Perpetual Debt Instruments
xv) Amount of Tier 2 capital raised during the year: 4,000.00 --
Basel III compliant Debt Capital instruments

Financial Statements
RBI vide circular No. DBR.No.BP.BC.83/21.06.201/2015-16 dated 1st March 2016, has given discretion to banks
to consider Revaluation Reserve, Foreign Currency Translation Reserve and Deferred Tax Asset for purposes of
computation of Capital Adequacy as CET– I capital ratio. The Bank has exercised the option in the above computation.

$ The Bank during the year, has allotted 400 equity shares of `1/- each for cash at a premium of `158/- per equity
share out of 7,93,630 shares (issued as a part of Right Issue-2008) allotment of which was held in abeyance for
resolution of title dispute. Out of the total subscription of `63,600/- received, `400/- was transferred to Share
Capital Account and `63,200/- to Share Premium Account. As on 31st March 2023 allotment of 7,93,230 shares is
held in abeyance.

163
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

b) Drawdown from Reserves:

During the year, there has been no draw down from the reserves to the Profit & Loss Account.

c) Innovative Perpetual Debt Instruments (IPDI)

The details of IPDI issued which qualify for Hybrid Tier I Capital and outstanding are as under:
(` in Crore)
Sr. Principal Rate of Interest
Nature of Bonds Date of Issue
No. Amount % p.a.
i) SBI Non-Convertible Unsecured Basel III AT 1 Bonds 2018 4,021.00 04.12.2018 9.56
ii) SBI Non-Convertible Unsecured Basel III AT 1 Bonds 2018 2,045.00 21.12.2018 9.37
Series II
iii) SBI Non-Convertible Unsecured Basel III AT 1 Bonds 2018 1,251.30 22.03.2019 9.45
Series III
iv) SBI Non-Convertible Unsecured Basel III AT 1 Bonds 2019‑20 3,104.80 30.08.2019 8.75
Series I
v) SBI Non-Convertible Unsecured Basel III AT 1 Bonds 2019‑20 3,813.60 22.11.2019 8.50
Series II
vi) SBI Non-Convertible Unsecured Basel III AT1 Bonds 2020-21 4,000.00 09.09.2020 7.74
Series 1
vii) SBI Non-Convertible Unsecured Basel III AT1 Bonds – Series 2,500.00 24.11.2020 7.73
II 2020
viii) SBI Non-Convertible Unsecured Basel III AT1 Bonds Series I 4,000.00 03.09.2021 7.72
2021
ix) SBI Non-Convertible Unsecured Basel III AT1 Bonds Series II 6,000.00 18.10.2021 7.72
2021
x) SBI Non-Convertible Unsecured Basel III AT1 Bonds Series III 3,974.00 14.12.2021 7.55
2021
xi) SBI Non-Convertible Unsecured Basel III AT1 Bonds Series I 6,872.00 09.09.2022 7.75
2022-23
xii) SBI Non-Convertible Unsecured Basel III AT1 Bonds Series II 4,544.00 21.02.2023 8.20
2022-23
xiii) SBI Non-Convertible Unsecured Basel III AT1 Bonds Series III 3,717.00 09.03.2023 8.25
2022-23
Total 49,842.70

164 Annual Report 2022 – 23

 Standalone Financials

d) Subordinated Debts

Company Overview
The bonds are unsecured, long-term, non-convertible and are redeemable at par. The details of outstanding
subordinate debts are as under: -
(` in Crore)
Date of Issue
Sr. Principal Rate of Interest Maturity Period
Nature of Bonds /Date of
No. Amount % p.a. in Months
Redemption

Responsible Approach
i) SBI Non-Convertible 02.01.2014
(Private placement) Bonds 2013-14 2,000.00 02.01.2024 9.69 120
(Tier II)
ii) e-SBM Tier II 17.12.2014
500.00 8.55 120
Basel III compliant 17.12.2024
iii) e -SBP Tier II 22.01.2015
950.00 8.29 120
Basel III compliant (Series I) 22.01.2025

Governance
iv) e- SBBJ Tier II 20.03.2015
200.00 8.30 120
Basel III compliant 20.03.2025
v) e -SBH Tier II 31.03.2015
393.00 8.32 120
Basel III compliant (Series XIV) 31.03.2025
vi) e -SBH Tier II 30.12.2015
500.00 8.40 120
Basel III compliant (Series XV) 30.12.2025

Statutory Reports
vii) e-SBM Tier II 31.12.2015
300.00 8.40 120
Basel III compliant 31.12.2025
viii) e-SBM Tier II 18.01.2016
200.00 8.45 120
Basel III compliant 18.01.2026
ix) e -SBH Tier II 08.02.2016
200.00 8.45 120
Basel III compliant (Series XVI) 08.02.2026

Financial Statements
x) SBI Non-Convertible, Unsecured 02.11.2018
4,115.90 8.90 120
Basel III - Tier II Bonds 2018-19 02.11.2028
xi) SBI Non-Convertible, Unsecured 28.06.2019
5,000.00 7.99 120
Basel III - Tier II Bonds 2019-20 28.06.2029
xii) SBI Non-Convertible, Unsecured 21.08.2020
8,931.00 6.80 180
Basel III -Tier II Bonds 2020-21 Series I 21.08.2035
xiii) SBI Non-Convertible, Unsecured 21.09.2020
7,000.00 6.24 120
Basel III -Tier II Bonds 2020-21 Series II 21.09.2030
xiv) SBI Non-Convertible, Unsecured 26.10.2020
5,000.00 5.83 120
Basel III Tier 2 Bonds 2020-21 Series III 26.10.2030
vx) SBI Non-Convertible, Unsecured 23.09.2022
4,000.00 7.57 180
Basel III Tier 2 Bonds 2022-2023 Series I 23.09.2032
TOTAL 39,289.90

165
 18.2 Asset Liability Management:

166
a) Maturity pattern of certain items of assets and liabilities as at 31st March 2023
(` in Crore)
Over Over Over Over Over Over
2-7 8-14 15 to 30 31 days 2 months 3 months 6 months 1 year 3 years Over
Day 1 Total
Days Days Days and up to and up to and up to and up to and up to and up to 5 years
2 months 3 months 6 months 1 year 3 years 5 years
Deposits 62,021.01 81,883.25 45,827.82 64,120.64 88,668.79 60,036.93 1,82,952.43 10,66,628.66 9,63,143.94 5,25,512.40 12,82,981.92 44,23,777.78
(65,464.24) (79,811.62) (49,407.77) (66,029.77) (74,518.20) (62,378.97) (1,69,876.16) (9,51,227.96) (8,88,676.97) (4,42,764.54) (12,01,377.92) (40,51,534.12)

Annual Report 2022 – 23

SCHEDULES

Advances 43,124.35 18,214.44 16,962.84 41,105.18 79,902.61 60,557.90 1,89,565.69 2,38,645.46 11,55,432.84 4,33,665.73 9,22,092.26 31,99,269.30
(35,455.14) (17,489.88) (21,462.78) (45,328.82) (57,802.93) (59,606.96) (1,53,396.53) (2,20,131.63) (9,63,157.51) (3,58,491.91) (8,01,642.50) (27,33,966.59)
Investments 355.75 1,278.98 4,552.48 17,717.98 50,026.23 25,047.13 62,332.71 1,86,969.71 2,61,846.37 2,38,318.28 7,21,920.61 15,70,366.23
(324.55) (1,146.46) (4,577.73) (3,851.73) (9,930.25) (21,605.55) (58,778.27) (96,380.18) (3,88,944.97) (2,54,458.06) (6,41,447.72) (14,81,445.47)
Borrowings 21.11 1,05,533.97 16,840.87 28,535.79 27,044.48 37,140.22 47,064.18 55,395.05 66,095.16 53,366.85 56,097.48 4,93,135.16
(58.99) (1,50,299.24) (7,992.20) (12,734.96) (18,023.76) (16,628.14) (27,877.17) (21,910.67) (86,386.10) (60,331.41) (23,800.74) (4,26,043.38)
Foreign Currency 11,699.08 8,291.75 8,689.76 21,566.10 40,420.48 42,014.10 93,188.46 73,245.98 1,38,699.09 1,08,321.98 61,971.61 6,08,108.41
Assets #
(10,959.11) (7,939.73) (12,880.42) (25,295.77) (31,319.50) (32,758.84) (60,542.17) (58,350.82) (1,29,602.34) (80,642.55) (63,806.67) (5,14,097.92)
Foreign Currency 24,828.68 10,034.84 9,639.00 30,962.01 44,476.12 50,917.06 74,840.99 82,402.52 74,915.44 54,743.19 28,376.66 4,86,136.50
Liabilities $
(30,609.40) (9,560.59) (9,743.65) (17,542.84) (22,526.37) (26,932.35) (43,668.69) (56,277.39) (70,303.27) (46,238.82) (21,258.68) (3,54,662.04)
#
Foreign Currency Assets represent advances and investments.
$
Foreign Currency Liabilities represent borrowings and deposits.
(Figures in brackets are as at 31st March 2022).

b) Liquidity Coverage Ratio (LCR):

i) Standalone LCR
Liquidity Coverage Ratio (LCR) standard represents an unencumbered High Quality Liquid Assets (HQLAs) that can be converted into
cash to meet its liquidity needs for a 30 calendar day time horizon under significantly severe liquidity stress scenario.

Stock of high-quality liquid assets (HQLAs)

LCR =
Total net cash outflow over the next 30 calendar days
Liquid assets comprise of high-quality assets that can be readily encashed or used as collateral to obtain cash in a range of
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

stress scenarios.

There are two categories of assets included in the stock of HQLAs, viz. Level 1 and Level 2 assets. While Level 1 assets are with 0%
haircut, Level 2A and Level 2 B assets are with 15% and 50% haircuts respectively.

The total net cash outflow is the total expected cash outflows minus total expected cash inflows for the subsequent 30 calendar days.

Total expected cash outflows are calculated by multiplying the outstanding balances of various categories or types of liabilities and
off-balance sheet commitments by the rates at which they are expected to run off or be drawn down.

Total expected cash inflows are calculated by multiplying the outstanding balances of various categories of contractual receivables by
Standalone Financials

the rates at which they are expected to flow in up to an aggregate cap of 75% of total expected cash outflows.
Standalone Financials

Quantitative Disclosure:

Company Overview
(` in Crore)
Liquidity Coverage Ratio (State Bank of India - Standalone)
Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended
31st March 2023 31st December 2022 30th September 2022 30th June 2022 31st March 2022

LCR COMPONENTS Total Total Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value Value Value

Responsible Approach
(Average) (Average) (Average) (Average) (Average) (Average) (Average) (Average) (Average) (Average)
High Quality Liquid Assets (HQLA)
1. Total High Quality Liquid Assets 12,13,100 11,73,646 11,94,963 11,94,891 11,26,684
(HQLA)
Cash Outflows
2. Retail Deposits and deposits from small
business customers, of which:
i) Stable deposits 9,08,572 45,429 8,69,034 43,452 8,61,427 43,071 8,54,050 42,702 8,54,540 42,727

Governance
ii) Less Stable Deposits 21,03,084 2,10,308 19,65,126 1,96,513 19,26,234 1,92,623 18,93,530 1,89,353 18,66,220 1,86,622
3. Unsecured wholesale funding, of which:
i) Operational deposits (all counterparties) - - - - - - - - - -
ii) Non-operational deposits 10,48,772 6,07,493 11,34,193 7,21,643 11,55,449 7,25,980 11,26,583 6,86,012 10,33,929 6,30,544
(all counterparties)
iii) Unsecured debt - - - - - - - - - -
4. Secured wholesale funding 1,37,680 222 1,59,708 1,004 1,43,236 457 1,66,298 88 1,76,267 25

Statutory Reports
5. Additional requirements, of which
i) Outflows related to derivative exposures 3,92,263 3,92,263 4,20,855 4,20,855 4,30,256 4,30,256 4,83,581 4,83,581 4,01,193 4,01,193
and other collateral requirements
ii) Outflows related to loss of funding on - - - - - - - - - -
debt products
iii) Credit and liquidity facilities 78,921 13,327 53,708 8,259 56,886 8,763 50,843 8,090 47,971 7,990
6. Other contractual funding obligations 46,656 46,656 42,354 42,354 39,279 39,279 40,079 40,079 38,146 38,146

Financial Statements
7. Other contingent funding obligations 7,94,503 30,705 6,52,860 23,421 6,43,086 22,947 6,31,938 22,492 6,37,250 22,598
8. Total Cash Outflows 55,10,450 13,46,403 52,97,838 14,57,501 52,55,854 14,63,376 52,46,901 14,72,398 50,55,515 13,29,845
Cash Inflows
9. Secured lending (e.g. Reverse repos) 15,796 - 11,056 - 27,428 - 92,946 - 75,185 -
10. Inflows from fully performing exposures 5,07,787 4,75,478 5,40,938 5,10,381 5,37,306 5,08,882 5,97,328 5,68,504 5,04,133 4,77,011
11. Other cash inflows 54,824 43,516 51,257 40,506 48,817 39,387 45,615 38,649 44,252 36,201
12. Total Cash Inflows 5,78,408 5,18,994 6,03,251 5,50,887 6,13,551 5,48,268 7,35,888 6,07,154 6,23,571 5,13,212
13. Total HQLA 12,13,100 11,73,646 11,94,963 11,94,891 11,26,684
14. Total Net Cash Outflows 8,27,409 9,06,613 9,15,108 8,65,244 8,16,633
15. Liquidity Coverage Ratio (%) 146.61% 129.45% 130.58% 138.10% 137.97%

In accordance with RBI guidelines vide circular No. RBI/2014-15/529 DBR. No. BP.BC.80/21.06.201/2014-15 dated
31st  March 2015, average weighted and unweighted amounts have been calculated taking simple daily average. The Bank
has considered 66 data points for the quarter January to March 2023.

167
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

Bank’s LCR comes to 146.61% based on daily average of three months (Q4 FY22-23) and is above the minimum
regulatory requirement of 100%. Average HQLA held during the quarter was `12,13,100 Crore, with 95.90% being
Level 1 assets. Level 2A and Level 2B assets constitute 3.45% and 0.65% of total HQLA, respectively. Government
Securities constituted 95.77% of Total Level 1 Assets. During the quarter, the weighted average HQLA level has
increased by `39,454 Crore primarily on account of increase in excess SLR balance. Further, weighted average net
cash outflows position has declined by `79,204 Crore during the quarter, mainly on account of decline in cash outflows
under the head other legal entity customers. Derivative exposures are considered insignificant due to almost matching
inflows and outflows position. During the quarter, LCR for USD (significant Foreign Currency constituting more than 5%
of the Balance Sheet of the Bank) was at 295.17%, on an average.

Liquidity Management in the Bank is driven by the ALM Policy of the Bank and regulatory prescriptions. The Domestic
and International Treasuries are apprising the liquidity position to the Asset Liability Management Committee (ALCO)
of the Bank. The ALCO has been empowered by the Bank’s Board to formulate the Bank’s funding strategies to
ensure that the funding sources are well diversified and is consistent with the operational requirements of the Bank.
All the major decisions of ALCO are being reported to the Bank’s Board subsequently. In addition to daily/monthly
LCR reporting, Bank also prepares daily Structural Liquidity statements to assess the liquidity needs of the Bank on
an ongoing basis.

The Bank has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory
requirements. Retail deposits constitute major portion of total funding sources, which are well diversified.
Management is of the view that the Bank has sufficient liquidity cover to meet its likely future commitments.

ii) Consolidated LCR

The RBI through a supplementary guideline issued on 31st March 2015 had stipulated the implementation of LCR
at a consolidated level from January 1, 2016 and accordingly, LCR has been computed at Group level. The entities
covered in the Group LCR are SBI and seven Overseas Banking Subsidiaries - Commercial Indo Bank LLC, Moscow,
Nepal SBI Bank Ltd., State Bank of India (California), SBI Canada Bank, State Bank of India (Mauritius) Ltd, PT Bank
SBI Indonesia and State Bank of India (UK) Ltd. SBI Group LCR comes to 148.30% as on 31st March 2023 based on
average of three months January, February and March 2023, which is above the minimum regulatory requirement of
100%.

The Group has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory
requirements. Retail deposits constitute major portion of total funding sources, and such funding sources are
well diversified. Management is of the view that the Bank has sufficient liquidity cover to meet its likely future
short‑term requirements.

168 Annual Report 2022 – 23

 Standalone Financials

Group Liquidity Coverage Ratio (LCR) as on quarter ended 31.03.2023 (January-March, 2023)

Company Overview
(` in Crore)
Liquidity Coverage Ratio (State Bank of India Group)
Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended
31st March 2023 31st December 2022 30th September 2022 30th June 2022 31st March 2022
GLCR COMPONENTS Total Total Total Total Total Total Total Total Total Total
Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted Unweighted Weighted
Value Value Value Value Value Value Value Value Value Value
(Average)** (Average) (Average)** (Average) (Average)** (Average) (Average)** (Average) (Average)** (Average)

Responsible Approach
High Quality Liquid Assets (HQLA)
1. Total High Quality Liquid Assets 12,25,975 11,85,275 12,21,055 12,01,176 11,32,828
(HQLA)
Cash Outflows
2. Retail Deposits and deposits from small
business customers, of which:
i) Stable deposits 9,16,870 45,844 8,77,353 43,868 8,85,495 44,275 8,62,268 43,113 8,63,104 43,155
ii) Less Stable Deposits 21,19,665 2,11,966 19,81,341 1,98,134 19,69,089 1,96,909 19,05,186 1,90,519 18,77,488 1,87,749

Governance
3. Unsecured wholesale funding, of which:
i) Operational deposits (all counterparties) 227 57 259 65 838 210 245 61 213 53
ii) Non-operational deposits 10,52,154 6,09,695 11,38,101 7,24,162 11,66,171 7,33,083 11,29,875 6,88,187 10,36,748 6,32,558
(all counterparties)
iii) Unsecured debt - - - - - - - - - -
4. Secured wholesale funding 1,38,072 366 1,60,384 1,228 1,45,100 1,001 1,66,988 429 1,76,737 156
5. Additional requirements, of which
i) Outflows related to derivative exposures 3,92,411 3,92,411 4,21,042 4,21,042 4,30,733 4,30,733 4,83,693 4,83,693 4,01,387 4,01,387

Statutory Reports
and other collateral requirements
ii) Outflows related to loss of funding on - - - - - - - - - -
debt products
iii) Credit and liquidity facilities 82,077 14,673 57,500 9,708 67,599 13,038 53,719 9,169 50,247 8,719
6. Other contractual funding obligations 47,126 47,126 42,920 42,920 41,634 41,634 41,218 41,218 39,315 39,315
7. Other contingent funding obligations 7,96,945 30,779 6,55,329 23,496 6,50,746 23,180 6,34,329 22,565 6,39,545 22,668
8. Total Cash Outflows 55,45,546 13,52,917 53,34,229 14,64,621 53,57,406 14,84,062 52,77,520 14,78,954 50,84,784 13,35,760
Cash Inflows

Financial Statements
9. Secured lending (e.g. Reverse repos) 15,796 - 11,056 - 27,428 - 92,946 - 75,185 -
10. Inflows from fully performing exposures 5,17,534 4,82,562 5,48,427 5,14,666 5,58,824 5,20,994 6,03,646 5,72,192 5,10,004 4,80,116
11. Other cash inflows 54,979 43,671 51,752 41,001 49,947 40,517 45,927 38,961 44,508 36,457
12. Total Cash Inflows 5,88,310 5,26,233 6,11,235 5,55,667 6,36,198 5,61,511 7,42,519 6,11,153 6,29,697 5,16,572
13. Total HQLA 12,25,975 11,85,275 12,21,055 12,01,176 11,32,828
14. Total Net Cash Outflows 8,26,684 9,08,954 9,22,552 8,67,801 8,19,188
15. Liquidity Coverage Ratio(%) 148.30% 130.40% 132.36% 138.42% 138.29%
** Monthly average of 3 months data considered for Overseas Banking Subsidiaries and daily average considered for SBI(Solo).

c) Net Stable Funding Ratio:

i) Standalone Net Stable Funding Ratio:
Net Stable Funding Ratio (NSFR) guidelines ensure reduction in funding risk over a longer time horizon by
requiring banks to fund their activities with sufficiently stable sources of funding in order to mitigate the risk of
future funding stress. The NSFR is defined as the amount of Available Stable Funding relative to the amount of
Required Stable Funding.

Available Stable Funding (ASF)

NSFR = ≥ 100%
Required Stable Funding (RSF)

169
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

Quantitative Disclosure: The following tables contain unweighted and weighted values of NSFR components of SBI (Solo) as
at 31st March 2023, 31st December 2022, 30th September 2022 and 30th June 2022 (i.e. quarter end observations) :
(` in Crore)
Net Stable Funding Ratio (State Bank of India - Standalone)
Position as on 31.03.2023 Position as on 31.12.2022
Unweighted value by residual maturity Unweighted value by residual maturity
NSFR Components Weighted Weighted
No < 6 6 months No < 6 6 months
≥ 1yr value ≥ 1yr value
maturity months to < 1yr maturity months to < 1yr
ASF Item
1. Capital: (2+3) - - - 4,07,423 4,07,423 - - - 3,96,009 3,96,009
2. Regulatory capital - - - 4,07,423 4,07,423 - - - 3,96,009 3,96,009
3. Other capital instruments - - - - - - - - - -
4. Retail deposits and deposits from small business 14,66,184 4,82,484 5,13,982 5,84,499 27,87,242 14,76,985 4,83,491 5,35,766 5,26,987 27,66,326
customers: (5+6)
5. Stable deposits 4,17,678 1,54,564 1,65,854 1,58,061 8,51,350 4,38,722 1,54,116 1,73,686 1,41,877 8,62,981
6. Less stable deposits 10,48,506 3,27,920 3,48,128 4,26,438 19,35,892 10,38,263 3,29,375 3,62,080 3,85,110 19,03,345
7. Wholesale funding: (8+9) 3,00,821 3,95,079 2,45,063 4,52,127 8,64,625 2,46,577 3,73,816 2,55,092 3,86,008 8,11,805
8. Operational deposits - - - - - - - - - -
9. Other wholesale funding 3,00,821 3,95,079 2,45,063 4,52,127 8,64,625 2,46,577 3,73,816 2,55,092 3,86,008 8,11,805
10. Other liabilities: (11+12) 7,80,210 1,10,741 34,591 34,103 - 7,67,214 95,510 37,431 21,684 -
11. NSFR derivative liabilities 25 - 330     - - 93  
12. All other liabilities and equity not included in the above 7,80,210 1,10,716 34,591 33,773 - 7,67,214 95,510 37,431 21,591 -
categories
13. Total ASF (1+4+7+10)         40,59,290         39,74,140
RSF Item
14. Total NSFR high-quality liquid assets (HQLA)         74,681         71,722
15. Deposits held at other financial institutions for 13,492 37,512 - 2,385 26,695 20,874 27,220 - 3,240 25,667
operational purposes
16. Performing loans and securities: 5,360 6,74,535 2,65,986 6,23,214 8,50,657 5,637 6,61,749 2,75,068 6,56,718 8,83,606
(17+18+19+21+23)
17. Performing loans to financial institutions secured by - 7,406 - - 741 - 3,996 - - 400
Level 1 HQLA
18. Performing loans to financial institutions secured by - 1,30,127 - - 19,519 - 1,04,033 - - 15,605
non-Level 1 HQLA and unsecured performing loans to
financial institutions
19. Performing loans to non- financial corporate clients, - 5,37,002 2,65,986 3,03,341 5,98,666 - 5,53,720 2,75,068 3,17,277 6,20,624
loans to retail and small business customers, and loans
to sovereigns, central banks and PSEs, of which:
20. With a risk weight of less than or equal to 35% under - - - 3,03,341 1,97,172 - - - 3,17,277 2,06,230
the Basel II Standardised Approach for credit risk
21. Performing residential mortgages, of which: - - - 2,23,583 1,45,329 - - - 2,31,696 1,50,603
22. With a risk weight of less than or equal to 35% under - - - 2,23,583 1,45,329 - - - 2,31,696 1,50,603
the Basel II Standardised Approach for credit risk
23. Securities that are not in default and do not qualify as 5,360 - - 96,290 86,402 5,637 - - 1,07,745 96,374
HQLA, including exchange-traded equities
24. Other assets: (sum of rows 25 to 29) 12,23,321 52,307 5,992 14,51,872 25,43,068 10,84,334 73,829 4,109 13,38,616 23,24,990
25. Physical traded commodities, including gold -       - -       -
26. Assets posted as initial margin for derivative contracts   - - - 1,098   - - - 1,103
and contributions to default funds of CCPs
27. NSFR derivative assets   - - - -   1,042 - - 1,042
28. NSFR derivative liabilities before deduction of variation   1,752 1,099 2,886 5,737   1,636 1,483 2,988 6,107
margin posted
29. All other assets not included in the above categories 12,23,321 50,555 4,893 14,48,986 25,36,233 10,84,334 71,151 2,626 13,35,628 23,16,738
30. Off-balance sheet items   9,97,023 - - 40,733   7,08,482 - - 26,257
31. Total RSF (14+15+16+24+30)       35,35,834       33,32,242
32. Net Stable Funding Ratio (%)         114.80%         119.26%

170 Annual Report 2022 – 23

Standalone Financials

(` in Crore)

Company Overview
Net Stable Funding Ratio (State Bank of India - Standalone)
Position as on 30.09.2022 Position as on 30.06.2022
Unweighted value by residual maturity Unweighted value by residual maturity
NSFR Components Weighted Weighted
No < 6 6 months value No < 6 6 months value
≥ 1yr ≥ 1yr
maturity months to < 1yr maturity months to < 1yr
ASF Item
1) Capital: (2+3) - - - 3,85,784 3,85,784 - - - 3,61,457 3,61,457
2) Regulatory capital - - - 3,85,784 3,85,784 - - - 3,61,457 3,61,457

Responsible Approach
3) Other capital instruments - - - - - - - - - -
4) Retail deposits and deposits from small business 13,78,045 4,57,887 5,30,244 4,82,229 26,07,093 13,59,636 4,75,465 4,99,039 4,58,707 25,56,346
customers: (5+6)
5) Stable deposits 4,25,920 1,44,852 1,71,129 1,28,671 8,27,044 4,15,612 1,51,275 1,63,642 1,25,165 8,12,909
6) Less stable deposits 9,52,125 3,13,035 3,59,115 3,53,558 17,80,049 9,44,024 3,24,190 3,35,397 3,33,542 17,43,437
7) Wholesale funding: (8+9) 2,35,527 3,40,119 3,21,597 3,46,648 7,69,841 2,25,713 3,02,308 2,77,799 3,49,829 7,26,236
8) Operational deposits - - - - - - - - - -
9) Other wholesale funding 2,35,527 3,40,119 3,21,597 3,46,648 7,69,841 2,25,713 3,02,308 2,77,799 3,49,829 7,26,236

Governance
10) Other liabilities: (11+12) 8,59,165 1,15,311 29,604 20,253 - 8,69,063 1,26,989 22,232 27,228 -
11) NSFR derivative liabilities - - - 1,375     - - 1044  
12) All other liabilities and equity not included in the above 8,59,165 1,15,311 29,604 18,878 - 8,69,063 1,26,989 22,232 26,184 -
categories
13) Total ASF (1+4+7+10)         37,62,718         36,44,039
RSF Item
14) Total NSFR high-quality liquid assets (HQLA)         74,248         70,509
15) Deposits held at other financial institutions for 25,365 35,976 - 3,852 32,597 20,710 28,188 - 2,994 25,946
operational purposes

Statutory Reports
16) Performing loans and securities: 5,846 7,47,776 2,50,280 6,79,668 9,25,216 5,065 6,69,303 2,59,689 7,22,037 9,17,080
(17+18+19+21+23)
17) Performing loans to financial institutions secured by - 715 - - 72 - 2,170 - - 217
Level 1 HQLA
18) Performing loans to financial institutions secured by - 1,17,568 - - 17,635 - 1,21,304 - - 18,196
non-Level 1 HQLA and unsecured performing loans to
financial institutions
19) Performing loans to non- financial corporate clients, - 6,29,493 2,50,280 3,35,109 6,57,707 - 5,45,829 2,59,689 3,62,048 6,38,090
loans to retail and small business customers, and loans

Financial Statements
to sovereigns, central banks and PSEs, of which:
20) With a risk weight of less than or equal to 35% under - - - 3,35,109 2,17,821 - - - 3,62,048 2,35,331
the Basel II Standardized Approach for credit risk
21) Performing residential mortgages, of which: - - - 2,40,210 1,56,137 - - - 2,48,596 1,61,587
22) With a risk weight of less than or equal to 35% under - - - 2,40,210 1,56,137 - - - 2,48,596 1,61,587
the Basel II Standardized Approach for credit risk
23) Securities that are not in default and do not qualify as 5,846 - - 1,04,349 93,665 5,065 - - 1,11,393 98,990
HQLA, including exchange-traded equities
24) Other assets: (sum of rows 25 to 29) 10,07,704 66,025 1,496 12,54,587 21,61,605 9,62,596 82,322 5,081 11,85,450 20,43,092
25) Physical traded commodities, including gold -       - -       -
26) Assets posted as initial margin for derivative contracts   - - - 1,091 - - - 1,041
and contributions to default funds of CCPs
27) NSFR derivative assets   1,777 - - 1,777   417 - - 417
28) NSFR derivative liabilities before deduction of variation   4,756 1,031 2,643 8,430   5,177 315 1,794 7,285
margin posted
29) All other assets not included in the above categories 10,07,704 59,492 465 12,51,944 21,50,307 9,62,596 76,728 4,766 11,83,656 20,34,349
30) Off-balance sheet items   6,95,602 - - 25,569   6,61,229 - - 23,886
31) Total RSF (14+15+16+24+30)       32,19,235       30,80,513
32) Net Stable Funding Ratio (%)         116.88%         118.29%

In accordance with RBI guidelines vide circular No. RBI/2017-18/178, DBR.BP.BC.No.106/21.04.098/2017-18 dated
17th May 2018, the quarter end observations are presented in the template above. The ASF items pertaining to Capital have
been reclassified to align with extent regulatory guidelines.

171
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

Bank’s NSFR comes to 114.80% as at the end of the quarter Q4 (FY 2022-23) and is above the minimum
regulatory requirement of 100% set out in the RBI guidelines effective from 1st October 2021. As on 31st March
2023, the Available Stable Funding (ASF) position stood at `40,59,290 Crore and Required Stable Funding
(RSF) position stood at `35,35,834 Crore. There was an increase in the values of total ASF and RSF as on
31st March 2023 over 31st December 2022. ASF is defined as the portion of capital and liabilities expected to be
reliable over the time horizon considered for the NSFR. RSF of a specific institution is a function of the liquidity
characteristics and residual maturities of the various assets held by that institution as well as those of its Off-
Balance Sheet (OBS) exposures.

Liquidity Management in the Bank is driven by Bank’s ALM Policy and regulatory prescriptions. The Domestic
and International Treasuries are reporting to the Asset Liability Management Committee (ALCO). ALCO has
been empowered by the Bank’s Board to formulate the funding strategies to ensure that the funding sources
are well diversified and is consistent with the operational requirements of the Bank. All major decisions of ALCO
are being reported to the Bank’s Board periodically. In addition to daily/monthly LCR reporting, Bank prepares
daily Structural Liquidity Statements to assess the liquidity needs of the Bank on an ongoing basis.

The Bank has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory
requirements. Retail deposits constitute major portion of total funding sources, which are well diversified.
Management is of the view that the Bank has got sufficient liquidity to meet its immediate/likely future short-
term requirements.

ii) Consolidated Net Stable Funding Ratio

The RBI guidelines stipulated the implementation of NSFR at a consolidated level from December 2021 quarter
and accordingly, NSFR has been computed at Group level.

The entities covered in the Group NSFR are SBI and seven Overseas Banking Subsidiaries. Commercial Indo
Bank LLC, Moscow, Nepal SBI Bank Ltd., State Bank of India (California), SBI Canada Bank, State Bank of India
(Mauritius) Ltd, PT Bank SBI Indonesia and State Bank of India (UK) Ltd.

SBI Group NSFR comes to 115.03% as on 31st March 2023 which is above the minimum regulatory requirement
of 100%.


Available stable funding (ASF) is defined as the portion of capital and liabilities expected to be reliable over
the time horizon considered by the NSFR, which extends to one year. The Required stable funding (RSF) of a
specific group is a function of the liquidity characteristics and residual maturities of the various assets held by
that group as well as those of its Off-Balance Sheet (OBS) exposures.

172 Annual Report 2022 – 23

Standalone Financials

(` in Crore)

Company Overview
NET STABLE FUNDING RATIO (State Bank of India Group)
Statements for the Quarter ending 31st March 2023 31st December 2022
Unweighted value by residual maturity Unweighted value by residual maturity
Weighted Weighted
NSFR Components No < 6 6 months No < 6 6 months
≥ 1yr value ≥ 1yr value
maturity months to < 1yr maturity months to < 1yr
ASF Item
1) Capital: (2+3) 7,887 - - 4,16,562 4,24,449 7,575 - - 4,05,662 4,13,237
2) Regulatory capital 7,887 - - 4,09,203 4,17,090 7,575 - - 3,97,871 4,05,445

Responsible Approach
3) Other capital instruments - - - 7,360 7,360 - - - 7,791 7,791
4) Retail deposits and deposits from small business 14,82,779 4,88,568 5,20,923 5,85,550 28,15,852 14,95,103 4,89,493 5,42,242 5,27,538 27,95,324
customers: (5+6)
5) Stable deposits 4,29,694 1,57,660 1,69,851 1,59,067 8,70,459 4,51,118 1,57,251 1,76,900 1,42,429 8,81,314
6) Less stable deposits 10,53,085 3,30,908 3,51,072 4,26,483 19,45,393 10,43,984 3,32,242 3,65,342 3,85,110 19,14,010
7) Wholesale funding: (8+9) 3,02,846 3,97,657 2,50,298 4,52,148 8,69,554 2,48,531 3,77,202 2,57,621 3,86,008 8,15,740
8) Less stable non-maturity deposits and term deposits - - - - - - - - - -
with residual maturity of less than one year provided
by retail and small business customers

Governance
9) Other wholesale funding 3,02,846 3,97,657 2,50,298 4,52,148 8,69,554 2,48,531 3,77,202 2,57,621 3,86,008 8,15,740
10) Other liabilities: (11+12) 7,81,201 1,13,463 34,591 34,103 - 7,68,690 98,294 37,431 22,051 -
11) NSFR derivative liabilities - 25 - 330 - - - - 93 -
12) All other liabilities and equity not included in the above 7,81,201 1,13,438 34,591 33,773 - 7,68,690 98,294 37,431 21,958 -
categories
13) Total ASF (1+4+7+10) 25,74,713 9,99,688 8,05,811 14,88,363 41,09,855 25,19,898 9,64,990 8,37,295 13,41,259 40,24,301
RSF Item
14) Total NSFR high-quality liquid assets (HQLA) 8,881 3,202 766 2,547 75,376 9,202 3,405 328 2,826 72,321

Statutory Reports
15) Deposits held at other financial institutions for 14,139 37,512 1,527 2,385 27,782 21,371 27,220 1,024 3,258 26,437
operational purposes
16) Performing loans and securities: 5,360 6,79,577 2,67,873 6,53,836 8,77,764 5,637 6,67,386 2,76,526 6,88,088 9,11,509
(17+18+19+21+23)
17) Performing loans to financial institutions secured by - 7,406 - - 741 - 3,996 - - 400
Level 1 HQLA
18) Performing loans to financial institutions secured by - 1,32,352 - - 19,853 - 1,06,567 - - 15,985
non-Level 1 HQLA and unsecured performing loans to
financial institutions

Financial Statements
19) Performing loans to non- financial corporate clients, - 5,39,819 2,67,873 3,04,722 6,01,927 - 5,56,823 2,76,526 3,18,485 6,23,706
loans to retail and small business customers, and loans
to sovereigns, central banks and PSEs, of which:
20) With a risk weight of less than or equal to 35% under - 171 - 3,04,629 1,98,120 - 178 - 3,18,413 2,07,084
the Basel II Standardized Approach for credit risk
21) Performing residential mortgages, of which: - - - 2,50,781 1,67,104 - - - 2,59,545 1,73,079
22) With a risk weight of less than or equal to 35% under - - - 2,44,066 1,62,739 - - - 2,53,570 1,69,196
the Basel II Standardized Approach for credit risk
23) Securities that are not in default and do not qualify as 5,360 - - 98,333 88,139 5,637 - - 1,10,058 98,340
HQLA, including exchange-traded equities
24) Other assets: (sum of rows 25 to 29) 12,23,630 52,692 6,391 14,58,701 25,50,991 10,84,649 74,292 4,335 13,44,601 23,31,979
25) Physical traded commodities, including gold - - - - - - - - - -
26) Assets posted as initial margin for derivative contracts - - - - 1,098 - - - - 1,103
and contributions to default funds of CCPs
27) NSFR derivative assets - 38 - - 47 - 1,060 - - 1,068
28) NSFR derivative liabilities before deduction of variation - 1,752 1,099 2,886 5,737 - 1,636 1,483 2,988 6,107
margin posted
29) All other assets not included in the above categories 12,23,630 50,903 5,293 14,55,815 25,44,108 10,84,649 71,597 2,851 13,41,613 23,23,702
30) Off-balance sheet items - 9,98,564 - - 40,935 - 7,10,010 - - 26,493
31) Total RSF (14+15+16+24+30) 35,72,847 33,68,739
32) Net Stable Funding Ratio (%) 115.03% 119.46%

173
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

(` in Crore)
NET STABLE FUNDING RATIO (State Bank of India Group)
Statements for the Quarter ending 30th September 2022 30th June 2022
Unweighted value by residual maturity Unweighted value by residual maturity
Weighted Weighted
NSFR Components No < 6 6 months No < 6 6 months
≥ 1yr value ≥ 1yr value
maturity months to < 1yr maturity months to < 1yr
ASF Item
1) Capital: (2+3) 6,753 - - 3,94,556 4,01,308 6,686 - - 3,69,890 3,76,576
2) Regulatory capital 6,753 - - 3,87,631 3,94,384 6,686 - - 3,63,253 3,69,938
3) Other capital instruments - - - 6,925 6,925 - - - 6,637 6,637
4) Retail deposits and deposits from small business 13,94,631 4,63,638 5,34,836 4,82,741 26,32,653 13,74,462 4,81,599 5,03,217 4,59,211 25,80,202
customers: (5+6)
5) Stable deposits 4,37,039 1,47,740 1,73,889 1,29,183 8,43,459 4,24,987 1,54,224 1,66,366 1,25,666 8,27,681
6) Less stable deposits 9,57,592 3,15,898 3,60,947 3,53,558 17,89,194 9,49,475 3,27,376 3,36,851 3,33,545 17,52,521
7) Wholesale funding: (8+9) 2,37,633 3,42,314 3,23,741 3,46,648 7,73,063 2,27,392 3,04,676 2,79,976 3,49,829 7,29,347
8) Less stable non-maturity deposits and term deposits - - - - - - - - - -
with residual maturity of less than one year provided
by retail and small business customers
9) Other wholesale funding 2,37,633 3,42,314 3,23,741 3,46,648 7,73,063 2,27,392 3,04,676 2,79,976 3,49,829 7,29,347
10) Other liabilities: (11+12) 8,60,924 1,18,578 29,604 20,706 - 8,70,706 1,30,825 22,232 27,490 -
11) NSFR derivative liabilities 325 - - 1,375 - 153 - - 1,044 -
12) All other liabilities and equity not included in the above 8,60,599 1,18,578 29,604 19,331 - 8,70,553 1,30,825 22,232 26,446 -
categories
13) Total ASF (1+4+7+10) 24,99,941 9,24,530 8,88,181 12,44,650 38,07,024 24,79,246 9,17,099 8,05,426 12,06,420 36,86,125
RSF Item
14) Total NSFR high-quality liquid assets (HQLA) 6,778 1,645 1,144 2,540 74,784 4,467 1,338 825 2,617 71,043
15) Deposits held at other financial institutions for 25,767 35,976 912 3,852 33,254 21,173 28,188 583 2,994 26,470
operational purposes
16) Performing loans and securities: 5,846 7,52,626 2,52,110 7,08,528 9,51,134 5,065 6,74,295 2,61,937 7,49,905 9,42,516
(17+18+19+21+23)
17) Performing loans to financial institutions secured by - 715 - - 72 - 2,170 - - 217
Level 1 HQLA
18) Performing loans to financial institutions secured by - 1,19,861 - - 17,979 - 1,23,710 - - 18,557
non-Level 1 HQLA and unsecured performing loans to
financial institutions
19) Performing loans to non- financial corporate clients, - 6,32,050 2,52,110 3,36,413 6,60,746 - 5,48,415 2,61,937 3,62,979 6,41,102
loans to retail and small business customers, and loans
to sovereigns, central banks and PSEs, of which:
20) With a risk weight of less than or equal to 35% under - 72 - 3,36,325 2,18,659 - 2 - 3,62,912 2,35,894
the Basel II Standardized Approach for credit risk
21) Performing residential mortgages, of which: - - - 2,65,530 1,76,771 - - - 2,72,916 1,81,425
22) With a risk weight of less than or equal to 35% under - - - 2,61,092 1,73,887 - - - 2,68,747 1,78,716
the Basel II Standardized Approach for credit risk
23) Securities that are not in default and do not qualify as 5,846 - - 1,06,585 95,566 5,065 - - 1,14,010 1,01,214
HQLA, including exchange-traded equities
24) Other assets: (sum of rows 25 to 29) 10,08,153 66,319 1,797 12,59,942 21,67,983 9,62,908 82,835 5,424 11,91,237 20,50,043
25) Physical traded commodities, including gold - - - - - - - - - -
26) Assets posted as initial margin for derivative contracts 136 - - - 1,207 28 - - - 1,065
and contributions to default funds of CCPs
27) NSFR derivative assets - 1,777 - - 1,777 1 417 - - 418
28) NSFR derivative liabilities before deduction of variation 2 4,756 1,031 2,643 8,432 - 5,177 315 1,794 7,286
margin posted
29) All other assets not included in the above categories 10,08,014 59,787 766 12,57,298 21,56,567 9,62,879 77,241 5,109 11,89,444 20,41,275
30) Off-balance sheet items - 6,97,535 - - 25,857 - 6,62,872 - - 24,147
31) Total RSF (14+15+16+24+30) 32,53,011 31,14,218
32) Net Stable Funding Ratio (%) 117.03% 118.36%

In accordance with RBI guidelines vide circular No. RBI/2017-18/178, DBR.BP.BC.No.106/21.04.098/2017-18 dated
17th May 2018, the quarter end observations are presented. The ASF items pertaining to capital have been reclassified to align
with the extant regulatory guidelines.

174 Annual Report 2022 – 23

 18.3 Investments
a) Composition of investment portfolio:
Current Year
(` in Crore)
Investments In India Investments outside India Whole Bank
Government
Composition of Investments Other Subsidiaries Total Securities Subsidiaries Total
Standalone Financials

as at 31st March 2023 Government Debentures Total

Approved Shares &/or Joint Others investments (including &/or Joint Others investments
Securities and Bonds Investments
Securities Ventures in India Local Ventures outside India
Authorities)
Held to Maturity
Gross 9,20,090.06 - 8.00 31,374.37 6,283.10 1,645.38 9,59,400.91 804.03 5,680.22 133.90 6,618.15 9,66,019.06
Less: Provision for non- - - 8.00 - 42.87 - 50.87 - - 6.66 6.66 57.53
performing investments (NPI)
Net 9,20,090.06 - - 31,374.37 6,240.23 1,645.38 9,59,350.04 804.03 5,680.22 127.24 6,611.49 9,65,961.53
Available for Sale
Gross 3,21,270.14 - 15,023.56 1,86,512.77 7,810.00 34,457.85 5,65,074.32 29,703.87 - 26,886.83 56,590.70 6,21,665.02
Less: Provision for depreciation 2,701.98 - 976.66 4,494.37 - 7,026.91 15,199.92 448.70 - 1,323.35 1,772.05 16,971.97
and NPI
Net 3,18,568.17 - 14,046.90 1,82,018.40 7,810.00 27,430.94 5,49,874.40 29,255.17 - 25,563.48 54,818.65 6,04,693.05
Held for Trading
Gross (326.93)@ - 40.99 - - - (285.94) - - - - (285.94)
Less: Provision for depreciation 2.37 - 0.04 - - - 2.41 - - - - 2.41
and NPI
Net (329.30) - 40.95 - - - (288.35) - - - - (288.35)
Total Investments
Gross 12,41,033.27 - 15,072.55 2,17,887.14 14,093.10 36,103.23 15,24,189.29 30,507.90 5,680.22 27,020.73 63,208.85 15,87,398.14
Less: Provision for non- - - 741.17 2,325.38 - - 3,066.55 - - - - 3,066.55
performing investments (NPI)*
Less: Provision for depreciation* 2,704.35 - 243.53 2,168.99 42.87 7,026.91 12,186.65 448.70 - 1,330.01 1,778.71 13,965.36
Net 12,38,328.92 - 14,087.85 2,13,392.77 14,050.23 29,076.32 15,08,936.09 30,059.20 5,680.22 25,690.72 61,430.14 15,70,366.23
* includes LICRA
@
Short sale

175
Financial Statements Statutory Reports Governance Responsible Approach Company Overview
 Previous Year

176
(` in Crore)
Investments In India Investments outside India Whole Bank
Government
Composition of Investments Other Subsidiaries Total Securities Subsidiaries Total
as at 31st March 2022 Government Debentures Total
Approved Shares and/or Joint Others investments (including and/or Joint Others investments
Securities and Bonds Investments
Securities Ventures in India Local Ventures outside India
Authorities)
Held to Maturity

Annual Report 2022 – 23

Gross 8,33,382.82 - 8.00 33,741.28 6,205.26 1,490.06 8,74,827.42 794.14 5,028.44 133.94 5,956.52 8,80,783.94
SCHEDULES

Less: Provision for non- - - 8.00 - 2.87 - 10.87 - - - - 10.87

performing investments (NPI)
Net 8,33,382.82 - - 33,741.28 6,202.39 1,490.06 8,74,816.55 794.14 5,028.44 133.94 5,956.52 8,80,773.07
Available for Sale
Gross 3,29,274.86 - 13,770.82 1,84,479.80 7,810.00 29,951.22 5,65,286.72 18,967.40 - 28,613.65 47,581.06 6,12,867.75
Less: Provision for depreciation - - 1,356.19 2,416.66 - 7,859.04 11,631.89 32.61 - 65.58 98.19 11,730.08
and NPI
Net 3,29,274.86 - 12,414.63 1,82,063.14 7,810.00 22,092.19 5,53,654.81 18,934.79 - 28,548.07 47,482.86 6,01,137.67
Held for Trading
Gross (475.04)@ - 9.77 - - - (465.27) - - - - (465.27)
Less: Provision for depreciation - - - - - - - - - - - -
and NPI
Net (475.04) - 9.77 - - - (465.27) - - - - (465.27)
Total Investments
Gross 11,62,182.64 - 13,788.59 2,18,221.08 14,015.26 31,441.28 14,39,648.85 19,761.54 5,028.44 28,747.59 53,537.57 14,93,186.42
Less: Provision for non- - - 1,197.31 879.00 - - 2,076.31 - - 56.34 56.34 2,132.65
performing investments (NPI)*
Less: Provision for depreciation* - - 166.88 1,537.66 2.87 7,859.04 9,566.45 32.61 - 9.24 41.85 9,608.30
Net 11,62,182.64 - 12,424.40 2,15,804.42 14,012.39 23,582.24 14,28,006.09 19,728.93 5,028.44 28,682.01 53,439.38 14,81,445.47
* includes LICRA
@
Short sale
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023
Standalone Financials
 Standalone Financials

i. Securities of a face value of `2,19,371.58 Crore (Previous Year `2,14,612.86 Crore) are kept as margin with

Company Overview
Clearing Corporation of India Limited (CCIL)/NSCCL/MCX/ NSEIL/BSE towards Securities Settlement.

ii. State Bank Operations Support Services Pvt. Ltd. has been incorporated on 26th July 2022 as a wholly‑owned
subsidiary. The Company provides operation support services for Agriculture/MSME and other Micro Loans
including activities permissible to business correspondents, to the Bank which will help to improve the customer
connect and business focus of the branches of Bank. Amount invested is `10.00 Crore.

iii. 
During the year ended 31st March 2023, Bank has acquired additional 13.82% (`67.84 Crore) stake in

Responsible Approach
SBI Global Factors Limited making it as wholly-owned subsidiary of Bank.

iv. During the year ended 31st March 2023, Bank has acquired additional 40.00% stake in Commercial Indo Bank
LLC, Moscow making it as wholly-owned subsidiary of Bank. Amount invested during the year is `121.44 Crore.

v. During the year ended 31st March 2023, Bank has infused an additional capital of `530.49 Crore in PT Bank SBI
Indonesia, a subsidiary. Consequently, Bank’s stake has increased from 99.34% to 99.56%.

vi. During the year ended 31st March 2023, Bank’s stake in Jio Payments Bank Ltd., a joint venture, has reduced

Governance
from 30.00% to 23.02% as Bank did not participate in the right issue of equity shares offered by the Company.

vii. During the year ended 31st March 2023, Yes Bank Ltd., an associate, has allotted 369,61,55,702 equity shares on
preferential basis to other investors. Consequently, Bank’s stake has reduced from 30.00% to 26.14%.

viii. During the year ended 31st March 2023, Bank invested an additional investment of `1.14 Crore (of which
`0.14 Crore towards premium) in PSB Alliance Pvt. Ltd. (formerly CORDEx India Pvt. Ltd.) through private
placement. Bank’s stake in the Company is 8.33%.

Statutory Reports
b) Movement of provisions for Depreciation on Investments and Investment Fluctuation Reserve
i) Movement in provisions held towards depreciation on investments
(` in Crore)
Particulars Current Year Previous Year
Balance at the beginning of the year 10,825.22 9,198.25

Financial Statements
Add: Provisions made during the year 6,561.52 3,440.10
Less: Provision utilised during the year - -
Add: Foreign Exchange revaluation adjustment 506.78 2.00
Less: Write off/Write back of excess provision during the year. 1,654.18 1,815.13
Balance at the end of the year 16,238.34 10,825.22
(Excluding LICRA)

ii) Movement of Investment Fluctuation Reserve

(` in Crore)
Particulars Current Year Previous Year
Opening Balance 7,695.95 3,048.08
Add: Amount transferred during the year 4,575.43 4,647.87
Less: Drawdown - -
Closing balance 12,271.38 7,695.95
iii. Closing balance of investments in AFS and HFT category 6,13,569.08 6,00,672.40
iv. Closing balance in IFR as a percentage of closing balance of investments 2.00% 1.28%
in AFS and HFT category

177
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

c) Sales and Transfers Of Securities To/From HTM Category

The value of sales and transfers of securities to/from HTM Category has not exceeded 5% of the book value of
investment held in HTM category at the beginning of the year.

d) Non-SLR Investment Portfolio

i) Non-Performing Non-SLR Investments
(` in Crore)
Particulars Current Year Previous Year
Opening Balance 2,276.71 5,229.52
Additions during the year 1,889.18 185.95
Reductions during the year 950.20 3,138.76
Closing balance 3,215.69 2,276.71

Total provisions held in respect of above 3,066.55 2,070.06

ii) Issuer composition of Non SLR Investments

The issuer composition of non-SLR investments of the Bank is given below:
(` in Crore)
Extent of “Below
Extent of Private Extent of “Unrated” Extent of “Unlisted”
Amount Investment Grade”
Sr. Placement Securities* Securities*
Issuer Securities*
No.
Current Previous Current Previous Current Previous Current Previous Current Previous
Year Year Year Year Year Year Year Year Year Year
i) PSUs 42,703.40 49,804.97 28,663.04 33,542.80 - - - - - -
ii) FIs 1,49,308.37 1,41,044.49 84,520.37 82,006.85 145.00 345.07 - - - 70.00
iii) Banks 18,833.65 21,850.25 11,356.69 12,503.45 23.62 2,173.31 23.62 23.62 23.62 23.62
iv) Private 74,364.75 68,269.59 30,051.60 29,575.24 641.37 589.73 293.79 207.93 375.00 707.93
Corporates
v) Subsidiaries/ 19,773.32 19,043.70 - - - - - - - -
Joint Ventures**
vi) Others 41,381.38 30,990.78 3,712.26 2,638.17 2,878.45 5,072.38 133.67 17.31 - -
vii) Less: Provision 14,327.56 11,740.95 44.40 - 45.04 - 67.62 56.34 - 56.34
held towards
depreciation
including LICRA
Total 3,32,037.31 3,19,262.83 1,58,259.56 1,60,266.51 3,643.40 8,180.49 383.46 192.52 398.62 745.21
* Investments in Equity, Equity Oriented Mutual Funds, Venture Capital, Rated Assets Backed Securities, Central and State Government Securities
and ARCIL are not segregated under these categories as these are exempt from rating/listing guidelines.

** Investments in Subsidiaries/Joint Ventures have not been segregated into various categories as these are not covered under relevant RBI Guidelines.

178 Annual Report 2022 – 23

 Standalone Financials

e) Repo Transactions including Liquidity Adjustment Facility (LAF) (in face value terms)

Company Overview
The details of securities sold and purchased under repos and reverse repos including LAF during the year are
given below:

Current Year
(` in Crore)
Minimum Maximum Daily Average Outstanding
Particulars outstanding outstanding outstanding as on

Responsible Approach
during the year during the year during the year 31st March 2023
Securities sold under Repo
i) Government Securities 93,497.57 2,37,396.58 1,74,620.06 1,13,511.04
ii) Corporate Debt Securities 5,529.94 10,152.71 8,519.34 8,048.12
iii) Any other Securities - 456.39 5.51 -
Securities purchased under Reverse Repo

Governance
i) Government Securities 530.51 2,52,034.07 27,868.78 7,395.44
ii) Corporate Debt Securities - 100.18 1.28 -
iii) Any other Securities - - - -

Previous Year
(` in Crore)

Statutory Reports
Minimum Maximum Daily Average Outstanding
Particulars outstanding outstanding outstanding as on
during the year during the year during the year 31st March 2022
Securities sold under Repo
i) Government Securities 30,025.27 2,73,518.11 1,62,561.94 1,68,483.03
ii) Corporate Debt Securities 4,377.46 8,663.34 5,824.90 8,663.34
iii) Any other Securities - - - -

Financial Statements
Securities purchased under Reverse Repo
i) Government Securities 44.03 1,89,095.58 1,00,304.84 60,888.22
ii) Corporate Debt Securities - - - -
iii) Any other Securities - - - -

179
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

18.4 Asset Quality

a) Classification of Advances and provisions held
Current Year
(` in Crore)
Sub- Total Non-
Standard Doubtful Loss
standard Performing Total
Advances Advances Advances
Advances Advances
Gross Standard Advances and
NPAs
A) Opening Balance 27,06,647.54 15,453.17 68,592.40 27,977.80 1,12,023.37 28,18,670.91
B) Add: Additions during the year 18,420.64 4,90,087.13
C) 
Less: Reductions during the 39,516.23 39,516.23
year*
Closing balance (A+B-C) 31,78,314.03 12,665.08 51,204.29 27,058.41 90,927.78 32,69,241.81
* Reduction in Gross NPAs due to:
i) Upgradation 3,233.50 3,233.50
ii) Recoveries (excluding 12,221.46 12,221.46
recoveries from upgraded
accounts)
iii) Technical/Prudential Write Offs - -
iv) 
Write-offs other than those 24,061.27 24,061.27
under (iii) above
Provisions (excluding Floating
Provisions)
Opening balance of provisions held 19,972.61 4,486.76 51,401.49 27,977.80 83,866.05 1,03,838.66
Add: Fresh provisions made during 9,190.34 14,891.38
the year
Less: Excess provision reversed/ 23,786.86 23,786.86
Write-off loans
Closing balance of provisions 25,673.65 $$ 2,551.32 39,659.80 27,058.41 69,269.53 94,943.18
held
Net NPAs
Opening Balance 10,966.41 16,999.30 - 27,965.71
Add: Fresh additions during the 9,230.19
year
Less: Reductions during the year 15,729.26
Closing Balance 10,113.76 11,352.88 - 21,466.64 $
$ Floating provision of `191.61 Crore is netted to arrive at net NPA.
$$ Excludes additional provision held `7,642.38 Crore on Restructured Standard Assets over and above regulatory
requirement.

180 Annual Report 2022 – 23

Standalone Financials

Previous Year

Company Overview
(` in Crore)
Sub- Total Non-
Standard Doubtful Loss
standard Performing Total
Advances Advances Advances
Advances Advances
Gross Standard Advances and
NPAs
A) Opening Balance 24,13,004.26 19,590.89 81,767.26 25,030.87 1,26,389.02 25,39,393.28

Responsible Approach
B) Add: Additions during the year 25,021.23 3,18,664.51
C) Less: Reductions during the year* 39,386.88 39,386.88
Closing balance (A+B-C) 27,06,647.54 15,453.17 68,592.40 27,977.80 1,12,023.37 28,18,670.91
*Reduction in Gross NPAs due to:
i) Upgradation 9,377.57 9,377.57
ii) Recoveries (excluding recoveries 10,343.09 10,343.09
from upgraded accounts)

Governance
iii) Technical/Prudential Write-offs - -
iv) Write-offs other than those under 19,666.22 19,666.22
(iii) above
Provisions (excluding Floating
Provisions)
Opening balance of provisions held 15,293.98 5,758.39 58,598.43 25,030.87 89,387.69 1,04,681.67
Add: Fresh provisions made during 14,142.96 18,821.58
the year

Statutory Reports
Less: Excess provision reversed/ 19,664.60 19,664.60
Write-off loans
Closing balance of provisions held 19,972.61$$ 4,486.76 51,401.48 27,977.80 83,866.05 1,03,838.65
Net NPAs
Opening Balance 13,832.50 22,977.22 - 36,809.72
Add: Fresh additions during the year 10,878.27
Less: Reductions during the year 19,722.28

Financial Statements
Closing Balance 10,966.41 16,999.30 - 27,965.71$
$ Floating provision of ` 191.61 Crore is netted to arrive at net NPA.

$$ Excludes additional provision held ` 7,912.38 Crore on Restructured Standard Assets over and above regulatory requirement.

Floating Provisions:
(` in Crore)
Particulars Current Year Previous Year
Opening Balance 193.75 193.75
Add: Additional provisions made during the year - -
Less: Amount drawn down during the year - -
Closing balance of floating provisions 193.75 193.75

Technical write-offs and the recoveries made thereon:

(` in Crore)
Particulars Current Year Previous Year
Opening balance of Technical/Prudential written-off accounts - -
Add: Technical/Prudential write-offs during the year - -
Less: Recoveries made from previously technical/prudential written-off accounts - -
during the year
Closing balance - -

181
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

Asset Quality Ratios:

Particulars Current Year Previous Year
Gross NPA to Gross Advances 2.78% 3.97%
Net NPA to Net Advances 0.67% 1.02%
Provision Coverage Ratio (PCR) excluding AUCA 76.39% 75.04%
Provision Coverage Ratio (PCR) including AUCA 91.91% 90.20%

AUCA represents fully provided accounts which have been transferred to a separate head called Advance Under
Collection Account amounting to `1,74,569.54 Crore (Previous Year `1,73,334.40 Crore) of these AUCA amounting to
`7,692.70 Crore is more than 10 years old.

b) Sector-wise Advances
(` in Crore)
Current Year Previous Year

Sr. % of Gross % of Gross

Sector Outstanding Outstanding
No. NPAs to Total NPAs to Total
Total Gross NPAs Total Gross NPAs
Advances in Advances in
Advances Advances
that sector that sector
A. Priority Sector
1. Agriculture & allied 2,56,044.09 29,587.72 11.56 2,26,323.87 30,281.87 13.38
activities
2. Industry sector eligible as 1,08,965.94 5,550.08 5.09 1,28,015.22 10,832.34 8.46
priority sector lending
3. Services 1,61,450.44 4,045.64 2.51 1,53,385.75 9,989.11 6.51
4. Personal Loans 1,99,327.20 2,188.53 1.10 1,87,896.41 2,158.71 1.15
Sub-total (A) 7,25,787.67 41,371.97 5.70 6,95,621.25 53,262.03 7.66
B. Non-Priority Sector
1. Agriculture & allied 2,894.08 198.08 6.84 2,350.56 197.83 8.42
activities
2. Industry 7,51,106.55 29,716.22 3.96 6,93,310.91 40,015.00 5.77
3. Services 8,08,091.42 14,373.75 1.78 6,10,645.37 13,279.56 2.17
4. Personal Loans 9,81,362.09 5,267.76 0.54 8,16,742.82 5,268.95 0.65
Sub-total (B) 25,43,454.14 49,555.81 1.95 21,23,049.66 58,761.34 2.77
C. Total (A+B) 32,69,241.81 90,927.78 2.78 28,18,670.91 1,12,023.37 3.97

c) Overseas Assets, NPAs and Revenue

(` in Crore)
Sr.
Particulars Current Year Previous Year
No.
1. Total Assets 6,07,517.76 5,31,255.45
2. Total NPAs (Gross) 1,951.47 2,264.82
3. Total Revenue 20,735.96 9,279.41

182 Annual Report 2022 – 23

 Standalone Financials

d) Resolution plan and restructuring:

Company Overview
i) Restructuring of advances in terms of RBI Circular DBR.No.BP.BC.45/21.04.048/2018-19 dated
7th June 2019
Current Year Previous Year
Asset Classification of
assets subject to Resolution Plan & Amount Amount
Number of Number of
restructuring outstanding outstanding
Borrower Borrower
(` in Crore) (` in Crore)

Responsible Approach
Standard 2 577 - -
Sub-standard 1 137 - -
Doubtful 6 988 8 2,690
Total 9 1,702 8 2,690

ii) Acquisition of shares due to conversion of debt to equity during the restructuring process:
Equity shares acquired by way of conversion of debt to equity during the restructuring process did not exceed

Governance
the prescribed regulatory ceilings/restriction on capital market exposure, investment in para banking activities
& intra group exposure.

iii)
MSME Restructuring:
As per RBI circular no. DBR.No.BP.BC.18/21.04.048/2018-19 dated 1st January 2019, the details of restructured
MSME accounts is as below:

Statutory Reports
Particulars Current Year Previous Year
No. of accounts restructured 85,738 96,464
Aggregate outstanding (` in Crore) 7,406.84 8,877.10

e) Divergence in asset classification and provisioning:

No disclosure on divergence in asset classification and provisioning for NPAs is required with respect to RBI’s
supervisory process for the year ended 31st March 2022, based on the conditions mentioned in RBI circular No. DOR.

Financial Statements
ACC.REC.No.74/21.04.018/2022-23 dated 11th October 2022.

f) Disclosure of Transfer of Loan Accounts (SMAs & NPAs) in terms of RBI Circular No. DOR.STR.
REC.51/21.04.048/2021-22 dated 24th September 2021:
Transfer of Loans:
i) The details of the Non-Performing Assets transferred during the year ended 31st March 2023 is given in the
table below:
Sr. To permitted To other
Particulars To ARCs
No. transferees transferees
a) No of accounts 26 14 -
b) Aggregate principal outstanding of loans transferred 7,613.20 414.31 -
(` in Crore)
c) Weighted average residual tenor of the loans transferred 0.29 0.02 -
(Years)
d) Net book value of loans transferred 315.95 23.54 -
(at the time of transfer) (` in Crore)
e) Aggregate consideration (` in Crore) 3,145.57 214.65 -
f) Additional consideration realised in respect of accounts 74.83 - -
transferred in earlier years (` in Crore)

183
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

Excess Provision amounting to `2,628.41 Crore (Previous Year `429.92 Crore) on sale of NPAs to Securitisation
Company (SC)/Reconstruction Company (RC) has been accounted for in the Profit & Loss Account.

During the year ended 31st March 2023, investment made in Security Receipts (SRs) was `322.69 Crore. The
Security Receipts are provided for and hence the book value is nil across various categories of Ratings assigned
to Security Receipts by the Credit Rating Agencies as on 31st March 2023.

Provision held on the security receipts as on 31st March 2023 is `7,009.38 Crore (as on 31st March 2022 the same
was `7,859.04 Crore.)

ii) The bank has not transferred any Special Mention Account and loan not in default.

Purchase of Loans:
iii) The Bank has not acquired any stressed loan.

iv) The Bank has purchased homogeneous assets from NBFCs/ HFCs/ MFIs which are not in default under Direct
Assignment Route covered under Transfer of Loan Exposure. The Bank purchased secured home loans and
secured & unsecured SME and ABU loans.

Details of loans-not-in-default acquired during the year ended on 31st March 2023 through assignment are
given below:

From SCB, RRBs, UCBs,

SICBs, DCCBs, AIFIs,
SFBs and NBFCs including From ARCs
Particulars Housing Finance Companies
(HFCs)
Secured Unsecured Secured Unsecured
Loan Loan Loan Loan
Aggregate principal outstanding of loans acquired (` in Crore) 3,633.46 8,144.60 Nil Nil
Aggregate consideration paid (` in Crore) 3,270.12 6,990.94 Nil Nil
Weighted average residual tenor of the loans acquired (years) 11.07 1.70 Nil Nil
Weighted average holding period by the originator (years) 1.14 0.25 Nil Nil
Retention of the beneficial interest by the originator 10.00% 13.35% Nil Nil
Tangible Security Coverage 173.50% NA Nil Nil

v) The loans acquired are not rated as these are not corporate borrowers.

g) Fraud Reported and provision made during the year:

Particulars Current Year Previous Year
Number of Frauds reported 2,755 4,192
Amount involved in Fraud (` in Crore) 4,878.18 7,100.65
Amount of provision made for such frauds (` in Crore) 4,878.18 7,100.65
Amount of unamortised provision debited from ‘Other Reserves’ as at the end of the Nil Nil
year (` in Crore)

184 Annual Report 2022 – 23

 Standalone Financials

h) Resolution of COVID-19 related Stress:

Company Overview
The details of resolution plan as on 31st March 2023, in terms of RBI Circular DOR. No. BP.BC/3/21.04.048/2020-21
dated 6th August 2020 (Resolution Framework 1.0) and DOR.STR.REC.11/21.04.048/2021-22 dated 5th May 2021
(Resolution Framework 2.0) are:
(` in Crore)
(A) (B) (C) (D) (E)
Exposure to
Exposure to
accounts classified

Responsible Approach
accounts classified
as Standard Of (A), Of (A) amount
Sr. Of (A) amount as Standard
Type of borrower consequent to aggregate debt paid by the
No. written off consequent to
implementation of that slipped into borrowers
during the implementation of
resolution plan – NPA during the during the
half-year resolution plan –
Position as at the half-year half-year
Position as at the
end of the previous
end of this half-year
half-year
1. Personal Loans 15,017 536 - 270 14,211

Governance
2. Corporate persons 12,319 1,072 - 1,156 10,091
of which, MSME 11,045 1,011 - 987 9,047
3. Others - - - - -
Total 27,336 1,608 - 1,426 24,302
(Includes restructuring implemented during the half-year ended September 2021 under the Resolution Framework 1.0)

18.5 Exposures

Statutory Reports
The Bank is lending to sectors, which are sensitive to asset price fluctuations.

a) Real Estate Sector

(` in Crore)
Particulars Current Year Previous Year
I) Direct exposure

Financial Statements
i) Residential Mortgages
Lending fully secured by mortgages on residential property that is or will be 5,50,747.02 4,80,518.54
occupied by the borrower or that is rented.
Of which (i) Individual housing loans up to ` 35 Lakh (previous year ` 35 Lakh)
 2,51,213.68 2,17,267.02
in Metropolitan centres (Population >= 10 Lakh) and ` 25 Lakh (previous year
` 25 Lakh) in other centres for purchase/construction of dwelling unit per family.
ii) Commercial Real Estate
Lending secured by mortgages on Commercial Real Estates (office building, 50,409.72 47,672.02
retail space, multipurpose commercial premises, multifamily residential
buildings, multi tenanted commercial premises, industrial or warehouse space,
hotels, land acquisition, development, and construction etc. Exposures include
non-fund based (NFB) limits.
iii) Investments in Mortgage-Backed Securities (MBS) and other securitised
exposures:
a) Residential - -
b) Commercial Real Estate - -
II) Indirect Exposure
Fund based and non-fund-based exposures on National Housing Bank (NHB) and 1,28,006.76 96,802.79
Housing Finance Companies (HFCs)
Total Exposure to Real Estate Sector 7,29,163.50 6,24,993.35

185
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

b) Capital Market
(` in Crore)
Particulars Current Year Previous Year
1. Direct investment in equity shares, convertible bonds, convertible debentures 16,870.59 14,566.26
and units of equity-oriented mutual funds the corpus of which is not exclusively
invested in corporate debt.
2. Advances against shares/ bonds/ debentures or other securities or on clean 65.73 110.25
basis to individuals for investment in shares (including IPOs/ESOPs), convertible
bonds, convertible debentures, and units of equity-oriented mutual funds.
3. Advances for any other purposes where shares or convertible bonds or convertible - -
debentures or units of equity oriented mutual funds are taken as primary security.
4. Advances for any other purposes to the extent secured by the collateral security of 2,149.02 2,321.58
shares or convertible bonds or convertible debentures or units of equity oriented
mutual funds i.e. where the primary security other than shares/ convertible bonds/
convertible debentures/ units of equity oriented mutual funds does not fully cover
the advances.
5. Secured and unsecured advances to stockbrokers and guarantees issued on 4,106.64 1,568.01
behalf of stockbrokers and market makers
6. Loans sanctioned to corporates against the security of shares/ bonds/ debentures - -
or other securities or on clean basis for meeting promoter’s contribution to the
equity of new companies in anticipation of raising resources.
7. Bridge loans to companies against expected equity flows/issues. - -
8. Underwriting commitments taken up by the Banks in respect of primary issue of - -
shares or convertible bonds or convertible debentures or units of equity oriented
mutual funds.
9. Financing to stockbrokers for margin trading. - -
10. Exposures to Venture Capital Funds (both registered and unregistered) 4,302.21 4,325.30
Total Exposure to Capital Market 27,494.19 22,891.40

c) Risk Category-wise Country Exposure

As per the extant RBI guidelines, the country exposure of the Bank is categorised into various risk categories listed
in the following table.
(` in Crore)
Net Funded Exposure Provision held
Risk Category As at As at As at As at
31st March 2023 31st March 2022 31st March 2023 31st March 2022
Insignificant 404.93 1,782.72 Nil Nil
Very Low 2,25,110.30 2,22,431.21 196.15 165.12
Low 62,630.30 27,346.84 Nil Nil
Medium 33,154.94 29,467.82 Nil Nil
High 22,138.32 23,470.66 Nil Nil
Very High 5,799.64 5,402.11 Nil Nil
Restricted 5,465.54 6,160.87 Nil Nil
Total 3,54,703.98 3,16,062.23 196.15 165.12
The country exposure (net funded) of the Bank for any country does not exceed 1% of its total assets except on USA,
hence provision for the country exposure on USA has been made.

d) Unsecured Advances
(` in Crore)
Particulars Current Year Previous Year
a) Total Unsecured Advances of the bank 9,30,364.53 7,44,594.25
i) Of which amount of advances outstanding against charge over intangible securities Nil Nil
such as rights, licences, authority etc.
ii) The estimated value of such intangible securities (as in (i) above). Nil Nil

186 Annual Report 2022 – 23

 Standalone Financials

e) Factoring Exposures:

Company Overview
The Banks factoring exposure as at 31st March 2023 is `28,565.16 Crore (Previous Year `20,136.45 Crore).

f) Intra-Group Exposures:
(` in Crore)
Particulars Current Year Previous Year
Total amount of intra-group exposures 55,540.06 24,431.05
Total amount of top-20 intra-group exposures 55,540.06 24,430.71

Responsible Approach
Percentage of intra-group exposures to total exposure of the bank on borrowers/ 1.09% 0.54%
customers
Details of breach of limits on intra-group exposures and regulatory action thereon Nil Nil

g) Unhedged Foreign Currency Exposure:

- An amount of `239.18 Crore (Previous Year `145.37 Crore) was held as on 31st March 2023 towards Currency
Induced Credit Risk.

Governance
- Capital allocated for Currency Induced Credit Risk amounts to `420.39 Crore (Previous Year `72.90 Crore).

h) Single Borrower and Group Borrower exposure limits exceeded by the Bank:
The Bank has not exceeded the single borrower exposure & Group Borrower exposure prudential limits as prescribed
by RBI.

Statutory Reports
18.6 Concentration of Deposits, Advances, Exposures & NPAs (computed as per directions of RBI)
a) Concentration of Deposits
Particulars Current Year Previous Year
Total Deposits of twenty largest depositors (` in Crore) 1,76,611.88 1,61,936.62
Percentage of Deposits of twenty largest depositors to Total Deposits of the Bank 3.99% 4.00%

Financial Statements
b) Concentration of Advances
Particulars Current Year Previous Year
Total Advances to twenty largest borrowers (` in Crore) 4,01,754.30 3,46,209.56
Percentage of Advances to twenty largest borrowers to Total Gross Advances of the 12.29% 12.28%
Bank

c) Concentration of Exposures
Particulars Current Year Previous Year
Total Exposure to twenty largest borrowers/customers (` in Crore) 5,55,744.92 4,99,542.80
Percentage of Exposures to twenty largest borrowers/ customers to Total Exposure of 10.95% 11.05%
the Bank on borrowers/ customers

d) Concentration of NPAs
Particulars Current Year Previous Year
Total Exposure to top twenty largest NPA exposure to Total Gross NPAs (` in Crore) 19,716.80 29,921.64
Percentage of exposures to the twenty largest NPA accounts to total gross NPAs 21.68% 27.26%

187
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

18.7 Derivatives
a) Forward Rate Agreements (FRA)/Interest Rate Swaps (IRS)
(` in Crore)
Sr.
Particulars Current Year Previous Year
No.
i) The notional principal of swap agreements# 8,43,159.96 5,14,809.90
ii) Losses which would be incurred if counterparties fail to fulfil their obligations 4,058.55 2,537.80
under the agreements
iii) Collateral required by the Bank upon entering swaps - 453.97
iv) Concentration of credit risk arising from the swaps Not significant Not significant
v) The fair value of the swap book 3,309.87 1,532.87
#Excludes IRS/FRA amounting to ` 40,744.08 Crore (Previous Year ` 37,265.38 Crore) entered with the Bank’s own foreign offices.

Nature and terms of Forward Rate Agreement or Interest Rate Swaps as on 31st March 2023 are given below:
(` in Crore)
Notional
Instrument Nature Nos. Benchmark Terms
Principal
IRS Trading 6,295 3,19,111.04 MIBOR Floating Payable Vs Fixed Receivable
IRS Trading 6,004 3,14,875.79 MIBOR Fixed Payable Vs Floating Receivable
IRS Hedging 101 56,617.04 SOFR Fixed Receivable Vs Floating Payable
IRS Trading 78 38,815.10 LIBOR Floating Payable Vs Fixed Receivable
IRS Trading 160 35,621.68 OTHERS Floating Payable Vs Fixed Receivable
IRS Trading 52 24,667.14 LIBOR Fixed Payable Vs Floating Receivable
IRS Trading 26 16,557.26 LIBOR Floating Payable Vs Floating Receivable
IRS Hedging 12 14,065.69 LIBOR Fixed Receivable Vs Floating Payable
IRS Hedging 168 10,793.83 LIBOR Fixed Receivable Vs Floating Payable
IRS Trading 85 5,898.58 OTHERS Fixed Payable Vs Floating Receivable
IRS Trading 11 2,626.85 LIBOR Floating Receivable Vs Fixed Payable
IRS Hedging 21 2,293.85 OTHERS Fixed Receivable Vs Floating Payable
IRS Hedging 10 1,051.78 FIXED Floating Receivable Vs Fixed Payable
IRS Trading 1 164.34 SOFR Floating Receivable Vs Fixed Payable
Total 13,024 8,43,159.97

b) Exchange Traded Interest Rate Derivatives

(` in Crore)
Sr.
Particulars Current Year Previous Year
No.
1. Notional principal amount of exchange traded interest rate derivatives undertaken
during the year (instrument-wise)
a) Interest Rate Futures Nil Nil
b) 10 Year Government of India Securities 13,718.42 3,988.26
2. Notional principal amount of exchange traded interest rate derivatives outstanding
as on end of the financial year (instrument-wise)
a) Interest Rate Futures Nil Nil
b) 10 Year Government of India Securities 165.00 501.00
3. Notional principal amount of exchange traded interest rate derivatives outstanding N.A. N.A.
and not “highly effective” (instrument-wise)
4. Mark-to-market value of exchange traded interest rate derivatives outstanding N.A. N.A.
and not “highly effective”. (instrument-wise)

188 Annual Report 2022 – 23

 Standalone Financials

c) Risk Exposure in Derivatives

Company Overview
Qualitative Risk Exposure
i) The Bank currently deals in over the counter (OTC) interest rate and currency derivatives as also in Interest Rate
Futures and Exchange Traded Currency Derivatives.

Interest Rate Derivatives dealt by the Bank are rupee interest rate swaps, foreign currency interest rate swaps
and forward rate agreements, cap, floor and collars.

Responsible Approach
Currency derivatives dealt by the Bank are currency swaps, rupee dollar options and cross-currency options.

The Bank also deals in Non-deliverable Options and Non-deliverable Forwards as permitted by RBI.

The products are offered to the Bank’s customers to hedge their exposures and the Bank also enters into
derivatives contracts to cover off such exposures. Derivatives are used by the Bank both for trading as well as
hedging balance sheet items.

The Bank also runs option position in USD/INR, which is managed through various types of loss limits and

Governance
Greek limits.

ii) Derivative transactions carry market risk i.e. the probable loss the Bank may incur as a result of adverse
movements in interest rates/exchange rates and credit risk i.e. the probable loss the Bank may incur if the
counterparties fail to meet their obligations. The Bank’s “Policy for Derivatives” approved by the Board
prescribes the market risk parameters (Greek limits, Loss Limits, cut-loss triggers, open position limits, duration,
modified duration, PV01 etc.) as well as customer eligibility criteria (credit rating, tenure of relationship, limits
and customer appropriateness and suitability of policy (CAS) etc.) for entering into derivative transactions.

Statutory Reports
Credit risk is controlled by entering into derivative transactions only with counterparties satisfying the criteria
prescribed in the Policy. Appropriate limits are set for the counterparties taking into account their ability to
honour obligations and the Bank enters into ISDA agreement with each counterparty.

iii) The Asset Liability Management Committee (ALCO) of the Bank oversees efficient management of these risks.
The Bank’s Market Risk Management Department (MRMD) identifies, measures, monitors market risk associated
with derivative transactions, assists ALCO in controlling and managing these risks and reports compliance with

Financial Statements
policy prescriptions to the Risk Management Committee of the Board (RMCB) at regular intervals.

iv) The accounting policy for derivatives has been drawn-up in accordance with RBI guidelines, the details of which
are presented under Schedule 17: Significant Accounting Policies (SAP).

v) Interest Rate Swaps are mainly used for hedging of the assets and liabilities.

vi) Majority of the swaps were done with First class counterparty banks.

vii) 
Derivative transactions comprise of swaps which are disclosed as contingent liabilities. The swaps are
categorised as trading or hedging.

viii) Derivative deals are entered with only those interbank participants for whom counterparty exposure limits are
sanctioned. Similarly, derivative deals entered with only those corporates for whom credit exposure limit is
sanctioned. Collateral requirements for derivative transactions are laid down as a part of credit sanctions terms
on a case by case basis. Such collateral requirements are determined based on usual credit appraisal process.
The Bank retains the right to terminate transactions as a risk mitigation measure in certain cases.

189
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

Quantitative Risk Exposure

(` in Crore)
Currency Derivatives Interest Rate Derivatives
Particulars
Current Year Previous Year Current Year Previous Year
I) Derivatives
(Notional Principal Amount)
a) For hedging 8,389.39@ 17,269.22@ 47,965.32# 54,974.80#
b) For trading * 11,91,495.97 13,90,743.44 7,95,194.64 4,65,802.38
II) Marked to Market Positions
a) Asset (+) 7,575.32 9,219.37 4,058.55 2,537.80
b) Liability (-) 11,160.26 9,254.89 4,196.40 2,347.92
III) Credit Exposure 41,469.48 47,965.29 10,545.92 7,180.48
IV) Likely impact of one percentage change in
interest rate (100* PV01)
a) on hedging derivatives 19.72 17.63 1,585.10 1,513.11
b) on trading derivatives 497.23 871.86 274.68 401.07
V)  Maximum and Minimum of 100*PV01
observed during the year
a) on hedging -
Maximum 29.22 23.39 1,637.88 1,572.46
Minimum 7.60 15.97 1,255.24 1,109.15
b) on trading -
Maximum 876.56 938.43 528.42 512.07
Minimum 497.23 516.20 246.90 23.91

@ Excludes swaps amounting to `2,027.92 Crore (Previous Year `2,003.56 Crore) entered with the Bank’s own foreign offices.

# IRS/FRA amounting to `40,744.08 Crore (Previous Year `37,265.38 Crore) entered with the Bank’s own Foreign offices are excluded.

* Excludes Currency Derivatives of `86.38 Crore (Previous Year `403.87 Crore) and NDF `5,286.71 Crore (Previous Year `4,693.25 Crore)
done with the Bank’s Foreign offices.

− The outstanding notional amount of derivatives done between Global Markets Unit and International Banking Group
as on 31st March 2023 amounted to `40,744.08 Crore (Previous Year `44,366.06 Crore) and the derivatives done
between SBI Foreign Offices as on 31st March 2023 amounted to `2,027.92 Crore (Previous Year `34,018.38 Crore).
− The outstanding notional amount of interest rate derivatives which are not marked-to-market (MTM) where the
underlying Assets/Liabilities are not marked-to-market as on 31st March 2023 amounted to `1,16,255.32 Crore
(Previous Year `98,921.35 Crore).

d) Credit Default Swaps

Bank has not entered any Credit Default Swap.

18.8 Disclosure relating to Securitisation

The bank has not securitised any standard assets.

18.9 Off-balance Sheet SPVs sponsored

The Bank has not floated any off Balance Sheet SPV.

190 Annual Report 2022 – 23

 Standalone Financials

18.10 Unclaimed Liabilities transferred to Depositor Education and Awareness Fund

Company Overview
(` in Crore)
Particulars Current Year Previous Year
Opening balance of amounts transferred to DEA Fund 4,513.87 3,636.41
Add: Amounts transferred to DEA Fund 6,970.26 893.35
Less: Amounts reimbursed by DEA Fund 2,531.92 15.89
Closing balance of amounts transferred to DEA Fund 8,952.21 4,513.87

Responsible Approach
18.11 Disclosure of complaints
a) Summary information of complaints received by the bank from customers and from the office of
Ombudsman on complaints and grievance redress:
Sr.
Particulars Current Year Previous Year
No.

Governance
Complaints received by the bank from its customers
1. Number of complaints pending at beginning of the year 1,82,212 1,46,280
2. Number of complaints received during the year 38,63,085 34,52,782
3. Number of complaints disposed during the year 39,10,185 34,16,850
3.1 Of which, number of complaints rejected by the bank 1,72,002 93,618
4. Number of complaints pending at the end of the year 1,35,112 1,82,212

Statutory Reports
Maintainable complaints received by the bank from Office of Ombudsman
5. Number of maintainable complaints received by the bank from Office of 31,038@ 45,693#
Ombudsman
5.1 Of 5, number of complaints resolved in favour of the bank by Office of 12,653 35,297
Ombudsman
5.2 
Of 5, number of complaints resolved through conciliation/ mediation/ 17,356 8,664
advisories issued by Office of Ombudsman

Financial Statements
5.3 Of 5, number of complaints resolved after passing of Awards by Office of 3 1
Ombudsman against the bank
6. Number of Awards unimplemented within the stipulated time (other than those 0 0
appealed)
@ Including complaints which were pending as at the end of the FY 2021-22 and carried over to FY 2022-23

# Including complaints which were pending as at the end of the FY 2020-21 and carried over to FY 2021-22

 ote: Maintainable complaints refer to complaints on the grounds specifically mentioned in Integrated Ombudsman Scheme, 2021
N
(Previously Banking Ombudsman Scheme, 2006) and covered within the ambit of the Scheme.

191
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

b) Top five grounds of complaints received by the bank from customers

% increase/
Number of decrease in
Number of Number of Of 5, number
complaints the number
Grounds of complaints, complaints complaints of complaints
pending at the of complaints
(i.e. complaints relating to) received during pending at the pending beyond
beginning of the received over
the year end of the year 30 days
year the previous
year
1 2 3 4 5 6
Current Year
ATM/ Debit Card 65,097 14,94,562 -20.66 49,435 -
Internet Banking/ Mobile/ 97,236 20,98,317 56.17 83,450 62,242
Electronic Banking
Bank Charges levied 3,766 30,856 -44.18 38 -
Account Opening/difficulty in 8,339 23,366 -4.74 92 -
Operation of accounts
Cheque Book related 1,694 22,638 10.80 19 -
Others 6,080 1,93,346 54.37 2,078 1,909
Total 1,82,212 38,63,085 11.88 1,35,112 64,151
Previous Year
ATM/ Debit Card 64,100 18,83,728 4.38 65,097 30,313
Internet Banking/ Mobile/ 43,015 13,43,568 135.42 97,236 67,738
Electronic Banking
Bank Charges levied 4,016 55,280 -11.53 3,766 3,410
Account Opening/difficulty in 3,459 24,529 -24.02 8,339 3,127
Operation of accounts
Cheque Book related 660 20,432 67.98 1,694 1,056
Others 31,030 1,25,245 -80.71 6,080 683
Total 1,46,280 34,52,782 10.26 1,82,212 1,06,327

c) Disclosure of “First Resort Complaints received, and action taken” in terms of Policy related Action
Point in Annual Conference of the RBI Ombudsmen’s October 2022
Under clause 10 of the Reserve Bank Integrated Ombudsman Scheme-2021 (RB-IOS), the complaints not related to
deficiency of service rejected by Banking Ombudsman as non-maintainable advising the complainants to approach
the concerned Regulated Entity directly are called as First Resort Complaints.

During the financial year 2022-23, a total of 23,363 First Resort Complaints (FRCs) were received by RB-IOs.

To ensure reduction in First Resort Complaints (FRCs), the Bank has taken initiatives as under:

− The salient features of RB-IOS Scheme have been displayed at all the branches, ATMs and digitally displayed on
ATMs, Bank’s website, Internet Banking & YONO.
− Nationwide Intensive Customer Awareness Campaign was conducted during November 2022.

18.12 Disclosure of penalties imposed by the Reserve Bank of India

a) During the year ended 31st March 2023, no penalty has been levied on the Bank by the Reserve Bank of India (RBI)
in exercise of the powers vested under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 51(1) of the
Banking Regulation Act, 1949.

192 Annual Report 2022 – 23

 Standalone Financials

b) No penalty has been levied on the Bank for contravention under the provisions of Payment and Settlement Systems

Company Overview
Act, 2007, Government Securities Act, 2006 (for bouncing SGL).

c) There is no default in reverse repo transaction.

18.13 Other Disclosures:

a) Business Ratios
Sr.

Responsible Approach
Particulars Current Year Previous Year
No.
i. Interest Income as a percentage to Working Funds 6.35% 6.27%
ii. Non-interest income as a percentage to Working Funds 0.70% 0.92%
iii. Cost of Deposits (Domestic) 3.99% 3.83%
iv. Net Interest Margin 3.37% 3.12%
v. Operating Profit as a percentage to Working Funds 1.60% 1.55%

Governance
vi. Return on Assets (on net-asset basis) 0.96% 0.67%
vii. Business (Deposits plus advances) per employee (` in Crore) 29.78 25.74
viii. Profit per employee (` in Lakh) 21.23 12.93

b) Bancassurance Business
Fees/brokerage earned in respect of the insurance broking, agency and bancassurance business.
(` in Crore)

Statutory Reports
Name of the Company Current Year Previous Year
SBI Life Insurance Co. Ltd. 2,039.92 1,567.50
SBI General Insurance Co. Ltd. 397.64 319.00
NTUC and Manulife Financial Limited 0.12 1.27
Tokio Marine and ACE 0.45 0.61
Unit Trust and LIC 0.01 0.01

Financial Statements
AIA Singapore 0.01 0.04
IFAST 0.11 0.43
Aviva 0.29 0.39
Total 2,438.55 1,889.25

c) Marketing and distribution

The details of fees/remuneration received in respect of the marketing and distribution function (excluding
bancassurance business) are as follows:
(` in Crore)
Name of the Company Current Year Previous Year
SBI Mutual Fund 877.69 741.84
SBI Cards and Payment Services Limited 263.86 199.61
National Pension System 17.89 10.00
SBICAP Securities Ltd. 5.22 5.06
Other Mutual Funds 33.30 22.64
Others (PMS, Bonds, Corporate FDs etc.) 5.35 2.55
Total 1,203.31 981.70

193
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

d) Priority Sector Lending Certificate (PSLC)

The Bank has purchased the following PSLCs during the year:-
(` in Crore)
Category Current Year Previous Year
PSLC Micro Enterprises 78,249.00 5,792.00
PSLC Agriculture 25,240.00 10,192.00
PSLC General 7,439.00 58,361.75
PSLC Small and Marginal Farmers 91,072.00 63,654.25
Total 2,02,000.00 1,38,000.00

The Bank did not sell any PSLC during the year ended 31st March 2023 and 31st March 2022.

e) Provisions and Contingencies

Break up of “Provisions and Contingencies” shown under head Expenditure in Profit and loss account as follows:
(` in Crore)
Provisions debited to Profit & Loss Account Current Year Previous Year
Provision for Taxation
- Current Tax 21,223.93 11,427.30
- Deferred Tax Asset created (4,250.74) 318.57
Provision for Depreciation on Investments 1,513.84 3,440.10
Provision on Non-Performing Assets 9,190.34 14,142.96
Provision on Restructured Assets (46.41) (56.11)
Provision on Standard Assets 5,618.55 4,677.04
Other Provisions 231.01 2,248.14
Total 33,480.52 36,198.00

f) Implementation of IFRS converged Indian Accounting Standards (Ind AS)


RBI vide Circular DBR.BP.BC.No.29/21.07.001/2018-19 dated 22nd 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.

g) Payment of DICGC Insurance Premium

(` in Crore)
Particulars Current Year Previous Year
Payment of DICGC Insurance Premium 4,407.22 4,006.14
Arrears in payment of DICGC premium - -

h) Disclosure on amortisation of expenditure on account of enhancement in family pension of employees

of bank
Pursuant to the revision in family pension payable to employees of the Bank covered under 11th Bi-Partite settlement
and Joint Note dated 11th November 2020, the Bank had provided for the entire additional liability of `7,418.39 Crore
in the Profit and Loss Account for the year ended 31st March 2022 & was disclosed as an exceptional item.

There is no unamortised expenditure in the Balance Sheet on account of Family Pension Scheme.

194 Annual Report 2022 – 23

 Standalone Financials

18.14 Disclosure Requirements as per the Accounting Standards

Company Overview
a) Accounting Standard 5: Net Profit or Loss for the period, Prior Period Items, and Changes in
Accounting Policies
- During the year, there were no material prior period income/expenditure items.
- There is no change in the Significant Accounting Policies adopted during the Financial Year 2022-23 as
compared to those followed in the previous Financial Year 2021-22.

Responsible Approach
b) Accounting Standard – 15 “Employee Benefits”
i) Defined Benefit Plans
1) Employee’s Pension Plan and Gratuity Plan
The following table sets out the status of the Defined Benefit Pension Plan and Gratuity Plan as per the
actuarial valuation by the independent Actuary appointed by the Bank:
(` in Crore)

Governance
Pension Plan Gratuity Plan
Particulars
Current Year Previous Year Current Year Previous Year
Change in the present value of the
defined benefit obligation
Opening defined benefit obligation 1,46,124.99 1,25,806.37 12,714.22 13,447.17
Current Service Cost 972.83 914.92 464.79 466.44
Interest Cost 10,740.19 8,680.64 924.32 917.10

Statutory Reports
Past Service Cost (Vested Benefit) - 11,124.14 - -
Actuarial (Gains)/Losses 9,824.44 9,789.06 44.75 42.20
Benefits paid (4,848.06) (4,926.71) (1,757.60) (2,158.69)
Direct Payment by Bank (5,848.13) (5,263.43) - -
Closing defined benefit obligation at 1,56,966.26 1,46,124.99 12,390.48 12,714.22
31st March 2023
Change in Plan Assets

Financial Statements
Opening fair value of Plan Assets as at 1,30,590.73 1,06,445.86 10,925.06 10,950.23
1st April 2022
Expected Return on Plan Assets 9,598.42 7,344.76 794.25 746.81
Contributions by employer 2,171.59 22,163.77 1,440.65 1,463.56
Expected Contributions by the employees 0.10 - - -
Benefits Paid (4,848.06) (4,926.71) (1,757.60) (2,158.69)
Actuarial Gains/(Loss) on plan Assets – (4,364.24) (436.95) (336.70) (76.85)
Due to Experience
Closing fair value of plan assets as at 1,33,148.54 1,30,590.73 11,065.66 10,925.06
31st March 2023
Reconciliation of present value of the
obligation and fair value of the plan assets
Present Value of Funded obligation at 1,56,966.26 1,46,124.99 12,390.48 12,714.22
31st March 2023
Fair Value of Plan assets at 31st March 2023 1,33,148.54 1,30,590.73 11,065.66 10,925.06
Deficit/(Surplus) 23,817.72 15,534.26 1,324.82 1,789.16
Unrecognised Past Service Cost (Vested) - - - -
Closing Balance
Unrecognised Transitional Liability Closing - - - -
Balance
Net Liability/(Asset) 23,817.72 15,534.26 1,324.82 1,789.16

195
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

(` in Crore)
Pension Plan Gratuity Plan
Particulars
Current Year Previous Year Current Year Previous Year
Amount Recognised in the Balance Sheet
Liabilities 1,56,966.26 1,46,124.99 12,390.48 12,714.22
Assets 1,33,148.54 1,30,590.73 11,065.66 10,925.06
Net Liability/(Asset) recognized in Balance 23,817.72 15,534.26 1,324.82 1,789.16
Sheet
Unrecognised Past Service Cost (Vested) - - - -
Closing Balance
Unrecognised Transitional Liability Closing - - - -
Balance
Net Liability/(Asset) 23,817.72 15,534.26 1,324.82 1,789.16
Net Cost recognized in the profit and loss
account
Current Service Cost 972.83 914.92 464.79 466.44
Interest Cost 10,740.19 8,680.64 924.32 917.10
Expected return on plan assets (9,598.42) (7,344.76) (794.25) (746.81)
Expected Contributions by the employees (0.10) - - -
Past Service Cost (Amortised) Recognised - - - -
Past Service Cost (Vested Benefit) - 11,124.14 - -
Recognised
Net actuarial losses/(Gain) recognized 14,188.68 10,226.01 381.45 119.05
during the year
Total costs of defined benefit plans included 16,303.18 23,600.95 976.31 755.78
in Schedule 16 “Payments to and provisions
for employees”
Reconciliation of expected return and
actual return on Plan Assets
Expected Return on Plan Assets 9,598.42 7,344.76 794.25 746.81
Actuarial Gain/(loss) on Plan Assets – (4,364.24) (436.95) (336.70) (76.85)
Due to Experience
Actual Return on Plan Assets 5,234.18 6,907.81 457.55 669.96
Reconciliation of opening and closing net
liability/(asset) recognized in Balance
Sheet
Opening Net Liability/(Asset) as at 15,534.26 19,360.51 1,789.16 2,496.94
1st April 2022
Expenses as recognized in Profit and Loss 16,303.18 23,600.95 976.31 755.78
account
Paid by Bank Directly (5,848.13) (5,263.43) - -
Debited to Other Provision - - - -
Recognised in Reserve - - - -
Employer’s Contribution (2,171.59) (22,163.77) (1,440.65) (1,463.56)
Net liability/(Asset) recognized in Balance 23,817.72 15,534.26 1,324.82 1,789.16
Sheet

196 Annual Report 2022 – 23

Standalone Financials

Plan Assets of Pension Fund & Gratuity Fund as on 31st March 2023 are as follows:

Company Overview
Pension Fund Gratuity Fund
Category of Assets
% of Plan Assets % of Plan Assets
Central Govt. Securities 19.11% 19.06%
State Govt. Securities 35.14% 35.24%
Debt Securities, Money Market Securities and Bank Deposits 30.85% 29.35%
ETF and Mutual Funds 11.61% 10.99%

Responsible Approach
Insurer Managed Funds 1.17% 3.30%
Others 2.12% 2.06%
Total 100.00% 100.00%

Principal actuarial assumptions

Pension Plans
Particulars
Current Year Previous Year

Governance
Discount Rate 7.53% 7.35%
Expected Rate of return on Plan Asset 7.53% 7.35%
Salary Escalation Rate 6.00% 5.80%
Pension Escalation Rate 2.00% 1.60%
Attrition Rate 2.00% 2.00%
Mortality Table During Employment IALM 2012-14 (Urban) IALM 2012-14 (Urban)

Statutory Reports
Mortality Table After Employment IALM (2006-08) Ultimate IALM (2006-08) Ultimate

Principal actuarial assumptions

Gratuity Plans
Particulars
Current Year Previous Year
Discount Rate 7.48% 7.27%
Expected Rate of return on Plan Asset 7.48% 7.27%

Financial Statements
Salary Escalation Rate 6.00% 5.80%
Attrition Rate 2.00% 2.00%
Mortality Table IALM 2012-14 (Urban) IALM 2012-14 (Urban)

Surplus/Deficit in the Plan

Gratuity Plan
(` in Crore)
Amount recognized in the Year ended Year ended Year ended Year ended Year ended
Balance Sheet 31.03.2019 31.03.2020 31.03.2021 31.03.2022 31.03.2023
Liability at the end of the year 12,189.05 12,852.56 13,447.17 12,714.22 12,390.48
Fair value of Plan Assets at the 10,326.00 10,570.95 10,950.23 10,925.06 11,065.66
end of the year
Difference 1,863.05 2,281.61 2,496.94 1,789.16 1,324.82
Unrecognised Past Service Cost - - - - -
Unrecognised Transition Liability - - - - -
Amount Recognised in the 1,863.05 2,281.61 2,496.94 1,789.16 1,324.82
Balance Sheet

197
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

Experience adjustment
(` in Crore)
Amount recognized in the Year ended Year ended Year ended Year ended Year ended
Balance Sheet 31.03.2019 31.03.2020 31.03.2021 31.03.2022 31.03.2023
On Plan Liability (Gain)/Loss (212.11) 382.17 1,053.04 366.15 138.91
On Plan Asset (Loss)/Gain 102.16 249.84 331.37 (76.85) (336.70)

Surplus/Deficit in the plan

Pension
(` in Crore)
Amount recognized in the Year ended Year ended Year ended Year ended Year ended
Balance Sheet 31.03.2019 31.03.2020 31.03.2021 31.03.2022 31.03.2023
Liability at the end of the year 95,362.15 1,09,830.37 1,25,806.37 1,46,124.99 1,56,966.26
Fair value of Plan Assets at the 90,399.61 97,458.52 1,06,445.86 1,30,590.73 1,33,148.54
end of the year
Difference 4,962.54 12,371.85 19,360.51 15,534.26 23,817.72
Unrecognized Past Service Cost - - - - -
Unrecognized Transition Liability - - - - -
Amount Recognised in the 4,962.54 12,371.85 19,360.51 15,534.26 23,817.72
Balance Sheet

Experience adjustment
(` in Crore)
Amount recognized in the Year ended Year ended Year ended Year ended Year ended
Balance Sheet 31.03.2019 31.03.2020 31.03.2021 31.03.2022 31.03.2023
On Plan Liability (Gain)/Loss 3,642.57 4,078.53 12,528.38 4,162.26 8,997.32
On Plan Asset (Loss)/Gain 109.65 1,550.28 3,705.91 (436.95) (4,364.24)

The expected contribution to the Pension and Gratuity Fund for the next year is `2,200.00 Crore and
`1,796.23 Crore respectively.

As the plan assets are marked to market on the basis of the yield curve derived from government securities, the
expected rate of return has been kept the same as the discount rate.

The estimates of future salary growth, factored in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors such as supply and demand in the employment market. Such estimates
are very long-term and are not based on limited past experience/immediate future. Empirical evidence also
suggests that in very long-term, consistent high salary growth rates are not possible. The said estimates and
assumptions have been relied upon by the auditors.

With a view to further strengthen the Pension Fund, it was decided to upwardly revise some of the assumptions.

2) Employees’ Provident Fund

Actuarial valuation carried out in respect of interest shortfall in the Provident Fund Trust of the Bank, as per
Deterministic Approach shows “Nil” liability, hence no provision is made in FY2022-23.

198 Annual Report 2022 – 23

Standalone Financials

The following table sets out the status of Provident Fund as per the actuarial valuation by the independent

Company Overview
Actuary appointed by the Bank: -
(` in Crore)
Provident Fund
Particulars
Current Year Previous Year
Change in the present value of the defined benefit obligation
Opening defined benefit obligation at 1st April 2022 36,730.00 35,289.14
Current Service Cost 1,480.33 1,493.06

Responsible Approach
Interest Cost 2,762.87 2,917.84
Employee Contribution (including VPF) 1,952.97 1,958.76
Actuarial losses/(gains) - 150.44
Benefits paid (4,689.37) (5,079.24)
Closing defined benefit obligation at 31st March 2023 38,236.80 36,730.00
Change in Plan Assets
Opening fair value of Plan Assets as at 1st April 2022 37,632.85 36,365.80

Governance
Expected Return on Plan Assets 2,762.87 2,917.84
Contributions 3,433.30 3,451.82
Provision for loss on maturity of non-performing investment - -
Benefits Paid (4,689.37) (5,079.24)
Actuarial Gains/(Loss) on plan Assets 70.40 (23.37)
Closing fair value of plan assets as at 31st March 2023 39,210.05 37,632.85
Reconciliation of present value of the obligation and fair value of the plan assets

Statutory Reports
Present Value of Funded obligation at 31st March 2023 38,236.80 36,730.00
Fair Value of Plan assets at 31st March 2023 39,210.05 37,632.85
Deficit/(Surplus) (973.25) (902.85)
Net Asset not recognized in the Balance Sheet 973.25 902.85
Net Cost recognized in the profit and loss account
Current Service Cost 1,480.33 1,493.06
Interest Cost 2,762.87 2,917.84

Financial Statements
Expected return on plan assets (2,762.87) (2,917.84)
Interest shortfall reversed - -
Total costs of defined benefit plans included in Schedule 16 “Payments to and 1,480.33 1,493.06
provisions for employees”
Reconciliation of opening and closing net liability/(asset) recognized in the
Balance Sheet
Opening Net Liability as at 1st April 2022 - -
Expense as above 1,480.33 1,493.06
Employer’s Contribution (1,480.33) (1,493.06)
Net Liability/(Asset) Recognised in the Balance Sheet - -

Plan Assets of Provident Fund as on 31st March 2023 are as follows:

Provident Fund
Category of Assets
% of Plan Assets
Central Govt. Securities 28.36%
State Govt. Securities 31.82%
Debt Securities, Money Market Securities and Bank Deposits 30.12%
Mutual Funds 6.99%
Others 2.71%
Total 100.00%

199
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

Principal actuarial assumptions

Provident Fund
Particulars
Current Year Previous Year
Discount Rate 7.48% 7.27%
Guaranteed Return 8.10% 8.50%
Attrition Rate 2.00% 2.00%
Salary Escalation Rate 6.00% 5.80%
Mortality Table IALM 2012-14 (Urban) IALM 2012-14 (Urban)

There is a guaranteed return applicable to liability under SBI Employees Provident Fund which shall not be
lower of either:

a) one half percent above the average standard rate (adjusted up or down to the interest one quarter per
cent) quoted by the bank for new deposits fixed for twelve months in the preceding year (ending on the
preceding 31st day of March); or

b) three percent per annum, subject to approval of Executive Committee.

ii) Defined Contribution Plan:

The Bank has a Defined Contribution Pension Scheme (DCPS) applicable to all categories of officers and
employees joining the Bank on or after 1st August 2010. The Scheme is managed by NPS Trust under the aegis
of the Pension Fund Regulatory and Development Authority. National Securities Depository Limited has been
appointed as the Central Record Keeping Agency for the NPS. During FY 2022-23, the Bank has contributed
`1,296.27 Crore (Previous Year `1,177.54 Crore).

iii) Long-Term Employee Benefits (Unfunded Obligation):

A) Accumulating Compensated Absences (Privilege Leave)
The following table sets out the status of Accumulating Compensated Absences (Privilege Leave) as per
the actuarial valuation by the independent Actuary appointed by the Bank: -
(` in Crore)
Accumulating Compensated Absences
Particulars (Privilege Leave)
Current Year Previous Year
Change in the present value of the defined benefit
obligation
Opening defined benefit obligation at 1st April 2022 10,372.37 8,182.24
Current Service Cost 328.35 456.87
Interest Cost 754.07 558.03
Actuarial losses/(gains) 743.71 2,567.32
Benefits paid (1,130.17) (1,392.09)
Closing defined benefit obligation at 31st March 2023 11,068.33 10,372.37
Net Cost recognized in the profit and loss account
Current Service Cost 328.35 456.87
Interest Cost 754.07 558.03
Actuarial (Gain)/Losses 743.71 2,567.32
Total costs of defined benefit plans included in Schedule 16 1,826.13 3,582.22
“Payments to and provisions for employees”

200 Annual Report 2022 – 23

 Standalone Financials

(` in Crore)

Company Overview
Accumulating Compensated Absences
Particulars (Privilege Leave)
Current Year Previous Year
Reconciliation of opening and closing net liability/(asset)
recognized in the Balance Sheet
Opening Net Liability as at 1st April 2022 10,372.37 8,182.24
Expense as above 1,826.13 3,582.22

Responsible Approach
Employer’s Contribution - -
Benefit paid directly by the Employer (1,130.17) (1,392.09)
Net Liability/(Asset) Recognised in the Balance Sheet 11,068.33 10,372.37

Principal actuarial assumptions

Particulars Current Year Previous Year
Discount Rate 7.48% 7.27%
Salary Escalation Rate 6.00% 5.80%

Governance
Attrition Rate 2.00% 2.00%
Mortality Table IALM 2012-14 (Urban) IALM 2012-14 (Urban)

B) Other Long-Term Employee Benefits


Amount of ` 20.57 Crore (Previous Year ` 115.51 Crore) is provided as per the actuarial valuation by the
independent Actuary appointed by the Bank towards Other Long-Term Employee Benefits viz. Leave Travel
and Home Travel Concession (Encashment/Availment), Silver Jubilee Award, Resettlement Expenses on

Statutory Reports
Superannuation and Retirement Award and is included under the head “Payments to and Provisions for
Employees” in Profit and Loss Account.

Principal actuarial assumptions

Particulars Current Year Previous Year
Discount Rate 7.48% 7.27%

Financial Statements
Salary Escalation Rate 6.00% 5.80%
Attrition Rate 2.00% 2.00%
Mortality Table IALM 2012-14 (Urban) IALM 2012-14 (Urban)

c) Accounting Standard – 17 “Segment Reporting”

1. Segment Identification
I. Primary (Business Segment)
The following are the primary segments of the Bank:-
- Treasury
- Corporate/Wholesale Banking
- Retail Banking
- Other Banking Business.

The present accounting and information system of the Bank does not support capturing and extraction of
the data in respect of the above segments separately. However, based on the present internal, organisational
and management reporting structure and the nature of their risk and returns, the data on the primary
segments have been computed as under:

201
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

i) Treasury
The Treasury Segment includes the entire investment portfolio and trading in foreign exchange
contracts and derivative contracts. The revenue of the treasury segment primarily consists of fees
and gains or losses from trading operations and interest income on the investment portfolio.

ii) Corporate/Wholesale Banking

The Corporate/Wholesale Banking segment comprises the lending activities of Corporate Accounts
Group, Commercial Clients Group and Stressed Assets Resolution Group. These include providing
loans and transaction services to corporate and institutional clients and further include non-treasury
operations of foreign offices.

iii)
Retail Banking
The Retail Banking Segment comprises of retail branches, which primarily includes Personal Banking
activities including lending activities to corporate customers having banking relations with these
branches. This segment also includes agency business and ATMs.

iv)
Other Banking business
Segments not classified under (i) to (iii) above are classified under this primary segment.

II. Secondary (Geographical Segment)

i) Domestic Operations - Branches/Offices having operations in India

ii) Foreign Operations - Branches/Offices having operations outside India and offshore Banking units
having operations in India

III. Pricing of Inter-segmental Transfers

The Retail Banking segment is the primary resource mobilising unit. The Corporate/Wholesale Banking
and Treasury segments are recipient of funds from Retail Banking. Market related Funds Transfer Pricing
(MRFTP) is followed under which a separate unit called Funding Centre has been created. The Funding
Centre notionally buys funds that the business units raise in the form of deposits or borrowings and
notionally sell funds to business units engaged in creating assets.

IV. Allocation of Expenses, Assets and Liabilities

Expenses incurred at Corporate Centre establishments directly attributable either to Corporate/Wholesale
and Retail Banking Operations or to Treasury Operations segment, are allocated accordingly. Expenses not
directly attributable are allocated on the basis of the ratio of number of employees in each segment/ratio
of directly attributable expenses.

The Bank has certain common assets and liabilities, which cannot be attributed to any segment, and the
same are treated as unallocated.

202 Annual Report 2022 – 23

Standalone Financials

2. Segment Information

Company Overview
Part A: Primary (Business Segments)
(` in Crore)
Retail Banking
Corporate/ Other
Business
Treasury Wholesale Digital Other retail Banking Total
Segment Total
Banking Banking Banking Operations

Revenue (before 1,01,933.92 98,038.91 3,697.02 1,63,216.12 1,66,913.14 - 3,66,885.97

Responsible Approach
exceptional (1,00,000.05) (74,379.36) (1,38,504.95) (-) (3,12,884.36)
items) #
Unallocated 1,832.69
Revenue # (3,136.84)
Total Revenue # 3,68,718.66
(3,16,021.20)
Result (before 9,470.88 29,049.75 4,731.53 28,507.95 33,239.48 - 71,760.11
exceptional (13,654.90) (26,959.15) (12,541.38) (-) (53,155.43)
items) #

Governance
Add: Exceptional -
Items # (-7,418.39)
Result (after 71,760.10
exceptional (45,737.04)
items) #
Unallocated -4,554.47
Income(+)/ (-2,315.19)
Expenses( -) -
net #

Statutory Reports
Profit before tax # 67,205.64
(43,421.85)
Tax # 16,973.19
(11,745.87)
Extraordinary Nil
Profit # Nil
Net Profit # 50,232.45
(31,675.98)

Financial Statements
Other
Information:
Segment Assets * 16,65,482.35 14,92,904.65 52,647.74 22,57,802.67 23,10,450.41 - 54,68,837.41
(16,13,186.75) (13,02,237.02) (20,21,244.45) (-) (49,36,668.22)
Unallocated 48,141.12
Assets * (50,929.19)
Total Assets * 55,16,978.53
(49,87,597.41)
Segment 15,24,002.00 14,57,595.81 4,90,464.77 15,62,424.59 20,52,889.36 - 50,34,487.17
Liabilities * (14,68,058.66) (12,74,940.11) (18,48,288.43) (-) (45,91,287.20)
Unallocated 1,54,882.91
Liabilities * (1,16,222.15)
Total Liabilities * 51,89,370.08
(47,07,509.35)
(Figures in brackets are for previous year).

203
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

Part B: Secondary (Geographic Segments)

(` in Crore)
Geographic Domestic Foreign Total
Segments Current Year Previous Year Current Year Previous Year Current Year Previous Year
Revenue (before 3,47,982.70 3,06,741.79 20,735.96 9,279.41 3,68,718.66 3,16,021.20
exceptional items) #
Net Profit # 43,966.38 27,905.87 6,266.07 3,770.11 50,232.45 31,675.98
Assets * 49,09,460.77 44,56,341.96 6,07,517.76 5,31,255.45 55,16,978.53 49,87,597.41
Liabilities* 45,81,852.33 41,76,253.90 6,07,517.76 5,31,255.45 51,89,370.09 47,07,509.35
# For the year ended 31st March 2023.

* As at 31st March 2023.

As per RBI Circular DOR. AUT.REC.12/22.01.001/2022-23 dated 7th April 2022, for the purpose of disclosure
under Accounting Standard 17 Segment Reporting “Digital Banking” has been identified as a sub-segment
under the “Retail Banking Segment”.

d) Accounting Standard – 18 “Related Party Disclosures”

1. Related Parties
A. SUBSIDIARIES
i. FOREIGN BANKING SUBSIDIARIES
1. Commercial Indo Bank LLC, Moscow
2. SBI Canada Bank
3. State Bank of India (California)
4. State Bank of India (UK) Limited
5. SBI (Mauritius) Ltd.
6. PT Bank SBI Indonesia
7. Nepal SBI Bank Ltd.

ii. DOMESTIC NON-BANKING SUBSIDIARIES

1. SBI Life Insurance Company Ltd.
2. SBI General Insurance Company Ltd.
3. SBI Cards & Payment Services Ltd.
4. SBI Funds Management Ltd.
5. SBI Mutual Fund Trustee Co. Pvt. Ltd.
6. SBI Capital Markets Ltd.
7. SBICAP Trustee Co. Ltd.
8. SBICAP Ventures Ltd.
9. SBICAP Securities Ltd.
10.
SBI Global Factors Ltd.
11. SBI - SG Global Securities Services Pvt. Ltd.
12.
SBI DFHI Ltd.

204 Annual Report 2022 – 23

Standalone Financials

13.
SBI Pension Funds Pvt. Ltd.

Company Overview
14.
SBI Payment Services Pvt. Ltd.
15. SBI Infra Management Solutions Pvt. Ltd. (under liquidation)
16.
SBI Foundation
17. State Bank Operations Support Services Pvt. Ltd. (Date of incorporation 26th July 2022)

iii. FOREIGN NON-BANKING SUBSIDIARIES

Responsible Approach
1. SBI Funds Management (International) Pvt. Ltd.
2. State Bank of India Servicos Limitada
3. Nepal SBI Merchant Banking Ltd.
4. SBICAP (Singapore) Ltd. (upto 30th November 2022)

B. JOINTLY CONTROLLED ENTITIES

Governance
1. C-Edge Technologies Ltd.
2. Jio Payments Bank Ltd. (upto 22nd January 2023)
3. SBI Macquarie Infrastructure Management Pvt. Ltd.
4. SBI Macquarie Infrastructure Trustee Pvt. Ltd.
5. Macquarie SBI Infrastructure Management Pte. Ltd.
6. Macquarie SBI Infrastructure Trustee Ltd.

Statutory Reports
7. Oman India Joint Investment Fund - Management Company Pvt. Ltd.
8. Oman India Joint Investment Fund - Trustee Company Pvt. Ltd.

C. ASSOCIATES
i. Regional Rural Banks
1. Andhra Pradesh Grameena Vikas Bank

Financial Statements
2. Arunachal Pradesh Rural Bank
3. Chhattisgarh Rajya Gramin Bank
4. Ellaquai Dehati Bank
5. Madhyanchal Gramin Bank
6. Meghalaya Rural Bank
7. Mizoram Rural Bank
8. Nagaland Rural Bank
9. Saurashtra Gramin Bank
10.
Utkal Grameen Bank
11.
Uttarakhand Gramin Bank
12.
Jharkhand Rajya Gramin Bank
13.
Rajasthan Marudhara Gramin Bank
14.
Telangana Grameena Bank

205
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

ii. Others
1. The Clearing Corporation of India Ltd.
2. Bank of Bhutan Ltd.
3. Yes Bank Ltd.
4. Investec Capital Services (India) Pvt. Ltd.
5. Jio Payments Bank Ltd. (w.e.f. 23rd January 2023)
6. SBI Home Finance Ltd. (under liquidation)

D. Key Management Personnel of the Bank

1. Shri Dinesh Kumar Khara, Chairman

2. Shri Challa Sreenivasulu Setty, Managing Director (International Banking, Global Markets &
Technology)

3. Shri Ashwani Bhatia, Managing Director (Corporate Banking & Global Markets) (up to 31st May 2022)
4. Shri Swaminathan Janakiraman, Managing Director (Corporate Banking & Subsidiaries)

5. Shri Ashwini Kumar Tewari, Managing Director (Risk, Compliance & SARG)

6. Shri Alok Kumar Choudhary, Managing Director (Retail Business & Operations) (w.e.f. 07th June 2022)

2. Parties with whom transactions were entered into during the year
No disclosure is required in respect of related parties, which are “State-controlled Enterprises” as per paragraph
9 of Accounting Standard (AS) 18. Further, in terms of paragraph 5 of AS 18, transactions in the nature of
Banker-Customer relationship have not been disclosed including those with Key Management Personnel and
relatives of Key Management Personnel.

3. Transactions and Balances

(` in Crore)
Key Key
Associates/ Associates/
Management Management
Particulars Joint Total Joint Total
Personnel & Personnel &
Ventures Ventures
their relatives their relatives
Outstanding as at 31st March 2023 31st March 2022
Borrowings - - - - - -
Deposit 4,942.43 - 4,942.43 833.02 - 833.02
Other Liabilities 66.09 - 66.09 10.23 - 10.23
Balance with Banks and 0.17 - 0.17 0.12 - 0.12
Money at call and short
notice
Advance 1,007.14 - 1,007.14 856.50 - 856.50
Investment 7,925.54 - 7,925.54 10,614.81 - 10,614.81
Other Assets 196.03 - 196.03 224.63 - 224.63
Non-fund commitments 22.53 - 22.53 - - -
(LCs/BGs)

206 Annual Report 2022 – 23

 Standalone Financials

(` in Crore)

Company Overview
Key Key
Associates/ Associates/
Management Management
Particulars Joint Total Joint Total
Personnel & Personnel &
Ventures Ventures
their relatives their relatives
Maximum outstanding During FY2022-23 During FY2021-22
Borrowings - - - - - -
Deposit 5,269.99 - 5,269.99 1,351.05 - 1,351.05

Responsible Approach
Other Liabilities 66.12 - 66.12 13.78 - 13.78
Balance with Banks and 2.56 - 2.56 636.41 - 636.41
Money at call and short
notice
Advance 1,152.51 - 1,152.51 2,218.48 - 2,218.48
Investment 10,756.28 - 10,756.28 12,520.51 - 12,520.51
Other Assets 444.64 - 444.64 372.58 - 372.58

Governance
Non-fund commitments 22.53 - 22.53 2,935.10 - 2,935.10
(LCs/BGs)
During the year During FY2022-23 During FY2021-22
Interest Income 111.19 - 111.19 207.19 - 207.19
Interest expenditure 80.69 - 80.69 31.48 - 31.48
Income earned by way of 20.81 - 20.81 21.23 - 21.23
dividend

Statutory Reports
Other Income 3.16 - 3.16 1.50 - 1.50
Other expenditure 13.17 - 13.17 7.14 - 7.14
Profit/(loss) on sale of -0.12 - -0.12 - - -
land/building and other
assets
Management contracts - 2.21 2.21 - 1.63 1.63

There are no materially significant related party transactions during the year.

Financial Statements
e) Accounting Standard – 19 “Leases”
Premises taken on operating lease are given below:
Operating leases primarily comprise office premises and staff residences, which are renewable at the option of
the Bank.

i) Liability for Premises taken on Non-Cancellable operating lease are given below:
(` in Crore)
As at As at
Particulars
31st March 2023 31st March 2022
Not later than 1 year 37.34 88.70
Later than 1 year and not later than 5 years 31.97 55.02
Later than 5 years 5.99 5.32
Total 75.30 149.04

ii) Amount of lease payments recognized in the P&L Account for operating leases is `4,104.59 Crore (Previous Year
`3,892.94 Crore).

207
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

f) Accounting Standard - 20 “Earnings per Share”

The Bank reports basic and diluted earnings per equity share in accordance with Accounting Standard 20 - “Earnings
per Share”. “Basic earnings” per share is computed by dividing net profit after tax by the weighted average number
of equity shares outstanding during the year.

Particulars Current Year Previous Year

Basic and diluted
Number of Equity Shares outstanding at the beginning of the year 892,46,11,534 892,46,11,534
Number of Equity Shares issued during the year 400 Nil
Number of Equity Shares outstanding at the end of the year 892,46,11,934 892,46,11,534
Weighted average number of equity shares used in computing basic earnings per share 892,46,11,707 892,46,11,534
Weighted average number of shares used in computing diluted earnings per share 892,46,11,707 892,46,11,534
Net profit/(loss) (` in Crore) 50,232.45 31,675.98
Basic earnings per share (`) 56.29 35.49
Diluted earnings per share (`) 56.29 35.49
Nominal value per share (`) 1.00 1.00

g) Accounting Standard – 22 “Accounting for Taxes on Income”

a) Current Tax:-
During the year the Bank has debited to Profit & Loss Account `21,223.93 Crore (Previous Year
`11,427.30 Crore) on account of current tax. The Current Tax in India has been calculated in accordance with the
provisions of Income Tax Act, 1961 after taking appropriate relief for taxes paid in foreign jurisdictions.

b) Deferred Tax:-

During the year `4,250.74 Crore has been credited to Profit and Loss Account (Previous Year debit
`318.57 Crore) on account of deferred tax.

The Bank has a net DTA of `10,534.21 Crore (Previous Year net DTA of `6,244.72 Crore), which comprises of
DTL of `0.01 Crore (Previous Year `2.56 Crore) included under ‘Other Liabilities and Provisions’ and Deferred

208 Annual Report 2022 – 23

 Standalone Financials

Tax Assets (DTA) of `10,534.22 Crore (Previous Year `6,247.28 Crore) included under ‘Other Assets’. The major

Company Overview
components of DTA and DTL is given below:
(` in Crore)
As at As at
Particulars
31st March 2023 31st March 2022
Deferred Tax Assets (DTA)
Provision for long-term employee Benefits 9,105.22 6,568.86
Provision for advances 6,244.09 4,863.64

Responsible Approach
Provision for Other Assets/Other Liability 3,736.75 3,650.06
On Foreign Currency Translation Reserve 1,686.01 982.69
Depreciation on Fixed Assets 352.03 269.66
On account of Foreign Offices 476.14 409.56
Total 21,600.24 16,744.47
Deferred Tax Liabilities (DTL)
Interest accrued but not due on Securities 6,598.88 6,546.58
Special Reserve created u/s 36(1)(viii) of Income Tax Act, 1961 4,467.14 3,950.61

Governance
On account of Foreign Offices 0.01 2.56
Total 11,066.03 10,499.75
Net Deferred Tax Assets/(Liabilities) 10,534.21 6,244.72

The Bank had exercised the option of lower tax rate permitted under Section 115BAA of the Income-tax Act,
1961 as introduced by the Taxation Laws (Amendment) Act, 2019 from the financial year 2019-20 onwards.

Statutory Reports
h) Accounting Standard – 27 “Financial Reporting of interests in Joint Ventures”

Investments include `28.06 Crore (Previous Year `107.14 Crore) representing Bank’s interest in the following jointly
controlled entities.
Sr. Amount Country of
Name of the Company Holding %
No (` in Crore) Residence
1. C - Edge Technologies Ltd. 4.90 India 49%
(4.90) (49%)

Financial Statements
2. SBI Macquarie Infrastructure Management Pvt. Ltd. 18.57 India 45%
(18.57) (45%)
3. SBI Macquarie Infrastructure Trustee Pvt. Ltd. 0.03 India 45%
(0.03) (45%)
4. Maquarie SBI Infrastructure Management Pte. Ltd. 2.25 Singapore 45%
(2.25) (45%)
5. Macquarie SBI Infrastructure Trustee Ltd. # - Bermuda 45%
(-) (45%)
6. Oman India Joint Investment Fund – Management Company 2.30 India 50%
Pvt. Ltd. (2.30) (50%)
7. Oman India Joint Investment Fund – Trustee Company Pvt. Ltd. 0.01 India 50%
(0.01) (50%)
8. Jio Payments Bank $$ - India -
(79.08) (30%)
Total 28.06
(107.14)
# Indirect holding through Maquarie SBI Infra Management Pte. Ltd., against which the Company has made 100% provision on investments.
$$
 uring the year ended 31st March 2023, Bank’s stake in Jio Payments Bank Ltd., a joint venture, has reduced from 30.00% to 23.02% as
D
Bank did not participate in the right issue of equity shares offered by the company. The entity is accounted as Associate of the Bank.

(Figures in brackets relate to previous year)

209
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

As required by AS 27, the aggregate amount of the assets, liabilities, income, expenses, contingent liabilities and
commitments related to the Bank’s interests in jointly controlled entities are disclosed as under:
(` in Crore)
As at As at
Particulars
31st March 2023 31st March 2022
Liabilities
Capital & Reserves 220.31 236.69
Deposits - 5.69
Borrowings - 7.48
Other Liabilities & Provisions 41.58 48.20
Total 261.89 298.06
Assets
Cash and Balances with RBI - 1.82
Balances with Banks and money at call and short notice 147.43 143.16
Investments 22.71 71.77
Advances - -
Fixed Assets 20.40 14.97
Other Assets 71.35 66.34
Total 261.89 298.06

Capital Commitments - -
Other Contingent Liabilities 1.49 1.91

Income
Interest earned 8.27 7.41
Other income 188.40 171.75
Total 196.67 179.16
Expenditure
Interest expended 0.18 0.11
Operating expenses 152.52 148.60
Provisions & contingencies 15.18 12.62
Total 167.88 161.33
Profit 28.79 17.83

i) Accounting Standards – 28 “Impairment of Assets”

In the opinion of the Bank’s Management, there is no indication of impairment to the non-monetary assets during
the year.

210 Annual Report 2022 – 23

 Standalone Financials

j) Accounting Standard – 29 “Provisions, Contingent Liabilities and Contingent Assets”

Company Overview
Description of Contingent liabilities:
Sr.
Particulars Brief Description
No.
1. Claims against the Bank The Bank is a party to various proceedings in the normal course of business. The Bank
not  acknowledged as does not expect the outcome of these proceedings to have a material adverse effect on
debts the Bank’s financial conditions, results of operations or cash flows. The Bank is also a
party to various taxation matters in respect of which appeals are pending.

Responsible Approach
2. Liability on partly paid-up This item represents amounts remaining unpaid towards liability for partly paid
investments/Venture Funds investments. This also includes undrawn commitments for Venture Capital Funds.
3. Liability on account of The Bank enters into foreign exchange contracts in its normal course of business to
outstanding forward exchange currencies at a pre-fixed price at a future date. Forward exchange contracts are
exchange contracts commitments to buy or sell foreign currency at a future date at the contracted rate. The
notional amounts are recorded as Contingent Liabilities. With respect to the transactions
entered into with its customers, the Bank generally enters into off-setting transactions

Governance
in the interbank market. This results in generation of a higher number of outstanding
transactions, and hence a large value of gross notional principal of the portfolio, while the
net market risk is lower.
4. Guarantees given on As a part of its commercial Banking activities, the Bank issues documentary credits and
behalf of constituents, guarantees on behalf of its customers. Documentary credits enhance the credit standing
acceptances, endorsements of the customers of the Bank. Guarantees generally represent irrevocable assurances that
and other obligations the Bank will make payment in the event of the customer failing to fulfil its financial or
performance obligations.

Statutory Reports
5. Other items for which the The Bank enters into currency options, forward rate agreements, currency swaps and
Bank is contingently liable interest rate swaps with inter-Bank participants on its own account and for customers.
Currency swaps are commitments to exchange cash flows by way of interest/principal
in one currency against another, based on predetermined rates. Interest rate swaps
are commitments to exchange fixed and floating interest rate cash flows. The notional
amounts that are recorded as Contingent Liabilities, are typically amounts used as a
benchmark for the calculation of the interest component of the contracts. Further, these
also include estimated amount of contracts remaining to be executed on capital account

Financial Statements
and not provided for, letter of comforts issued by the Bank on behalf of Associates &
Subsidiaries, Bank’s Liability under Depositors Education and Awareness Fund A/c and
other sundry contingent liabilities.

The Contingent Liabilities mentioned above are dependent upon the outcome of Court/arbitration/out of Court
settlements, disposal of appeals, the amount being called up, terms of contractual obligations, devolvement and
raising of demand by concerned parties, as the case may be.

Movement of provisions against Contingent Liabilities

The movement of provisions against contingent liabilities given in the table below:
(` in Crore)
Particulars Current Year Previous Year
Opening balance 3,664.18 3,429.98
Additions during the year 143.54 438.42
Amount utilised during the year 86.59 7.40
Unused amount reversed during the year 611.18 196.82
Closing balance 3,109.95 3,664.18

211
 Standalone Financials

SCHEDULES
forming part of the Balance Sheet and Profit and Loss Account for the year ended 31st March 2023

18.15 Additional Disclosures

a) Payment to Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises
Development Act, 2006
There has been no reported cases of delayed payments of the principal amount or interest due thereon to Micro,
Small & Medium Enterprises.

b) Letter of Comfort
The Bank has given Letter of Comfort to the Governor, Bank of Indonesia for its subsidiary Bank SBI Indonesia,
a foreign Subsidiary. Letter of Comfort has been given to the Minister of Finance, Ottawa, Ontario, Canada
for SBI Canada Bank, a foreign Subsidiary. The consolidated amount for this letter of comfort is `2054.25 Crore
(USD 250 Mio) as at 31st March 2023. (Previous Year `1,894.81 Crore).

c) Inter Office Accounts

Inter Office Accounts between branches, controlling offices, local head offices and corporate centre establishments are
being reconciled on an ongoing basis and there is no material effect on the profit and loss account of the current year.

d) Counter Cyclical Provisioning Buffer (CCPB)

RBI vide Circular No. DOR.STR.REC.10/21.04.048/2021-22 dated 5th May 2021 on ‘Utilisation of Floating Provisions/
Counter Cyclical Provisioning Buffer’ has allowed the banks, to utilise up to 100 percent of CCPB held by them as on
31st December 2020, for making specific provisions for Non-Performing Assets (NPAs) as per the policy approved by
the Bank’s Board of Directors.

During the year, the Bank has not utilised the CCPB for making specific provision for NPAs.

e) Provision on accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC)
As per RBI letters no. DBR.No.BP.15199/21.04.048/2016-17 and DBR. No. BP. 1906/21.04.048/ 2017-18 dated
23rd June 2017 and 28th August 2017 respectively, for the accounts covered under the provisions of Insolvency and
Bankruptcy Code (IBC), the bank is holding total provision of `3,935.48 Crore (100% of total outstanding) as on
31st March 2023 (Previous Year `4,739.87 Crore {100% of total outstanding}).

f) Provision for Wage Revision

The Bank has made a provision of `2,490.00 Crore (total cumulative till 31st March 2023 `2,490.00 Crore) for the year
ended 31st March 2023 towards arrears of wages due for revision w.e.f. 1st November 2022)

212 Annual Report 2022 – 23

 Standalone Financials

g) Revaluation of Properties

Company Overview
During the year the Bank has revalued freehold immovable properties (earlier revalued in financial year 2019-2020)
based on valuation reports obtained from external independent valuers and the closing balance of Revaluation
Reserve as on 31st March 2023 (net of amount transferred to General Reserve) is `27,756.26 Crore (Previous Year
`23,377.87 Crore).

h) The COVID-19 pandemic across the globe resulted in decline in economic activities and movement in financial
markets. In this situation, Bank geared up to meet the challenges and has been evaluating the situation on an ongoing

Responsible Approach
basis and had proactively provided against the challenges of likely stress on the Bank’s assets. Bank’s management
is not expecting any significant impact on Bank’s liquidity or profitability.

i) The Central Board has declared a dividend of `11.30 per share @ 1130% for the year ended 31st March 2023.

j) Previous year figures have been regrouped/reclassified, wherever necessary, to confirm to current year classification.
In cases where disclosures have been made for the first time in terms of RBI guidelines/Accounting Standards,
previous year’s figures have not been mentioned.

Governance
Statutory Reports
Financial Statements

213
 Standalone Financials

State Bank of India

Cash Flow Statement for the year ended 31st March 2023

(000s omitted)
Year ended Year ended
31.03.2023 31.03.2022
Particulars
(FY22-23) (FY21-22)
` `
CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit/(Loss) before Taxes 67205,63,25 43421,85,36
Adjustments for:
Depreciation on Fixed Assets 3297,27,04 3248,58,58
(Profit)/Loss on sale of Fixed Assets (Net) 29,78,85 16,86,60
(Profit)/Loss on revaluation of Investments (Net) 4644,43,56 263,27,88
Loss on sale of Investments in Subsidiaries/ Joint Ventures/ Associates - 12,92,61
Provision for diminution in fair value & Non Performing Assets 9143,92,59 14086,84,54
Provision on Standard Assets 5618,54,85 4677,03,92
Provision on non-performing Investments 1513,84,35 3440,09,87
Other provisions including provision for contingencies 231,01,57 2248,14,81
Income from investment in Subsidiaries/ Joint Ventures/ Associates (855,10,80) (718,37,49)
Interest charged on Capital Instruments 6387,15,64 5451,98,00
97216,50,90 76149,24,68
Adjustments for:
Increase/(Decrease) in Deposits 372243,65,37 370257,04,31
Increase/(Decrease) in Borrowings other than Capital Instruments 49958,77,64 5064,98,09
(Increase)/Decrease in Investments other than investments in Subsidiaries/ Joint Ventures/ (94349,41,25) (132646,14,69)
Associates
(Increase)/Decrease in Advances (474446,62,98) (298555,64,72)
Increase/(Decrease) in Other Liabilities 31320,55,51 40375,27,17
(Increase)/Decrease in Other Assets (57942,51,27) 5583,06,80
(75999,06,08) 66227,81,64
Tax refund/(Taxes paid ) (15352,75,44) (7812,36,34)
NET CASH GENERATED FROM/(USED IN) OPERATING ACTIVITIES A (91351,81,52) 58415,45,30
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Investments in Subsidiaries/ Joint Ventures/ Associates (729,62,26) (878,47,10)
Sale of Investments in Subsidiaries/ Joint Ventures/ Associates - 80,97,57
(Loss) on sale of Investments in Subsidiaries/ Joint Ventures/ Associates - (12,92,61)
Income from investment in Subsidiaries/ Joint Ventures/ Associates 855,10,80 718,37,49
(Increase) in Fixed Assets (4066,08,04) (2715,31,18)
Decrease in Fixed Assets 643,55,83 194,64,06
NET CASH GENERATED FROM/(USED IN) INVESTING ACTIVITIES B (3297,03,67) (2612,71,77)

214 Annual Report 2022 – 23

Standalone Financials

(000s omitted)

Company Overview
Year ended Year ended
31.03.2023 31.03.2022
Particulars
(FY22-23) (FY21-22)
` `
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from issue of equity shares including share premium 64 -
Issue of Capital Instruments 19133,00,00 13974,00,00

Responsible Approach
Redemption of Capital Instruments (2000,00,00) (10293,30,00)
Interest paid on Capital Instruments (5594,52,73) (5288,37,02)
Dividend paid (6336,72,16) (3569,84,46)
NET CASH GENERATED FROM/(USED IN) FINANCING ACTIVITIES C 5201,75,75 (5177,51,48)
EFFECT OF EXCHANGE FLUCTUATION ON TRANSLATION RESERVE D 2794,39,13 888,39,12
NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS (A+B+C+D) (86652,70,31) 51513,61,17

Governance
CASH AND CASH EQUIVALENTS AS AT 1ST APRIL 394552,32,11 343038,70,94
CASH AND CASH EQUIVALENTS AS AT 31ST MARCH 307899,61,80 394552,32,11
Notes:
 The banking licence of ‘Bank SBI Botswana’ is surrendered on 30.06.2021. Operations
of the same were closed post deregistration & the capital of `80.98 Crore is repatriated at
loss of `12.93 Crore.

Statutory Reports
1. Components of Cash & Cash Equivalents as at: 31.03.2023 31.03.2022
Cash & Balance with RBI 247087,57,52 318265,20,71
Balances with Banks and money at call & short notice 60812,04,28 76287,11,40
307899,61,80 394552,32,11
2. Cash flow from operating activities is reported by using indirect method.

Financial Statements
Shri Alok Kumar Choudhary Shri Ashwini Kumar Tewari Shri Swaminathan J. Shri Challa Sreenivasulu Setty
Managing Director Managing Director Managing Director Managing Director
(Retail Business & Operations) (Risk, Compliance & SARG) (Corporate Banking & (International Banking, Global
Subsidiaries) Markets & Technology)

Directors:
Shri B. Venugopal
Dr. Ganesh G Natarajan
Shri Ketan S. Vikamsey
Shri Mrugank M. Paranjape
Shri Prafulla P. Chhajed
Ms. Swati Gupta Shri Dinesh Kumar Khara
Shri Anil Kumar Sharma Chairman

Place: Mumbai
Date: 18th May 2023

215
 Standalone Financials

In terms of our report of even date

For K C Mehta & Co LLP For ASA & Associates LLP For Prem Gupta & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 106237W/W100829 Firm Regn. No. 009571N/N500006 Firm Regn. No. 000425N

CA Chirag Bakshi CA Prateet Mittal CA Shakun Gupta

Partner: M. No. 047164 Partner: M. No. 402631 Partner: M. No. 506838

For Guha Nandi & Co. For M C Bhandari & Co. For V Singhi & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 302039E Firm Regn. No. 303002E Firm Regn. No. 311017E

Dr. B. S. Kundu CA Nikhil Jain CA Aniruddha Sengupta

Partner: M. No. 051221 Partner: M. No. 301150 Partner: M. No. 051371

For Suri & Co. For Talati & Talati LLP For Ravi Rajan & Co. LLP
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 004283S Firm Regn. No. 110758W/W100377 Firm Regn. No. 009073N/N500320

CA V Natarajan CA Anand Sharma CA Sumit Kumar

Partner: M. No. 223118 Partner: M. No. 129033 Partner: M. No. 512555

For Gokhale & Sathe For M K Aggarwal & Co. For JLN US & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 103264W Firm Regn. No. 001411N Firm Regn. No. 101543W

CA Jayant Gokhale CA Atul Aggarwal CA Shalabh Kumar Daga

Partner: M. No. 033767 Partner: M. No. 099374 Partner: M. No. 401428

Place: Mumbai
Date: 18th May 2023

216 Annual Report 2022 – 23

Standalone Financials

Independent Auditors’ Report

To a) the Balance Sheet, read with the notes thereon

Company Overview
is a full and fair Balance Sheet containing all the
The President of India
necessary particulars, is properly drawn up so as
REPORT ON AUDIT OF THE STANDALONE FINANCIAL to exhibit a true and fair view of the state of affairs
STATEMENTS OF STATE BANK OF INDIA of the Bank as at 31st March 2023;

b) the Profit and Loss Account, read with the notes

Opinion
thereon shows a true balance of profit for the year
1. 
We have audited the accompanying Standalone

Responsible Approach
ended on that date; and
Financial Statements of State Bank of India (“the Bank”)
which comprise the Balance Sheet as at 31st  March c) the Cash Flow Statement gives a true and fair view
2023, the Profit and Loss Account and the Statement of the cash flows for the year ended on that date.
of Cash Flow for the year then ended, and Notes to
Standalone Financial Statements including a summary Basis for Opinion
of Significant Accounting Policies and other explanatory 2. 
We conducted our audit in accordance with the
information in which are included returns for the year Standards of Auditing (“SAs”) issued by the Institute

Governance
ended on that date of: of Chartered Accountants of India (“the ICAI”). Our
responsibilities under those Standards are further
i. The Central offices, 17 Local Head offices, Global
described in the Auditors’ Responsibilities for the Audit
Market Unit, International Business Group,
of the Standalone Financial Statements section of our
Corporate Accounts Group (Central), Commercial
report. We are independent of the Bank in accordance
Client Group (Central), Stressed Asset Resolution
with the Code of Ethics issued by the ICAI together
Group (Central), Central Accounts Offices and 20
with ethical requirements that are relevant to our audit

Statutory Reports
branches audited by us and;
of the Standalone Financial Statements, prepared in
ii. 
5,719 Indian branches audited by respective accordance with the accounting principles generally
Statutory Branch Auditors; accepted in India, including the Accounting Standards
issued by the ICAI, and provisions of Section 29 of
iii. 
34 Foreign branches audited by respective
the Banking Regulation Act, 1949 and circulars and
Local Auditors;
guidelines issued by the Reserve Bank of India (“RBI”)
The branches audited by us and those audited by other from time to time and we have fulfilled our other ethical

Financial Statements
auditors have been selected by the Bank in accordance responsibilities in accordance with these requirements
with the guidelines issued to the Bank by the Reserve and the Code of Ethics. We believe that the audit
Bank of India (RBI). Also incorporated in the Balance evidence we have obtained is sufficient and appropriate
Sheet, the Profit and Loss Account and the Statement of to provide a basis for our opinion.
Cash Flows are the returns from 19,285 Indian branches
(including other accounting units) which have not been Key Audit Matters
subjected to audit. These unaudited branches account 3. 
Key Audit Matters are those matters that in our
for 25.18% of advances, 39.97% of deposits, 21.04% of professional judgement were of most significance in
interest income and 37.73% of interest expenses. our audit of the Standalone Financial Statements for
In our opinion and to the best of our information and the year ended 31st March 2023. These matters were
according to the explanations given to us, the aforesaid addressed in the context of our audit of the Standalone
Standalone Financial Statements give the information Financial Statements as a whole and in forming our
required by the Banking Regulation Act, 1949 and State opinion thereon and we do not provide a separate
Bank of India Act, 1955 in the manner so required for the opinion on these matters. We have determined the
Bank and are in conformity with accounting principles matters described below to be the Key Audit Matters to
generally accepted in India and: be communicated in our report:

217
 Standalone Financials

Independent Auditors’ Report

Sr.
Key Audit Matters How the matter was addressed in our audit
No.
i. Classification of Advances, Income Recognition, Identification of Our audit approach towards advances with reference to the
and provisioning for non-performing Advances (Refer Schedule IRAC norms and other related circulars/directives issued by
9 read with Note 3 of Schedule 17 to the financial statements): the RBI and also internal policies and procedures of the Bank
includes the testing of controls on sample basis
Advances include Bills purchased and discounted, Cash credits,
Overdrafts, Loans repayable on demand and Term loans. These a. The accuracy of the data input in the system for income
are further categorised as secured by Tangible assets (including recognition, classification into performing and non-
advances against Book Debts), covered by Bank/Government performing Advances and provisioning in accordance
Guarantees and Unsecured advances. with the IRAC norms in respect of the branches audited
by us;
Advances constitute 58.45% of the Bank’s total assets. They are,
inter alia, governed by income recognition, asset classification b. Existence and effectiveness of monitoring mechanisms
and provisioning (IRAC) norms and other circulars and directives such as Internal Audit, Systems Audit, Credit Audit and
issued by the RBI from time to time which provides guidelines Concurrent Audit as per the policies and procedures of
related to classification of Advances into performing and non- the Bank;
performing Advances (NPA) except in case of foreign offices,
classification of advances and provisioning thereof is made as per c. Examination of advances including stressed advances on
local regulations or RBI guidelines, whichever is more stringent. a sample basis with respect to compliance with the RBI
The Bank classifies these Advances based on IRAC norms as per Master Circulars/ Guidelines/ Judicial pronouncements;
its accounting policy No. 3. d. We have relied on the reports of IT System Audit by IAD
Identification of performing and non-performing Advances with respect to the business logics/parameters inbuilt in
involves establishment of proper mechanism. The Bank accounts CBS and CCDP for tracking, identification and stamping
for all the transactions related to Advances in its Information of NPAs and provisioning in respect thereof.
Technology System (IT System) viz. Core Banking Solution (CBS) e. 
We tested the mapping of advances in the CCDP
which identifies whether the advances are performing or non- application software and the financial statement
performing. preparation software to ensure compliance with the
The bank is in the continuous process to upgrade existing presentation and disclosure requirements as per the
& implement new IT applications in various areas of its aforesaid RBI Circulars / directions
business operations, including income recognition and asset f. We have examined the efficacy of various internal controls
classification in terms of RBI Circular Ref. No. Dos. CO. PPG./ over advances to determine the nature, timing and extent
SEC.03/11.01.005/2020-21 dated 14th September 2020. These of the substantive procedures and compliance with the
applications require detailed testing, verifications and UAT observations of the various audits conducted as per the
before final implementation. The financial impact pending such monitoring mechanism of the Bank and RBI Inspection.
implementation is not likely to be material as per the management.
g. In carrying out substantive procedures at the branches
Further, NPA classification and calculation of provision (except in audited by us, we have examined large advances/
case of foreign offices) is done through another IT System viz. stressed advances while other advances have been
Centralised Credit Data Processing (CCDP) Application Software examined on a sample basis including review of valuation
and other processes. reports of independent valuers provided by the Bank’s
The carrying value of these advances (net of provisions) may management.
be materially misstated if, either individually or in aggregate, the h. We assessed and evaluated the process of identification
IRAC norms are not properly followed. of NPAs and corresponding reversal of income and
Considering the nature of the transactions, regulatory creation of provision;
requirements, existing business environment, estimation/ i.  Reliance is also placed on Audit Reports of other
judgement involved in valuation of securities and calculation Statutory Branch Auditors with whom we have also
of provisions, it is a matter of high importance for the intended made specific communication.
users of the Standalone Financial Statements. Considering these
aspects, we have determined this as a Key Audit Matter. j. 
Bank has laid down detailed Standard Operating
Procedure to ensure control over processes. We have
Accordingly, our audit was focused on income recognition, asset relied on these Standard Operating Procedures and
classification and provisioning pertaining to advances due to the have conducted our testing based on these Standard
materiality of the balances. Operating Procedures.

218 Annual Report 2022 – 23

Standalone Financials

Sr.

Company Overview
Key Audit Matters How the matter was addressed in our audit
No.
ii. Classification and Valuation of Investments, Identification of Our audit approach towards Investments with reference to
and provisioning for Non-Performing Investments (Schedule the RBI Circulars/directives included the understanding of
8 read with Note 2 of Schedule 17 to the financial statements): internal controls and substantive audit procedures in relation
to valuation, classification, identification of non-performing
Investments include investments made by the Bank in investments (NPIs), provisioning/depreciation related to
various Government Securities, Bonds, Debentures, Shares, Investments. In particular;
Security receipts and other approved securities.

Responsible Approach
a. We understood and evaluated the Bank’s internal
Investments constitute 28.69% of the Bank’s total assets. control system to comply with relevant RBI guidelines
These are governed by the circulars and directives of the regarding valuation, classification, identification of NPIs,
RBI. These directions of RBI, inter-alia, cover valuation of provisioning/depreciation related to investments;
investments, classification of investments, identification
of non-performing investments, the corresponding b.  We assessed and evaluated the process adopted
non‑recognition of income and provision there against. for collection of information from various sources for
determining fair value of these investments;
The valuation of each category (type) of the aforesaid

Governance
securities is to be done as per the method prescribed in c.  For the selected sample of investments in hand, we
circulars and directives issued by the RBI which involves tested accuracy and compliance with the RBI Master
collection of data/information from various sources such Circulars and directions by re-performing valuation for
as FIMMDA rates, rates quoted on BSE/NSE, financial each category of security. Samples were selected after
statements of unlisted companies etc. Considering the ensuring that all the categories of investments (based on
complexities and extent of judgement involved in the nature of security) were covered in the sample;
valuation, volume of transactions, investments on hand and
degree of regulatory focus, this has been determined as a d. We assessed and evaluated the process of identification
of NPIs and corresponding reversal of income and

Statutory Reports
Key Audit Matter.
creation of provision;
Accordingly, our audit was focused on valuation of
investments, classification, identification of non‑performing e.  We carried out substantive audit procedures to
investments and provisioning related to investments. recompute independently the provision to be maintained
and depreciation to be provided in accordance with
the circulars and directives of the RBI. Accordingly,
we selected samples from the investments of each
category and tested for NPIs as per the RBI guidelines
and recomputed the provision to be maintained in

Financial Statements
accordance with the RBI Circular for those selected
sample of NPIs;
f. 
We tested the mapping of investments between the
Investment application software and the financial
statement preparation software to ensure compliance
with the presentation and disclosure requirements as per
the aforesaid RBI Circular/directions.

219
 Standalone Financials

Independent Auditors’ Report

Sr.
Key Audit Matters How the matter was addressed in our audit
No.
iii. Assessment of Provisions and Contingent liabilities in Our audit approach involved:
respect of certain litigations including Direct and Indirect
Taxes, various claims filed by other parties not acknowledged a. Obtaining an understanding of internal controls relevant
as debt (Schedule 12 read with Note 18.13 of Schedule 18 to to the audit in order to design our audit procedures that
the financial statements): are appropriate in the circumstances;

There is high level of judgement required in estimating the b.  Understanding the current status of the litigations/
level of provisioning. The Bank’s assessment is supported by tax assessments including the status upto the date of
the facts of matter, their own judgement, past experience, and auditor’s report;
advice from legal and independent tax consultants wherever c. Examining recent orders and/or communication received
considered necessary. Accordingly, unexpected adverse from various tax authorities/judicial forums and follow up
outcomes may significantly impact the Bank’s reported profit action thereon;
and state of affairs presented in the Balance Sheet.
d. 
Evaluating the merit of the subject matter under
We determined the above area as a Key Audit Matter in consideration with reference to the grounds presented
view of associated uncertainty relating to the outcome of therein and available independent legal/tax advice
these matters which requires application of judgement in including opinion of our internal tax experts;
interpretation of law. Accordingly, our audit was focused on
analysing the facts of subject matter under consideration e. Review and analysis of evaluation of the contentions of
and judgements/interpretation of law involved. the Bank through discussions, collection of details of the
subject matter under consideration, the likely outcome
and consequent potential outflows on those issues; and
f. Verification of disclosures related to significant litigations
and taxation matters.

Information Other than the Standalone Financial If, based on the work we have performed on the Other
Statements and Auditors’ Report thereon Information that we obtained prior to the date of this
4. 
The Bank’s Board of Directors is responsible for Auditors’ Report, we conclude that there is a material
preparation of the Other Information. The Other misstatement of this Other Information, we are required
Information comprises the Corporate Governance to report that fact. We have nothing to report in
Report which we obtained at the time of issue of this this regard.
report. The Other Information also includes Directors’ Responsibilities of Management and Those
Report including annexures in Annual Report, but does Charged with Governance for the Standalone
not include the Standalone Financial Statements and our Financial Statements
Auditors’ Report thereon, which is expected to be made
available to us after the date of this Auditors’ Report. 5. 
The Bank’s Board of Directors is responsible with
respect to the preparation of these Standalone Financial
Our opinion on the Standalone Financial Statements Statements that give a true and fair view of the financial
does not cover the Other Information and Pillar 3 position, financial performance and cash flows of the
disclosures under the Basel III and we do not and will Bank in accordance with the accounting principles
not express any form of assurance conclusion thereon. generally accepted in India including the Accounting
In connection with our audit of the Standalone Financial Standards issued by ICAI to the extent applicable, and
Statements, our responsibility is to read the Other provisions of Section 29 of the Banking Regulation Act,
Information identified above and, in doing so, consider 1949, the State Bank of India Act, 1955 and circulars
whether the Other Information is materially inconsistent and guidelines issued by RBI from time to time. This
with the Standalone Financial Statements or our responsibility also includes maintenance of adequate
knowledge obtained in the audit, or otherwise appears accounting records in accordance with the provisions
to be materially misstated. of the above‑mentioned Acts for safeguarding of the

220 Annual Report 2022 – 23

Standalone Financials

assets of the Bank and for preventing and detecting detecting a material misstatement resulting from

Company Overview
frauds and other irregularities; selection and application fraud is higher than for one resulting from error,
of appropriate accounting policies; making judgements as fraud may involve collusion, forgery, intentional
and estimates that are reasonable and prudent; and omissions, misrepresentations or the override of
design, implementation and maintenance of adequate internal control.
internal financial controls, that were operating effectively y Obtain an understanding of internal controls relevant
for ensuring the accuracy and completeness of the to the audit in order to design audit procedures that
accounting records, relevant to the preparation and are appropriate in the circumstances.

Responsible Approach
presentation of the Standalone Financial Statements
y Evaluate the appropriateness of accounting policies
that give a true and fair view and are free from material
used and the reasonableness of accounting estimates
misstatement, whether due to fraud or error.
and related disclosures made by management.
In preparing the Standalone Financial Statements, y Conclude on the appropriateness of management’s
management is responsible for assessing the Bank’s use of the going concern basis of accounting and,
ability to continue as a going concern, disclosing, based on the audit evidence obtained, whether
as applicable, matters related to going concern and

Governance
a material uncertainty exists related to events or
using the going concern basis of accounting unless conditions that may cast significant doubt on the
management either intends to liquidate the Bank or to Bank’s ability to continue as a going concern. If we
cease operations, or has no realistic alternative but to conclude that a material uncertainty exists, we are
do so. required to draw attention in our auditors’ report to
Those Board of Directors are also responsible for the related disclosures in the Standalone Financial
overseeing the Bank’s financial reporting process. Statements or, if such disclosures are inadequate,

Statutory Reports
to modify our opinion. Our conclusions are based
Auditors’ Responsibilities for the Audit of the on the audit evidence obtained up to the date of our
Standalone Financial Statements auditors’ report. However, future events or conditions
may cause the Bank to cease to continue as a
6. 
Our objectives are to obtain reasonable assurance
going concern.
about whether the Standalone Financial Statements as
a whole are free from material misstatement whether y Evaluate the overall presentation, structure and
due to fraud or error and to issue an Auditors’ Report content of the Standalone Financial Statements,

Financial Statements
that includes our opinion. Reasonable assurance including the disclosures and whether the Standalone
is a high level of assurance, but is not a guarantee Financial Statements represent the underlying
that an audit conducted in accordance with SAs will transactions and events in a manner that achieves
always detect a material misstatement when it exists. fair presentation.
Misstatements can arise from fraud or error and are Materiality is the magnitude of misstatements in the
considered material, if individually or in aggregate, Standalone Financial Statements that, individually
they could reasonably be expected to influence the or in aggregate, makes it probable that the economic
economic decisions of users taken on the basis of these decisions of a reasonably knowledgeable user of the
Standalone Financial Statements. Standalone Financial Statements may be influenced.
As part of an audit in accordance with SAs, we exercise We consider quantitative materiality and qualitative
professional judgement and maintain professional factors in (i) planning the scope of our audit work and in
scepticism throughout the audit. We also: evaluating the results of our work; and (ii) to evaluate the
effect of any identified misstatements in the Standalone
y I dentify and assess the risks of material misstatement Financial Statements.
of the Standalone Financial Statements, whether We communicate with those charged with governance
due to fraud or error, design and perform audit regarding, among other matters, the planned scope
procedures responsive to those risks and obtain and timing of the audit and significant audit findings,
audit evidence that is sufficient and appropriate including any significant deficiencies in internal controls
to provide a basis for our opinion. The risk of not that we identify during our audit.

221
 Standalone Financials

Independent Auditors’ Report

We also provide those charged with governance with information as required to be given by virtue of the
a statement that we have complied with relevant provisions of the State Bank of India Act, 1955 and
ethical requirements regarding independence and regulations thereunder.
to communicate with them all relationships and
Subject to the limitations of the audit indicated in
other matters that may reasonably be thought to
paragraphs 5 to 7 above and as required by the State
bear on our independence, and where applicable,
Bank of India Act, 1955, and subject also to the limitations
related safeguards.
of disclosure required therein and as required by sub-
From the matters communicated with those charged section (3) of Section 30 of the Banking Regulation Act,
with governance, we determine those matters that 1949, we report that:
were of most significance in the audit of the Standalone
a) 
We have obtained all the information and
Financial Statements of the current period and are
explanations which, to the best of our knowledge
therefore the Key Audit Matters. We describe these
and belief, were necessary for the purposes of our
matters in our auditors’ report unless law or regulation
audit and have found them to be satisfactory;
precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that b) The transactions of the Bank, which have come
a matter should not be communicated in our report to our notice, have been within the powers of the
because the adverse consequences of doing so would Bank; and
reasonably be expected to outweigh the public interest
c) The returns received from the offices and branches
benefits of such communication.
of the Bank have been found adequate for the
purposes of our audit.
Other Matters
7. We did not audit the financial statements/information d) The profit and loss account shows the true balance
of 5,753 branches (including 34 Foreign branches) of profit for the year ended 31.03.2023.
included in the Standalone Financial Statements of the 9. We further report that:
Bank whose financial statements/financial information
reflects total assets of `20,84,279.13 Crore at 31st March a) In our opinion, proper books of account as required
2023 and total revenue of `1,30,247.03 Crore for the year by law have been kept by the Bank so far as it
ended on that date, as considered in the Standalone appears from our examination of those books and
Financial Statements. The financial statements/ proper returns adequate for the purposes of our
information of these branches have been audited by the audit have been received from branches not visited
branch auditors whose reports have been furnished to by us;
us, and our opinion in so far as it relates to the amounts b) the Balance Sheet, the Profit and Loss Account
and disclosures included in respect of these branches, and the Cash Flow Statement dealt with by this
is based solely on the report of such branch auditors. report are in agreement with the books of account
Our opinion is not modified in respect of the above matter. and with the returns received from the branches
not visited by us;
Report on Other Legal and Regulatory c) the reports on the accounts of the branch offices
Requirements audited by branch auditors of the Bank as per
8. The Balance Sheet and the Profit and Loss Account the provisions of the Section 29 of the Banking
have been drawn up in accordance with Section 29 Regulation Act, 1949, and the State Bank of
of the Banking Regulation Act, 1949; and these give India Act, 1955 have been sent to us and have

222 Annual Report 2022 – 23

Standalone Financials

been properly dealt with by us in preparing this b) 

There are no observations or comments on

Company Overview
report; and financial transactions or matters which have any
adverse effect on the functioning of the Bank.
d) in our opinion, the Balance Sheet, the Profit and
Loss Account and the Cash Flow Statement c) As the bank is not registered under the Companies
comply with the applicable accounting standards, Act, 2013 the disqualifications from being a director
to the extent they are not inconsistent with the of the bank under sub-section (2) of Section 164 of
accounting policies prescribed by the RBI. the Companies Act, 2013 do not apply to the bank.

Responsible Approach
10. 
As required by letter No. DOS.ARG. d) There are no qualifications, reservations or adverse
No.6270/08.91.001/2019-20 dated 17th March 2020 on remarks relating to the maintenance of accounts
“Appointment of Statutory Central Auditors (SCAs) in and other matters connected therewith.
Public Sector Banks – Reporting obligations for SCAs”,
e) Our Audit report on the adequacy and operating
we further report on the matters specified in paragraph
effectiveness of the Bank’s Internal Financial
2 of the aforesaid letter as under:
Controls over Financial Reporting is given in
a) In our opinion, the aforesaid Standalone Financial Annexure – A to this report expressing an

Governance
Statements comply with the applicable Accounting unmodified opinion on the Bank’s Internal Financial
Standards issued by ICAI, to the extent they are Control over Financial Reporting with reference
not inconsistent with the accounting policies to the Standalone Financial Statements as at
prescribed by the RBI. 31st March 2023.

Statutory Reports
Financial Statements

223
 Standalone Financials

In terms of our report of even date

For K C Mehta & Co LLP For ASA & Associates LLP For Prem Gupta & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 106237W/W100829 Firm Regn. No. 009571N/N500006 Firm Regn. No. 000425N

CA Chirag Bakshi CA Prateet Mittal CA Shakun Gupta

Partner: M. No. 047164 Partner: M. No. 402631 Partner: M. No. 506838
UDIN: 23047164BGVCQW6970 UDIN: 23402631BGXJUC7968 UDIN: 23506838BGYZLU2131

For Guha Nandi & Co. For M C Bhandari & Co. For V Singhi & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 302039E Firm Regn. No. 303002E Firm Regn. No. 311017E

Dr. B. S. Kundu CA Nikhil Jain CA Aniruddha Sengupta

Partner: M. No. 051221 Partner: M. No. 301150 Partner: M. No. 051371
UDIN: 23051221BGYLEK2410 UDIN: 23301150BGSUKP9407 UDIN: 23051371BGVSBN8478

For Suri & Co. For Talati & Talati LLP For Ravi Rajan & Co. LLP
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 004283S Firm Regn. No. 110758W/W100377 Firm Regn. No. 009073N/N500320

CA V Natarajan CA Anand Sharma CA Sumit Kumar

Partner: M. No. 223118 Partner: M. No. 129033 Partner: M. No. 512555
UDIN: 23223118BGYEOY8174 UDIN: 23129033BGSKDC6522 UDIN: 23512555BGXMLB5054

For Gokhale & Sathe For M K Aggarwal & Co. For JLN US & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 103264W Firm Regn. No. 001411N Firm Regn. No. 101543W

CA Jayant Gokhale CA Atul Aggarwal CA Shalabh Kumar Daga

Partner: M. No. 033767 Partner: M. No. 099374 Partner: M. No. 401428
UDIN: 23033767BGZMFV1971 UDIN: 23099374BGSEQK4543 UDIN: 23401428BGXGAQ7177

Place: Mumbai
Date: 18th May 2023

224 Annual Report 2022 – 23

Standalone Financials

ANNEXURE “A” TO THE INDEPENDENT

AUDITOR’S REPORT

(Referred to in paragraph 10(e) under ‘Report on Other comply with ethical requirements and plan and perform the

Company Overview
Legal and Regulatory Requirements’ section of our report audit to obtain reasonable assurance about whether adequate
of even date) Internal Financial Controls Over Financial Reporting were
established and maintained and if such controls operated
Report on the Internal Financial Controls Over effectively in all material respects.
Financial Reporting as required by the Reserve
Our audit involves performing procedures to obtain audit
Bank of India (the “RBI”) Letter DOS.ARG.
evidence about the adequacy of the Internal Financial
No.6270/08.91.001/2019-20 dated 17th March

Responsible Approach
Controls over financial reporting and their operating
2020 (as amended) (the “RBI communication”)
effectiveness. Our audit of internal financial controls over
We have audited the internal financial controls over financial financial reporting included obtaining an understanding of
reporting of State Bank of India (“the Bank”) as of 31st March internal financial controls over financial reporting, assessing
2023 in conjunction with our audit of the standalone financial the risk that a material weakness exists, and testing and
statements of the Bank for the year ended on that date which evaluating the design and operating effectiveness of internal
includes internal financial controls over financial reporting of financial controls based on the assessed risk. The procedures
the Bank’s branches. selected depend on the auditor’s judgement, including the

Governance
assessment of the risks of material misstatement of the
Management’s Responsibility for Internal financial statements, whether due to fraud or error.
Financial Controls
We believe that the audit evidence we have obtained and
The Bank’s management is responsible for establishing and
the audit evidence obtained by the branch auditors, in terms
maintaining internal financial controls based on the internal
of their reports referred to in the Other Matters paragraph
control over financial reporting criteria established by the
below, is sufficient and appropriate to provide a basis for our
Bank considering the essential components of internal control

Statutory Reports
audit opinion on the Bank’s internal financial controls over
stated in the Guidance Note on Audit of Internal Financial
financial reporting.
Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India. These responsibilities
Meaning of Internal Financial Controls Over
include the design, implementation and maintenance of
Financial Reporting
adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of A Bank’s internal financial controls over financial reporting
its business, including adherence to the Bank’s policies, the is a process designed to provide reasonable assurance

Financial Statements
safeguarding of its assets, the prevention and detection of regarding the reliability of financial reporting and the
frauds and errors, the accuracy and completeness of the preparation of financial statements for external purposes in
accounting records, and the timely preparation of reliable accordance with generally accepted accounting principles.
financial information, as required under the Banking A Bank’s internal financial controls over financial reporting
Regulation Act, 1949, State Bank of India Act, 1955 and the includes those policies and procedures that (1) pertain to the
circulars and guidelines issued by the Reserve Bank of India. maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the
Auditors’ Responsibility assets of the Bank; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation
Our responsibility is to express an opinion on the Bank’s
of financial statements in accordance with generally accepted
internal financial controls over financial reporting based on
accounting principles, and that receipts and expenditures
our audit. We conducted our audit in accordance with the
of the Bank are being made only in accordance with
Guidance Note on Audit of Internal Financial Controls Over
authorizations of management and directors of the Bank;
Financial Reporting (the “Guidance Note”) issued by the
and (3) provide reasonable assurance regarding prevention
Institute of Chartered Accountants of India (the “ICAI”) and
or timely detection of unauthorized acquisition, use, or
the Standards on Auditing (SAs) issued by the ICAI, to the
disposition of the Bank’s assets that could have a material
extent applicable to an audit of internal financial controls.
effect on the financial statements.
Those Standards and the Guidance Note require that we

225
 Standalone Financials

ANNEXURE “A” TO THE INDEPENDENT

AUDITOR’S REPORT

Inherent Limitations of Internal Financial Controls to in the Other Matters paragraph below, the Bank has, in all
Over Financial Reporting material respects, adequate internal financial controls over
financial reporting and such internal financial controls over
Because of the inherent limitations of internal financial
financial reporting were operating effectively as at 31st March
controls over financial reporting, including the possibility
2023, based on “the criteria for internal control over financial
of collusion or improper management override of controls,
reporting established by the Bank considering the essential
material misstatements due to error or fraud may occur and
components of internal control stated in the Guidance
not be detected. Also, projections of any evaluation of the
Note on Audit of Internal Financial Controls Over Financial
internal financial controls over financial reporting to future
Reporting issued by the ICAI”.
periods are subject to the risk that the internal financial
controls over financial reporting may become inadequate
Other Matters
because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate. Our aforesaid report in so far as it relates to the operating
effectiveness of internal financial controls over financial
Opinion reporting of 711 branches is based on the corresponding
reports of the respective branch auditors of those branches.
In our opinion, and to the best of our information and
according to the explanations given to us and based on the Our opinion is not modified in respect of this matter.
consideration of the reports of the branch auditors referred

226 Annual Report 2022 – 23

Standalone Financials

In terms of our report of even date

Company Overview
For K C Mehta & Co LLP For ASA & Associates LLP For Prem Gupta & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 106237W/W100829 Firm Regn. No. 009571N/N500006 Firm Regn. No. 000425N

CA Chirag Bakshi CA Prateet Mittal CA Shakun Gupta

Partner: M. No. 047164 Partner: M. No. 402631 Partner: M. No. 506838

Responsible Approach
UDIN: 23047164BGVCQW6970 UDIN: 23402631BGXJUC7968 UDIN: 23506838BGYZLU2131

For Guha Nandi & Co. For M C Bhandari & Co. For V Singhi & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 302039E Firm Regn. No. 303002E Firm Regn. No. 311017E

Dr. B. S. Kundu CA Nikhil Jain CA Aniruddha Sengupta

Governance
Partner: M. No. 051221 Partner: M. No. 301150 Partner: M. No. 051371
UDIN: 23051221BGYLEK2410 UDIN: 23301150BGSUKP9407 UDIN: 23051371BGVSBN8478

For Suri & Co. For Talati & Talati LLP For Ravi Rajan & Co. LLP
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 004283S Firm Regn. No. 110758W/W100377 Firm Regn. No. 009073N/N500320

Statutory Reports
CA V Natarajan CA Anand Sharma CA Sumit Kumar
Partner: M. No. 223118 Partner: M. No. 129033 Partner: M. No. 512555
UDIN: 23223118BGYEOY8174 UDIN: 23129033BGSKDC6522 UDIN: 23512555BGXMLB5054

For Gokhale & Sathe For M K Aggarwal & Co. For JLN US & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Regn. No. 103264W Firm Regn. No. 001411N Firm Regn. No. 101543W

Financial Statements
CA Jayant Gokhale CA Atul Aggarwal CA Shalabh Kumar Daga
Partner: M. No. 033767 Partner: M. No. 099374 Partner: M. No. 401428
UDIN: 23033767BGZMFV1971 UDIN: 23099374BGSEQK4543 UDIN: 23401428BGXGAQ7177

Place: Mumbai
Date: 18th May 2023

227
 Consolidated Financials

State Bank of India

Consolidated Balance Sheet as at 31st March 2023

(000s omitted)
As at 31.03.2023 As at 31.03.2022
Schedule No. (Current Year) (Previous Year)
K K
CAPITAL AND LIABILITIES
Capital 1 892,46,12 892,46,12
Reserves & Surplus 2 358038,85,69 304695,58,39
Minority Interest 2A 12836,61,94 11207,42,28
Deposits 3 4468535,50,68 4087410,60,06
Borrowings 4 521151,94,98 449159,78,36
Other Liabilities and Provisions 5 592962,92,29 507517,67,73
TOTAL 5954418,31,70 5360883,52,94
ASSETS
Cash and Balances with Reserve Bank of India 6 247321,04,97 318492,43,01
Balances with Banks and Money at Call & Short Notice 7 70990,86,00 80412,69,16
Investments 8 1913107,85,64 1776489,89,88
Advances 9 3267902,12,73 2794076,00,18
Fixed Assets 10 44407,38,10 39510,03,05
Other Assets 11 410689,04,26 351902,47,66
TOTAL 5954418,31,70 5360883,52,94
Contingent Liabilities 12 1835524,38,19 2007232,49,00
Bills for Collection 64571,94,48 77783,05,62
Significant Accounting Policies 17
Notes to Accounts 18

Schedules referred to above form an integral part of the Balance Sheet.

Shri Alok Kumar Choudhary Shri Ashwini Kumar Tewari Shri Swaminathan J. Shri Challa Sreenivasulu Setty
Managing Director Managing Director Managing Director Managing Director
(Retail Business & Operations) (Risk, Compliance & SARG) (Corporate Banking & (International Banking, Global
Subsidiaries) Markets & Technology)

In terms of our Report of even date

For K C Mehta & Co LLP
Chartered Accountants
Firm Regn. No. 106237W/W100829

Shri Dinesh Kumar Khara Shri Chirag Bakshi

Chairman Partner
Membership No. 047164
Place: Mumbai
Date: 18th May 2023

228 Annual Report 2022 – 23

Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet as at 31st March 2023

SCHEDULE 1 - CAPITAL

Company Overview
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
Authorised Capital:
5000,00,00,000 Equity shares of `1/- each 5000,00,00 5000,00,00
(Previous Year 5000,00,00,000 Equity shares of `1/- each)

Responsible Approach
Issued Capital:
892,54,05,164 Equity shares of `1/- each 892,54,05 892,54,05
(Previous Year 892,54,05,164 Equity shares of `1/- each)
Subscribed and Paid up Capital:
892,46,11,934 Equity shares of `1/- each 892,46,12 892,46,12
(Previous Year 892,46,11,534 Equity shares of `1/- each)

Governance
[The above includes 891,60,950 Equity shares of `1/- each
(Previous Year 1036,05,740 Equity shares of `1/- each)
represented by 89,16,095 (Previous Year 103,60,574) Global Depository Receipts]
TOTAL 892,46,12 892,46,12

SCHEDULE 2 - RESERVES & SURPLUS

Statutory Reports
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
I. Statutory Reserves
Opening Balance 86939,14,12 77170,11,43
Additions during the year 15370,39,97 9769,02,69

Financial Statements
Deductions during the year 3,77 102309,50,32 - 86939,14,12

II. Capital Reserves

Opening Balance 15769,81,83 15231,66,59
Additions during the year 232,80,84 538,15,24
Deductions during the year - 16002,62,67 - 15769,81,83

III. Share Premium

Opening Balance 79115,47,05 79115,47,05
Additions during the year 63 -
Deductions during the year - 79115,47,68 - 79115,47,05

IV. Investment Fluctuation Reserve

Opening Balance 7695,94,74 3048,07,72
Additions during the year 4575,43,43 4647,87,02
Deductions during the year - 12271,38,17 - 7695,94,74

229
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet as at 31st March 2023

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
V. Foreign Currency Translation Reserve
Opening Balance 11256,69,03 10290,42,37
Additions during the year 3075,05,46 966,26,66
Deductions during the year - 14331,74,49 - 11256,69,03

VI. Revenue and Other Reserves

Opening Balance 59873,25,90 57936,43,59
Additions during the year #
4352,07,11 2072,94,73
Deductions during the year 242,74,97 63982,58,04 136,12,42 59873,25,90

VII. Revaluation Reserve

Opening Balance 23377,86,71 23577,34,78
Additions during the year 4578,34,93 -
Deductions during the year 199,95,74 27756,25,90 199,48,07 23377,86,71

VIII. Capital Reserve on Consolidation

Opening Balance 273,03,96 203,02,24
Additions during the year 72,94,18 70,01,72
Deductions during the year - 345,98,14 - 273,03,96

IX. Balance in Profit and Loss Account 41923,30,28 20394,35,05

TOTAL 358038,85,69 304695,58,39

# net of consolidation adjustments

Note: Revenue and Other Reserves include (i) `5,00,00 thousand (Previous Year `5,00,00 thousand ) of Integration and Development Fund (maintained
under Section 36 of the State Bank of India Act, 1955) (ii) Special Reserve under Section 36(1)(viii) of the Income Tax Act, 1961 ` 17749,30,76 thousand
(Previous Year `15696,95,76 thousand (iii) Investment Reserve ` Nil (Previous Year ` Nil)

SCHEDULE 2A - MINORITY INTEREST

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
Minority Interest at the beginning of the year 11207,42,28 9625,91,66
Subsequent increase/decrease during the year 1629,19,66 1581,50,62
Minority Interest on the date of balance sheet 12836,61,94 11207,42,28

230 Annual Report 2022 – 23

Consolidated Financials

SCHEDULE 3 - DEPOSITS

Company Overview
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
A) I) Demand Deposits
i) From Banks 3160,40,31 6328,02,10

Responsible Approach
ii) From Others 302572,94,64 273403,37,96
II) Savings Bank Deposits 1600786,08,97 1539980,57,43
III) Term Deposits
i) From Banks 7611,65,56 8971,36,01
ii) From Others 2554404,41,20 2258727,26,56
TOTAL 4468535,50,68 4087410,60,06

Governance
B) i) Deposits of Branches in India 4248617,47,94 3917357,59,34
ii) Deposits of Branches outside India 219918,02,74 170053,00,72
TOTAL 4468535,50,68 4087410,60,06

SCHEDULE 4 - BORROWINGS
(000s omitted)

As at 31.03.2023 As at 31.03.2022

Statutory Reports
(Current Year) (Previous Year)
K K
I) Borrowings in India
i) Reserve Bank of India 26467,44,00 24956,00,00
ii) Other Banks 12929,14,36 10636,43,98
iii) Other Institutions and Agencies 98387,56,25 151731,12,75

Financial Statements
(iv) Bonds & Debentures (Other than Capital 23073,00,00 3111,50,00
Instruments)
(v) Capital Instruments:
a) Innovative Perpetual Debt Instruments (IPDI) 49842,70,00 36709,70,00
b) Subordinated Debt 40679,90,00 90522,60,00 36529,90,00 73239,60,00
TOTAL 251379,74,61 263674,66,73
II) Borrowings outside India
i) Borrowings and Refinance outside India 269482,49,31 185320,49,83
ii) Capital Instruments:
a) Innovative Perpetual Debt Instruments (IPDI) - -
b) Subordinated Debt 289,71,06 289,71,06 164,61,80 164,61,80
TOTAL 269772,20,37 185485,11,63
GRAND TOTAL 521151,94,98 449159,78,36
Secured Borrowings included in I & II above 147932,42,29 188360,08,98

231
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet as at 31st March 2023

SCHEDULE 5 - OTHER LIABILITIES & PROVISIONS

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
I. Bills payable 27408,12,08 33485,82,47
II. Inter Bank Adjustments (net) 235,50,41 37,86,55
III. Inter Office Adjustments (net) 4346,60,96 2344,61,99
IV. Interest accrued 27495,02,55 17990,61,59
V. Deferred Tax Liabilities (net) 3,80,18 5,68,86
VI. Liabilities relating to Policyholders in Insurance Business 308442,71,80 264548,27,48
VII. Provision for Standard Assets* 26332,69,39 20592,09,08
VIII. Others (including provisions) 198698,44,92 168512,69,71
TOTAL 592962,92,29 507517,67,73
* includes prudential provision made on a large borrower account of SBI having an exposure of `8,500 Crore.

SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
I. Cash in hand (including foreign currency notes and gold) 21628,41,77 21967,22,06
II. Balances with Reserve Bank of India
i) In Current Account 225692,63,20 236119,20,95
ii) In Other Accounts - 60406,00,00
TOTAL 247321,04,97 318492,43,01

SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL & SHORT NOTICE
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
I. In India
i) Balances with banks
a) In Current Account 1262,19,41 1064,57,10
b) In Other Deposit Accounts 4395,41,30 3727,11,66
ii) Money at call and short notice
a) With banks 7770,44,34 532,22,08
b) With Other Institutions - -
TOTAL 13428,05,05 5323,90,84
II. Outside India
i) In Current Account 44397,86,48 62547,03,12
ii) In Other Deposit Accounts 1816,80,21 3579,70,45
iii) Money at call and short notice 11348,14,26 8962,04,75
TOTAL 57562,80,95 75088,78,32
GRAND TOTAL (I and II) 70990,86,00 80412,69,16

232 Annual Report 2022 – 23

Consolidated Financials

SCHEDULE 8 - INVESTMENTS

Company Overview
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
I. Investments in India in:
i) Government Securities 1357221,39,54 1261071,12,87

Responsible Approach
ii) Other Approved Securities 34762,19,16 35365,93,17
iii) Shares 105133,88,56 90652,83,35
iv) Debentures and Bonds 285134,41,60 269609,83,27
v) Subsidiary and Associates #, $ 16013,18,97 14603,34,61
vi) Others (Units of Mutual Funds etc.) 49582,88,89 47875,58,26
TOTAL 1847847,96,72 1719178,65,53

Governance
II. Investments outside India in:
i) Government Securities (including local authorities) 34915,98,39 24165,67,65
ii) Associates #
176,02,39 158,80,87
iii) Other Investments (Shares, Debentures, etc.) 30167,88,14 32986,75,83
TOTAL 65259,88,92 57311,24,35
GRAND TOTAL (I and II) 1913107,85,64 1776489,89,88

Statutory Reports
III. Investments in India:
i) Gross Value of Investments 1863706,45,82 1731051,89,01
ii) Less: Aggregate of Provisions/Depreciation 15858,49,10 11873,23,48
Net Investments (vide I above) 1847847,96,72 1719178,65,53
IV. Investments outside India:
i) Gross Value of Investments 67114,39,22 57458,70,66

Financial Statements
ii) Less: Aggregate of Provisions/Depreciation 1854,50,30 147,46,31
Net Investments (vide II above) 65259,88,92 57311,24,35
GRAND TOTAL (III and IV) 1913107,85,64 1776489,89,88

# Investment in Associates (In India and Outside India)

Equity Investment in Associates 9969,61,06 10215,12,19
Add: Goodwill on acquisition of Associates 286,07,51 25,91,12
Less: Capital reserve on acquisition of Associates 917,06,12 981,48,87
Less: Provision for diminution - -
Cost of Investment in Associates 9338,62,45 9259,54,44
Add: Post-acquisition profit/(loss) and Reserve of Associates (Equity Method) 6846,58,91 5498,61,05
TOTAL 16185,21,36 14758,15,49

$ including Share Application Money

233
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet as at 31st March 2023

SCHEDULE 9 - ADVANCES
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
A. i) Bills purchased and discounted 183065,47,36 168552,97,29
ii) Cash credits, overdrafts and loans repayable on demand 868417,22,37 740936,12,49
iii) Term Loans 2216419,43,00 1884586,90,40
TOTAL 3267902,12,73 2794076,00,18
B. i) 
Secured by tangible assets (includes advances against Book Debt) 2161700,28,29 1901776,92,33
ii) Covered by Bank/Government Guarantees 133206,97,67 114844,70,33
iii) Unsecured 972994,86,77 777454,37,52
TOTAL 3267902,12,73 2794076,00,18
C. I) Advances in India
i) Priority Sector 697644,43,51 658546,87,83
ii) Public Sector 258922,87,67 167199,40,75
iii) Banks 512,50,14 1536,43,37
iv) Others 1777189,17,67 1519580,51,83
TOTAL 2734268,98,99 2346863,23,78
II) Advances outside India
i) Due from banks 152095,52,24 119514,35,15
ii) Due from others
a) Bills purchased and discounted 42531,12,88 35345,80,07
b) Syndicated loans 223887,33,49 196311,75,75
c) Others 115119,15,13 96040,85,43
TOTAL 533633,13,74 447212,76,40

GRAND TOTAL [C (I) and C (II)] 3267902,12,73 2794076,00,18

234 Annual Report 2022 – 23

Consolidated Financials

SCHEDULE 10 - FIXED ASSETS

Company Overview
(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
I. Premises (including Revalued Premises)
At cost/revalued as at 31st March of the preceding year 31336,60,87 31130,03,43

Responsible Approach
Additions:
– during the year 37,83,52 226,53,68
– for Revaluation 6407,26,03 -
Deductions:
– during the year 6,81,67 4,46,02
– for Revaluation 1828,91,10 15,50,22

Governance
Depreciation to date:
– on cost 1317,07,16 1168,76,60
– on Revaluation 1228,86,53 33400,03,96 1028,90,79 29138,93,48
IA. Premises under construction 317,54,60 252,96,55
II. Other Fixed Assets (including furniture and
fixtures)


Statutory Reports
At cost/revalued as at 31st March of the preceding year 41202,17,83 38991,32,27
Additions during the year 3771,90,49 2952,36,16
Deductions during the year 796,82,09 741,50,60
Depreciation to date 33883,53,97 10293,72,26 31339,27,63 9862,90,20
IIA. Leased Assets
At cost/revalued as at 31st March of the preceding year 397,94,02 288,85,63

Financial Statements
Additions during the year 178,41,34 126,36,17
Deductions during the year 70,45,09 17,27,78
Depreciation to date (including provisions) 175,85,03 170,27,88
330,05,24 227,66,14
Less : Lease Adjustment Account - 330,05,24 - 227,66,14
TOTAL (I, IA,II and IIA) 44341,36,06 39482,46,37
III. Capital Work-in progress (including Leased 66,02,04 27,56,68
Assets) net of Provisions
TOTAL (I, IA, II, IIA and III) 44407,38,10 39510,03,05

235
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet as at 31st March 2023

SCHEDULE 11 - OTHER ASSETS

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
I. Inter Office adjustments (net) - -
II. Inter Bank Adjustments (net) - -
III. Interest accrued 43381,20,67 37043,85,65
IV. Tax paid in advance/tax deducted at source 16889,73,62 22650,12,52
V. Deferred Tax Assets (net) 11136,38,22 6745,22,82
VI. Stationery and Stamps 65,02,79 59,06,04
VII. Non-banking assets acquired in satisfaction of claims 99,23 11,52,34
VIII. Deposits placed with NABARD/ SIDBI/ NHB 218591,19,47 195618,29,52
IX. Goodwill on consolidation 1538,36,27 1550,02,47
X. Others 119086,13,99 88224,36,30
TOTAL 410689,04,26 351902,47,66

SCHEDULE 12 - CONTINGENT LIABILITIES

(000s omitted)
As at 31.03.2023 As at 31.03.2022
(Current Year) (Previous Year)
K K
I. Claims against the group not acknowledged as debts 90987,81,73 86519,11,42
II. Liability for partly paid investments/Venture Funds 2400,05,44 2773,96,99
III. Liability on account of outstanding forward exchange contracts 1041453,84,63 1213429,79,26
IV. Guarantees given on behalf of constituents
a) In India 165126,25,47 166528,97,91
b) Outside India 105405,64,27 95727,54,21
V. Acceptances, endorsements and other obligations 152189,82,54 171892,93,33
VI. Other items for which the group is contingently liable$ 277960,94,11 270360,15,88
TOTAL# 1835524,38,19 2007232,49,00

$ includes Derivatives `261767,19,24 thousand (Previous Year `259688,85,67 thousand)

# `1,49,15 thousand (Previous Year `1,91,46 thousand) pertains to share in contingent liability of Joint Ventures

236 Annual Report 2022 – 23

Consolidated Financials

State Bank of India

Consolidated Profit and Loss Account for the year ended 31st March 2023

(000s omitted)

Company Overview
Year ended Year ended
31st March 2023 31st March 2022
Schedule No.
(Current Year) (Previous Year)
K K
I. INCOME
Interest earned 13 350844,58,01 289972,68,60
Other Income 14 122533,56,11 117000,40,37
TOTAL 473378,14,12 406973,08,97

Responsible Approach
II. EXPENDITURE
Interest expended 15 189980,81,67 156194,34,41
Operating expenses 16 189814,48,59 174363,42,58
Provisions and contingencies 37024,40,87 40059,14,84
TOTAL 416819,71,13 370616,91,83
III. PROFIT
 Net Profit for the year (before adjustment for Share in Profit of Associates 56558,42,99 36356,17,14
and Minority Interest)
Add: Share in Profit/(Loss) of Associates 1191,45,21 827,01,33

Governance
Less: Minority Interest 2101,70,92 1809,30,49
Net Profit for the Group 55648,17,28 35373,87,98
Add: Profit/(Loss) Brought forward 20394,35,05 8096,54,12
TOTAL 76042,52,33 43470,42,10
IV. APPROPRIATIONS
Transfer to Statutory Reserve 15370,39,97 9769,02,69
Transfer to Capital Reserve 232,80,84 538,15,24
Transfer to Investment Fluctuation Reserve 4575,43,43 4647,87,02

Statutory Reports
Transfer to Revenue and Other Reserves 3854,26,53 1783,68,04
Final Dividend for the year 10084,81,15 6336,47,42
Tax on Dividend 150,13 86,64
Balance carried over to Balance Sheet 41923,30,28 20394,35,05
TOTAL 76042,52,33 43470,42,10
V. EARNINGS PER EQUITY SHARE (Face value D 1 per share)
Basic (in `) 62.35 39.64
Diluted (in `) 62.35 39.64

Financial Statements
Significant Accounting Policies 17
Notes to Accounts 18

Schedules referred to above form an integral part of the Profit & Loss Account

Shri Alok Kumar Choudhary Shri Ashwini Kumar Tewari Shri Swaminathan J. Shri Challa Sreenivasulu Setty
Managing Director Managing Director Managing Director Managing Director
(Retail Business & Operations) (Risk, Compliance & SARG) (Corporate Banking & (International Banking, Global
Subsidiaries) Markets & Technology)

In terms of our Report of even date

For K C Mehta & Co LLP
Chartered Accountants
Firm Regn. No. 106237W/W100829

Shri Dinesh Kumar Khara Shri Chirag Bakshi

Chairman Partner
Membership No. 047164
Place: Mumbai
Date: 18th May 2023

237
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Profit and Loss Account for the year ended 31st March 2023

SCHEDULE 13 - INTEREST EARNED

(000s omitted)
Year ended Year ended
31.03.2023 31.03.2022
(Current Year) (Previous Year)
K K
I. Interest/ discount on advances/ bills 228740,74,65 177474,83,13
II. Income on Investments 106824,85,28 93477,89,84
III. Interest on balances with Reserve Bank of India and other inter-bank funds 3916,45,69 4608,34,99
IV. Others 11362,52,39 14411,60,64
TOTAL 350844,58,01 289972,68,60

SCHEDULE 14 - OTHER INCOME

(000s omitted)
Year ended Year ended
31.03.2023 31.03.2022
(Current Year) (Previous Year)
K K
I. Commission, exchange and brokerage 25913,29,95 24549,32,06
II. Profit/(Loss) on sale of investments (Net) 5158,08,59 6375,64,61
III. Profit/(Loss) on revaluation of investments (Net) (4922,60,98) (445,73,69)
IV. Profit/(Loss) on sale of land, building and other assets including leased assets (Net) (29,03,16) (16,40,47)
V. Profit/(Loss) on exchange transactions (Net) 5385,45,63 3530,17,97
VI. Dividends from Associates in India/abroad 2,66,25 3,19,50
VII. Credit Card membership/service fees 6800,41,06 5269,67,80
VIII. Insurance Premium Income (net) 70751,51,78 62188,03,44
IX. Recoveries made in Write-off Accounts 7728,67,19 8286,78,94
X. Miscellaneous Income 5745,09,80 7259,70,21
TOTAL 122533,56,11 117000,40,37

SCHEDULE 15 - INTEREST EXPENDED

(000s omitted)
Year ended Year ended
31.03.2023 31.03.2022
(Current Year) (Previous Year)
K K
I. Interest on Deposits 163518,78,32 141765,28,30
II. Interest on Reserve Bank of India/ Inter-bank borrowings 18317,50,75 7751,72,68
III. Others 8144,52,60 6677,33,43
TOTAL 189980,81,67 156194,34,41

238 Annual Report 2022 – 23

Consolidated Financials

SCHEDULE 16 - OPERATING EXPENSES

Company Overview
(000s omitted)
Year ended Year ended
31.03.2023 31.03.2022
(Current Year) (Previous Year)
K K
I. Payments to and provisions for employees # 61920,91,12 61445,12,63
II. Rent, taxes and lighting 6103,05,83 5707,73,68

Responsible Approach
III. Printing and Stationery 810,68,23 709,90,76
IV. Advertisement and publicity 3419,26,91 2693,92,63
V. a) Depreciation on Fixed Assets (other than Leased Assets) 3644,79,49 3652,67,77
b) Depreciation on Leased Assets 50,80,37 38,59,23
VI. Directors' fees, allowances and expenses 13,18,37 12,82,78
VII. Auditors' fees and expenses (including branch auditors' fees and expenses) 284,82,75 283,56,85

Governance
VIII. Law charges 516,43,62 448,57,06
IX. Postages, Telegrams, Telephones, etc. 766,06,89 710,44,57
X. Repairs and maintenance 1305,59,44 1219,04,35
XI. Insurance 5340,69,01 4799,96,54
XII. Other Operating Expenses relating to Credit Card Operations 3876,89,74 2945,50,71
XIII. Other Operating Expenses relating to Insurance Business 78227,18,14 69706,73,54

Statutory Reports
XIV. Other Expenditure 23534,08,68 19988,79,48
TOTAL 189814,48,59 174363,42,58

# Payment to and provisions for employees includes exceptional item of ` Nil (Previous Year `7418,39,00 thousand) for enhancement in Family Pension
under 11th Bipartite Settlement and Joint Note dated 11th November 2020

Financial Statements

239
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

SCHEDULE 17 - SIGNIFICANT ACCOUNTING C. Use of Estimates:

POLICIES
The preparation of financial statements requires the
A. Background: management to make estimates and assumptions that
State Bank of India (‘SBI’ or ‘the Bank’) is a banking and are considered in the reported amounts of assets and
financial services statutory body engaged in providing liabilities (including contingent liabilities) as of the date
a wide range of products and services to individuals, of the financial statements and the reported income
commercial enterprises, large corporates, public bodies, and expenses during the reporting period. Management
and institutional customers. The Bank is governed by believes that the estimates used in preparation of the
the Banking Regulation Act, 1949 and the State Bank of financial statements are prudent and reasonable. Actual
India Act, 1955. results could differ from these estimates.

State Bank of India Group (‘SBI Group’ or ‘the Group’) D. Basis of Consolidation:
consists of SBI, 27 Subsidiaries, 8 Joint ventures
(including Jio Payments Bank Ltd upto January 22, 1. Consolidated financial statements of the SBI
2023) and 19 Associates. Group includes:
a) 
Financial statements of State Bank of India
Following are the Significant Accounting Policies of
(Parent).
SBI Group i.e. the specific accounting principles and
methods of applying these principles in the preparation b) Line by line aggregation of each item of asset/
and presentation of consolidated financial statements liability/ income/ expense of the subsidiaries with
of SBI. the respective item of the Parent. Elimination of
all material intra-group balances/transactions
B. Basis of Preparation: and resulting unrealised gains and adjustments
required for non-uniform accounting policies as
The accounting and reporting policies of the SBI Group
per AS 21 “Consolidated Financial Statements”
conform to Generally Accepted Accounting Principles
issued by the ICAI.
in India (Indian GAAP), comprising of regulatory
norms, directions & guidelines prescribed by the c) 
Proportionate share of asset/ liability/ income/
Reserve Bank of India (RBI), statutory guidelines of the expense of the joint venture entities are
State Bank of India Act, 1955, the Banking Regulation consolidated as per AS 27 “Financial Reporting of
Act, 1949, Insurance Regulatory and Development Interests in Joint Ventures” issued by the ICAI.
Authority of India (IRDAI), Pension Fund Regulatory and
d) 
Accounting for investment in ‘Associates’ under
Development Authority (PFRDA), SEBI (Mutual Funds)
the ‘Equity Method’ as per AS 23 “Accounting
Regulations, 1996, Companies Act 2013, Accounting
for Investments in Associates in Consolidated
Standards issued by Institute of Chartered Accountants
Financial Statements” issued by the ICAI.
of India (ICAI) and the accounting practices prevalent
in India. 2. 
The difference between cost to the group of its
investment in the subsidiary entities and the group’s

In case of foreign entities, Generally Accepted
portion of the equity of the subsidiaries is recognized in
Accounting Principles as applicable to the foreign
the financial statements as goodwill/capital reserve.
entities are followed.
3. Minority interest in the net assets of the consolidated

The Bank’s consolidated financial statements are
subsidiaries consists of:
prepared under the historical cost convention, with
fundamental accounting assumptions of going concern, a) The amount of equity attributable to the minority
consistency, and accrual, unless otherwise stated. shareholders at the date on which the investment
in the equity shares of the subsidiary is made, and

The consolidated financial statements have been
prepared in accordance with guidelines issued by RBI b) 
The minority share of movements in revenue
and requirements under the Third Schedule of the reserves/loss (equity) since the date the parent-
Banking Regulation Act, 1949. subsidiary relationship came into existence.

240 Annual Report 2022 – 23

 Consolidated Financials

E. Significant Accounting Policies 1.7 

Brokerage, Commission etc. paid/ incurred in

Company Overview
connection with the issue of Bonds/ Deposits are
1. Revenue recognition: amortised over the tenure of the related Bonds/
1.1 Income and expenditure are accounted on accrual Deposits and the expenses incurred in connection
basis, except otherwise stated. with the issue are charged upfront.

1.2 
Interest/Discount income is recognized, in the 1.8 
The Bank derecognizes its financial assets
Profit and Loss Account, on realisation basis for when it sells to Securitisation Company (SC)/

Responsible Approach
the following: Reconstruction Company (RC), and accounts for
as under:
a) Income from Non-Performing Assets (NPAs)
including investments, as per the prudential i) If the sale is at a price below the Net Book
norms prescribed by the RBI/ respective Value (NBV) (i.e. book value less provisions
country regulators in the case of foreign held), the shortfall is debited to the Profit and
offices/ entities (hereafter collectively referred Loss Account in the year of sale.
to as Regulatory Authorities),
ii) If the sale is for a value higher than the NBV,

Governance
b) Income on Rupee Derivatives designated as the excess provision is written back in the
“Trading”. year the amounts are received.

1.3 In accordance with the guidelines issued by the 1.9 

Issue management fees and advisory fees, in
Reserve Bank of India, Profit on sale of investments case of Group’s merchant banking business, are
held in the “Held to Maturity” category of the Bank recognized as per the terms of the agreement with
and on sale of Fixed Assets held by the Bank is the customer/client. The fee income is recognized

Statutory Reports
appropriated to Capital Reserve, net of applicable only when the milestone defined in the agreement
taxes and amount required to be transferred to is executed/completed.
Statutory Reserve.
1.9.1 Fees for private placement are recognized on
The discount, if any, on acquisition of investments completion of assignments.
in Held to Maturity (HTM) category is accounted
1.9.2 
Brokerage income in relation to stock
as follows:
broking activity is recognized on the trade

Financial Statements
a) on Interest bearing securities, it is accounted date of transaction and includes stamp duty,
for at the time of sale/redemption. transaction charges and is net of incentives
paid on scheme.
b) on zero-coupon securities, it is accounted for
over the balance tenor of the security on a 1.9.3 
Commission relating to public issues is
constant yield basis. accounted for on finalisation of allotment
of the public issue/receipt of information
1.4 Dividend income is recognized when the right to
from intermediary.
receive the dividend is established.
1.9.4 Brokerage income relating to public issues/
1.5 
Commission on Letter of Credit (LC)/Bank
mutual fund/ other securities is accounted
Guarantee (BG), Deferred Payment Guarantee,
for based on mobilisation and intimation
Government Business, ATM interchange fee
received from clients/ intermediaries.
& “Upfront fee on restructured account” are
recognized on accrual basis proportionately over 1.9.5 
Depository income – Annual Maintenance
the period. All other commission and fee income Charges are recognized on accrual basis and
are accounted on their realisation. transaction charges are recognized on trade
date of transaction.
1.6 One time Insurance Premium paid under Special
Home Loan Scheme (December 2008 to June 1.10 
Management fee, in case of Group’s asset
2009) is amortised over the average loan period of management business, is recognized at specific
15 years. rates agreed with the relevant schemes, applied

241
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

on the average daily net assets of each scheme partners to reimburse the issuers for portion
(excluding inter-scheme investments, wherever of the costs incurred for providing services
applicable, investments made by the Company in that benefit all participants in the system,
the respective scheme and deposits with Banks), including acquirers and merchants. Revenue
and are in conformity with the limits specified from interchange income is recognized
under SEBI (Mutual Funds) Regulations, 1996. when related transaction occurs, or service
is rendered.
1.10.1 
Portfolio Advisory Services, Portfolio
Management Services and Management 1.11.3 The total unidentified receipts which could
Fees on Alternative Investment Funds (AIF) not be credited or adjusted in the customers’
are recognized on accrual basis as per the accounts for lack of complete & correct
terms of the contract. information is considered as liability in
Balance Sheet. The estimated unidentified
1.10.2 Recovery, if any, on realisation of devolved
receipts aged more than 6 months and up
investments of schemes acquired by
to 3 years towards the written off customers
the Company, in terms of the right of
is written back as income on Balance Sheet
subrogation, is accounted based on receipts.
date. Further, the unresolved unidentified
Recovery from funded guarantee schemes is
receipts aged more than 3 years are also
recognized as income in the year of receipt.
written back as income on Balance Sheet
1.10.3 
E xpenses of schemes in excess of the date. The liability for stale cheques aged
stipulated rates and expenses relating to for more than three years is written back
new fund offer are charged to the Profit as income.
and Loss Account in the year in which
1.11.4 
All other service income/fees are
they are incurred in accordance with the
recorded at the time of occurrence of the
requirements of SEBI (Mutual Funds)
respective events.
Regulations, 1996.
1.12 
Factoring charges, in case of Group’s factoring
1.10.4 
Brokerage and/or incentive paid on
business, are accrued on factoring of debts at
investments in open-ended Equity Linked
the applicable rates as decided by the Company.
Tax Saving Schemes and Systematic
Processing fees are recognized as income only
Investment Plans (SIPs) are amortised over
when there is reasonable certainty of its receipt
a period of 36 months and in case of other
after execution of documents. Facility Continuation
schemes, over the claw back period. In
fees (FCF) are calculated and charged in the month
case of close-ended schemes, brokerage is
of May for the entire next financial year on all live
amortised over the tenure of schemes.
standard accounts. 1st of May is deemed as date for
1.11 
Income earned from provision of membership accrual of the FCF.
services, in case of Group’s credit card business,
1.13 
Premium, in case of Group’s life insurance
is recognized as revenue over the membership
business, of non-linked business is recognized
period consisting of 12 months at fair value
as income (net of goods and service tax) when
of consideration net of expected reversals/
due from policyholders. In respect of linked
cancellations.
business, premium income is recognized when the
1.11.1 Other service revenue consists of value-add associated units are allotted. In case of variable
services provided to the card holders. Other insurance products (VIPs), premium income is
service revenues are recognized in the same recognized on the date when the Policy Account
period in which related transactions occur Value is credited. Uncollected premium from
or services rendered. lapsed policies is not recognized as income until
such policies are revived.
1.11.2 
Interchange fees are collected from
acquirers and paid to issuers by network

242 Annual Report 2022 – 23

Consolidated Financials

1.13.1 
Top-up premiums are considered as y Surrenders and withdrawals are

Company Overview
single premium. accounted as and when intimated.
Benefits paid also includes amount
1.13.2 
Income from linked funds which includes
payable on lapsed policies which
fund management charges, policy
are accounted for as and when due.
administration charges, mortality charges,
Surrenders, withdrawals and lapsation are
etc. are recovered from linked fund in
disclosed at net of charges recoverable.
accordance with terms and conditions of
y Repudiated claims disputed before

Responsible Approach
policy and recognized when recovered.
judicial authorities are provided for based
1.13.3 
Realised gains and losses in respect of on management prudence considering
equity securities, units of mutual funds, the facts and evidences available in
Equity Exchange Traded funds (ETFs), respect of such claims.
Infrastructure Investment Trusts (InvITs) and
y Amounts recoverable from re-insurers
Real Estate Investments Trusts (REITs) are
are accounted for in the same period
calculated as the difference between the net
as the related claims and are reduced

Governance
sales proceeds and their cost. In respect of
from claims.
debt securities, the realised gains and losses
are calculated as the difference between 1.13.7 
Acquisition costs such as commission,
net sale proceeds or redemption proceeds medical fees, etc. are costs that are primarily
and weighted average amortised cost. related to the acquisition of new and renewal
Cost in respect of equity shares, units of insurance contracts. The same are expensed
mutual fund Equity Exchange Traded funds in the period in which they are incurred.

Statutory Reports
(ETFs), Infrastructure Investment Trusts
1.13.8 
Liability for life policies: The actuarial
(InvITs) and Real Estate Investments Trusts
liability of all the life insurance policies has
(REITs) are computed using the weighted
been calculated by the Appointed Actuary
average method.
in accordance with the Insurance Act, 1938,
1.13.4 
Fees received on lending of equity and as per the rules and regulations and
shares under Securities lending and circulars issued by IRDAI from time to time
borrowing scheme (SLB) is recognized as and the relevant Guidance Notes and/or

Financial Statements
income over the period of the lending on Actuarial Practice Standards (APS) issued
straight‑line basis. by the Institute of Actuaries of India.

1.13.5 Premium ceded on reinsurance is accounted 1.13.9 Funds for future appropriation
in accordance with the terms of the re-
or non-linked participating business, the
F
insurance treaty or in-principle arrangement
balance in the funds for future appropriations
with the re-insurer.
account represents funds, the allocation of
1.13.6 Benefits paid: which, either to participating policyholders’
or to shareholders’, has not been determined
y Claims cost consist of the policy benefit
at the Balance Sheet date. Transfers
amounts and claims settlement costs,
to and from the fund reflect the excess
where applicable.
or deficit of income over expenses and
y Claims by death and rider are accounted appropriations in each accounting period
when intimated. Intimations up to the arising in the Company’s policyholders’
end of the period are considered for fund. In respect of participating policies any
accounting of such claims. allocation to the policyholder would also
y Claims by maturity are accounted on the give rise to a shareholder transfer in the
policy maturity date. required proportion.
y Survival and Annuity benefits claims are
accounted when due.

243
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

 he fund for future appropriations held in the

T cost is accounted as per the terms of the
unit-linked funds, represents surplus that reinsurance arrangements. Any subsequent
has arisen from lapsed policies unlikely to be revision to, refunds or cancellations of
revived. This surplus is required to be held premiums is recognized in the period in
within the policyholders’ fund till the point which they occur.
at which the policyholders’ can no longer
1.14.3 
Reinsurance inward acceptances are
revive their policy.
accounted for on the basis of returns, to the
1.14 Premium including reinsurance accepted (net of extent received, from the insurers.
goods & service tax), in case of Group’s general
1.14.4 Acquisition costs are expensed in the period
insurance business, is recognized in the books at the
in which they are incurred. Acquisition
commencement of risk over the contract period or
costs are defined as costs that vary with,
the period of risk, whichever is appropriate. In case
and are primarily related to the acquisition
the premium is recovered in instalments, amount
of new and renewal insurance contracts
to the extent of instalment due is recorded on the
viz. commission. The primary test for
due date of the instalment. Premium (net of goods
determination as acquisition cost is the
& service tax), including reinstatement premium,
obligatory relationship between the costs
on direct business and reinsurance accepted, is
and the execution of the insurance contracts
recognized as income over the contract period
(i.e. commencement of risk). In case of long-
or the period of risk, whichever is appropriate,
term motor insurance policies commission
on a gross basis under 1/365 method. In case
is expensed at the applicable rates on the
of long-term motor insurance policies premium
premium allocated for the year as mandated
is recognized on a yearly basis as mandated by
by IRDAI.
IRDAI. Any subsequent revision to premium is
recognized over the remaining period of risk or 1.14.5 
Premium Received in Advance which
contract period. Adjustments to premium income represents premium received prior to
arising on cancellation of policies are recognized in the commencement of the risk is shown
the period in which they are cancelled. separately under the head “Other Liabilities
and Provision” in the financial statements
1.14.1 
Commission on reinsurance ceded is
and is recorded as income on the date of
recognized as income in the period in which
commencement of risk.
reinsurance risk is ceded. Profit commission
under re-insurance treaties, wherever  eserve for Unexpired risk is that part of
R
applicable, is recognized as income in the the net premium written (i.e. premium net
year of final determination of the profits as of reinsurance ceded) that is attributable
intimated by Reinsurer and combined with to, and to be allocated to succeeding
commission on reinsurance ceded. accounting periods on contract period basis
or risk period basis, whichever is appropriate.
 liding scale commission under reinsurance
S
Such reserves are calculated on a pro-rata
treaties, wherever applicable, is recognized
basis under 1/365 basis, subject to minimum
as income as per the reinsurance treaty
reserve requirements as per Circular No.
conditions as confirmed by reinsurers
IRDA/F&A/CIR/CPM/056/03/2016 dated
and combined with commission on
4th April 2016.
reinsurance ceded.
1.14.6 
If the ultimate amount of expected net
1.14.2 In respect of proportional reinsurance ceded,
claim costs (as calculated and certified
the cost of reinsurance ceded is accrued
by the Actuary), related expenses and
at the commencement of risk over the
maintenance costs (related to claims
contract period or the period of risk. Non-
handling) in respect of unexpired risks at
proportional reinsurance cost is recognized
the end of the accounting period exceeds
when due. Non-proportional reinsurance

244 Annual Report 2022 – 23

Consolidated Financials

the sum of related premium carried forward 1.15 The revenue (net of goods & service tax), in case

Company Overview
to the subsequent accounting period as of Group’s custody & fund accounting services, is
the reserve for unexpired risk, the same is recognized only when it can be reliably measured
recognized as premium deficiency. and it is probable that the economic benefits will
flow to the Company. Custody fees, fund accounting
 remium deficiency is calculated on annual
P
fees and referral fees are accounted on accrual
basis and at the Company level.
basis as per the agreed terms of agreement.
1.14.7 
Claim is recognized as and when a loss

Responsible Approach
1.16 Management fee, in case of Group’s pension fund
occurrence is reported. Claim is recognized
business, is recognized at specific rates agreed
by creation of provision for the amount
with the relevant schemes, applied on daily net
of claim payable as estimated by the
assets of each scheme, and is in conformity with
management based on available information
the regulatory guidelines issued by Pension Fund
and past experience, on receipt of claim
Regulatory and Development Authority (PFRDA).
notification. Such provision is reviewed/
Commission income from Point of Presence
modified as appropriate on the basis
(POP) Business i.e. Account opening fees and

Governance
of additional information as and when
contribution processing fees are recognized on the
available. Amounts received/receivable
basis of contributions received from subscribers
from the re‑insurers/co‑insurers, under the
and generation of Permanent Retirement
terms of the reinsurance and coinsurance
Account Number (PRAN). The Company presents
arrangements respectively, is recognized
revenues net of goods and service tax in profit and
together with the recognition of claim.
loss account.
Provision for claims outstanding payable

Statutory Reports
as on the date of Balance Sheet is net 1.17 Mutual Fund Trusteeship fee, in case of Group’s
of reinsurance, salvage value and other trusteeship business, is recognized at specific
recoveries as estimated by the management. rates agreed with relevant schemes, applied on
Claims paid (net of recoveries including the average daily Net Assets of each scheme
value of salvage retained by the insured and (excluding inter-scheme investment, investment
interest, if any, paid on the claims) is charged in fixed deposits, investments made by the Asset
to the profit & loss account when approved Management Company and deferred revenue

Financial Statements
for payment. Where salvage is taken over expenses, where applicable), and is in conformity
by the Company, the recoveries from sale with the limits specified under SEBI (Mutual Funds)
of salvage are recognized at the time of Regulations, 1996.
such sale.
1.17.1 Corporate Trusteeship Acceptance fees are
1.14.8 Provision in respect of claim liabilities that recognized on the acceptance or execution
may have been incurred before the end of of trusteeship assignment whichever is
the accounting year but are earlier. Corporate Trusteeship service
charges are recognized/ accrued based on
y not yet reported or claimed (IBNR) or terms of trusteeship contracts/ agreements
y not enough reported i.e. reported with entered into with clients.
information insufficient for making 1.17.2 
Income from online “will” services is
a reasonable estimate of likely claim recognized when the right to receive
amount (IBNER), the fee is established, as all certainty for
The provision is made according to the amount revenue recognition is present at the time of
determined by the Appointed Actuary based establishment of such right.
on actuarial principles in accordance with the 1.18 The revenue, in case of Group’s merchant acquiring
Actuarial Practice Standards and Guidance business, is measured on basis of consideration
Notes issued by the Institute of Actuaries of received or receivable for the services provided,
India and IRDAI regulations and guidelines.

245
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

excluding discounts, GST and other applicable taxes Securities, (ii) Subsidiaries and/or joint Ventures
and are recognized upon performance of services. abroad and (iii) Other Investments.

1.18.1 
The revenue from deployment of POS is 2.2 Basis of classification:
recognized either over the period during i. Investments that the Bank intends to hold till
which the service is rendered or on basis of maturity are categorised as “Held to Maturity
the number of transactions processed during (HTM)”.
the period in accordance with the rates and
conditions specified in the agreements. ii. Investments that are held principally for resale
Based on the contract terms, the merchant within 90 days from the date of purchase are
makes payment for merchant discount rate classified as “Held for Trading (HFT)”.
(MDR), monthly rental and commitment iii. 
Investments, which are not classified in
charges and the same is treated as revenue the above two categories, are classified as
from operation. “Available for Sale (AFS)”.
1.18.2 Income received but not accrued on account iv. 
An investment is classified as HTM, HFT
of maintenance deployment contract or AFS at the time of its purchase and
are recognized as deferred revenue and subsequent shifting amongst categories is
included in liabilities until the revenue done in conformity with regulatory guidelines.
recognition criteria are met. Income
accrued but not billed represents revenue v. 
Investments in associates are classified as
recognized on work performed but billed HTM except in respect of those investments
in subsequent period, in accordance with which are acquired and held exclusively with
terms of the contract. a view to its subsequent disposal. These
investments are classified as AFS.
1.18.3 
Revenue is recognized to the extent it is
probable that the economic benefits will flow, 2.3 Valuation:
and the revenue can be reliably measured.
i. The transactions in all securities are recorded
on a Settlement Date. Cost of investment
2. Investments:
under AFS and HFT category is determined
Investments are accounted for in accordance with the at the weighted average cost method by the
extant RBI guidelines on investment classification and group entities and cost of investments under
valuation, as given below: HTM category is determined on FIFO basis
(first in first out) by SBI and weighted average
2.1 Classification: cost method by other group entities.
As per RBI guidelines, investments are classified
a) 
Brokerage/commission received on
into Held to Maturity (HTM), Available for Sale
subscriptions is reduced from the cost.
(AFS) and Held for Trading (HFT) categories.
Brokerage, commission, securities
For disclosure in Balance Sheet, the investments transaction tax, etc. paid in connection
are classified as Investments in India and with acquisition of investments are
outside India. expensed upfront and excluded
from cost.
y Under each category, the investments in
b) Broken period interest paid/received on
India are further classified as (i) Government
debt instruments is treated as interest
Securities, (ii) Other Approved Securities,
expense/income and is excluded from
(iii) Shares, (iv)  Debentures and Bonds,
cost/sale consideration.
(v) Subsidiaries and Associates and (vi) Others.
The Investments outside India are classified
under three categories  – (i)  Government

246 Annual Report 2022 – 23

Consolidated Financials

ii. Valuation of investments classified as v. Valuation in case of sale of NPA (financial

Company Overview
Held to Maturity: asset) to Securitisation Company (SC)/
a) 
Investments under Held to Maturity Asset Reconstruction Company (ARC)
category are carried at acquisition cost. against issue of Security Receipts:
The premium paid on acquisition, if any, a) 
The investment in security receipts
is amortised over the term to maturity on obtained by way of sale of NPA to SC/
constant yield basis. Such amortisation RC, is recognized at lower of: (i) Net
of premium is accounted as income Book Value (NBV) (i.e. book value less

Responsible Approach
on investments. provisions held) of the financial asset;
and (ii) Redemption value of SR.
b) 
A provision is made for diminution,
other than temporary, for each b) 
SRs issued by an SC/ARC are valued
investment individually. in accordance with the guidelines
applicable to non-SLR instruments.
c) 
Investments in Regional Rural Banks
Accordingly, in cases where the SRs
(RRBs) are valued at equity cost

Governance
issued by the SC/ARC are limited to
determined in accordance with AS 23 of
the actual realisation of the financial
the ICAI.
assets assigned to the instruments in the
concerned scheme, the Net Asset Value,
iii. Valuation of investments classified as
obtained from the SC/ARC, is reckoned
Available for Sale and Held for Trading:
for valuation of such investments.
Investments held under Available for Sale
and Held for Trading are individually revalued vi. 
Treasury Bills and Commercial Papers are

Statutory Reports
at market price or fair value determined as valued at carrying cost.
per the regulatory guidelines and the net
depreciation, if any, of each group for each 2.4 Investments (NPI)
category (viz., (i) Government securities i. In respect of domestic offices/entities, based
(ii)  Other Approved Securities (iii) Shares on the guidelines issued by RBI, investments
(iv) Debentures & Bonds (v) Subsidiaries and are classified as performing and non-
Associates; and (vi) others) is provided for performing as follows:

Financial Statements
and net appreciation is ignored.
a) 
Interest/instalment (including maturity
proceeds) is due and remains unpaid for
iv. Valuation policy in event of inter category
more than 90 days.
transfer of investments:
a) Transfer of securities from HFT / AFS b) In the case of equity shares, in the event
category to HTM category is carried the investment in the shares of any
out at the lower of acquisition cost/ company is valued at `1 per company
book value/market value on the date of on account of the non-availability of the
transfer. The depreciation, if any, on such latest Balance Sheet, those equity shares
transfer is fully provided for. would be reckoned as NPI.

b) 
Transfer of securities from HTM c) The Bank also classifies an investment
category to AFS category is carried out as a non-performing investment, in case
on acquisition price/book value. On any credit facility availed by the same
transfer, these securities are immediately borrower/entity has been classified as a
revalued and resultant depreciation, if non-performing asset and vice versa. The
any, in the Profit and Loss Account. above is applied to Preference Shares
where the fixed dividend is not paid.

247
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

d) 
The investments in debentures/bonds, are classified as ‘Cash Credits, overdrafts, and
which are deemed to be advance, loans repayable on demand’, under Schedule
are also subjected to NPI norms as 9 ‘Advances’. All other Reverse Repos are
applicable to investments. classified as ‘Term Loans’ under Schedule 9
‘Advances’.
ii. 
In respect of foreign offices/entities,
classification and provisions for non- f. 
Borrowing cost of repo transactions and
performing investments (NPIs) are made as revenue on reverse repo transactions, with
per the local regulations or as per the norms RBI or others, is accounted for as interest
of RBI, whichever is more prudent. expense and interest income, respectively.

2.6 In case of life and general insurance subsidiaries,

2.5 Accounting for Repo/Reverse Repo
investments are accounted in accordance with
transactions
the Insurance Act, 1938, the IRDAI (Investment)

The Bank enters Repurchase and Reverse Regulations, 2016 and IRDA (Presentation of
Repurchase Transactions with RBI under Liquidity Financial Statements and Auditor’s Report
Adjustment Facility (LAF) and with market of Insurance Companies) Regulations, 2002,
participants. Repurchase Transaction represents Investment policy of the Company and various
borrowing by selling the securities with an other circulars/notifications as issued by IRDAI
agreement to repurchase the securities. Reverse from time to time.
Repo Transactions on the other hand, represent
lending funds by purchasing the securities. i. Valuation of investment pertaining to non-
a. 
Transactions with RBI under Liquidity linked life insurance business and general
Adjustment Facility (LAF) are accounted insurance business: -
for as Collateralized Lending and y All debt securities, including government
Borrowing transactions. securities and money market securities
are stated at historical cost subject to
b. 
In Repo and Reverse Repo transaction,
amortisation of premium or accretion
securities sold (purchased) and repurchased
of discount.
(resell) are accounted as normal outright sale
(purchase) transactions and such movement y Listed equity shares, equity related
of securities is reflected using the Repo/ instruments and preference shares are
Reverse Repo Accounts and contra entries. measured at fair value on the Balance
The above entries are reversed on the date Sheet date. For the purpose of determining
of maturity. fair value, the closing price at primary
exchange i.e. National Stock Exchange of
c. Balance in Repo Account is classified under India Limited (‘NSE’) is considered. If NSE
Schedule 4 (Borrowings). closing price is not available, the closing
d. All type of Reverse Repos with RBI including price of the secondary exchange i.e. BSE
those under Liquidity Adjustment Facility Limited (‘BSE’) is considered.
are presented under sub item (ii) ‘In Other y Unlisted equity securities, equity related
Accounts’ of item (II) Balances with RBI under instruments and preference shares are
Schedule 6 ‘Cash and balances with RBI’. measured at historical cost.
e. 
Reverse Repos with banks and other y In case of Security Lending and Borrowing
institutions having original tenors up to and (SLB), equity shares lent are valued as
inclusive of 14 days are classified as ‘Money per valuation policy for equity shares as
at call and short notice’ under Schedule 7 mentioned above.
‘Balance with Banks and Money at call & y Additional Tier 1 (Basel III compliant)
short notice’. Reverse Repos with original Perpetual Bonds classified under “Equity”
maturity more than 14 days but up to 1 year as specified by IRDAI, are valued at prices

248 Annual Report 2022 – 23

Consolidated Financials

obtained from Credit Rating Information maturity method. In case of securities with

Company Overview
Services of India Limited (CRISIL). options, earliest Call Option/Put Option
y Investments in mutual fund units are valued date will be taken as maturity date for
at the Net Asset Value (NAV) of previous this purpose. Money market securities
day in life insurance and of Balance Sheet are valued at historical cost subject to
date in general insurance. amortisation of premium or accretion of
discount on yield to maturity basis.
y Investment in Alternative Investment Funds
y Listed equity shares, equity related

Responsible Approach
(AIFs) are valued at latest available NAV.
instruments and preference shares are
y The Investment in units of REITs/InvITs are
measured at fair value on the Balance
valued at Market Value (last quoted price
Sheet date. For the purpose of determining
should not be later than 30 days). For the
fair value, the closing price at primary
purpose of determining market value, the
exchange i.e. NSE is considered. If NSE
closing price at primary exchange i.e. NSE
closing price is not available, closing price
is considered. If NSE closing price is not
of the BSE is considered.

Governance
available for any security, then BSE closing
price is used for valuation. Where market y Unlisted equity shares, equity related
quote is not available for the last 30 days, instruments and preference shares are
the units are valued as per the latest NAV measured at historical cost.
(not more than 6 months old) of the units y In case of Security Lending and Borrowing
published by the trust. (SLB), equity shares lent are valued as
per valuation policy for equity shares as
Unrealised gains or losses arising due to

Statutory Reports
mentioned above.
change in the fair value of listed equity
shares, mutual fund units, AIFs and units y Additional Tier 1 (Basel III compliant)
of REITs/InvITs pertaining to shareholders’ Perpetual Bonds classified under “Equity”
investments and non-linked policyholders as specified by IRDAI, are valued at prices
investments are taken to “Revenue & Other obtained from CRISIL.
Reserves (Schedule 2)” and “Liabilities y Investments in mutual fund units are
relating to Policyholders in Insurance valued at the previous day’s Net Asset

Financial Statements
Business (Schedule 5)” respectively, in the Value (NAV).
Balance Sheet. y The Investment in units of REITs/InvITs are
valued at Market Value (last quoted price
ii. Valuation of investment pertaining to should not be later than 30 days). For the
linked business: - purpose of determining market value, the
y Debt Securities including Government closing price at primary exchange i.e. NSE
securities with remaining maturity of more is considered. If NSE closing price is not
than one year are valued at prices obtained available for any security, then BSE closing
from CRISIL. Debt securities including price is used for valuation. Where market
Government securities with remaining quote is not available for the last 30 days,
maturity of less than one year are valued the units are valued as per the latest NAV
on yield to maturity basis, where yield (not more than 6 months old) of the units
is derived using market price provided published by the trust.
by CRISIL on the day when security is y Unrealised gains or losses arising due to
classified as short-term. If security is changes in the fair value are recognized in
purchased during its short-term tenor, it the Profit & Loss Account.
is valued at amortised cost using yield to

249
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

3. Loans/Advances and Provisions thereon: Sub-standard i. A general provision of 15% on

3.1 
B ased on the guidelines/directives issued by Assets: the total outstanding;
the RBI, Loans and Advances are classified as  ii. 
Additional provision of 10%
performing and non-performing as follows: for exposures which are
unsecured ab-initio (i.e. where
i) A term loan is classified as a non-performing realisable value of security
asset, if interest and/or instalment of principal is not more than 10 percent
remains overdue for a period of more than ab-initio);
90 days; iii. Unsecured Exposure in respect
of infrastructure advances
ii) An Overdraft or Cash Credit is classified as a where certain safeguards
non-performing asset, if the account remains such as escrow accounts are
“out of order”, i.e. if the outstanding balance available - 20%.
exceeds the sanctioned limit/drawing power Doubtful Assets:
continuously for a period of 90 days, or if there - Secured i. Up to one year – 25%
are no credits continuously for 90 days as on portion: ii. One to three years – 40%
the date of balance-sheet, or if the credits are iii. More than three years – 100%
not adequate to cover the interest debited - U n s e c u r e d 100%
during the same period; portion
iii) The bills purchased/discounted are classified Loss Assets: 100%.
as non-performing assets, if the bill remains 3.4 
In respect of foreign offices/entities, the
overdue for a period of more than 90 days; classification of loans and advances and provisions
iv) 
The agricultural advances are classified for NPAs are made as per the local regulations or as
as non-performing assets, if (a) for short per the norms of RBI, whichever is more prudent.
duration crops, where the instalment of 3.5 Advances are net of specific loan loss provisions,
principal or interest remains overdue for unrealised interest, ECGC claims received and
two crop seasons; and (b) for long duration bills rediscounted.
crops, where the principal or interest remains
overdue for one crop season. 3.6 
For restructured/rescheduled assets, provisions
are made in accordance with the guidelines issued
3.2 NPAs are classified into Sub-standard, Doubtful by the RBI, which require that the difference
and Loss Assets, based on the following criteria between the fair value of the loan/advances before
stipulated by RBI: and after restructuring is provided for, in addition
i) Sub-standard: A loan asset that has remained to provision for the respective loans/advances. The
non-performing for a period less than or equal Provision for Diminution in Fair Value (DFV) and
to 12 months. interest sacrifice, if any, arising out of the above, is
reduced from advances.
ii) Doubtful: A loan asset that has remained in
the sub-standard category for a period of 3.7 
In the case of loan accounts classified as NPAs,
12 months. an account may be reclassified as a performing
asset if it conforms to the guidelines prescribed by
iii) 
Loss: A loan asset where loss has been the regulators.
identified but the amount has not been fully
written off. 3.8 
Amounts recovered against debts written off in
earlier years are recognized as revenue in the year
3.3 Provisions are made for NPAs as per the extant of recovery.
guidelines prescribed by the regulatory authorities,
subject to minimum provisions as prescribed below: 3.9 
In addition to the specific provision on NPAs,
general provisions are also made for standard
assets as per extant RBI Guidelines. These

250 Annual Report 2022 – 23

 Consolidated Financials

provisions are reflected in Schedule 5 of the 6. Derivatives:

Company Overview
Balance Sheet under the head “Other Liabilities 6.1 The Bank enters in derivative contracts, such as
& Provisions – Others” and are not considered for foreign currency options, interest rate swaps,
arriving at the Net NPAs. currency swaps, cross currency interest rate swaps
3.10 
The Bank also makes additional provisions on and forward rate agreements to hedge on-Balance
specific non-performing assets. Sheet/off-Balance Sheet assets and liabilities or for
trading purposes. The swap contracts entered to
3.11 Appropriation of recoveries in NPAs are made in hedge on-Balance Sheet assets and liabilities are

Responsible Approach
order of priority as under : structured in such a way that they bear an opposite
a) Charges, Costs, Commission etc. and offsetting impact with the underlying on-
Balance Sheet items. The impact of such derivative
b) Unrealised Interest/Interest
instruments is correlated with the movement of the
c) Principal underlying assets and accounted in accordance

However, in Compromise and Resolution/ with the principles of hedge accounting.
Settlement through National Company Law

Governance
6.2 
Derivative contracts classified as hedge are
Tribunal (NCLT) cases, the recoveries are recorded on accrual basis. Hedge contracts are not
appropriated as per the terms of respective marked to market unless the underlying assets/
compromise/ resolution/ settlement. In case of liabilities are also marked to market.
suit filed accounts, recovery is appropriated as per
directives of respective courts. 6.3 E xcept as mentioned above, all other derivative
contracts are marked to market as per the Generally
4. Floating Provisions & Countercyclical Provisioning Accepted Accounting Practices prevalent in the

Statutory Reports
Buffer: industry. In respect of derivative contracts that are
marked to market, changes in the market value are
The Bank has a policy for creation and utilisation of
recognized in the Profit and Loss Account in the
Countercyclical Provisioning Buffer in good times as
period of change. Any receivable under derivative
well as for Floating Provisions separately for advances,
contracts, which remain overdue for more than
investments and general purposes. The quantum
90 days, are reversed through Profit and Loss
of Countercyclical Provisioning Buffer and Floating
Account to “Suspense Account - Crystallised

Financial Statements
Provisions to be created is assessed at the end of the
Receivables”. In cases where the derivative
financial year. These provisions are utilised only for
contracts provide for more settlement in future and
contingencies under extra ordinary circumstances
if the derivative contract is not terminated on the
specified in the policy with prior permission of Reserve
overdue receivables remaining unpaid for 90 days,
Bank of India.
the positive MTM pertaining to future receivables
is also reversed from Profit and Loss Account to
5. Provision for Country Exposure for Banking
“Suspense Account - Positive MTM”.
Entities:
In addition to the specific provisions held according to 6.4 
Option premium paid or received is recorded
the asset classification status, provisions are also made in Profit and Loss Account at the expiry of the
for individual country exposures (other than the home option. The balance in the premium received on
country). Countries are categorised into seven risk options sold and premium paid on options bought
categories, namely, insignificant, low, moderate, high, is considered to arrive at Mark to Market value for
very high, restricted and off-credit and provisioning made forex Over the Counter (OTC) options.
as per extant RBI guidelines. If the country exposure (net) 6.5 Exchange Traded Derivatives entered in for trading
of the Bank in respect of each country does not exceed purposes are valued at prevailing market rates
1% of the total funded assets, no provision is maintained based on rates given by the Exchange and the
on such country exposures. The provision is reflected resultant gains and losses are recognized in the
in Schedule 5 of the Balance Sheet under the “Other Profit and Loss Account.
Liabilities & Provisions – Others”.

251
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

7. Fixed Assets Depreciation and Amortisation: Operating lease are recognized as expense in
7.1 Fixed Assets are carried at cost less accumulated the Profit & Loss account over the lease term on
depreciation/amortisation except for freehold straight line basis.
premises carried at revalued amount, being fair 7.6 
In respect of fixed assets held at foreign offices/
value at the date of revaluation less accumulated entities, depreciation is provided as per the
depreciation, as stated otherwise. regulations/norms of the respective countries.
7.2 
Cost includes cost of purchase and all expenditure 7.7 
The Bank revalue freehold immovable assets at
such as site preparation, installation costs and every three years. The increase in Net Book Value
professional fees incurred on the asset before it of the asset due to revaluation is credited to the
is put to use. Subsequent expenditure(s) incurred Revaluation Reserve Account without routing
on the assets put to use are capitalised only when through the Profit and Loss Account. Additional
it increases the future benefits from such assets Depreciation on the revalued asset is charged to
or their functioning capability. The fixed assets the Profit and Loss Account and appropriated from
in domestic offices/entities are depreciated at the Revaluation Reserves to General Reserve. The
straight-line method based on useful life of the revalued asset is depreciated over the balance
assets states as under: useful life of the asset as assessed at the time
of revaluation.
Sr.
Description of Fixed Assets Useful life
No.
1. Computers 3 years 8. Leases:
2. Computer Software forming an 3 years 
The asset classification and provisioning norms
integral part of the computer applicable to advances, as laid down in Para 3 above,
hardware are applied to financial leases also.
3. Computer Software which does 3 years
not form an integral part of 9. Impairment of Assets:
Computer hardware and cost of
Software Development Fixed Assets are reviewed for impairment whenever
4. Automated Teller Machine/ 5 years events or changes in circumstances warrant that the
Cash Deposit Machine/ Coin carrying amount of an asset may not be recoverable.
Dispenser/ Coin Vending Recoverability of assets to be held and used is measured
Machine by a comparison of the carrying amount of an asset
5. Server 4 years to future Net Discounted Cash Flows expected to be
6. Network Equipment 5 years generated by the asset. If such assets are impaired, the
7. Other major fixed assets: impairment to be recognized is measured by the amount
Premises 60 years by which the carrying amount of the asset exceeds the
Vehicles 5 years fair value of the asset.
Safe Deposit Lockers 20 years
Furniture & Fixtures 10 years
10. Effect of changes in the foreign exchange rate:
10.1 Foreign Currency Transactions
7.3 
In respect of assets acquired during the year for
i. Foreign currency transactions are recorded
domestic operations, depreciation is charged on
on initial recognition in the reporting currency
proportionate basis for the number of days assets
by applying to the foreign currency amount
have been put to use during the year.
the exchange rate between the reporting
7.4 
Assets costing less than `1,000 each are charged currency and the foreign currency on the date
off in the year of purchase. of transaction.

7.5 
In respect of leasehold premises, the lease ii. 
Foreign currency monetary items are
premium, if any, is amortised over the period of reported using the Foreign Exchange Dealers
lease (except for premises and land on perpetual Association of India (FEDAI) closing (spot/
lease) and Lease payments for assets taken on forward) rates.

252 Annual Report 2022 – 23

 Consolidated Financials

iii. Foreign currency non-monetary items, which ii. Income and expenditure of non-integral

Company Overview
are carried at historical cost, are reported foreign operations are translated at
using the exchange rate on the date of quarterly average closing rates notified
the transaction. by FEDAI.

iv. Contingent liabilities denominated in foreign iii. 

Exchange differences arising on
currency are reported using the FEDAI closing investment in non-integral foreign
spot rates. operations are accumulated in Foreign

Responsible Approach
Currency Translation Reserve until the
v. 
Outstanding foreign exchange spot and
disposal of the investment.
forward contracts held for trading are revalued
at the exchange rates notified by FEDAI iv. 
The Assets and Liabilities of foreign
for specified maturities, and the resulting offices/ subsidiaries /joint ventures
Profit or Loss is recognized in the Profit and in foreign currency (other than local
Loss Account. currency of the foreign offices/
subsidiaries/ joint ventures) are
vi. Foreign exchange forward contracts which are

Governance
translated into local currency using spot
not intended for trading and are outstanding
rates applicable to that country on the
on the Balance Sheet date, are re-valued at
Balance Sheet date.
the closing spot rate. The premium or discount
arising at the inception of such a forward
b) Integral Operations:
exchange contract is amortised as expense or
income over the life of the contract. i. 
Foreign currency transactions are
recorded on initial recognition in the

Statutory Reports
vii. Exchange differences arising on the settlement reporting currency by applying to the
of monetary items at rates different from foreign currency amount the exchange
those at which they were initially recorded rate between the reporting currency
are recognized as income or as expense in the and the foreign currency on the date
period in which they arise. of transaction.
viii. 
Gains/Losses on account of changes in ii. 
Monetary foreign currency assets and
exchange rates of open position in currency

Financial Statements
liabilities of integral foreign operations
futures trades are settled with the exchange are translated at closing (Spot/Forward)
clearing house on daily basis and such exchange rates notified by FEDAI at the
gains/losses are recognized in the Profit and Balance Sheet date and the resulting
Loss Account. Profit/Loss is included in the Profit and
Loss Account. Contingent Liabilities are
10.2 Foreign Operations: translated at Spot rate.
Foreign Branches/ Subsidiaries/ Joint Ventures of
iii. 
Foreign currency non-monetary items
the Bank and Offshore Banking Units (OBU) have
which are carried at historical cost are
been classified as Non-integral Operations and
reported using the exchange rate on the
Representative Offices have been classified as
date of the transaction.
Integral Operations.

11. Employee Benefits:

a) Non-integral Operations:
11.1 Short Term Employee Benefits:
i. Both monetary and non-monetary foreign
currency assets and liabilities including The undiscounted amounts of short-term employee
contingent liabilities of non-integral benefits, such as medical benefits, which are
foreign operations are translated at expected to be paid in exchange for the services
closing exchange rates notified by FEDAI rendered by employees are recognized during the
at the Balance Sheet date. period when the employee renders the service.

253
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

11.2 Long-Term Employee Benefits: administered by Trustees based on an

i. Defined Benefit Plans : independent external actuarial valuation
carried out annually.
a) SBI operates a Provident Fund scheme.
All eligible employees are entitled c) SBI provides for pension to all eligible
to receive benefits under the Bank’s employees. The benefit is in the form of
Provident Fund scheme. SBI contributes monthly payments as per rules to vested
monthly at a determined rate (currently employees on retirement or on death
10% of employee’s basic pay plus while in employment, or on termination
eligible allowance). These contributions of employment. Vesting occurs at
are remitted to a Trust established for different stages as per rules. SBI makes
this purpose and are charged to Profit monthly contribution to the Pension
and Loss Account. SBI recognizes such Fund at 10% of salary in terms of SBI
annual contributions as an expense in the Employees’ Pension Fund Regulations.
year to which it relates, Shortfall, if any, is The pension liability is reckoned based
provided for based on actuarial valuation. on an independent actuarial valuation
carried out annually and SBI makes such
SBI Life Insurance Company Limited
additional contributions periodically to
makes contribution towards provident
the Fund as may be required to secure
fund, a defined benefit retirement plan.
payment of the benefits under the
The provident fund is administered by
Pension Fund Regulations.
the trustees of the SBI Life Insurance
Company Limited Employees PF Trust. d) The cost of providing defined benefits
The contribution paid or payable under is determined using the projected unit
the schemes is charged to the Profit credit method, with actuarial valuations
and Loss Account during the period being carried out at each Balance
in which the employee renders the Sheet date. Actuarial gains/losses are
related service. Further, an actuarial immediately recognized in the Profit and
valuation is conducted annually by an Loss and are not deferred.
independent actuary to recognize the
deficiency, if any, in the interest payable ii. Defined Contribution Plans:
on the contributions as compared to the SBI operates a New Pension Scheme (NPS)
interest liability as per the statutory rate. for all officers/employees joining SBI on or
b) 
The group entities operate separate after 1st  August 2010, which is a defined
Gratuity schemes, which are defined contribution plan, such new joinees not being
benefit plans. The group entities provide entitled to become members of the existing
for gratuity to all eligible employees. SBI Pension Scheme. As per the scheme,
The benefit is in the form of lump the covered employees contribute 10% of
sum payments to vested employees their basic pay plus dearness allowance to
on retirement or on death while in the scheme together with SBI’s contribution
employment, or on termination of at 14% of basic pay plus dearness allowance.
employment, for an amount equivalent Pending completion of registration
to 15 days basic salary payable for each procedures of the employees concerned,
completed year of service, subject to these contributions are retained as deposits
the cap prescribed by the Statutory in SBI and earn interest at the same rate
Authorities. Vesting occurs upon as that of the current account of Provident
completion of five years of service. SBI Fund balance. SBI recognizes such annual
makes periodic contributions to a fund contributions and interest as an expense in

254 Annual Report 2022 – 23

 Consolidated Financials

the year to which they relate. Upon receipt of accounting income for the current year and carry

Company Overview
the Permanent Retirement Account Number forward losses.
(PRAN), the consolidated contribution
Deferred tax assets and liabilities are measured using
amounts are transferred to the NPS Trust.
tax rates and tax laws that have been enacted or
substantively enacted at the Balance Sheet date. The
iii) Other Long-Term Employee benefits:
impact of changes in deferred tax assets and liabilities
a) All eligible employees of the Group are is recognized in the profit and loss account. Deferred
eligible for compensated absences, silver

Responsible Approach
tax assets are recognized and re-assessed at each
jubilee award, leave travel concession, reporting date, based upon management’s judgement as
retirement award and resettlement to whether their realisation is considered as reasonably
allowance. The cost of such long-term certain. Deferred Tax Assets are recognized on carry
employee benefits are internally funded forward of unabsorbed depreciation and tax losses
by the group entities. only if there is virtual certainty supported by convincing
b) 
The cost of providing other long- evidence that such deferred tax assets can be realised
against future profits.

Governance
term benefits is determined using
the projected unit credit method with 
In Consolidated Financial Statement, income tax
actuarial valuations being carried out at expenses are the aggregate of the amounts of tax
each Balance Sheet date. Past service expense appearing in the separate financial statements
cost, if any, is immediately recognized in of the parent and its subsidiaries/joint ventures, as per
the Profit and Loss and is not deferred. their applicable laws.
11.3 Employee benefits relating to employees employed

Statutory Reports
at foreign offices/entities are valued and accounted 14. Earnings per Share:
for as per the respective local laws/regulations. 14.1 The Bank reports basic and diluted earnings per
share in accordance with AS 20 –“Earnings per
12. Segment Reporting: Share” issued by the ICAI. Basic Earnings per
The Group recognizes the business segment as the Share are computed by dividing the Net Profit after
primary reporting segment and geographical segment Tax for the year attributable to equity shareholders
as the secondary reporting segment in accordance (other than minority) by the weighted average

Financial Statements
with the RBI guidelines and in compliance with the number of equity shares outstanding for the year.
Accounting Standard 17 issued by Institute of Chartered 14.2 Diluted Earnings per Share reflect the potential
Accountants of India. dilution that could occur if securities or other
contracts to issue equity shares were exercised
13. Taxes on income: or converted during the year. Diluted Earnings per
Income tax expense is the aggregate amount of current Share are computed using the weighted average
tax, deferred tax and fringe benefit tax expense incurred number of equity shares and dilutive potential
by the Group. The current tax expense and deferred equity shares outstanding at year end.
tax expense are determined in accordance with the
provisions of the Income Tax Act, 1961 and as per 15. Provisions, Contingent Liabilities and Contingent
Accounting Standard 22 – “Accounting for Taxes on Assets:
Income” respectively after considering taxes paid at 15.1 In conformity with AS 29, “Provisions, Contingent
the foreign offices, which are based on the tax laws Liabilities and Contingent Assets”, issued by the
of respective jurisdiction. Deferred Tax adjustments Institute of Chartered Accountants of India, the
comprises of changes in the deferred tax assets or Group recognizes provisions only when it has a
liabilities during the year. Deferred tax assets and present obligation because of a past event and
liabilities are recognized by considering the impact would result in a probable outflow of resources
of timing differences between taxable income and embodying economic benefits will be required to

255
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

settle the obligation, and when a reliable estimate impairment loss on the assets associated with
of the amount of the obligation can be made. that contract.

15.5 
Contingent Assets are not recognized in the
15.2 No provision is recognized for
financial statements.
i. any possible obligation that arises from past
events and the existence of which will be 16. Bullion Transactions:
confirmed only by the occurrence or non-
SBI imports bullion including precious metal bars on
occurrence of one or more uncertain future
a consignment basis for selling to its customers. The
events not wholly within the control of the
imports are typically on a back-to-back basis and are
group entities; or
priced to the customer based on price quoted by the
ii. any present obligation that arises from past supplier. SBI earns a fee on such bullion transactions.
events but is not recognized because The fee is classified under commission income. SBI also
accepts deposits and lends gold, which is treated as
a) 
it is not probable that an outflow of
deposits/advances as the case may be with the interest
resources embodying economic benefits
paid/received classified as interest expense/income.
will be required to settle the obligation; or
Gold Deposits, Metal Loan Advances and closing Gold
b) 
a reliable estimate of the amount of Balances are valued at available Market Rate as on the
obligation cannot be made. date of Balance Sheet.

Such obligations are recorded as Contingent

17. Special Reserves:
Liabilities. These are assessed at regular intervals
and only that part of the obligation for which an Revenue and other Reserve include Special Reserve
outflow of resources embodying economic benefits created under Section 36(i)(viii) of the Income Tax Act,
is probable, is provided for, except in the extremely 1961. The Board of Directors of the Bank has passed
rare circumstances where no reliable estimate can a resolution approving creation of the reserve and
be made. confirming that it has no intention to make withdrawal
from the Special Reserve.
15.3 
Provision for reward points in relation to the
debit card holders of SBI is being provided for on 18. Share Issue Expenses:
actuarial estimates.

Share issue expenses are charged to the Share
15.4 Provisions for onerous contracts are recognized Premium Account.
when the expected benefits to be derived by
the Bank from a contract are lower than the 19. Cash and cash equivalents:
unavoidable costs of meeting the future obligations Cash and cash equivalents include Cash and Balances
under the contract. The provision is measured with RBI, Balances with Banks and money at call and
at the present value of the lower of the expected short notice.
cost of terminating the contract and the expected
net cost of continuing with the contract. Before a
provision is established, the Bank recognizes any

256 Annual Report 2022 – 23

Consolidated Financials

SCHEDULE 18 - NOTES TO ACCOUNTS:

Company Overview
1. List of Subsidiaries/ Joint Ventures/ Associates considered for preparation of consolidated financial
statements:
1.1 The 27 Subsidiaries, 8 Joint ventures (including Jio Payments Bank Ltd. up to 22nd January 2023) and 19 Associates
including 14 Regional Rural Banks from/up to respective dates of merger/exit during the year (which along with State Bank
of India, the parent, constitute the Group), considered in the preparation of the consolidated financial statements, are:

Responsible Approach
A. Subsidiaries:
Group’s Stake (%)
Sr. Country of
Name of the Subsidiary Current Year Previous Year
No. incorporation
1. SBI Capital Markets Ltd. India 100.00 100.00
2. SBICAP Securities Ltd. India 100.00 100.00

Governance
3. SBICAP Trustee Company Ltd. India 100.00 100.00
4. SBICAP Ventures Ltd. India 100.00 100.00
5. SBICAP (Singapore) Ltd. (up to 30.11.2022) Singapore 100.00 100.00
6. SBI DFHI Ltd. India 72.17 72.17
7. SBI Global Factors Ltd. India 100.00 86.18
8. SBI Infra Management Solutions Pvt. Ltd. (up to 30.09.2022) India 100.00 100.00

Statutory Reports
9. SBI Mutual Fund Trustee Company Pvt. Ltd. India 100.00 100.00
10. SBI Payment Services Pvt. Ltd. @
India 74.00 74.00
11. SBI Pension Funds Pvt. Ltd. India 92.51 92.52
12. State Bank Operations Support Services Pvt. Ltd. (w.e.f. 26.07.2022) India 100.00 -
13. SBI Life Insurance Company Ltd. India 55.45 55.48
14. SBI General Insurance Company Ltd. India 69.95 69.96

Financial Statements
15. SBI Cards and Payment Services Ltd. India 68.98 69.20
16. SBI–SG Global Securities Services Pvt. Ltd.@ India 65.00 65.00
17. SBI Funds Management Ltd. @
India 62.53 62.59
18. SBI Funds Management (International) Private Ltd.@ Mauritius 62.53 62.59
19. Commercial Indo Bank Llc , Moscow Russia 100.00 60.00
20. SBI Canada Bank Canada 100.00 100.00
21. State Bank of India (California) USA 100.00 100.00
22. State Bank of India (UK) Limited UK 100.00 100.00
23. State Bank of India Servicos Limitada Brazil 100.00 100.00
24. SBI (Mauritius) Ltd. Mauritius 96.60 96.60
25. PT Bank SBI Indonesia Indonesia 99.56 99.34
26. Nepal SBI Bank Ltd. Nepal 55.00 55.00
27. Nepal SBI Merchant Banking Limited Nepal 55.00 55.00
@
Represents companies which are jointly controlled entities in terms of the shareholders’ agreement. However, the same are consolidated as
subsidiaries in accordance with AS 21 “Consolidated Financial Statements” as SBI’s holding in these companies exceeds 50%.

257
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

B. Joint Ventures:
Group’s Stake (%)
Sr. Country of
Name of the Joint Venture Current Year Previous Year
No. Incorporation
1. C - Edge Technologies Ltd. India 49.00 49.00
2. SBI Macquarie Infrastructure Management Pvt. Ltd. India 45.00 45.00
3. SBI Macquarie Infrastructure Trustee Pvt. Ltd. India 45.00 45.00
4. Macquarie SBI Infrastructure Management Pte. Ltd. Singapore 45.00 45.00
5. Macquarie SBI Infrastructure Trustee Ltd. Bermuda 45.00 45.00
6. Oman India Joint Investment Fund – Management Company Pvt. Ltd. India 50.00 50.00
7. Oman India Joint Investment Fund – Trustee Company Pvt. Ltd. India 50.00 50.00
8. Jio Payments Bank Ltd. (up to 22.01.2023) India -* 30.00

* From 23.01.2023, Jio Payments Bank Ltd. becomes an associate of SBI.

C. Associates:
Group’s Stake (%)
Sr. Name of the Associate Country of
Current Year Previous Year
No. Incorporation
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. Madhyanchal Gramin Bank India 35.00 35.00
6. Meghalaya Rural Bank India 35.00 35.00
7. Mizoram Rural Bank India 35.00 35.00
8. Nagaland Rural Bank India 35.00 35.00
9. Saurashtra Gramin Bank India 35.00 35.00
10. Utkal Grameen Bank India 35.00 35.00
11. Uttarakhand Gramin Bank India 35.00 35.00
12. Jharkhand Rajya Gramin Bank India 35.00 35.00
13. Rajasthan Marudhara Gramin Bank India 35.00 35.00
14. Telangana Grameena Bank India 35.00 35.00
15. The Clearing Corporation of India Ltd. India 20.05 20.05
16. Yes Bank Ltd. India 26.14 30.00
17. Bank of Bhutan Ltd. Bhutan 20.00 20.00
18. Investec Capital Services (India) Private Limited India 19.70 19.70
19. Jio Payments Bank Ltd. (w.e.f. 23.01.2023) India 23.02 -

a) Pursuant to exercise of options under the approved Employee Stock Option Plan (ESOP), following group entities have
issued equity shares to their eligible employees:-

i) SBI Cards and Payment Services Limited has allotted 29,01,900 equity shares of `10 each during the year ended
31st  March 2023. Consequently, the stake of SBI in SBI Cards and Payment Services Limited has reduced from
69.20% to 68.98%.

258 Annual Report 2022 – 23

 Consolidated Financials

ii) SBI Life Insurance Company Limited has allotted 5,24,197 equity shares of `10 each during the year ended 31st March

Company Overview
2023. Consequently, the stake of SBI in SBI Life Insurance Company Limited has reduced from 55.48% to 55.45%.

iii) SBI Funds Management Limited has allotted 4,18,641 equity shares of `1 each during the year ended 31st March
2023. Consequently, the stake of SBI in SBI Funds Management Limited has reduced from 62.59% to 62.53% and the
stake of SBI Group in SBI Funds Management (International) Private Limited and SBI Pension Funds Private Limited
has reduced from 62.59% and 92.52% to 62.53% and 92.51% respectively.

iv) SBI General Insurance Company Limited has allotted 30,000 equity shares of `10 each during the year ended

Responsible Approach
31st  March 2023. Consequently, the stake of SBI in SBI General Insurance Company Limited has reduced from
69.96% to 69.95%.

v) Yes Bank Limited has allotted 36,66,651 equity shares of `2 each during the year ended 31st March 2023.

b) State Bank Operations Support Services Pvt. Ltd. has been incorporated on 26th July 2022 as a wholly-owned subsidiary.
The Company provides operation support services for Agriculture/MSME and other Micro Loans including activities
permissible to business correspondents, to the Bank which will help to improve the customer connect and business focus

Governance
of the branches of the Bank.

c) During the year ended 31st March 2023, SBI has acquired additional stake in the following:

i) 13.82% stake in SBI Global Factors Limited making it a wholly-owned subsidiary.

ii) 40.00% stake in Commercial Indo Bank LLC, Moscow making it a wholly-owned subsidiary.

d) During the year ended 31st March 2023, SBI has infused an additional capital of `530.49 Crore in PT Bank SBI Indonesia,

Statutory Reports
a subsidiary. Consequently, SBI’s stake has increased from 99.34% to 99.56%.

e) During the year ended 31st March 2023, SBI’s stake has reduced in the following entities:

i) Yes Bank Ltd., an associate, has allotted 369,61,55,702 equity shares on preferential basis to other investors.
Consequently, SBI’s stake has reduced from 30.00% to 26.14%.

ii) Jio Payments Bank Ltd., a joint venture, has offered right issue of its equity shares in which SBI did not participate.
Consequently, SBI’s stake has reduced from 30.00% to 23.02% and Jio Payments Bank Ltd. becomes an associate

Financial Statements
of SBI.

f) SBICAP (Singapore) Limited, a wholly-owned step-down subsidiary of SBI has been dissolved on 30th November 2022.

g) SBI Infra Management Solutions Private Limited, wholly-owned subsidiary of SBI has been under liquidation from
FY 2021‑22 and full provision for its investment has been made during the quarter ended 30th September 2022. Accordingly,
it has been excluded from consolidation in preparation of Consolidated Financial Statements from 1st October 2022.

h) SBI Home Finance Ltd., an associate in which the Group is having 26% stake, is under liquidation and therefore, not being
considered for consolidation in preparation of Consolidated Financial Statements as per Accounting Standard 21.

i) As SBI Foundation is a Not-for-Profit Company [incorporated under Section 7(2) of Companies Act, 2013], SBI Foundation
is not being considered for consolidation in preparation of Consolidated Financial statements as per Accounting
Standard 21.

1.2 The consolidated financial statements for the financial year 2022-23 of the Group include unaudited financial statements
of one subsidiary (SBI Canada Bank) & one associate (Bank of Bhutan Ltd.) the results of which are not material.

259
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

2. Disclosures as per Accounting Standards

2.1 Accounting Standard 5 – “Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting
Policies”
y During the year, there were no material prior period income/expenditure items.
y There is no change in the Significant Accounting Policies adopted during the Financial Year 2022-2023 as compared to
those followed in the previous Financial Year 2021-2022.

2.2 Accounting Standard - 15 “Employee Benefits”:

2.2.1 Defined Benefit Plans
2.2.1.1 Employee’s Pension Plans and Gratuity Plans
 he following table sets out the status of the Defined Benefit Pension Plans and Gratuity Plan as required under AS 15 (Revised
T
2005):
(` in Crore)
Pension Plans Gratuity Plans
Particulars
Current Year Previous Year Current Year Previous Year
Change in the present value of the defined benefit
obligation
Opening defined benefit obligation at 1st April 2022 1,46,124.99 1,25,806.37 13,035.01 13,727.65
Current Service Cost 972.83 914.92 499.72 499.18
Interest Cost 10,740.19 8,680.64 943.85 933.40
Past Service Cost (Vested Benefit) - 11,124.14 - 8.35
Liability pertains to outgoing Joint Venture - - (0.27) -
Actuarial losses/(gains) 9,824.44 9,789.06 66.56 46.35
Benefits paid (4,848.06) (4,926.71) (1,785.10) (2,179.92)
Direct Payment by SBI (5,848.13) (5,263.43) - -
Closing defined benefit obligation at 31 March 2023
st
1,56,966.26 1,46,124.99 12,759.77 13,035.01
Change in Plan Assets
Opening fair value of plan assets at 1st April 2022 1,30,590.73 1,06,445.86 11,222.46 11,210.84
Expected Return on Plan assets 9,598.42 7,344.76 812.65 762.11
Contributions by employer 2,171.59 22,163.77 1,486.86 1,504.26
Expected Contribution by the employees 0.10 - - -
Benefits Paid (4,848.06) (4,926.71) (1,785.10) (2,179.92)
Actuarial Gains/(Losses) on plan assets (4,364.24) (436.95) (339.00) (74.83)
Closing fair value of plan assets at 31 March 2023
st
1,33,148.54 1,30,590.73 11,397.87 11,222.46
Reconciliation of present value of the obligation and
fair value of the plan assets
Present Value of funded obligation at 31st March 2023 1,56,966.26 1,46,124.99 12,759.77 13,035.01
Fair Value of plan assets at 31 March 2023
st
1,33,148.54 1,30,590.73 11,397.87 11,222.46
Deficit/(Surplus) 23,817.72 15,534.26 1,361.90 1,812.55
Unrecognized Past Service Cost (Vested) Closing Balance - - - -
Unrecognized Transitional Liability Closing Balance - - - -
Net Liability/(Asset ) 23,817.72 15,534.26 1,361.90 1,812.55

260 Annual Report 2022 – 23

Consolidated Financials

(` in Crore)

Company Overview
Pension Plans Gratuity Plans
Particulars
Current Year Previous Year Current Year Previous Year
Amount Recognised in the Balance Sheet
Liabilities 1,56,966.26 1,46,124.99 12,759.77 13,035.01
Assets 1,33,148.54 1,30,590.73 11,397.87 11,222.46
Net Liability/(Asset) recognized in Balance Sheet 23,817.72 15,534.26 1,361.90 1,812.55

Responsible Approach
Unrecognized Past Service Cost (Vested) Closing Balance - - - -
Unrecognized Transitional Liability Closing Balance - - - -
Net Liability/(Asset) 23,817.72 15,534.26 1,361.90 1,812.55
Net Cost recognized in the profit and loss account
Current Service Cost 972.83 914.92 499.72 499.18
Interest Cost 10,740.19 8,680.64 943.85 933.40

Governance
Expected return on plan assets (9,598.42) (7,344.76) (812.65) (762.11)
Expected Contributions by the employees (0.10) - - -
Past Service Cost (Amortised) Recognised - - - -
Past Service Cost (Vested Benefits) Recognised - 11,124.14 8.35
Net Actuarial Losses/(Gains) recognized during the year 14,188.68 10,226.01 405.56 121.18
Total costs of defined benefit plans included in 16,303.18 23,600.95 1,036.48 800.00

Statutory Reports
Schedule 16 “Payments to and provisions for
employees”
Reconciliation of expected return and actual return
on Plan Assets
Expected Return on Plan Assets 9,598.42 7,344.76 812.65 762.11
Actuarial Gains/(Losses) on Plan Assets (4,364.24) (436.95) (339.00) (74.83)
Actual Return on Plan Assets 5,234.18 6,907.81 473.65 687.28

Financial Statements
Reconciliation of opening and closing net liability/
(asset) recognized in Balance Sheet
Opening Net Liability/(Asset) as at 1st April 2022 15,534.26 19,360.51 1,812.55 2,516.81
Expenses as recognized in profit and loss account 16,303.18 23,600.95 1,036.48 800.00
Paid by SBI Directly (5,848.13) (5,263.43) - -
Debited to Other Provision - - - -
Recognised in Reserve - - - -
Liability pertaining to outgoing Joint Venture - - (0.27) -
Employer’s Contribution (2,171.59) (22,163.77) (1,486.86) (1,504.26)
Net liability/(Asset) recognized in Balance Sheet 23,817.72 15,534.26 1,361.90 1,812.55

261
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

Investments under Plan Assets of Gratuity Fund & Pension Fund as on 31st March 2023 are as follows:
Pension Fund Gratuity Fund
Category of Assets
% of Plan Assets % of Plan Assets
Central Govt. Securities 19.11% 18.50%
State Govt. Securities 35.14% 34.21%
Debt Securities, Money Market Securities and Bank Deposits 30.85% 28.50%
ETF and Mutual Funds 11.61% 10.67%
Insurer Managed Funds 1.17% 6.12%
Others 2.12% 2.00%
Total 100.00% 100.00%

Principal actuarial assumptions:

Pension Plans
Particulars
Current year Previous year
Discount Rate 7.53% 7.35%
Expected Rate of return on Plan Asset 7.53% 7.35%
Salary Escalation Rate 6.00% 5.80%
Pension Escalation Rate 2.00% 1.60%
Attrition Rate 2.00% 2.00%

Gratuity Plans
Particulars
Current year Previous year
Discount Rate 7.48% 7.27%
Expected Rate of return on Plan Asset 7.48% 7.27%
Salary Escalation Rate 6.00% 5.80%
Attrition Rate 2.00% 2.00%

The expected contribution to the Pension and Gratuity fund for the next year is `2,200.00 Crore and `1,852.10 Crore respectively.

In case of SBI, as the plan assets are marked to market on the basis of the yield curve derived from government securities, the
expected rate of return has been kept the same as the discount rate.

The estimates of future salary growth, factored in actuarial valuation, take account of inflation, seniority, promotion and other
relevant factors such as supply and demand in the employment market. Such estimates are very long-term and are not based
on limited past experience/ immediate future. Empirical evidence also suggests that in the very long-term, consistent high
salary growth rates are not possible. The said estimates and assumptions have been relied upon by the auditors.

With a view to further strengthen the Pension Fund, it was decided to upwardly revise some of the assumptions.

262 Annual Report 2022 – 23

Consolidated Financials

2.2.1.2 Employees Provident Fund

Company Overview
Actuarial valuation carried out in respect of interest shortfall in Provident Fund Trust shows “Nil” liability, hence no provision
is made in FY2022-23.

The following table sets out the status of Provident Fund as per the actuarial valuation by the independent Actuaries:
(` in Crore)
Provident Fund
Particulars
Current Year Previous Year

Responsible Approach
Change in the present value of the defined benefit obligation
Opening defined benefit obligation at 1st April 2022 37,507.53 35,946.22
Current Service Cost 1,519.50 1,527.66
Interest Cost 2,825.03 2,976.21
Employee Contribution (including VPF) 2,038.86 2,037.09
Actuarial losses/(gains) 1.00 150.44

Governance
Benefits paid (4,753.75) (5,130.09)
Closing defined benefit obligation at 31 March 2023
st
39,138.17 37,507.53
Change in Plan Assets
Opening fair value of Plan Assets as at 1st April 2022 38,426.83 37,036.39
Expected Return on Plan Assets 2,820.87 2,976.21
Contributions 3,558.36 3,564.74

Statutory Reports
Provision for loss on maturity of non-performing investment - -
Benefits Paid (4,753.75) (5,130.09)
Actuarial Gains/(Loss) on plan Assets 70.40 (20.42)
Closing fair value of plan assets as at 31st March 2023 40,122.71 38,426.83
Reconciliation of present value of the obligation and fair value of the plan assets
Present Value of Funded obligation at 31st March 2023 39,138.17 37,507.53

Financial Statements
Fair Value of Plan assets at 31 March 2023
st
40,122.71 38,426.83
Deficit/(Surplus) (984.54) (919.30)
Net Asset not recognized in Balance Sheet 984.54 919.30
Net Cost recognized in the profit and loss account
Current Service Cost 1,519.50 1,527.66
Interest Cost 2,825.03 2,976.21
Expected return on plan assets (2,820.87) (2,976.21)
Interest shortfall reversed - -
Total costs of defined benefit plans included in Schedule 16 "Payments to and 1,523.66 1,527.66
provisions for employees"
Reconciliation of opening and closing net liability/ (asset) recognized in Balance
Sheet
Opening Net Liability as at 1st April 2022 - -
Expense as above 1,523.66 1,527.66
Employer's Contribution (1,523.66) (1,527.66)
Net Liability/(Asset) Recognised in the Balance Sheet - -

263
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

Investments under Plan Assets of Provident Fund as on 31st March 2023 are as follows:
Provident Fund
Category of Assets % of Plan Assets
Central Govt. Securities 28.31%
State Govt. Securities 31.70%
Debt Securities, Money Market Securities and Bank Deposits 30.23%
ETF and Mutual Funds 6.83%
Others 2.93%
Total 100.00%

Principal actuarial assumptions

Provident Fund
Particulars
Current year Previous year
Discount Rate 7.48% 7.27%
Guaranteed Return 8.10% 8.50%
Attrition Rate 2.00% 2.00%
Salary Escalation 6.00% 5.80%

i) There is a guaranteed return applicable to liability under SBI Employees Provident Fund which shall not be lower of either:

a) one half percent above the average standard rate (adjusted up or down to the interest one quarter per cent) quoted
by SBI for new deposits fixed for twelve months in the preceding year (ending on the preceding the 31st day of
March); or

b) three percent per annum, subject to approval of Executive Committee.

ii) The rules of the SBI Life Insurance Company Ltd.’s Provident Fund administered by a Trust require that if the Board of
Trustees are unable to pay interest at the rate declared for Employees’ Provident Fund by the Government under para 60 of
the Employees’ Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason,
then the deficiency shall be made good by the Company.

2.2.2 Defined Contribution Plans

2.2.2.1 Employees Provident Fund
 n amount of `48.57 Crore (Previous Year `56.65 Crore) is contributed towards the Provident Fund Scheme by the group
A
(excluding the entities covered in Note 2.2.1.2) and is included under the head “Payments to and provisions for employees” in
Profit and Loss Account.

2.2.2.2 Defined Contribution Pension Scheme

 BI has a Defined Contribution Pension Scheme (DCPS) applicable to all categories of officers and employees joining SBI on or
S
after 1st August 2010. The Scheme is managed by NPS Trust under the aegis of the Pension Fund Regulatory and Development
Authority. National Securities Depository Limited has been appointed as the Central Record Keeping Agency for the NPS.
During FY2022-23, SBI has contributed `1,296.27 Crore (Previous Year `1,177.54 Crore).

264 Annual Report 2022 – 23

Consolidated Financials

2.2.2.3 The following amount is provided by the group (excluding SBI) towards Defined Contribution Plans:

Company Overview
(` in Crore)
Sr.
Long-Term Employees’ Benefits Current Year Previous Year
No.
1. Employee Pension Scheme under PF Act 37.39 35.53
2. National Pension System 16.84 7.92
3. Others 13.25 10.40

Responsible Approach
Total 67.48 53.85

2.2.3 Long-Term Employee Benefits (Unfunded Obligation):

2.2.3.1 Accumulating Compensated Absences (Privilege Leave)
The following table sets out the status of Accumulating Compensated Absences (Privilege Leave) as per Actuarial valuation by
independent Actuaries:

Governance
(` in Crore)
Accumulating Compensated
Particulars Absences (Privilege Leave)
Current Year Previous Year
Change in the present value of the defined benefit obligation
Opening defined benefit obligation at 1st April 2022 10,381.62 8,190.87
Current Service Cost 330.20 458.65

Statutory Reports
Interest Cost 754.41 558.35
Liability pertains to outgoing Joint Venture (0.19) -
Actuarial losses/(gains) 749.41 2,571.66
Benefits paid (1,137.13) (1,397.91)
Closing defined benefit obligation at 31 March 2023
st
11,078.32 10,381.62
Net Cost recognized in the profit and loss account

Financial Statements
Current Service Cost 330.20 458.65
Interest Cost 754.41 558.35
Actuarial (Gain)/Losses 749.41 2,571.66
Total costs of defined benefit plans included in Schedule 16 "Payments to and provisions 1,834.02 3,588.66
for employees"
Reconciliation of opening and closing net liability/(asset) recognized in Balance
Sheet
Opening Net Liability as at 1st April 2022 10,381.62 8,190.87
Expense as above 1,834.02 3,588.66
Liability pertains to outgoing Joint Venture (0.19) -
Employer's Contribution - -
Benefit paid directly by the Employer (1,137.13) (1,397.91)
Net Liability/(Asset) recognized in the Balance Sheet 11,078.32 10,381.62

265
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

Principal actuarial assumptions:

Particulars Current Year Previous Year
Discount Rate 7.48% 7.27%
Salary Escalation 6.00% 5.80%
Attrition Rate 2.00% 2.00%

Accumulating Compensated Absences (Privilege Leave) (excluding the entities covered in above table)
An amount of `45.39 Crore (Previous Year `32.19 Crore) is provided by the group (excluding the entities covered in above table)
towards Privilege Leave (Encashment) including leave encashment at the time of retirement and is included under the head
“Payments to and provisions for employees” in Profit and Loss Account.

2.2.3.2 Other Long-Term Employee Benefits

Amount of `28.68 Crore (Previous Year `114.39 Crore) is provided by the group towards Other Long-Term Employee
Benefits viz. Leave Travel and Home Travel Concession (Encashment/Availment), Silver Jubilee/Long-Term Service Award,
Resettlement Expenses on Superannuation and Retirement Award and is included under the head “Payments to and provisions
for employees” in Profit and Loss Account.

2.2.4 The employee benefits listed above are in respect of the employees of the Group based in India. The employees of the
foreign operations are not covered in the above schemes.

2.3 Accounting Standard- 17 “Segment Reporting”:

2.3.1 Segment identification
A) Primary (Business Segment)
The following are the Primary Segments of the Group:

y Treasury
y Corporate/Wholesale Banking
y Retail Banking
y Insurance Business
y Other Banking Business

The present accounting and information system of the Group does not support capturing and extraction of the data in
respect of the above segments separately. However, based on the present internal, organisational and management
reporting structure and the nature of their risk and returns, the data on the Primary Segments have been computed
as under:

a) Treasury: The Treasury Segment includes the entire investment portfolio and trading in foreign exchange
contracts and derivative contracts. The revenue of the treasury segment primarily consists of fees and gains or
losses from trading operations and interest income on the investment portfolio.

b) Corporate/Wholesale Banking: The Corporate/Wholesale Banking segment comprises the lending activities
of Corporate Accounts Group, Commercial Clients Group and Stressed Assets Resolution Group. These include
providing loans and transaction services to corporate and institutional clients and further include non-treasury
operations of foreign offices/entities.

c) Retail Banking: The Retail Banking Segment comprises of retail branches, which primarily includes Personal
Banking activities including lending activities to corporate customers having banking relations with these
branches. This segment also includes agency business and ATMs

266 Annual Report 2022 – 23

 Consolidated Financials

d) Insurance Business: The Insurance Business Segment comprises of the results of SBI Life Insurance Co. Ltd.

Company Overview
and SBI General Insurance Co. Ltd.

e) Other Banking Business: Segments not classified under (a) to (d) above are classified under this primary
segment. This segment also includes the operations of all the Non-Banking Subsidiaries/Joint Ventures other
than SBI Life Insurance Co. Ltd. and SBI General Insurance Co. Ltd. of the group.

B) Secondary (Geographical Segment):

Responsible Approach
a) Domestic Operations - Branches, Subsidiaries and Joint Ventures having operations in India.

b) Foreign Operations - Branches, Subsidiaries and Joint Ventures having operations outside India and offshore
banking units having operations in India.

C) Pricing of Inter-segmental Transfers

The Retail Banking segment is the primary resource mobilising unit. The Corporate/Wholesale Banking and Treasury
segments are recipient of funds from Retail Banking. Market related Funds Transfer Pricing (MRFTP) is followed

Governance
under which a separate unit called Funding Centre has been created. The Funding Centre notionally buys funds that
the business units raise in the form of deposits or borrowings and notionally sell funds to business units engaged in
creating assets.

D) Allocation of Revenue, Expenses, Assets and Liabilities

Expenses of parent incurred at Corporate Centre establishments directly attributable either to Corporate/Wholesale

Statutory Reports
and Retail Banking Operations or to Treasury Operations segment, are allocated accordingly. Expenses not directly
attributable are allocated on the basis of the ratio of number of employees in each segment/ratio of directly
attributable expenses.
The Group has certain common assets and liabilities, which cannot be attributed to any segment, and the same are
treated as unallocated.

Financial Statements

267
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

2.3.2 Segment Information

Part A: Primary (Business) Segments:
(` in Crore)
Corporate/ Retail Banking Other
Insurance
Business Segment Treasury Wholesale Digital Other Retail Banking Total
Total Business
Banking Banking Banking Operations
Revenue (before 1,01,804.55 1,00,160.24 3,766.65 1,63,755.15 1,67,521.80 86,451.82 21,144.92 4,77,083.33
exceptional item) (99,649.80) (75,675.43) (1,38,896.25) (76,586.87) (16,726.04) (4,07,534.39)
Unallocated Revenue 1,861.43
(3,155.89)
Less: Inter Segment 5,566.62
Revenue (3,717.19)
Total Revenue 4,73,378.14
(4,06,973.09)
Result (before 8,986.94 29,488.58 4,841.14 28,688.65 33,529.79 2,144.03 5,683.39 79,832.73
exceptional items) (13,055.52) (27,037.39) (12,333.19) (1,904.29) (5,022.31) (59,352.70)
Add: Exceptional -
items (- 7,418.39)
Result (after 79,832.73
exceptional items) (51,934.31)
Unallocated -4,434.17
Income(+)/ (- 2,195.68)
Expenses(–) net
Profit/(Loss) Before 75,398.56
Tax (49,738.63)
Taxes 18,840.13
(13,382.46)
Extraordinary Profit -
(-)
Net Profit/(Loss) 56,558.43
before share in profit (36,356.17)
in Associates and
Minority Interest
Add: Share in Profit 1,191.45
in Associates (827.01)
Less: Minority 2,101.71
Interest (1,809.30)
Net Profit/(Loss) for 55,648.17
the Group (35,373.88)
Other Information:
Segment Assets 16,68,038.09 15,16,712.53 53,547.82 22,63,602.63 23,17,150.45 3,28,479.47 75,611.18 59,05,991.72
(16,11,406.25) (13,26,995.56) (20,27,135.23) (2,85,210.54) (58,894.25) (53,09,641.83)
Unallocated Assets 48,426.60
(51,241.70)
Total Assets 59,54,418.32
(53,60,883.53)
Segment Liabilities 15,04,440.73 14,82,813.40 4,90,828.11 15,82,465.81 20,73,293.92 3,12,350.22 54,507.60 54,27,405.87
(14,56,533.68) (12,93,294.16) (18,65,708.05) (2,70,570.71) (41,562.93) (49,27,669.53)
Unallocated 1,68,081.13
Liabilities (1,27,625.95)
Total Liabilities 55,95,487.00
(50,55,295.48)

(i) Income/Expenses are for the whole year. Assets/Liabilities are as at March 31, 2023.

(ii) Figures within brackets are for previous year.

268 Annual Report 2022 – 23

Consolidated Financials

Part B: Secondary (Geographic) Segments

Company Overview
(` in Crore)
Domestic Foreign Total
Current Year Previous Year Previous Year Previous Year Previous Year Previous Year
Revenue (before 4,49,068.78 3,95,564.85 24,309.36 11,408.24 4,73,378.14 4,06,973.09
exceptional items) #
Net Profit # 48,467.92 31,153.99 7,180.25 4,219.89 55,648.17 35,373.88
Assets * 52,80,381.11 47,74,622.21 6,74,037.21 5,86,261.32 59,54,418.32 53,60,883.53

Responsible Approach
Liabilities * 49,31,129.80 44,77,321.28 6,64,357.20 5,77,974.20 55,95,487.00 50,55,295.48
#For the year ended 31st March 2023.

*As at 31st March 2023.

As per RBI Circular DOR. AUT.REC.12/22.01.001/2022-23 dated 7th April 2022, for the purpose of disclosure under Accounting
Standard 17 Segment Reporting “Digital Banking” has been identified as a sub-segment under the “Retail Banking Segment”.

Governance
2.4 Accounting Standard-18 “Related Party Disclosures”:
2.4.1 Related Parties to the Group:
A. JOINT VENTURES:
1. C - Edge Technologies Ltd.
2. SBI Macquarie Infrastructure Management Pvt. Ltd.
3. SBI Macquarie Infrastructure Trustee Pvt. Ltd.

Statutory Reports
4. Macquarie SBI Infrastructure Management Pte. Ltd.
5. Macquarie SBI Infrastructure Trustee Ltd.
6. Oman India Joint Investment Fund – Management Company Pvt. Ltd.
7. Oman India Joint Investment Fund – Trustee Company Pvt. Ltd.
8. Jio Payments Bank Limited (up to 22.01.2023)

Financial Statements
B. ASSOCIATES:
i) Regional Rural Banks
1. Andhra Pradesh Grameena Vikas Bank
2. Arunachal Pradesh Rural Bank
3. Chhattisgarh Rajya Gramin Bank
4. Ellaquai Dehati Bank
5. Madhyanchal Gramin Bank
6. Meghalaya Rural Bank
7. Mizoram Rural Bank
8. Nagaland Rural Bank
9. Saurashtra Gramin Bank
10.
Utkal Grameen Bank
11.
Uttarakhand Gramin Bank
12. Jharkhand Rajya Gramin Bank
13. Rajasthan Marudhara Gramin Bank
14.
Telangana Grameena Bank

269
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

ii) Others
1. The Clearing Corporation of India Ltd.
2. Bank of Bhutan Ltd.
3. Yes Bank Ltd.
4. Investec Capital Services (India) Private Limited
5. Jio Payments Bank Limited (w.e.f. 23.01.2023)
6. SBI Home Finance Ltd. (under liquidation)

C. KEY MANAGEMENT PERSONNEL OF SBI:

1. Shri Dinesh Kumar Khara, Chairman
2. Shri Challa Sreenivasulu Setty, Managing Director
3. Shri Ashwani Bhatia, Managing Director (up to 31.05.2022)
4. Shri Swaminathan Janakiraman, Managing Director
5. Shri Ashwini Kumar Tewari, Managing Director
6. Shri Alok Kumar Choudhary, Managing Director (w.e.f. 07.06.2022)

2.4.2 R
 elated Parties with whom transactions were entered into during the year:
No disclosure is required in respect of related parties, which are “State controlled Enterprises” as per paragraph 9 of Accounting
Standard (AS) 18. Further, in terms of paragraph 5 of AS 18, transactions in the nature of Banker‑Customer relationship have
not been disclosed including those with Key Management Personnel and relatives of Key Management Personnel.

2.4.3 Transactions and Balances:

(` in Crore)
Key Key
Associates/ Associates/
Management Management
Particulars Joint Total Joint Total
Personnel & Personnel &
Ventures Ventures
their relatives their relatives
Outstanding as at 31st March 2023 31st March 2022
Borrowings - - - - - -
Deposit 4,943.47 - 4,943.47 834.90 - 834.90
Other Liabilities 68.52 - 68.52 11.66 - 11.66
Balance with Banks and Money at call 0.25 - 0.25 0.39 - 0.39
and short notice
Advance 1,007.14 - 1,007.14 856.50 - 856.50
Investment 8,032.79 - 8,032.79 10,667.36 - 10,667.36
Other Assets 271.97 - 271.97 307.17 - 307.17
Non-fund commitments (LCs/BGs) 22.53 - 22.53 - - -
Maximum outstanding During FY 2022-23 During FY 2021-22
Borrowings - - - - - -
Deposit 5,271.03 - 5,271.03 1,352.93 - 1,352.93
Other Liabilities 68.56 - 68.56 14.60 - 14.60
Balance with Banks and Money at call 2.72 - 2.72 636.41 - 636.41
and short notice
Advance 1,152.51 - 1,152.51 2,218.52 - 2,218.52
Investment 11,063.92 - 11,063.92 12,817.93 - 12,817.93
Other Assets 527.57 - 527.57 487.67 - 487.67
Non-fund commitments (LCs/BGs) 22.53 - 22.53 2,935.10 - 2,935.10

270 Annual Report 2022 – 23

Consolidated Financials

(` in Crore)

Company Overview
Key Key
Associates/ Associates/
Management Management
Particulars Joint Total Joint Total
Personnel & Personnel &
Ventures Ventures
their relatives their relatives
During the year During FY 2022-23 During FY 2021-22
Interest Income 116.66 - 116.66 213.01 - 213.01
Interest expenditure 80.69 - 80.69 31.48 - 31.48

Responsible Approach
Income earned by way of dividend 21.37 - 21.37 21.90 - 21.90
Other Income 3.80 - 3.80 6.18 - 6.18
Other expenditure 30.97 - 30.97 24.16 - 24.16
Profit/(loss) on sale of land/building and 0.91 - 0.91 (0.83) - (0.83)
other assets
Management contracts - 2.21 2.21 - 1.63 1.63
There are no materially significant related party transactions during the year.

Governance
2.5 Accounting Standard-19 “Leases”:
2.5.1 Finance Leases
Assets taken on Financial Leases on or after 1st April 2001:
The details of financial leases are given below:
(` in Crore)

Statutory Reports
As at As at
Particulars
31.03.2023 31.03.2022
Total Minimum lease payments outstanding
Less than 1 year 75.21 66.04
1 to 5 years 233.10 140.00
5 years and above 49.63 56.83
Total 262.87

Financial Statements
357.94
Interest Cost payable
Less than 1 year 21.95 11.61
1 to 5 years 38.63 20.83
5 years and above 7.97 11.75
Total 68.55 44.19
Present value of minimum lease payments payable
Less than 1 year 53.26 54.43
1 to 5 years 194.47 119.17
5 years and above 41.66 45.08
Total 289.39 218.68

271
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

2.5.2 Operating Lease

Premises taken on operating lease are given below:
Operating leases primarily comprise office premises and staff residences, which are renewable at the option of the group entities.

Liability for Premises taken on Non-Cancellable operating lease are given below:
(` in Crore)
As at As at
Particulars
31.03.2023 31.03.2022
Not later than 1 year 126.19 172.58
Later than 1 year and not later than 5 years 272.86 279.17
Later than 5 years 163.27 183.89
Total 562.32 635.64

Amount of lease payments recognized in the Profit & Loss Account for the year is `4,376.74 Crore (Previous Year `4,134.88 Crore).

2.6 Accounting Standard - 20 “Earnings per Share”:

 he Bank reports basic and diluted earnings per equity share in accordance with Accounting Standard 20 - “Earnings per
T
Share”. “Basic earnings” per share is computed by dividing consolidated net profit/ (loss) after tax (other than minority) by the
weighted average number of equity shares outstanding during the year.

Particulars Current Year Previous Year

Basic and diluted
Number of Equity Shares outstanding at the beginning of the year 892,46,11,534 892,46,11,534
Number of Equity Shares issued during the year 400 Nil
Number of Equity Shares outstanding at the end of the year 892,46,11,934 892,46,11,534
Weighted average number of equity shares used in computing basic earnings per share 892,46,11,707 892,46,11,534
Weighted average number of shares used in computing diluted earnings per share 892,46,11,707 892,46,11,534
Net Profit/(Loss) for the Group (` in Crore) 55,648.17 35,373.88
Basic earnings per share (`) 62.35 39.64
Diluted earnings per share (`) 62.35 39.64
Nominal value per share (`) 1.00 1.00

2.7 Accounting Standard-22 “Accounting for Taxes on Income”:

i) During the year, `4,342.79 Crore has been credited to Profit and Loss Account (Previous Year `520.09 Crore debited) on
account of deferred tax.

ii) The breakup of deferred tax assets and liabilities into major items is given below:
(` in Crore)
As at As at
Particulars
31.03.2023 31.03.2022
Deferred Tax Assets (DTA)
Provision for long term employee Benefits 9,166.98 6,619.13
Provision for advances 6,484.72 5,093.33
Provision for Other Assets/Other Liability 3,736.75 3,650.06
On Accumulated Losses 48.47 37.38
On Foreign Currency Translation Reserve 1,686.01 982.69
Depreciation on Fixed Assets 394.58 305.20
DTAs on account of FOs of SBI 476.14 409.56
Others 259.90 189.94
Total 22,253.55 17,287.29

272 Annual Report 2022 – 23

 Consolidated Financials

(` in Crore)

Company Overview
As at As at
Particulars
31.03.2023 31.03.2022
Deferred Tax Liabilities (DTL)
Depreciation on Fixed Assets 43.77 41.80
Interest accrued but not due on securities 6,599.00 6,546.58
Special Reserve created u/s 36(1)(viii) of Income Tax Act, 1961 4,467.14 3,950.60
DTLs on account of FOs of SBI 0.01 2.56

Responsible Approach
Others 11.05 6.21
Total 11,120.97 10,547.75
Net Deferred Tax Assets/(Liabilities) 11,132.58 6,739.54

iii) SBI had exercised the option of lower tax rate permitted under Section 115BAA of the Income-tax Act, 1961 as introduced
by the Taxation Laws (Amendment) Act, 2019 from the financial year 2019-20 onwards.

Governance
2.8 Accounting Standard - 28 “Impairment of Assets”:
In the opinion of the Management, there is no impairment to the non-monetary assets during the year.

2.9 Accounting Standard - 29 “Provisions, Contingent Liabilities and Contingent Assets”

 Provisions and contingencies recognized in Profit and Loss Account:
The breakup of provisions is given in the table below:

Statutory Reports
(` in Crore)
Sr. Break up of “Provisions and Contingencies” shown under head Expenditure in Profit
Current Year Previous Year
No. and loss account
a) Provision for Taxation
- Current Tax 23,182.65 12,859.32
- Deferred Tax Asset created (4,342.79) 520.09

Financial Statements
- (Write Back)/Additional Provision of Income Tax 0.27 3.05
b) Provision on Non-Performing Assets 10,873.29 15,902.01
c) Provision on Restructured Assets (46.41) (56.11)
d) Provision on Standard Assets 5,641.50 4,581.82
e) Provision for Depreciation on Investments 1,483.88 3,471.78
f) Other Provisions 232.02 2,777.19
Total 37,024.41 40,059.15

(Figures in brackets indicate credit)

 Floating provisions:
(` in Crore)
Sr.
Particulars Current Year Previous Year
No.
a) Opening Balance 193.75 193.75
b) Addition during the year - -
c) Draw down during the year - -
d) Closing balance 193.75 193.75

273
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

 Description of contingent liabilities (AS-29):

Sr.
Particulars Brief Description
No.
1. Claims against the Group The Group is a party to various proceedings in the normal course of business. It does not expect the
not acknowledged as debts outcome of these proceedings to have a material adverse effect on the Group’s financial conditions,
results of operations or cash flows. The Group is also a party to various taxation matters in respect
of which appeals are pending.
2. Liability on partly paid-up This item represents amounts remaining unpaid towards liability for partly paid investments. This
investments/Venture Funds also includes undrawn commitments for Venture Capital Funds.
3. Liability on account of The Group enters into foreign exchange contracts in its normal course of business to exchange
outstanding forward currencies at a pre-fixed price at a future date. Forward exchange contracts are commitments to buy
exchange contracts or sell foreign currency at a future date at the contracted rate. The notional amounts are recorded
as contingent liabilities. With respect to the transactions entered into with its customers, the Group
generally enters into off-setting transactions in the interbank market. This results in generation of a
higher number of outstanding transactions, and hence a large value of gross notional principal of
the portfolio, while the net market risk is lower.
4. Guarantees given on As a part of its commercial banking activities, the Group issues documentary credits and guarantees
behalf of constituents, on behalf of its customers. Documentary credits enhance the credit standing of the customers of
acceptances, endorsements the Group. Guarantees generally represent irrevocable assurances that the Bank will make payment
and other obligations in the event of the customer failing to fulfil its financial or performance obligations.
5. Other items for which the The Group enters into currency options, forward rate agreements, currency swaps and interest
Group is contingently liable rate swaps with inter-Bank participants on its own account and for customers. Currency swaps
are commitments to exchange cash flows by way of interest/principal in one currency against
another, based on predetermined rates. Interest rate swaps are commitments to exchange fixed and
floating interest rate cash flows. The notional amounts that are recorded as Contingent Liabilities,
are typically amounts used as a benchmark for the calculation of the interest component of the
contracts. Further, these also include estimated amount of contracts remaining to be executed on
capital account and not provided for, letter of comforts issued by SBI on behalf of Associates &
Subsidiaries, SBI’s Liability under Depositors Education and Awareness Fund A/c and other sundry
contingent liabilities.

The contingent liabilities mentioned above are dependent upon the outcome of court/ arbitration/ out of court settlements,
disposal of appeals, the amount being called up, terms of contractual obligations, development and raising of demand by
concerned parties, as the case may be.

 Movement of provisions against contingent liabilities:

The movement of provisions against contingent liabilities given in the table below:
(` in Crore)
Sr.
Particulars Current Year Previous Year
No.
a) Opening Balance 3,669.17 3,435.01
b) Additions during the year 143.99 438.44
c) Amount utilised during the year 86.65 7.43
d) Unused amount reversed during the year 611.18 196.85
e) Closing balance 3,115.33 3,669.17

274 Annual Report 2022 – 23

Consolidated Financials

3. Inter-Bank/Company balances between group entities are being reconciled on an ongoing basis and there is no material

Company Overview
effect on the profit and loss account of the current year.

4. No disclosure on divergence in asset classification and provisioning for NPAs is required by SBI with respect to RBI’s
supervisory process for the year ended 31st March 2022, based on the conditions mentioned in RBI circular No. DOR.ACC.
REC.No.74/21.04.018/2022-23 dated 11th October 2022.

Counter Cyclical Provisioning Buffer (CCPB)

5. 

Responsible Approach
RBI vide Circular No. DOR.STR.REC.10/21.04.048/2021-22 dated 5th May 2021 on ‘Utilisation of Floating Provisions/
Counter Cyclical Provisioning Buffer’ has allowed the banks, to utilise up to 100 percent of CCPB held by them as on
31st December 2020, for making specific provisions for Non-Performing Assets (NPAs) as per the policy approved by the
Bank’s Board of Directors.

During the year, SBI has not utilised the CCPB for making specific provision for NPAs.

6. SBI has made a provision of `2,490.00 Crore for the year ended 31st March 2023 towards arrears of wages due for revision
w.e.f. 1st November 2022.

Governance
7. Pursuant to the revision in family pension payable to employees of the Bank covered under 11th Bi-Partite settlement and
Joint Note dated 11th November 2020, SBI had provided for the entire additional liability of `7,418.39 Crore in the Profit and
Loss Account for the year ended 31st March 2022. The same had been disclosed as an exceptional item.

There is no unamortized expenditure in the Balance Sheet on account of Family Pension Scheme.

8. The COVID-19 pandemic across the globe resulted in decline in economic activities and movement in financial markets.

Statutory Reports
In this situation, SBI geared up to meet the challenges and has been evaluating the situation on an ongoing basis and had
proactively provided against the challenges of likely stress on the SBI’s assets. SBI’s management is not expecting any
significant impact on SBI’s liquidity or profitability.

9. During the year ended 31st March 2023, SBI has revalued freehold immovable properties (earlier revalued in financial
year 2019-2020) based on valuation reports obtained from external independent valuers and the closing balance of
Revaluation Reserve as on 31st March 2023 (net of amount transferred to General Reserve) is `27,756.26 Crore (Previous
Year `23,377.87 Crore).

Financial Statements
10. In SBI Life Insurance Company Ltd. and SBI General Insurance Company Ltd., the actuarial valuation of liabilities in
respect of life insurance policies in force, life insurance policies in respect of which premium has been discontinued but
liability exists as at 31st March 2023, Claims Incurred But Not Reported (IBNR) and Claims Incurred But Not Enough
Reported (IBNER) are determined by the Appointed Actuary based on guidelines and norms issued by the Insurance
Regulatory Development Authority of India (“IRDAI”/“Authority”) and the Institute of Actuaries of India in concurrence
with the Authority.

11. The investments of life and general insurance subsidiaries have been accounted for in accordance with the IRDAI guidelines
instead of restating the same in accordance with the accounting policy followed by SBI. The investments of insurance
subsidiaries constitute approximately 16.39% (Previous Year 15.33%) of the total investments as on 31st March 2023.

12. The Central Board of SBI has declared a dividend of `11.30 per share @ 1130% for the year ended 31st March 2023.

13. In accordance with RBI circular DBOD NO.BP.BC.42/21.01.02/2007-08, redeemable preference shares (if any) are treated
as liabilities and the coupon payable thereon is treated as interest.

275
 Consolidated Financials

SCHEDULES
forming part of the Consolidated Balance Sheet & Profit and Loss Account for the year ended 31st March 2023

14. In accordance with current RBI guidelines, the general clarification issued by ICAI has been considered in the preparation
of the consolidated financial statements. Accordingly, additional statutory information disclosed in separate financial
statements of the parent and its subsidiaries having no bearing on the true and fair view of the consolidated financial
statements and also the information pertaining to the items which are not material have not been disclosed in the
consolidated financial statements in view of the Accounting Standard Interpretation issued by ICAI.

15. Previous year figures have been regrouped/reclassified, wherever necessary, to conform to current year classification.
In cases where disclosures have been made for the first time in terms of RBI guidelines/Accounting Standards, previous
year’s figures have not been mentioned.

Shri Alok Kumar Choudhary Shri Ashwini Kumar Tewari Shri Swaminathan J. Shri Challa Sreenivasulu Setty
Managing Director Managing Director Managing Director Managing Director
(Retail Business & Operations) (Risk, Compliance & SARG) (Corporate Banking & (International Banking, Global
Subsidiaries) Markets & Technology)

In terms of our Report of even date

For K C Mehta & Co LLP
Chartered Accountants
Firm Regn. No. 106237W/W100829

Shri Dinesh Kumar Khara Shri Chirag Bakshi

Chairman Partner
Membership No. 047164
Place: Mumbai
Date: 18th May 2023

276 Annual Report 2022 – 23

Consolidated Financials

State Bank of India

Consolidated Cash Flow Statement for the year ended 31st March 2023

(000s omitted)

Company Overview
Year ended Year ended
31st March 2023 31st March 2022
Particulars
(Current Year) (Previous Year)
` `
Cash Flow from Operating Activities
Net Profit/(Loss) before taxes (including share in profit from associates and net of minority 74488,30,41 48756,34,30
interest)

Responsible Approach
Adjustments for:
Depreciation on Fixed Assets 3695,59,86 3691,27,00
(Profit)/Loss on sale of Fixed Assets (Net) 29,03,16 16,40,47
(Profit)/Loss on revaluation of Investments (Net) 4922,60,98 445,73,69
(Profit) on sale of Investments in Subsidiaries/ Joint Ventures/ Associates - (9,74,32)
Loss on sale of Investments in Subsidiaries/ Joint Ventures/ Associates - -

Governance
Provision for diminution in fair value & Non-Performing Assets 10826,88,16 15845,89,97
Provision on Standard Assets 5641,50,51 4581,81,42
Provision on non-performing Investments 1483,87,59 3471,78,80
Other Provisions including provision for contingencies 232,01,48 2777,18,33
Share in Profit of Associates (1191,45,21) (827,01,33)
Dividend from Associates (2,66,25) (3,19,50)

Statutory Reports
Interest charged on Capital Instruments 6543,73,06 5587,88,74
106669,43,75 84334,37,57
Adjustments for:
Increase/(Decrease) in Deposits 381124,90,62 372079,35,89
Increase/(Decrease) in Borrowings other than Capital Instruments 54584,07,36 11807,87,55
(Increase)/Decrease in Investments other than Investment in Subsidiaries/ Joint Ventures/ (141597,38,45) (183899,64,02)
Associates

Financial Statements
(Increase)/Decrease in Advances (484653,00,71) (309322,91,48)
Increase/(Decrease) in Other Liabilities 75713,73,97 86464,26,64
(Increase)/Decrease in Other Assets (60531,72,28) 5255,82,79
(68689,95,74) 66719,14,94
Tax refund/(Taxes paid) (17323,72,22) (9024,30,30)
Net Cash Generated from/(used in) Operating Activities (A) (86013,67,96) 57694,84,64
Cash Flow from Investing Activities
Purchase of Shares in Subsidiaries/ Joint Ventures/ Associates - (582,76,40)
Sale of Shares in Subsidiaries/ Joint Ventures/ Associates - 2,22,96
Profit on sale of Investments in Subsidiaries/ Joint Ventures/ Associates - 9,74,32
(Loss) on sale of Investments in Subsidiaries/ Joint Ventures/ Associates - -
Dividend from Associates 2,66,25 3,19,50
(Increase) in Fixed Assets (4671,02,13) (3305,26,01)
Decrease in Fixed Assets 627,38,98 254,34,31
Net Cash Generated from/(used in) Investing Activities (B) (4040,96,90) (3618,51,32)

277
 Consolidated Financials

State Bank of India

Consolidated Cash Flow Statement for the year ended 31st March 2023

(000s omitted)
Year ended Year ended
31st March 2023 31st March 2022
Particulars
(Current Year) (Previous Year)
` `
Cash Flow from Financing Activities
Proceeds from issue of Equity shares including share premium (Net of share issue expenses) 64 -
Issue of Capital Instruments 19533,09,26 14074,00,00
Redemption of Capital Instruments (2125,00,00) (10518,30,00)
Interest paid on Capital Instruments (6324,62,56) (5411,00,89)
Dividend paid (6336,72,16) (3569,84,46)
Dividend tax paid by Subsidiaries/Joint Ventures (1,22,83) (86,64)
Increase/(Decrease) in Minority Interest 1640,85,85 1581,50,62
Net Cash Generated from/(used in) Financing Activities (C) 6386,38,20 (3844,51,37)
Effect of Exchange Fluctuation on Translation Reserve (D) 3075,05,46 966,26,65
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C+D) (80593,21,20) 51198,08,60
Cash and Cash Equivalents as at 1st April 398905,12,17 347707,03,57
Cash and Cash Equivalents as at 31st March 318311,90,97 398905,12,17
Note:
1 Components of Cash & Cash Equivalents as at: 31.03.2023 31.03.2022
Cash & Balances with Reserve Bank of India 247321,04,97 318492,43,01
Balances with Banks and money at call & short notice 70990,86,00 80412,69,16
Total 318311,90,97 398905,12,17

2 Cash Flow from operating activities is reported by using indirect method.

Shri Alok Kumar Choudhary Shri Ashwini Kumar Tewari Shri Swaminathan J. Shri Challa Sreenivasulu Setty
Managing Director Managing Director Managing Director Managing Director
(Retail Business & Operations) (Risk, Compliance & SARG) (Corporate Banking & (International Banking, Global
Subsidiaries) Markets & Technology)

In terms of our Report of even date

For K C Mehta & Co LLP
Chartered Accountants
Firm Regn. No. 106237W/W100829

Shri Dinesh Kumar Khara Shri Chirag Bakshi

Chairman Partner
Membership No. 047164
Place: Mumbai
Date: 18th May 2023

278 Annual Report 2022 – 23

Consolidated Financials

Independent Auditors’ Report

To, of subsidiaries as furnished by the management, the

Company Overview
The Board of Directors, aforesaid Consolidated Financial Statements are
State Bank of India, in conformity with accounting principles generally
State Bank Bhavan, accepted in India and give:
Madam Cama Road,
a) 
true and fair view in case of the Consolidated
Mumbai.
Balance Sheet, of the State of Affairs of the Group
as at 31st March 2023;
Report on Audit of the Consolidated Financial

Responsible Approach
Statements b) 
true balance of profit in case of Consolidated
Opinion Profit & Loss Account for the year ended on that
date; and
1. 
We have audited the accompanying Consolidated
Financial Statements of State Bank of India (“the Bank”) c) true and fair view in case of Consolidated Cash
which comprise the Consolidated Balance Sheet as Flow Statement for the year ended on that date.
at 31st March 2023, the Consolidated Profit and Loss
Account and Consolidated Cash Flow Statement for the Basis for Opinion

Governance
year then ended, and Notes to Consolidated Financial 2. 
We conducted our audit in accordance with the
Statements including a summary of Significant Standards on Auditing (SAs) issued by the Institute
Accounting Policies and other explanatory information of Chartered Accountants of India (the ICAI). Our
which includes: responsibilities under those Standards are further
a) Audited Standalone Financial Statements of the described in the Auditor’s Responsibilities for the Audit
Bank which have been Audited by all the twelve of the Consolidated Financial Statements section of our

Statutory Reports
Statutory Central Auditors including us; report. We are independent of the Group in accordance
with the code of ethics issued by the ICAI together with
b) Audited Financial Statements of 26 Subsidiaries, ethical requirements that are relevant to our audit of the
8 Jointly Controlled Entities (includes Financial Consolidated Financial Statements, and we have fulfilled
Statements of Jio Payments Bank Ltd. upto our other ethical responsibilities in accordance with
22nd January 2023) and 18 Associates (includes these requirements and the code of ethics. We believe
Financial Statements of Jio Payments Bank Ltd. that the audit evidence we have obtained is sufficient
from 23rd January 2023 and including 14 Regional

Financial Statements
and appropriate to provide a basis for our opinion.
Rural Banks) audited by other Auditors; and (listed
in Annexure A); Key Audit Matters
c) Un-audited Financial Statements of 1 Subsidiary 3. 
Key Audit Matters are those matters that in our
and 1 Associate (listed in Annexure A). professional judgement were of most significance in
our audit of the Consolidated Financial Statements
The above entities together with the Bank are referred to
for the year ended 31st March 2023. These matters
as the ‘Group’.
were addressed in the context of our audit of the
In our opinion and to the best of our information and Consolidated Financial Statements as a whole and in
according to the explanations given to us, and based forming our opinion thereon and we do not provide a
on our consideration of the reports of other auditors separate opinion on these matters. We have determined
on separate financial statements of subsidiaries, jointly the matters described below to be the Key Audit Matters
controlled entities and associates, the unaudited of the Bank to be communicated in our report:
financial statements and the other financial information

279
 Consolidated Financials

Independent Auditors’ Report

Sr.
Key Audit Matters How the matter was addressed in our audit
No.
Key Audit matters reported in standalone financial statements of the Bank:
i. Classification of Advances, Income Recognition, Identification Our audit approach towards advances with reference to the
of and provisioning for non-performing Advances (Refer IRAC norms and other related circulars/directives issued by
Schedule 9 read with Note 3 of Schedule 17 to the financial the RBI and also internal policies and procedures of the Bank
statements): includes the testing of controls on sample basis,
Advances include Bills purchased and discounted, Cash a. The accuracy of the data input in the system for income
credits, Overdrafts, Loans repayable on demand and Term recognition, classification into performing and non
loans. These are further categorised as secured by Tangible performing Advances and provisioning in accordance
assets (including advances against Book Debts), covered by with the IRAC norms in respect of the branches audited
Bank/Government Guarantees and Unsecured advances. by us;
Advances constitute 58.45% of the Bank’s total assets. b. Existence and effectiveness of monitoring mechanisms
They are, inter-alia, governed by income recognition, asset such as Internal Audit, Systems Audit, Credit Audit and
classification and provisioning (IRAC) norms and other Concurrent Audit as per the policies and procedures of
circulars and directives issued by the RBI from time to the Bank;
time which provides guidelines related to classification of
Advances into performing and non- performing Advances c. Examination of advances including stressed advances on
(NPA) except in case of foreign offices, classification of a sample basis with respect to compliance with the RBI
advances and provisioning thereof is made as per local Master Circulars / Guidelines/ Judicial pronouncements;
regulations or RBI guidelines, whichever is more stringent. d. We have relied on the reports of IT System Audit by IAD
The Bank classifies these Advances based on IRAC norms with respect to the business logics / parameters inbuilt in
as per its accounting policy No. 3. CBS and CCDP for tracking, identification and stamping
Identification of performing and non-performing Advances of NPAs and provisioning in respect thereof.
involves establishment of proper mechanism. The Bank e.  We tested the mapping of advances in the CCDP
accounts for all the transactions related to Advances in its application software and the financial statement
Information Technology System (IT System) viz. Core Banking preparation software to ensure compliance with the
Solution (CBS) which identifies whether the advances are presentation and disclosure requirements as per the
performing or non- performing. aforesaid RBI Circulars/directions.
The bank is in the continuous process to upgrade existing f. We have examined the efficacy of various internal controls
& implement new IT applications in various areas of its over advances to determine the nature, timing and extent
business operations, including income recognition and asset of the substantive procedures and compliance with the
classification in terms of RBI Circular Ref.No. Dos. CO. PPG./ observations of the various audits conducted as per the
SEC.03/11.01.005/2020-21 dated 14th September 2020. monitoring mechanism of the Bank and RBI Inspection.
These applications require detailed testing, verifications
and UAT before final implementation. The financial impact g. In carrying out substantive procedures at the branches
pending such implementation is not likely to be material as audited by us, we have examined large advances/
per the management. stressed advances while other advances have been
examined on a sample basis including review of valuation
Further, NPA classification and calculation of provision reports of independent valuers provided by the Bank’s
(except in case of foreign offices) is done through another management.
IT System viz. Centralised Credit Data Processing (CCDP)
Application Software and other processes. h. We assessed and evaluated the process of identification
of NPAs and corresponding reversal of income and
The carrying value of these advances (net of provisions) may creation of provision;
be materially misstated if, either individually or in aggregate,
the IRAC norms are not properly followed. i. Reliance is also placed on Audit Reports of other
Statutory Branch Auditors with whom we have also
made specific communication.

280 Annual Report 2022 – 23

Consolidated Financials

Sr.

Company Overview
Key Audit Matters How the matter was addressed in our audit
No.
Considering the nature of the transactions, regulatory j.  Bank has laid down detailed Standard Operating
requirements, existing business environment, estimation/ Procedure to ensure control over processes. We have
judgement involved in valuation of securities and calculation relied on these Standard Operating Procedures and
of provisions, it is a matter of high importance for the have conducted our testing based on these Standard
intended users of the Standalone Financial Statements. Operating Procedures.
Considering these aspects, we have determined this as a
Key Audit Matter.

Responsible Approach
Accordingly, our audit was focused on income recognition,
asset classification and provisioning pertaining to advances
due to the materiality of the balances.
ii. Classification and Valuation of Investments, Identification of Our audit approach towards Investments with reference to
and provisioning for Non-Performing Investments (Schedule the RBI Circulars/directives included the understanding of
8 read with Note 2 of Schedule 17 to the financial statements): internal controls and substantive audit procedures in relation
to valuation, classification, identification of non performing

Governance
Investments include investments made by the Bank in
investments (NPIs), provisioning/depreciation related to
various Government Securities, Bonds, Debentures, Shares,
Investments. In particular ;
Security receipts and other approved securities.
a. We understood and evaluated the Bank’s internal
Investments constitute 28.69% of the Bank’s total assets.
control system to comply with relevant RBI guidelines
These are governed by the circulars and directives of the
regarding valuation, classification, identification of NPIs,
RBI. These directions of RBI, inter-alia, cover valuation of
provisioning/depreciation related to investments;
investments, classification of investments, identification
of non-performing investments, the corresponding non- b.  We assessed and evaluated the process adopted

Statutory Reports
recognition of income and provision there against. for collection of information from various sources for
determining fair value of these investments;
The valuation of each category (type) of the aforesaid
securities is to be done as per the method prescribed in c.  For the selected sample of investments in hand, we
circulars and directives issued by the RBI which involves tested accuracy and compliance with the RBI Master
collection of data/information from various sources such Circulars and directions by re-performing valuation for
as FIMMDA rates, rates quoted on BSE/NSE, financial each category of security. Samples were selected after
statements of unlisted companies etc. Considering the ensuring that all the categories of investments (based on
complexities and extent of judgement involved in the nature of security) were covered in the sample;

Financial Statements
valuation, volume of transactions, investments on hand and
d. We assessed and evaluated the process of identification
degree of regulatory focus, this has been determined as a
of NPIs and corresponding reversal of income and
Key Audit Matter.
creation of provision;
Accordingly, our audit was focused on valuation of
e. We carried out substantive audit procedures to
investments, classification, identification of non performing
recompute independently the provision to be maintained
investments and provisioning related to investments.
and depreciation to be provided in accordance with
the circulars and directives of the RBI. Accordingly,
we selected samples from the investments of each
category and tested for NPIs as per the RBI guidelines
and recomputed the provision to be maintained in
accordance with the RBI Circular for those selected
sample of NPIs;
f. 
We tested the mapping of investments between the
Investment application software and the financial
statement preparation software to ensure compliance
with the presentation and disclosure requirements as per
the aforesaid RBI Circular/directions.

281
 Consolidated Financials

Independent Auditors’ Report

Sr.
Key Audit Matters How the matter was addressed in our audit
No.
iii. Assessment of Provisions and Contingent liabilities in Our audit approach involved:
respect of certain litigations including Direct and Indirect
a. Obtaining an understanding of internal controls relevant
Taxes, various claims filed by other parties not acknowledged
to the audit in order to design our audit procedures that
as debt (Schedule 12 read with Note 18.13 of Schedule 18 to
are appropriate in the circumstances;
the financial statements):
b. Understanding the current status of the litigations/
There is high level of judgement required in estimating the
tax assessments including the status up to the date of
level of provisioning. The Bank’s assessment is supported by
auditor’s report;
the facts of matter, their own judgement, past experience, and
advice from legal and independent tax consultants wherever c. Examining recent orders and/or communication received
considered necessary. Accordingly, unexpected adverse from various tax authorities/ judicial forums and follow
outcomes may significantly impact the Bank’s reported profit up action thereon;
and state of affairs presented in the Balance Sheet.
d. Evaluating the merit of the subject matter under
We determined the above area as a Key Audit Matter in consideration with reference to the grounds presented
view of associated uncertainty relating to the outcome of therein and available independent legal / tax advice
these matters which requires application of judgement in including opinion of our internal tax experts;
interpretation of law. Accordingly, our audit was focused on
e. Review and analysis of evaluation of the contentions of
analysing the facts of subject matter under consideration
the Bank through discussions, collection of details of the
and judgments/ interpretation of law involved.
subject matter under consideration, the likely outcome
and consequent potential outflows on those issues; and
f. Verification of disclosures related to significant litigations
and taxation matters.
Key Audit Matters as reported by auditors of SBI Life Insurance Company Limited:
iv. Information Technology systems and controls (IT Controls): Principal audit procedures:
All insurance companies are highly dependent on technology y Sample testing of key control over IT systems having
due to significant number of transactions that are processed impact on financial accounting and reporting.
daily. A significant part of the company’s financial processes
is heavily reliant on IT systems with automated processes y Assessed the IT system processes for effectiveness
and controls over the capturing, valuing and recording of of some of the key controls with respect to financial
transactions. Thus, there exists a risk that gaps in the IT accounting and reporting records by sample testing; and
Control Environment could result in the financial accounting y Our audit approach relies on automated controls and
and reporting records being materially misstated. therefore procedures are designed to test control over
The company uses several systems for its overall financial IT systems, segregation of duties, interface and system
reporting. We have identified “IT systems and controls” as application controls over key financial accounting and
key audit matters because of significant use of IT system and reporting systems.
the scale and complexity of the IT architecture. y Reviewed the report of independent information system
auditors which has confirmed the various system control
measures adopted by the company.

282 Annual Report 2022 – 23

Consolidated Financials

Sr.

Company Overview
Key Audit Matters How the matter was addressed in our audit
No.
v. Valuation of Investments: Principal Audit Procedures:
The company’s investment portfolio consists of Policyholders’ y We assessed appropriateness of the pricing
investments (traditional and unit linked policy holders) and methodologies with reference to IRDAI Investment
Shareholders investment. Regulations, Financial Statement Regulation, Company’s
internal investment and valuation policy.
Total investment portfolio of the company (i.e Asset under

Responsible Approach
management (AUM)) represents 99.3 per cent of the y Assessed the process and tested the operating
Company’s total assets. effectiveness of the key controls, including the Company’s
review and approval of the estimates and assumptions
Investments are made and valued in accordance with used for the valuation including key authorisation and
Insurance Act, 1938, IRDAI (Investment) Regulations, data input controls.
2016 (“Investment Regulation”), IRDAI (Preparation of
Financial Statement Regulation), 2002 (“Financial Statement y Fair value is best evidenced by quoted market prices
Regulations”), Investment Policy of the Company and in an active market. Where quoted market prices are
relevant Indian GAAPs. not available, the quoted prices of similar products

Governance
or valuation models with observable market based
These valuation methods used multiple observable market inputs are used to estimate fair value. The calculation
inputs, including observable interest rate, index levels, credit of estimated fair value is based on market conditions
spreads, equity prices, counter party credit quality, and at a specific point in time and may not be reflective of
corresponding market volatility levels etc. future values.
The portfolio of quoted investments is 34.4 per cent of the y For quoted investments, the valuation was done in
Company’s AUM and the portfolio of investments that are accordance with the independent prices sources /
valued primarily using observable inputs is 63.7 per cent of market prices in an active market.

Statutory Reports
the Company’s AUM. We do not consider these investments
to be at a high risk of significant misstatement, or to be subject y For unquoted investments, we critically evaluated the
to a significant level of judgement because they comprise valuation assessment and resulting conclusions in
liquid, quoted investments. However, due to their materiality order to determine the appropriateness of the valuation
in the context of the standalone financial statements as a recorded with reference to the assessment made by the
whole, they are considered to be one of the areas which had management for such valuation.
the significant impact on our overall strategy.
The portfolio of unquoted investments is 1.4 per cent of the

Financial Statements
Company’s AUM. The valuation of unquoted investment
involves judgement depending on the observability of
the inputs into the valuation and further judgement in
determining the appropriate valuation methodology where
external pricing sources are either not readily available or
are unreliable.
The valuation of these investment was considered to be
one of the areas which required significant auditor attention
and was one of the matter of significance in the financial
statements due to the materiality of total value of investments
to the financial statements.

283
 Consolidated Financials

Independent Auditors’ Report

Sr.
Key Audit Matters How the matter was addressed in our audit
No.
vi. Contingent Liabilities and Litigations: Principal Audit Procedures:-
The company has pending litigation matters with various y We read the various regulatory correspondences and
appellate authorities and at different forums. The same related documents pertaining to litigation cases and
involves judgements in accordance with applicable corroborated them with our understanding of legal
Accounting Standards to determine the final outcome of position as various statutes.
such litigation matters.
y We obtained legal opinion sought by management from
The management with the help of its experts as needed have the independent legal counsel including opinion of our
made judgements relating to the likelihood of an obligation own team to review the sustainability of the dispute. We
arising and whether there is a need to recognize a provisional discussed the status and potential exposure in respect
disclose a contingent liability. We therefore focused on this of significant litigation with the company’s internal legal
area as a result of uncertainty and potential material impact. team and obtaining details regarding the progress of
various litigation including management views on the
likely outcome of each litigation and the magnitude of
potential exposure.
y The various litigation matters were reviewed in order to
assess the facts and circumstances and to identify the
potential exposures and to satisfy ourselves that it is not
probable that an outflow of economic benefits will be
required, or in certain cases where the amount can not
be estimated reliably, such obligation is disclosed by the
company as a contingent liability.
Key Audit Matters as reported by auditors of SBI Capital Markets Limited:
vii. Evaluation of uncertain tax positions: Principal Audit Procedures:
The company has material uncertain tax positions including We evaluated the Company’s processes and controls for
matters under dispute which involves significant judgement monitoring the tax disputes.
to determine the possible outcome of these disputes.
Obtained risk assessment of tax litigation from our internal tax
expert to assess management’s judgement and assumption
on such matters to challenge the management’s underlying
assumptions in estimating the tax provision and the possible
outcome of the disputes. They also considered legal
precedence and other rulings in evaluating management’s
position on these uncertain tax positions.

Information Other than the Consolidated Our opinion on the Consolidated Financial Statements
Financial Statements and Auditors’ Report does not cover the other information and Pillar 3
thereon disclosures under Basel III Disclosure and we do
4. The Bank’s Board of Directors is responsible for the not and will not express any form of assurance
other information. The other information comprises the conclusion thereon.
Corporate Governance report (but does not include the In connection with our audit of the Consolidated
Consolidated Financial Statements and our auditors’ Financial Statements, our responsibility is to read the
report thereon), which will be obtained at the time of other information identified above and, in doing so,
issue of this auditors’ report, and the Directors’ Report consider whether the other information is materially
of the Bank including annexures in annual report, if any, inconsistent with the Consolidated Financial Statements
thereon, which is expected to be made available to us or our knowledge obtained in the audit or otherwise
after the date of this Auditors’ Report. appears to be materially misstated.

284 Annual Report 2022 – 23

Consolidated Financials

When we read the Director’s Report of the Bank, Entities or to cease operations, or has no realistic

Company Overview
including annexures in annual report, if any, thereon, alternative but to do so.
if we conclude that there is a material misstatement
Those Board of Directors of the Group Entities are also
therein, we are required to communicate the matter to
responsible for overseeing the respective Group Entity’s
those charged with governance.
financial reporting process.

Responsibilities of Management and

Auditors’ Responsibility for the Audit of
Those Charged with Governance for the
Consolidated Financial Statements

Responsible Approach
Consolidated Financial Statements
6. 
Our objectives are to obtain reasonable assurance
5. 
The Bank’s Board of Directors is responsible with
about whether the Consolidated Financial Statements
respect to the preparation of these Consolidated
as a whole are free from material misstatement whether
Financial Statements that give a true and fair view
due to fraud or error and to issue an auditor’s report
of the consolidated financial position, consolidated
that includes our opinion. Reasonable assurance
financial performance and consolidated cash flows of
is a high level of assurance, but is not a guarantee
the Group in accordance with the Accounting Standard

Governance
that an audit conducted in accordance with SAs will
21 - “Consolidated Financial Statements”, Accounting
always detect a material misstatement when it exists.
Standards 23 - “Accounting for Investment in Associates
Misstatements can arise from fraud or error and are
in Consolidated Financial Statements“ and Accounting
considered material, if individually or in aggregate,
Standards 27 – Financial Reporting of Interest in
they could reasonably be expected to influence the
Joint Venture” issued by the Institute of Chartered
economic decisions of users taken on the basis of these
Accountants of India, and provisions of Section 29 of the
Consolidated Financial Statements.
Banking Regulation Act, 1949, the State Bank of India

Statutory Reports
Act, 1955 and circulars and guidelines issued by the As a part of an audit in accordance with SAs, we exercise
Reserve Bank of India (RBI) from time to time and other professional judgement and maintain professional
accounting principles generally accepted in India. This scepticism throughout the audit. We also:
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions y Identify and assess the risks of material misstatement
of the Banking Regulations Act, 1949 and applicable of the Consolidated Financial Statements, whether
laws for safeguarding of the assets of the Bank and for due to fraud or error, design and perform audit

Financial Statements
preventing and detecting frauds and other irregularities; procedures responsive to those risks and obtain audit
selection and application of appropriate accounting evidence that is sufficient and appropriate to provide
policies; making judgements and estimates that are a basis for our opinion. The risk of not detecting a
reasonable and prudent; and design, implementation material misstatement resulting from fraud is higher
and maintenance of adequate internal financial controls, than for one resulting from error, as fraud may
that were operating effectively for ensuring the accuracy involve collusion, forgery, intentional omissions,
and completeness of the accounting records, relevant misrepresentations or the override of internal control.
to the preparation and presentation of the respective y Evaluate the appropriateness of accounting policies
financial statements that give a true and fair view and used and the reasonableness of accounting estimates
are free from material misstatement, whether due to and related disclosures made by management.
fraud or error.
y Conclude on the appropriateness of management’s
In preparing the Consolidated Financial Statements, use of the going concern basis of accounting and,
respective Board of Directors of the Group Entities is based on the audit evidence obtained, whether
responsible for assessing the respective Group Entity’s a material uncertainty exists related to events or
ability to continue as a going concern, disclosing, conditions that may cast significant doubt on the
as applicable, matters related to going concern and Group Entity’s ability to continue as a going concern.
using the going concern basis of accounting unless If we conclude that a material uncertainty exists,
management either intends to liquidate the Group we are required to draw attention in our auditors’
report to the related disclosures in the Consolidated

285
 Consolidated Financials

Independent Auditors’ Report

Financial Statements or, if such disclosures are other matters that may reasonably be thought to
inadequate, to modify our opinion. Our conclusions bear on our independence, and where applicable,
are based on the audit evidence obtained up to the related safeguards.
date of our auditors’ report. However, future events
From the matters communicated with those charged
or conditions may cause the Group Entity to cease to
with governance, we determine those matters that were
continue as a going concern.
of most significance in the audit of the Consolidated
y Evaluate the overall presentation structure and Financial Statements of the current period and are
content of the Consolidated Financial Statements, therefore the Key Audit Matters. We describe these
including the disclosures and whether the matters in our auditors’ report unless law or regulation
Consolidated Financial Statements represent the precludes public disclosure about the matter or when,
underlying transactions and events in a manner that in extremely rare circumstances, we determine that
achieves fair presentation. a matter should not be communicated in our report
y Obtain sufficient appropriate audit evidence because the adverse consequences of doing so would
regarding the financial information of the entities reasonably be expected to outweigh the public interest
or business activities within the Group and its benefits of such communication.
Associates and Jointly Controlled Entities of which
we are the independent auditors and whose financial Other Matters
information we have audited, to express an opinion 7. Incorporated in these consolidated financial statements
on the Consolidated Financial Statements. We are the:
are responsible for the direction, supervision and
performance of the audit of the financial statements a) 
We did not audit the financial statements /
of such entities included in the Consolidated Financial information of 5771 branches (including 34
Statements of which we are the independent Foreign branches) included in the Standalone
auditors. For the other entities included in the Financial Statements of the Bank whose financial
Consolidated Financial Statements, which have been statements/ financial information reflects total
audited by other auditors, such other auditors assets of `26,98,825.09 Crore at March 31, 2023
remain responsible for the direction, supervision and and total revenue of `1,73,752.95 Crore for the
performance of the audits carried out by them. We year ended on that date, as considered in the
remain solely responsible for our audit opinion. Standalone Financial Statements. The financial
statements/ information of these branches have
Materiality is the magnitude of misstatements in the been audited by the branch auditors whose reports
Consolidated Financial Statements that, individually have been furnished to us, and our opinion in so
or in aggregate, makes it probable that the economic far as it relates to the amounts and disclosures
decisions of a reasonably knowledgeable user of the included in respect of these branches, is based
financial statements may be influenced. We consider solely on the report of such branch auditors.
quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating b) 
We did not audit the financial statements of
the results of our work; and (ii) to evaluate the effect of 26 Subsidiaries, 8 Jointly Controlled Entities
any identified misstatements in the financial statements. (includes relevant disclosures of Jio Payments
Bank Ltd. upto 22nd January 2023) whose financial
We communicate with those charged with governance statements reflect total assets of `4,63,803.28
regarding, among other matters, the planned scope Crore as at March 31, 2023, total revenues of
and timing of the audit and significant audit findings, `1,10,740.11 Crore for the year ended on
including any significant deficiencies in internal control that date, as considered in the Consolidated
that we identify during our audit. Financial Statements. The Consolidated Financial
We also provide those charged with governance with Statements also include the Group’s share of
a statement that we have complied with relevant net profit of `1,181.00 Crore for the year ended
ethical requirements regarding independence and March 31, 2023, as considered in the Consolidated
to communicate with them all relationships and Financial Statements, in respect of 18 associates

286 Annual Report 2022 – 23

Consolidated Financials

(includes relevant disclosures of Jio Payments the Company’s Appointed Actuary (the “Appointed

Company Overview
Bank Ltd. from 23rd January 2023), whose financial Actuary”). The actuarial valuation of these liabilities for
statements have not been audited by us. These life policies in force and for policies in respect of which
financial statements have been audited by other premium has been discontinued but liability exists as at
auditors whose reports have been furnished to 31st March 2023 has been duly certified by the Appointed
us by the Management and our opinion on the Actuary and in his opinion, the assumptions for such
Consolidated Financial Statements, in so far as it valuation are in accordance with the guidelines and
relates to the amounts and disclosures included norms issued by the Insurance Regulatory Development

Responsible Approach
in respect of these subsidiaries, jointly controlled Authority of India (“IRDAI”/“Authority”) and the Institute
entities and associates, and our report in so far of Actuaries of India in concurrence with the Authority.
as it relates to the aforesaid subsidiaries, jointly The auditors have relied upon Appointed Actuary’s
controlled entities and associates, is based solely certificate in this regard for forming our opinion on
on the reports of the other auditors. the valuation of liabilities for life policies in force and
for policies in respect of which premium has been
c) 
We did not audit the financial statements of 1
discontinued but liability exists in financial statements
subsidiary whose financial statements reflect total

Governance
of the Company.
assets of `8,854.33 Crore as at March 31, 2023,
total revenues of `421.77 Crore as considered
Report on Other Legal and Regulatory
in Consolidated Financial Statements. The
Requirements
Consolidated Financial Statements also include
the Group’s share of net profit of `10.45 Crore for 9. The Consolidated Balance Sheet and the Consolidated
the year ended March 31, 2023, as considered in Profit and Loss Account have been drawn up in
the Consolidated Financial Statements, in respect accordance with Section 29 of the Banking Regulation

Statutory Reports
of 1 associate, whose financial statements have Act, 1949; and these give information as required to be
not been audited by us. These financial statements given by virtue of the provisions of the State Bank of
are unaudited and have been furnished to us by the India Act, 1955 and regulations thereunder.
Management and our opinion on the Consolidated Subject to the limitations of the audit indicated in
Financial Statements, in so far as it relates to the paragraph 5 to 8 above and as required by the State Bank
amounts and disclosures included in respect of of India Act, 1955, and subject also to the limitations of
these subsidiary and associate, and our report

Financial Statements
disclosure required therein, we report that:
relates to the aforesaid subsidiary and associate,
in so far as is based solely on such unaudited a) 
We have obtained all the information and
financial statements. In our opinion and according explanations which, to the best of our knowledge
to the information and explanations given to us by and belief, were necessary for the purposes of our
the Management, these financial statements are audit and have found them to be satisfactory;
not material to the Group. b) The transactions of the Bank, which have come
Our opinion on the Consolidated Financial Statements to our notice, have been within the powers of the
is not modified in respect of the above matters with Bank; and
respect to our reliance on the work done and the reports c) The returns received from the offices and branches
of the other auditors and the financial statements of the Bank have been found adequate for the
certified by the Management. purposes of our audit.
8. The auditors of SBI Life Insurance Company Limited and 10. We further report that:
SBI General Insurance Company Limited, subsidiaries
of the Group, have reported that the actuarial valuation a) In our opinion, proper books of account as required
of liabilities for life policies in force and the actuarial by law have been kept by the Bank so far as it
valuation of liabilities in respect of Claims Incurred appears from our examination of those books and
But Not Reported (IBNR) and Claims Not Incurred But the reports of the other auditors and proper returns
Not Enough Reported (IBNER) is the responsibility of adequate for the purposes of our audit have been
received from branches not visited by us;

287
 Consolidated Financials

Independent Auditors’ Report

b) the Consolidated Balance Sheet, the Consolidated b) On the basis of the written representations received
Profit and Loss Account and the Consolidated from the directors of the Bank as on 31st March
Cash Flow Statement dealt with by this report are 2023 taken on record by the Board of Directors of
in agreement with the books of account and with the Bank and the reports of the statutory auditors
the returns received from the branches not visited of its subsidiary, associate companies and jointly
by us; controlled entities incorporated in India, none of
the directors of the Group companies incorporated
c) the reports on the accounts of the branch offices
in India is disqualified as on 31st March 2023 from
audited by branch auditors of the Bank as per
being appointed as a director in terms of Section
the provisions of the Section 29 of the Banking
164(2) of the Companies Act, 2013.
Regulation Act, 1949, and the State Bank of
India Act, 1955 have been sent to us and have c) There are no qualifications, reservations or adverse
been properly dealt with by us in preparing this remarks relating to the maintenance of accounts
report; and and other matters connected therewith.
d) in our opinion, the Consolidated Balance Sheet, d) As per para 1.14 of the Technical Guide on Audit of
the Consolidated Profit and Loss Account and the Internal Financial Controls in Case of Public Sector
Consolidated Cash Flow Statement comply with Banks issued by ICAI, the reporting requirement
the applicable accounting standards, to the extent as introduced by RBI regarding Internal Financial
they are not inconsistent with the accounting Control over Financial Reporting will apply only to
policies prescribed by the RBI. standalone financial statements of Public Sector
Banks (PSBs) and not to consolidated financial
11. 
As required by letter No. DOS.ARG.
statements of PSBs. Accordingly, reporting
No.6270/08.91.001/2019-20 dated 17th March 2020 on
is not done on the Group’s Internal Financial
“Appointment of Statutory Central Auditors (SCAs) in
Control over Financial Reporting with reference
Public Sector Banks – Reporting obligations for SCAs
to the Consolidated Financial Statements as at
from FY 2019-20”, read with subsequent communication
March 31, 2023.
dated 19th May 2020 issued by the RBI, we further report
on the matters specified in paragraph 2 of the aforesaid
K C Mehta & Co LLP
letter as under: Chartered Accountants
a) 
There are no observations or comments on Firm Registration No.106237W/W100829
financial transactions or matters which have any
Chirag Bakshi
adverse effect on the functioning of the Bank. Partner
Place: Mumbai Membership No. 047164
Date: 18th May 2023 UDIN: 23047164BGVCQY6864

288 Annual Report 2022 – 23

Consolidated Financials

Annexure A: List of entities consolidated as at 31st March 2023

Company Overview
Sr. Sr.
Name of Subsidiary Name of Subsidiary
No. No.
1. SBI Capital Markets Ltd. 15. SBI–SG Global Securities Services Pvt. Ltd.
2. SBICAP Securities Ltd. 16. SBI Funds Management Ltd.
3. SBICAP Trustee Company Ltd. 17. SBI Funds Management (International) Private Ltd.

Responsible Approach
4. SBICAP Ventures Ltd. 18. Commercial Indo Bank Llc, Moscow
5. SBICAP (Singapore) Ltd. (upto 30th November 22) 19. SBI Canada Bank - Unaudited
6. SBI DFHI Ltd. 20. State Bank of India (California)
7. SBI Global Factors Ltd. 21. State Bank of India (UK) Limited
8. SBI Infra Management Solutions Pvt. Ltd. 22. State Bank of India Servicos Limitada
(upto 30th September 22)
9. SBI Mutual Fund Trustee Company Pvt Ltd. 23. SBI (Mauritius) Ltd.

Governance
10. SBI Payment Services Pvt. Ltd. 24. PT Bank SBI Indonesia
11. SBI Pension Funds Pvt Ltd. 25. Nepal SBI Bank Ltd.
12. SBI Life Insurance Company Ltd. 26. Nepal SBI Merchant Banking Limited
13. SBI General Insurance Company Ltd. 27. State Bank Operations Support Services Pvt. Ltd.
(w.e.f 26th July 22)
14. SBI Cards and Payment Services Limited

Statutory Reports
Sr. Sr.
Name of Joint venture Name of Joint venture
No. No.
1. C - Edge Technologies Ltd. 5. Macquarie SBI Infrastructure Trustee Ltd.
2. SBI Macquarie Infrastructure Management Pvt. Ltd. 6. Oman India Joint Investment Fund – Management Company
Pvt. Ltd.
3. SBI Macquarie Infrastructure Trustee Pvt. Ltd. 7. Oman India Joint Investment Fund – Trustee Company Pvt. Ltd.

Financial Statements
4. Macquarie SBI Infrastructure Management Pte. Ltd. 8. Jio Payments Bank Ltd. (upto 22nd January 23)

Sr. Sr.
Name of Associates Name of Associates
No. No.
1. Andhra Pradesh Grameena Vikas Bank 11. Jharkhand Rajya Gramin Bank
2. Arunachal Pradesh Rural Bank 12. Saurashtra Gramin Bank
3. Chhattisgarh Rajya Gramin Bank 13. Rajasthan Marudhara Gramin Bank
4. EllaquaiDehati Bank 14. Telangana Grameena Bank
5. Meghalaya Rural Bank 15. The Clearing Corporation of India Ltd.
6. Madhyanchal Gramin Bank 16. Yes Bank Limited
7. Mizoram Rural Bank 17. Bank of Bhutan Ltd. - Unaudited
8. Nagaland Rural Bank 18. Investec Capital Services (India) Private Limited
9. Utkal Grameen Bank 19. Jio Payments Bank Ltd. (w.e.f 23rd January 23)
10. Uttarakhand Gramin Bank

289
Pillar 3 Disclosures
(Consolidated) as on 31.03.2023

DF-1: SCOPE OF APPLICATION

“State Bank of India is the parent company to which the Basel III Framework applies. The consolidated financial statements
of the group conform to Generally Accepted Accounting Principles (GAAP) in India, comprising regulatory norms, directions
& guidelines prescribed by the Reserve Bank of India (RBI), statutory guidelines of the State Bank of India Act, 1955, the
Banking Regulations Act, 1949, Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory
and Development Authority (PFRDA), SEBI (Mutual Funds) Regulations, 1996, Companies Act 2013, Accounting Standards
issued by Institute of Chartered Accountants of India (ICAI) and the accounting practices prevalent in India.”

(i) Qualitative Disclosures:

a) List of group entities considered for consolidation for the period ended 31.03.2023
The following subsidiaries, joint ventures and associates are considered for the preparation of consolidated financial
statements of SBI Group.

Whether Whether
the entity the entity
Explain the
is included is included Explain the reasons if
reasons for
Sr. Country of under Explain the method of under Explain the method of consolidated under only
Name of the entity difference in
No. incorporation accounting consolidation regulatory consolidation one of the scopes of
the method of
scope of scope of consolidation
consolidation
consolidation consolidation
(yes / no) (yes / no)
1 SBI Capital Markets India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Ltd.
2 SBICAP Securities Ltd. India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
3 SBICAP Ventures Ltd. India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
4 SBICAP Trustee India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Company Ltd.
5 SBICAP (Singapore) Singapore Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Ltd (upto 30.11.2022)
6 SBI DFHI Ltd. India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
7 SBI Payment Services India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Pvt. Ltd.
8 SBI Global Factors India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Ltd.
9 SBI Pension Funds India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Pvt Ltd.
10 SBI –SG Global India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Securities Services
Pvt. Ltd.
11 SBI Mutual Fund India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Trustee Company Pvt
Ltd.
12 SBI Funds India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Management Ltd.
13 SBI Funds Mauritius Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Management
(International) Private
Ltd.

290 Annual Report 2022 – 23

 Whether Whether

Company Overview
the entity the entity
Explain the
is included is included Explain the reasons if
reasons for
Sr. Country of under Explain the method of under Explain the method of consolidated under only
Name of the entity difference in
No. incorporation accounting consolidation regulatory consolidation one of the scopes of
the method of
scope of scope of consolidation
consolidation
consolidation consolidation
(yes / no) (yes / no)
14 SBI Cards and India Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable

Responsible Approach
Payment Services Ltd.
15 State Bank of India USA Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
(California)
16 SBI Canada Bank Canada Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
17 Commercial Indo Russia Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Bank Llc, Moscow
18 SBI (Mauritius) Ltd. Mauritius Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable

Governance
19 PT Bank SBI Indonesia Indonesia Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
20 Nepal SBI Bank Ltd. Nepal Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
21 Nepal SBI Merchant Nepal Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
Banking Ltd.
22 State Bank of India UK Yes Consolidated as per AS 21 Yes Consolidated as per AS 21 Not applicable Not applicable
(UK) Limited

Statutory Reports
23 State Bank of India Brazil Yes Consolidated as per AS 21 No Not applicable Not applicable Non-financial Subsidiary:
Servicos Limitada Not under scope of
Regulatory Consolidation
24 SBI Infra Management India Yes Consolidated as per AS 21 No Not applicable Not applicable Non-financial Subsidiary:
Solutions Private Not under scope of
Limited (upto Regulatory Consolidation
30.09.2022)
25 State Bank Operations India Yes Consolidated as per AS 21 No Not applicable Not applicable Non-financial Subsidiary:

Financial Statements
Support Services Pvt. Not under scope of
Ltd. Regulatory Consolidation
26 SBI Life Insurance India Yes Consolidated as per AS 21 No Not applicable Not applicable Insurance Joint Venture:
Company Ltd. Not under scope of
Regulatory Consolidation
27 SBI General Insurance India Yes Consolidated as per AS 21 No Not applicable Not applicable Insurance Joint Venture:
Company Ltd. Not under scope of
Regulatory Consolidation
28 C - Edge Technologies India Yes Consolidated as per AS 27 No Not applicable Not applicable Non-financial Joint Venture:
Ltd. Not under scope of
Regulatory Consolidation
29 SBI Macquarie India Yes Consolidated as per AS 27 No Not applicable Not applicable Joint Venture: Not under
Infrastructure scope of Regulatory
Management Pvt. Ltd. Consolidation
30 SBI Macquarie India Yes Consolidated as per AS 27 No Not applicable Not applicable Non-financial Joint Venture:
Infrastructure Trustee Not under scope of
Pvt. Ltd. Regulatory Consolidation
31 Macquarie SBI Singapore Yes Consolidated as per AS 27 No Not applicable Not applicable Joint Venture: Not under
Infrastructure scope of Regulatory
Management Pte. Ltd. Consolidation

291
Pillar 3 Disclosures

Whether Whether
the entity the entity
Explain the
is included is included Explain the reasons if
reasons for
Sr. Country of under Explain the method of under Explain the method of consolidated under only
Name of the entity difference in
No. incorporation accounting consolidation regulatory consolidation one of the scopes of
the method of
scope of scope of consolidation
consolidation
consolidation consolidation
(yes / no) (yes / no)
32 Macquarie SBI Bermuda Yes Consolidated as per AS 27 No Not applicable Not applicable Joint Venture: Not under
Infrastructure Trustee scope of Regulatory
Ltd. Consolidation
33 Oman India Joint India Yes Consolidated as per AS 27 No Not applicable Not applicable Joint Venture: Not under
Investment Fund scope of Regulatory
– Management Consolidation
Company Pvt. Ltd.
34 Oman India Joint India Yes Consolidated as per AS 27 No Not applicable Not applicable Joint Venture: Not under
Investment Fund – scope of Regulatory
Trustee Company Pvt. Consolidation
Ltd.
35 Jio Payments Bank India Yes Consolidated as per AS 27 No Not applicable Not applicable Joint Venture: Not under
Limited (upto scope of Regulatory
22.01.2023) Consolidation
Jio Payments Bank India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Limited (from of Regulatory Consolidation
23.01.2023)
36 Andhra Pradesh India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Grameena Vikas Bank of Regulatory Consolidation
37 Arunachal Pradesh India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Rural Bank of Regulatory Consolidation
38 Chhattisgarh Rajya India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Gramin Bank of Regulatory Consolidation
39 Ellaquai Dehati Bank India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
of Regulatory Consolidation
40 Meghalaya Rural Bank India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
of Regulatory Consolidation
41 Madhyanchal Gramin India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Bank of Regulatory Consolidation
42 Mizoram Rural Bank India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
of Regulatory Consolidation
43 Nagaland Rural Bank India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
of Regulatory Consolidation
44 Utkal Grameen Bank India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
of Regulatory Consolidation
45 Uttarakhand Gramin India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Bank of Regulatory Consolidation

292 Annual Report 2022 – 23

 Whether Whether

Company Overview
the entity the entity
Explain the
is included is included Explain the reasons if
reasons for
Sr. Country of under Explain the method of under Explain the method of consolidated under only
Name of the entity difference in
No. incorporation accounting consolidation regulatory consolidation one of the scopes of
the method of
scope of scope of consolidation
consolidation
consolidation consolidation
(yes / no) (yes / no)
46 Jharkhand Rajya India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope

Responsible Approach
Gramin Bank of Regulatory Consolidation
47 Saurashtra Gramin India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Bank of Regulatory Consolidation
48 Rajasthan Marudhara India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Gramin Bank of Regulatory Consolidation
49 Telangana Grameena India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Bank of Regulatory Consolidation

Governance
50 The Clearing India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Corporation of India of Regulatory Consolidation
Ltd.
51 Yes Bank Ltd. India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
of Regulatory Consolidation
52 Bank of Bhutan Ltd. Bhutan Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
of Regulatory Consolidation

Statutory Reports
53 Investec Capital India Yes Consolidated as per AS 23 No Not applicable Not applicable Associate: Not under scope
Services (India) of Regulatory Consolidation
Private Limited

b. List of group entities not considered for consolidation both under the accounting and regulatory scope of
consolidation as on 31.03.2023
Total balance Regulatory Total balance
% of

Financial Statements
sheet equity treatment sheet assets
bank’s
(as stated in of bank’s (as stated in
Sr. Country of Principal activity of the holding
Name of the entity the accounting investments the accounting
No. incorporation entity in the
balance sheet in the capital balance sheet
total
of the legal instruments of the legal
equity
entity) of the entity entity)
1 SBI Foundation India A Not-for-Profit Company 229.73 99.72% Deducted from 230.02
to focus on Corporate regulatory
Social Responsibility capital
(CSR) Activities
2 SBI Home Finance Ltd. India Under winding up N.A. 26.00% Risk weighted N.A.
3 SBI Infra Management India Under winding up 3.98 100% Deducted from 3.96
Solutions Private Limited regulatory
(from 01.10.2022) capital

293
Pillar 3 Disclosures

(ii) Quantitative Disclosures:

c. List of group entities considered for regulatory consolidation as on 31.03.2023
Following is the list of group entities considered under regulatory scope of consolidation:
(` In Crore)
Total balance Total balance
sheet sheet
equity (as assets (as
Sr. Country of stated in the stated in the
Name of the entity Principal activity of the entity Remarks
No. incorporation accounting accounting
balance balance
sheet of the sheet of the
legal entity)$ legal entity)#
1 SBI Capital Markets Ltd India Merchant Banking and Advisory 2,613.03 2,877.61
Services
2 SBICAP Securities Ltd India Securities Broking & its allied 1,084.19 1,924.76
services and third-party
distribution of financial products
3 SBICAP Trustee Company India Corporate Trusteeship Activities 178.64 182.31
Ltd
4 SBICAPS Ventures Ltd India Asset Management Company 188.95 254.73
for Venture Capital Fund
5 SBICAP (Singapore) Ltd Singapore Business & management - -
(upto 30.11.2022) Consultancy Services
6 SBI DFHI Ltd India Primary Dealer in Govt. 1,247.71 17,033.54
Securities
7 SBI Mutual Fund Trustee Co. India Trusteeship Services to schemes 40.49 40.75
Pvt Ltd floated by SBI Mutual Fund
8 SBI Global Factors Ltd India Factoring Activities 408.28 1,280.62
9 SBI Pension Funds Pvt Ltd India Management of assets of NPS 150.21 155.98
Trust allocated to them and
acting as PoP for onboarding of
NPS subscribers
10 SBI Payments Services Pvt India Payment Solutions related to 1,494.78 1,951.27
Ltd Merchant Acquiring Business
duly enabling cashless / digital
transactions
11 SBI Funds Management Ltd India Asset Management Services to 4,539.40 4,675.99
schemes floated by SBI Mutual
Fund
12 SBI Funds Mgt. (International) Mauritius Investment Management 0.63 2.22
Ltd Services
13 SBI Cards & Payment India Credit Cards Business 9,069.16 44,792.65
Services Ltd
14 SBI-SG Global Securities India Custody and Fund accounting 422.73 716.96
Services P. Ltd. services
15 State Bank of India USA Banking Services 1,288.73 8,965.57
(California)
16 SBI Canada Bank Canada Banking Services 1,103.23 8,854.33

294 Annual Report 2022 – 23

 (` In Crore)

Company Overview
Total balance Total balance
sheet sheet
equity (as assets (as
Sr. Country of stated in the stated in the
Name of the entity Principal activity of the entity Remarks
No. incorporation accounting accounting
balance balance
sheet of the sheet of the
legal entity)$ legal entity)#

Responsible Approach
17 Commercial Indo Bank Llc, Russia Banking Services 370.58 4,755.84
Moscow
18 SBI (Mauritius) Ltd Mauritius Banking Services 1,372.65 8,818.06
19 PT Bank SBI Indonesia Indonesia Banking Services 1,737.60 3,496.53
20 Nepal SBI Bank Ltd Nepal Banking Services 1,138.14 11,433.52
21 State Bank of India (UK) UK Banking Services 2,644.04 20,164.54

Governance
Limited
22 Nepal SBI Merchant Banking Nepal Merchant Banking and Advisory 17.42 19.37
Ltd. Services

$ Comprises Equity Capital and Reserve & Surplus

# In case of domestic entities as per IGAAP and in case of overseas entities as per respective local regulations

(d) The aggregate amount of capital deficiencies in all subsidiaries which are not included in the regulatory

Statutory Reports
scope of consolidation i.e. that are deducted:
Total balance sheet
Name of the
Principal activity of the equity (as stated in the % of Bank’s holding in
Subsidiaries/Country of Capital Deficiency
entity accounting balance the total equity
incorporation
sheet of the legal entity)
NIL

Financial Statements
(e) The aggregate amount (e.g. current book value) of the Bank’s total interests in Insurance entities, which
are risk weighted
(` In Crore)
Excess Total balance sheet % of Quantitative impact
Provision Principal equity (as stated Bank’s on regulatory capital
Face Book Market Capital
LONG NAME (LICRA RWA activity of in the accounting holding in of using risk weighting
Value Value Value Charge
+IRAC the entity balance sheet of the the total method Vs using the full
+IOS+RCH) legal entity) equity deduction method
HDFC STANDARD 1.15 73.49 57.22 - 11.59 144.85 Insurance 2,149.18 0.05% Insignificant impact with
LIFE INSURANCE either method
COMPANY LIMITED
ICICI PRUDENTIAL 2.41 131.98 104.79 - 21.22 265.26 Insurance 1,438.56 0.17% Insignificant impact with
LIFE INSURANCE either method
COMPANY LIMITED

295
Pillar 3 Disclosures

(f) Any restrictions or impediments on transfer of funds or regulatory capital within banking group:
Overseas Banking Subsidiaries
Subsidiaries Restrictions
SBI California As per regulations, the only way to transfer capital to parent bank is to pay dividends or buyback shares or
capital repatriation to parent bank.
SBI Canada Prior permission from the regulator (OSFI) before transferring any type of capital (equity or debt) to parent
bank.
SBI Mauritius Ltd. There are regulatory restrictions for the reduction of the Bank’s capital to be paid back to the shareholders
including the parent bank. Any reduction in capital can be made either through payment of dividend or
reduction in stated capital as provided in the banking act and the companies act of Mauritius. The amount
to be paid is subject to SBIML maintaining adequate capital and liquidity ratios as per the regulatory
requirements.
(a) The central bank shall not grant, and no bank shall hold, a banking license unless it maintains and
continues to maintain in Mauritius, an amount paid as stated capital or an amount of assigned capital of
not less than 400 Million rupees or the equivalent.
(b) Every bank shall maintain, in Mauritius, capital of not less than 10 per cent, or such higher ratio as may
be determined by the central bank, of such of that bank’s risk assets and of other types of risks.
Bank SBI Indonesia The Bank maintains a minimum regulatory capital to be able to operate as a Book II bank as well as a forex
bank. However, transfer of funds as dividend to parent bank is allowed after generation of sufficient profit.
Nepal SBI Bank Ltd. Under the laws of Nepal, Assets and Liabilities of the Company are exclusive and non-transferable. Hence,
the transfer of funds or regulatory capital within the banking group is not possible.
Commercial Indo Bank There are no restrictions or impediments on transfer of funds or regulatory capital within banking group.
Llc, Moscow (CIBL)
State Bank of India (UK) Excess capital beyond the regulatory minimum can be paid back to the parent (via dividends or reduced
Limited capital) along with the approval of SBI UK Board and PRA. This will be based on the projected growth plans
of SBI UK Limited and its capital requirements.

Non-Banking Subsidiaries
Subsidiaries Restrictions
SBI Life Insurance Ltd. y As per regulations, the only way to transfer capital to parent Bank is to pay dividends in accordance with
Section 49 of Insurance Act, 1938.
y This is subject to maintaining the minimum solvency ratio 150% in accordance with Regulatory norms.
The Board of Directors of the Company has specified a minimum limit of solvency ratio at 180%.
SBI General Insurance y As per regulations, the only way to transfer capital to parent Bank is to pay dividends in accordance with
Co. Ltd. Section 49 of Insurance Act, 1938.
SBI Cards & Payment SBI Card can return share capital to SBI only by way of buy back of shares in accordance with the provisions
Services Ltd. of Companies Act, SEBI and RBI regulations.
SBI Funds Mgmt. Ltd. y SBIFML can transfer capital by way of buy back subject to adherence of Companies Act, SEBI Regulations
and other applicable regulations. The company will also need to take approval from JV partner.
y Further, in terms of Companies Act, wherever approval of Board / Shareholders are required, the
company will comply the same.

296 Annual Report 2022 – 23

Subsidiaries Restrictions

Company Overview
SBI Capital Markets Ltd. y Transfer of capital from SBICAP to the parent SBI, would be subject to the below:
i. As per SEBI Merchant Bankers Regulations 1992, a category I Merchant Banker requires a minimum
Net worth of `5 Crore. Further, if any Transfer of funds leads to change in control approval from SEBI
shall be required.
ii. As per SEBI (Research Analyst) Regulations, 2014, a research analyst who is a body corporate
requires a Networth of `25 Lakh. Further, if any Transfer of funds leads to change in control approval
from SEBI shall be required.

Responsible Approach
y Article 60 of AOA of SBICAP provides that notwithstanding anything contained in these Articles but
subject to all applicable provisions of the Act or any other law for the time being in force, the Company
may purchase its own shares or other specified securities.
y SBICAP has an internal Risk policy of maintaining a minimum CAR of 15.00.
y All of the above would be subject to the approval of the Board of SBICAP.
SBI Global Factors Ltd. y As per regulations, the only way to transfer Capital to parent bank is to pay dividends or buy back shares.
There are Regulatory restrictions for the reduction of the Company’s capital to be paid back to the
Shareholders including the parent. Any reduction in capital can be made either through payment of

Governance
dividend or reduction in stated capital as provided in the RBI Guidelines and the Companies Act. The
amount to be paid is subject to maintaining adequate capital and the liquidity ratio as per the regulatory
requirements.
a) A Company cannot hold NBFC-Factors license unless it maintains and continues to maintain, an
amount paid as Net Owned Funds.
b) Every NBFC shall maintain, capital of not less than 15% of its aggregated risk weighted assets (Tier I
plus Tier II Capital, Tier I capital should not be less than 10%) on Balance Sheet and of risk adjusted

Statutory Reports
value of off-Balance Sheet items, or such higher ratio as may be determined by the central bank.
c) Every Company registered as NBFC- Factors shall maintain minimum Net Owned Fund (NOF) of `5
Crore as required by Factoring Regulations Act, 2011.
d) Companies Act also stipulates some conditions for transfer of capital by way of buy-back of shares
or distribution as dividends.
y There are no specific restrictions on transfer of funds or regulatory capital in Articles of Association of
the Company.
y In case of excess capital beyond the regulatory minimum requirement, can be paid back to the parent

Financial Statements
(via dividends or reduced capital) with the approval of Board and the Regulator. This will be based on
the projected growth plans and its capital requirements.
SBI-SG Global Securities y The transfer of Capital would be subject to maintenance of Minimum Regulatory Net worth of `500
Services Pvt. Ltd. Million prescribed by SEBI. Apart from this Company as per the Board is required to maintain Charge on
Capital of `200 Million (as on 31.03.2023) for Operational Risk which is calculated as per Standardised
Approach of Basel II.
y Transfer can be achieved through issue of new shares (other than shares issued on a rights basis or in
a subsequent placement), creation of option or warrants, creating new classes of shares, buy backs/
redemption/repurchase, splits, issuance of convertible debt, bonuses, lien or encumbrances or debt
restructure involving conversion into equity which would be anti-dilutive for the parties and/or their
rights as equity shareholders and declaration of dividend by the company.

297
Pillar 3 Disclosures

Subsidiaries Restrictions
SBI DFHI Ltd. The capital can be transferred to the parent bank by way of dividends or buy back shares. The RBI instructions
for Standalone Primary Dealers (SPD) in this regard are as under:
y Any change in the shareholding pattern / capital structure of SPD shall need prior approval of RBI.
y SPDs are required to maintain a minimum Capital to Risk-Weighted Assets Ratio (CRAR) of 15 per cent
on an ongoing basis.
1) SPDs shall follow the following guidelines while declaring dividend distribution:
i. 
SPDs that meet the following minimum prudential requirements shall be eligible to declare
dividend:
a. SPDs should have maintained a minimum CRAR of 20 per cent for the financial year
(each of the four quarters) for which dividend is proposed.
b. The net NPA ratio shall be less than six per cent in each of the last three years, including
as at the close of the financial year for which dividend is proposed to be declared.
c. SPDs shall comply with the provisions of Section 45 IC of the Reserve Bank of India Act,
1934.
d. SPDs shall be compliant with the prevailing regulations/ guidelines issued by the Reserve
Bank. The Reserve Bank shall not have placed any explicit restrictions on declaration of
dividend.
2) SPDs that meet the eligibility criteria specified in paragraph (1) above can declare dividend up to a
dividend pay-out ratio of 60 per cent.
3) SPDs having CRAR below the regulatory minimum of 15 per cent in any of the four quarters of the
financial year for which dividend is proposed shall not declare any dividend. For SPDs having CRAR
at or above the regulatory minimum of 15 per cent during all the four quarters of the financial year
for which dividend is being considered, but lower than 20 per cent in any of the four quarters, the
dividend pay-out ratio shall not exceed 33.3 per cent.
SBI Pension Funds Pvt. y There are no regulatory restrictions from PFRDA/ Companies Act, 2013 for transfer of capital to parent
Ltd. bank through dividends or buy back shares or capital repatriation to parent bank.
y The only criteria is that the Company should maintain minimum Net Worth of `50 Crore and shall fulfil
the minimum eligibility criteria of the Pension Fund i.e. Reg 8 (d) the sponsor shall have Profits After
Tax in at least three of the preceding five financial years. Further, there shall be no cash loss in the last
preceding five years.
y Further, as per Regulation J, any change in management, ownership, shareholding pattern or controlling
interest of sponsor of the pension fund exceeding one percent, but less than five percent of the paid-up
capital of the sponsor or pension fund in a financial year, shall be informed to the Authority within fifteen
days of the occurrence of such change.
y Provided that no change in excess of five per cent. or more of the paid-up capital of the sponsor or the
pension fund, in any financial year, shall be made without prior approval of the Authority.
y The Capital can be paid to the parent with the Board and Shareholders approval and fulfilling the PFRDA
regulations & the provisions of the Companies Act, 2013
SBI Payment Services y There are no restrictions or impediments on transfer of funds or Regulatory capital as per JV agreement.
Pvt. Ltd. y Transfer of funds is subject to approval from SBI Payments Board and JV partners.
State Bank Operations SBOSS is a non-financial company, incorporated last year. As per AOA of the Company and Service
Support Services Pvt. Agreement with the Bank, there are no restrictions or impediments on transfer of funds or capital within the
Ltd. Group. However, any such transfer of funds will be subject to the approval of the Board of SBOSS. Further,
in terms of Companies Act, wherever approval of Board / Shareholders is required, the company will comply
the same.

298 Annual Report 2022 – 23

DF-2 – CAPITAL ADEQUACY

Company Overview
As on 31.03.2023

Qualitative Disclosures
(a) 
A summary discussion y The Bank and its Subsidiaries undertake the Internal Capital Adequacy Assessment Process (ICAAP)
of the Bank’s approach on an annual basis. The ICAAP details the capital planning process and carries out an assessment
to assessing the covering measurement, monitoring, internal controls, reporting, capital requirement and stress

Responsible Approach
adequacy of its capital testing of the following Risks:
to support current and
future activities  Credit Risk  Market Risk
 Operational Risk  Credit Concentration Risk
 Liquidity Risk  Interest Rate Risk in the Banking Book
 Compliance Risk  Country Risk
 Pension Fund Obligation Risk  Strategic Risk
 Reputation Risk  Model Risk

Governance
 Residual Risk from Credit Risk Mitigants  Contagion Risk
 Talent Risk  Cyber Risk
 Any other applicable Risk  Underwriting Risk

y Sensitivity Analysis is conducted annually or more frequently as required, on the movement of Capital
Adequacy Ratio (CAR) in the medium horizon of 3 to 5 years, considering the projected investment in
Subsidiaries / Joint Ventures by SBI and growth in Advances by SBI and its Subsidiaries (Domestic /

Statutory Reports
Foreign). This analysis is done for the SBI and SBI Group separately.
y CRAR of the Bank and for the Group as a whole is estimated to be well above the Regulatory CAR
in the medium horizon of 3 to 5 years. However, to maintain adequate capital, the Bank has options
to augment its capital resources by raising Subordinated Debt, Perpetual Cumulative Preference
Shares (PCPS), Redeemable Non-Cumulative Preference Shares (RNCPS), Redeemable Cumulative
Preference Shares (RCPS), Perpetual Debt Instruments (PDIs) and Perpetual Non-Cumulative
Preference Shares (PNCPS) besides Equity as and when required.

Financial Statements
y Strategic Capital Plan for the Foreign Subsidiaries covers an assessment of capital requirement for
growth of assets and the capital required complying with various local regulatory requirements and
prudential norms. The growth plan is approved by the parent bank after satisfying itself about the
capacity of the individual subsidiaries to raise CET 1 / AT 1 / Tier 2 Capital to support the increased
level of assets and at the same time maintaining the Capital Adequacy Ratio (CAR).
Quantitative Disclosures
(b) Capital requirements for
credit risk:
y Portfolios subject to  `2,84,252.21 Crore
standardised approach
y Securitisation exposures  Nil
…………………………………
Total `2,84,252.21 Crore
(c) Capital requirements for
market risk:
y Standardised
duration approach;
− Interest Rate Risk  `12,373.98 Crore
− Foreign Exchange Risk  `902.31 Crore
(including gold)
− Equity Risk  `10,894.61 Crore
………………………..……
Total `24,170.90 Crore

299
Pillar 3 Disclosures

(d) Capital requirements for

operational risk:
y Basic  `23,227.98 Crore
Indicator Approach
y The Standardised NA
Approach (if applicable)
……………………………..……
Total `23,227.98 Crore
(e) Common Equity Tier 1, CAPITAL ADEQUACY RATIOS AS ON 31.03.2023
Tier 1 and Total Capital CET 1 (%) Tier 1 (%) Total (%)
Ratios:
SBI Group 10.59 12.29 14.84
y For the top
consolidated group; and State Bank of India 10.27 12.06 14.68
y For significant bank SBI (Mauritius) Ltd. 20.05 20.05 21.06
subsidiaries (stand State Bank of India (Canada) 12.42 12.42 13.89
alone or sub- State Bank of India (California) 14.15 14.15 15.35
consolidated depending
Commercial Indo Bank LLC, Moscow 5.36 5.36 5.36
on how the Framework
is applied) Bank SBI Indonesia 90.36 90.36 91.16
Nepal SBI Bank Ltd. 13.07 13.07 16.17
SBI (UK) Ltd. 15.28 15.28 15.28

DF-3: CREDIT RISK: GENERAL DISCLOSURES

As on 31.03.2023

General Disclosures
a. Qualitative Disclosures
 Definitions of past due and impaired assets (for accounting purposes)
Non-performing assets
An asset becomes non-performing when it ceases to generate income for the Bank. As from 31st March 2006, a non-
performing Asset (NPA) is an advance were

(i) Interest and/or instalment of principal remain ‘overdue’ for a period of more than 90 days in respect of a
Term Loan.

(ii) The account remains ‘out of order’ for a period of more than 90 days, in respect of an Overdraft/Cash Credit
(OD/CC).

(iii) The bill remains ‘overdue’ for a period of more than 90 days in the case of bills purchased and discounted.

(iv) Any amount to be received remains ‘overdue’ for a period of more than 90 days in respect of other accounts.

(v) A loan granted for short duration crops is treated as NPA, if the instalment of principal or interest thereon
remains overdue for two crop seasons and a loan granted for long duration crops is treated as NPA, if instalment
of principal or interest thereon remains overdue for one crop season.

(vi) An account would be classified as NPA only if the interest charged during any quarter is not serviced fully within
90 days from the end of the quarter.

(vii) The amount of a liquidity facility remains outstanding for more than 90 days, in respect of securitisation
transactions undertaken in accordance with the RBI guidelines on securitisation dated February 1, 2006.

(viii) In respect of derivative transactions, the overdue receivables representing the positive mark to market value of
a derivative contract, remain unpaid for a period of 90 days from the specified due date for payment.

300 Annual Report 2022 – 23

 ‘Out of Order’ status

Company Overview
An account is treated as ‘out of order’ if the outstanding balance remains continuously in excess of the sanctioned
limit/drawing power.

In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/drawing
power, but there are no credits continuously for 90 days as on the date of Bank’s Balance Sheet, or where credits are
not enough to cover the interest debited during the same period, such accounts are treated as ‘out of order’.

Responsible Approach
‘Overdue’
Any amount due to the Bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the Bank.

 Resolution of Stressed Assets

Early identification and reporting of stress:

Identification of incipient stress in loan accounts, immediately on default*, by classifying stressed assets as
special mention accounts (SMA) as per the following categories:

Governance
Basis for classification – Principal or interest payment
SMA Sub-categories
or any other amount wholly or partly overdue between
SMA-0 1-30 days
SMA-1 31-60 days
SMA-2 61-90 days

Statutory Reports
* Default’ means non-payment of debt when whole or any part or instalment of the amount of debt has become due and payable and
is not repaid by the debtor or the corporate debtor. For revolving facilities like cash credit, default would also mean, without prejudice
to the above, the outstanding balance remaining continuously in excess of the sanctioned limit or drawing power, whichever is lower,
for more than 30 days.

 Discussion of the Bank’s Credit Risk Management Policy

The Bank has an integrated Credit Risk Management, Credit Risk Mitigation and Collateral Management Policy
in place which is reviewed annually. Over the years, the policy & procedures in this regard have been refined

Financial Statements
as a result of evolving concepts and actual experience. The policy and procedures have been aligned to the
approach laid down in Basel-II and RBI guidelines.
Credit Risk Management encompasses identification, assessment, measurement, monitoring and control of the
credit risk in exposures.

In the processes of identification and assessment of Credit Risk, the following functions are undertaken:

(i) 
Developing and refining the Credit Risk Assessment (CRA) Models/Scoring Models to assess the
Counterparty Risk, by taking into account the various risks categorised broadly into Financial, Business,
Industrial and Management Risks, each of which is scored separately.

(ii) Conducting industry research to give specific policy prescriptions and setting quantitative exposure
parameters for handling portfolio in large / important industries, by issuing advisories on the general
outlook for the Industries / Sectors, from time to time.

The measurement of Credit Risk involves computation of Credit Risk Components viz Probability of Default
(PD), Loss Given Default (LGD) and Exposure At Default (EAD).

The monitoring and control of Credit Risk includes setting up exposure limits to achieve a well-diversified
portfolio across dimensions such as single borrower, group borrower and industries. For better risk management
and avoidance of concentration of Credit Risks, internal guidelines on prudential exposure norms in respect

301
Pillar 3 Disclosures

of individual companies, group companies, Banks, individual borrowers, non-corporate entities, sensitive
sectors such as capital market, real estate, sensitive commodities, etc., are in place. Credit Risk Stress Tests are
conducted at half yearly interval to identify vulnerable areas for initiating corrective action, where necessary.

The Bank has also a Loan Policy which aims at continued improvement of the overall quality of assets at the
portfolio level, by establishing a commonality of approach regarding credit basics, appraisal skills, documentation
standards and awareness of institutional concerns and strategies, while leaving enough room for flexibility
and innovation.

The Bank has processes and controls in place in regard to various aspects of Credit Risk Management such as
appraisal, pricing, credit approval authority, documentation, reporting and monitoring, review and renewal of credit
facilities, management of problem loans, credit monitoring, etc. The Bank also has a system of Credit Audit with the
aims of achieving continuous improvement in the quality of the credit portfolio with total credit exposure (FB+NFB
limits) above `20 Crore/ USD 2 Million or its equivalent and above. Credit Audit covers audit of credit sanction
decisions at various levels. Both the pre-sanction process and post-sanction position are examined as a part of the
Credit Audit System. Credit Audit also examines identified Risks and suggests Risk Mitigation Measures.

DF-3: Quantitative Disclosures as on 31.03.2023

(Insurance entities, JVs & Non-financial entities excluded)
General Disclosures:
` in Crore
Non-Fund
Quantitative Disclosures Fund Based Total
Based
b Total Gross Credit Risk Exposures 3338401.14 510596.72 3848997.86
c Geographic Distribution of Exposures: FB / NFB
Overseas 533570.52 76813.17 610383.69
Domestic 2804830.62 433783.55 3238614.17
d Industry Type Distribution of Exposures Please refer to Table “A”
Fund based / Non-Fund Based separately
e Residual Contractual Maturity Breakdown of Assets Please refer to Table “B”
f Amount of NPAs (Gross) i.e. Sum of (i to v) 91874.12
i. Substandard 12733.68
ii. Doubtful 1 11761.63
iii. Doubtful 2 21849.32
iv. Doubtful 3 18338.89
v. Loss 27190.60
g Net NPAs 21497.00
h NPA Ratios
i) Gross NPAs to gross advances 2.75%
ii) Net NPAs to net advances 0.66%
i Movement of NPAs (Gross)
i) Opening balance 112785.09
ii) Additions 20161.30
iii) Reductions 41072.27
iv) Closing balance 91874.12

302 Annual Report 2022 – 23

 ` in Crore

Company Overview
Non-Fund
Quantitative Disclosures Fund Based Total
Based
j Movement of provisions for NPAs
i) Opening balance 84782.24
ii) Provisions made during the period 10922.65
iii) Write-off/Write-back of excess provisions 25327.77

Responsible Approach
iv) Closing balance 70377.12
k Amount of Non-Performing Investments 3822.42
l Amount of Provisions held for Non-Performing Investments 3104.75
m Movement of Provisions for Depreciation on Investments
Opening balance 10825.23
Provisions made during the period 6997.40

Governance
Write-off 363.23
Write-back of excess provisions 1214.72
Closing balance 16244.68
n By major industry or counter party type
Amt. of NPA and if available, past due loans, provided separately 38696.98
Specific & general provisions; and -

Statutory Reports
Specific provisions and write-offs during the current period -
o Amt. of NPAs and past due loans provided separately by significant -
geographical areas including specific and general provisions
Provisions -

Table- A: DF-3 (d) Industry Type Distribution of Exposures as on 31.03.2023

(` in Crore)

Financial Statements
Fund Based [Outstanding-O/s)] Non-Fund
Code Industry
Standard NPA Total Based(O/s)
1 Coal 5,163.74 368.09 5,531.83 5,080.50
2 Mining 17,117.69 75.90 17,193.59 4,015.27
3 Iron & Steel 58,057.61 735.40 58,793.01 43,183.46
4 Metal Products 33,708.22 488.88 34,197.10 12,521.75
5 All Engineering 30,962.22 2,538.31 33,500.53 65,427.12
5.1 Of which Electronics 5,634.97 95.56 5,730.53 4,593.58
6 Electricity 542.20 0.35 542.55 24.23
7 Cotton Textiles 21,201.71 1,235.72 22,437.43 2,137.12
8 Jute Textiles 615.07 28.17 643.24 40.70
9 Other Textiles 10,792.15 1,123.02 11,915.17 2,553.82
10 Sugar 6,407.82 585.31 6,993.13 540.12
11 Tea 1,157.97 43.55 1,201.52 33.17
12 Food Processing 54,178.41 3,911.91 58,090.32 4,444.82
13 Vegetable Oils &Vanaspati 4,592.50 494.31 5,086.81 5,132.79
14 Tobacco / Tobacco Products 212.79 10.36 223.15 112.78

303
Pillar 3 Disclosures

(` in Crore)
Fund Based [Outstanding-O/s)] Non-Fund
Code Industry
Standard NPA Total Based(O/s)
15 Paper / Paper Products 6,241.50 272.19 6,513.69 1,135.98
16 Rubber / Rubber Products 9,698.96 489.08 10,188.04 1,757.47
17 Chemicals / Dyes / Paints etc. 96,403.76 1,472.28 97,876.04 57,445.85
17.1 Of which Fertilizers 14,059.76 27.65 14,087.41 12,884.90
17.2 Of which Petrochemicals 45,419.38 50.57 45,469.95 39,789.89
17.3 Of which Drugs &Pharma 23,588.05 400.18 23,988.23 1,321.12
18 Cement 7,469.36 717.04 8,186.40 4,346.57
19 Leather & Leather Products 2,037.97 158.18 2,196.15 315.86
20 Gems & Jewellery 9,685.60 1,382.71 11,068.30 157.63
21 Construction 42,654.63 1,222.30 43,876.93 16,809.67
22 Petroleum 82,331.57 284.20 82,615.77 25,794.07
23 Automobiles & Trucks 16,229.42 874.61 17,104.03 4,853.12
24 Computer Software 1,966.02 10.06 1,976.08 1,775.02
25 Infrastructure 3,79,517.09 19,164.32 3,98,681.41 72,753.88
25.1 Of which Power 1,99,455.67 4,420.36 2,03,876.03 30,181.50
25.2 Of which Telecommunication 41,395.74 2,215.99 43,611.73 1,245.21
25.3 Of which Roads & Ports 94,161.62 6,690.84 1,00,852.46 20,335.72
26 Other Industries 5,03,147.43 29,976.54 5,33,123.97 1,18,579.79
27 NBFCs & Trading 5,28,901.84 11,664.53 5,40,566.37 34,732.47
28 Residual Advances 13,15,531.79 12,546.80 13,28,078.59 24,891.67
Total 32,46,527.02 91,874.12 33,38,401.14 5,10,596.72

304 Annual Report 2022 – 23

 Table- B DF-3 (e) SBI (CONSOLIDATED) Residual contractual maturity breakdown of assets as on 31.03.2023*
(` In Crore)
More than Over 3 Over 6 Over 3
31 days Over 1 year
2 months months months years
INFLOWS 1 day 2-7 days 8-14 days 15-30 days &upto 2 &upto 3 Over 5 years TOTAL
&upto 3 &upto 6 &upto 1 &upto 5
months years
months months year years
1 Cash 21553.25 10.40 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 21563.65
2 Balances with RBI 20056.44 3797.49 2089.21 2876.24 3523.87 2308.40 7721.07 49870.56 46041.86 24971.64 62435.84 225692.62
3 Balances with other 46391.67 17405.44 1819.07 2009.39 833.12 1396.26 717.37 3874.66 1057.57 434.07 423.24 76361.85
Banks
4 Investments 13912.15 19047.81 64673.83 104663.86 306716.57 242920.25 585216.84 126207.98 26085.01 7466.82 108893.07 1605804.19
5 Advances 31452.55 26065.30 23933.02 55036.81 91346.93 68494.18 197461.92 242929.71 1179095.60 498168.06 869939.39 3283923.47
6 Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.01 90.93 161.59 147.00 43344.34 43743.87
7 Other Assets 13476.00 40062.23 42293.95 29947.51 22857.14 19911.49 32064.74 47932.18 25011.89 38016.03 90712.86 402286.02
TOTAL 146842.05 106388.66 134809.08 194533.81 425277.63 335030.58 823181.95 470906.02 1277453.52 569203.62 1175748.75 5659375.67
*Notes:

i) Insurance entities, Non-financial entities, JVs, Special Purpose Vehicles & Intra-group Adjustments are excluded.

ii) Investments include Non-Performing Investments and Advances includes Non-Performing Advances.

iii) The Bucketing structure has been revised based on the RBI guidelines dated March 23, 2016.

305
Financial Statements Statutory Reports Governance Responsible Approach Company Overview
Pillar 3 Disclosures

DF-4: CREDIT RISK: DISCLOSURES FOR PORTFOLIOS SUBJECT TO THE STANDARDISED APPROACH
As on 31.03.2023

Disclosures for Portfolios subject to Standardised Approach

Qualitative Disclosures
 Names of Credit Rating Agencies used, plus reasons for any changes
(a) As per RBI Guidelines, the Bank has identified CARE, CRISIL, ICRA, India Rating, ACUITE Ratings and Research and
INFOMERICs (Domestic Credit Rating Agencies) and FITCH, Moody’s and S&P (International Rating Agencies) as
approved Rating Agencies, for the purpose of rating Domestic and Overseas Exposures, respectively, whose ratings
are used for the purpose of computing Risk-weighted Assets and Capital Charge.

 Types of exposures for which each Agency is used

(i) For Exposures with a contractual maturity of less than or equal to one year (except Cash Credit, Overdraft and other
Revolving Credits), Short-term Ratings given by approved Rating Agencies are used.

(ii) For Cash Credit, Overdraft and other Revolving Credits (irrespective of the period) and for Term Loan exposures of
over 1 year, Long Term Ratings are used.

 Description of the process used to transfer Public Issue Ratings onto comparable assets in the Banking Book
The key aspects of the Bank’s external ratings application framework are as follows:

y All long term and short term ratings assigned by the credit rating agencies specifically to the Bank’s long term and
short term exposures respectively are considered by the Bank as issue specific ratings.
y Foreign sovereign and foreign bank exposures are risk-weighted based on issuer ratings assigned to them.
y The Bank ensures that the external rating of the facility/borrower has been reviewed at least once by the ECAI during
the previous 15 months and is in force on the date of its application.
y Where multiple issuer ratings are assigned to an entity by various credit rating agencies, the risk weight is determined
as follows:

− If there is only one rating by a chosen credit rating agency for a particular claim, then that rating is used to determine
the risk weight of the claim.
− If there are two ratings accorded by chosen credit rating agencies, which map into different risk weights, the higher
risk weight is applied.
− If there are three or more ratings accorded by chosen credit rating agencies with different risk weights, the ratings
corresponding to the two lowest risk weights are referred to and the higher of those two risk weights is applied, i.e.,
the second lowest risk weight.

Long-term Issue Specific Ratings (For the Bank’s own exposures or other issuance of debt by the same borrower-
constituent/counterparty) or Issuer (borrower-constituents/counterparty) Ratings are applied to other unrated exposures
of the same borrower-constituent/counter-party in the following cases:

y If the Issue Specific Rating or Issuer Rating maps to Risk Weight equal to or higher than the unrated exposures, any
other unrated exposure on the same counter-party is assigned the same Risk Weight, if the exposure ranks pari passu
or junior to the rated exposure in all respects.
y In cases where the borrower-constituent/counterparty has issued a debt (which is not a borrowing from the Bank), the
rating given to that debt is applied to the Bank’s unrated exposures, if the Bank’s exposure ranks pari-passu or senior
to the specific rated debt in all respects and the maturity of unrated Bank’s exposure is not later than the maturity of
the rated debt.

306 Annual Report 2022 – 23

Quantitative Disclosures as on 31.03.2023

Company Overview
(` in Crore)
(b) For exposure amounts after risk mitigation subject to the Standardised Amount
Approach, amount of group’s outstanding (rated and unrated) in each risk Below 100% Risk Weight 24,89,255.87
bucket as well as those that are deducted.
100% Risk Weight 10,75,897.41
More than 100% Risk Weight 2,83,844.58
Deducted 0.00

Responsible Approach
Total 38,48,997.86

DF-5: CREDIT RISK MITIGATION: DISCLOSURES FOR STANDARDISED APPROACHES

As on 31.03.2023

Credit Risk Mitigation: Disclosures for Standardised Approach

Governance
(a) Qualitative Disclosures
 Policies and processes for, and an indication of the extent to which the bank makes use of, on- and off-
balance sheet netting
On-balance sheet netting is confined to loans/advances and deposits, where the Bank have legally enforceable
netting arrangements, involving specific lien with proof of documentation. The Bank calculates capital requirements
on the basis of net credit exposures subject to the following conditions:

Statutory Reports
Where bank,

a) has a well-founded legal basis for concluding that the netting or offsetting agreement is enforceable in each
relevant jurisdiction regardless of whether the counterparty is insolvent or bankrupt.

b) is able at any time to determine the loans/advances and deposits with the same counterparty that are subject
to the netting agreement; and

c) monitors and controls the relevant exposures on a net basis, it may use the net exposure of loans/advances and

Financial Statements
deposits as the basis for its capital adequacy calculation. Loans/advances are treated as exposure and deposits
as collateral.

 Policies and Processes for Collateral Valuation and Management

The Bank has an integrated Credit Risk Management, Credit Risk Mitigation and Collateral Management Policy in
place which is reviewed annually. Part B of this policy deals with Credit Risk Mitigation and Collateral Management,
addressing the Bank’s approach towards the credit risk mitigants used for capital calculation.

The objective of this Policy is to enable classification and valuation of credit risk mitigants in a manner that allows
regulatory capital adjustment to reflect them.
The Policy adopts the Comprehensive Approach, which allows full offset of collateral (after appropriate haircuts),
wherever applicable against exposures, by effectively reducing the exposure amount by the value ascribed to the
collateral. The following issues are addressed in the Policy:

(i) Classification of credit risk-mitigants

(ii) Acceptable credit risk-mitigants

(iii) Documentation and legal process requirements for credit risk-mitigants

(iv) Valuation of collateral

307
Pillar 3 Disclosures

(v) Margin and Haircut requirements

(vi)
External ratings

(vii) Custody of collateral

(viii)
Insurance

(ix) Monitoring of credit risk mitigants

(x)
General guidelines.

Description of the main types of collateral taken by the Bank

The following collaterals are usually recognised as Credit Risk Mitigants under the Standardised Approach:

Cash or Cash equivalent (Bank Deposits/NSCs/KVP/LIC Policy, etc.)

Gold

Securities issued by Central / State Governments

Debt Securities rated BBB- or better A3 for Short-Term Debt Instrument

 Main types of Guarantor Counterparty and their creditworthiness

The Bank accepts the following entities as eligible guarantors, in line with RBI guidelines:

y Sovereign, Sovereign entities [including Bank for International Settlements (BIS), International Monetary Fund
(IMF), European Central Bank and European Community as well as Multilateral Development Banks, Export Credit
& Guarantee Corporation (ECGC) and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)],
Public Sector Enterprises (PSEs), Banks and Primary Dealers with a lower risk weight than the counterparty.
y Other guarantors having an external rating of AA or better. In case the guarantor is a parent company, affiliate, or
subsidiary, they should enjoy a risk weight lower than the obligor for the guarantee to be recognised by the Bank.
The rating of the guarantor should be an entity rating which has factored in all the liabilities and commitments
(including guarantees) of the entity.

Information about (Market or Credit) risk concentrations within the mitigation taken:

The Bank has a well-dispersed portfolio of assets which are secured by various types of collaterals, such as: -

y Eligible financial collaterals listed above

y Guarantees by sovereigns and well-rated corporates,
y Fixed assets and current assets of the counterparty.

Quantitative Disclosures as on 31.03.2023

(Amt. ` in Crore)
(b) For each separately disclosed credit risk portfolio the total exposure (after, where applicable, on- or off 3,66,260.51
balance sheet netting) that is covered by eligible financial collateral after the application of haircuts.
(c) For each separately disclosed portfolio the total exposure (after, where applicable, on- or off-balance sheet 1,26,219.17
netting) that is covered by guarantees/credit derivatives (whenever specifically permitted by RBI)

308 Annual Report 2022 – 23

DF-6: SECURITISATION EXPOSURES: DISCLOSURE FOR STANDARDISED APPROACH

Company Overview
As on 31.03.2023

Qualitative Disclosures
(a) The general qualitative disclosure requirement with respect to securitisation including a discussion of:
The bank’s objectives in relation to securitisation activity, including the extent to which The Bank’s investment in securitisation
these activities transfer credit risk of the underlying securitised exposures away from assets (PTCs & PSLCs) with an object to
the bank to other entities. optimise returns while adhering to Banks’

Responsible Approach
risk appetite, ensure liquidity and to meet
priority sector requirements of the Bank.
The nature of other risks (e.g. liquidity risk, pipeline and warehousing risk) inherent in Credit Risk, Liquidity Risk, Interest Rate
securitised assets; Risk, Prepayment Risk, Performance/
Servicer Risk.
The various roles played by the bank in the securitisation process (For example: Investor: The Bank invests in PTCs &
originator, investor, servicer, provider of credit enhancement, liquidity provider, PSLCs backed by financial assets.
swap provider@, protection provider#) and an indication of the extent of the bank’s

Governance
involvement in each of them;
@ A bank may have provided support to a securitisation structure in the form of an
interest rate swap or currency swap to mitigate the interest rate/currency risk of the
underlying assets, if permitted as per regulatory rules.
# A bank may provide credit protection to a securitisation transaction through
guarantees, credit derivatives or any other similar product, if permitted as per
regulatory rules.
A description of the processes in place to monitor changes in the credit and market Bank has invested in securitisation

Statutory Reports
risk of securitisation exposures (for example, how the behaviour of the underlying product. Bank monitors rating migration
assets impacts securitisation exposures as defined in para 5.16.1 of the Master and provides capital charge on the
Circular on NCAF dated July 1, 2012). securitisation exposure.
A description of the bank’s policy governing the use of credit risk mitigation to mitigate As per Bank’s internal guidelines
the risks retained through securitisation exposures;
(b) Summary of the bank’s accounting policies for securitisation activities, including:
Whether the transactions are treated as sales or financings; Financing
Methods and key assumptions (including inputs) applied in valuing positions retained As per FIMMDA guidelines

Financial Statements
or purchased
Changes in methods and key assumptions from the previous period and impact of Not Applicable
the changes;
Policies for recognising liabilities on the balance sheet for arrangements that could Not Applicable
require the bank to provide financial support for securitised assets.
Details of Sponsorship of Off-balance sheet vehicles. Nil
Valuation with regards to securitisation exposure As per FIMMDA guidelines
(c) In the banking book, the names of ECAIs used for securitisations and the types Not Applicable
of securitisation exposure for which each agency is used.
Quantitative Disclosures: Banking Book
(d) The total amount of exposures securitised by the bank. Nil
(e) For exposures securitised losses recognised by the bank during the current period Nil
broken by the exposure type (e.g. Credit cards, housing loans, auto loans etc. detailed
by underlying security)
(f) Amount of assets intended to be securitised within a year Nil
(g) Of (f), amount of assets originated within a year before securitisation. Not Applicable
(h) The total amount of exposures securitised (by exposure type) and unrecognised gain Nil
or losses on sale by exposure type.
(i) Aggregate amount of:
On-balance sheet securitisation exposures retained or purchased broken down by Nil
exposure type and
Off-balance sheet securitisation exposures broken down by exposure type Nil

309
Pillar 3 Disclosures

(j) Aggregate amount of securitisation exposures retained or purchased and the Nil
associated capital charges, broken down between exposures and further broken
down into different risk weight bands for each regulatory capital approach
Exposures that have been deducted entirely from Tier 1 capital, credit enhancing I/ Nil
Os deducted from total capital, and other exposures deducted from total capital (by
exposure type).
Quantitative Disclosures: Trading Book
(k) Aggregate amount of exposures securitised by the bank for which the bank has Nil
retained some exposures and which is subject to the market risk approach, by
exposure type.
(I) Aggregate amount of:
On-balance sheet securitisation exposures retained or purchased broken down by `3,663.54 Crore
exposure type; and
Off-balance sheet securitisation exposures broken down by exposure type. Nil
(m) Aggregate amount of securitisation exposures retained or purchased separately for: Nil
Securitisation exposures retained or purchased subject to Comprehensive Risk Nil
Measure for specific risk; and
Securitisation exposures subject to the securitisation framework for specific risk Nil
broken down into different risk weight bands.
(n) Aggregate amount of:
The capital requirements for the securitisation exposures, subject to the securitisation `168.42 Crore
framework broken down into different risk weight bands.
Securitisation exposures that are deducted entirely from Tier 1 capital, credit Nil
enhancing I/Os deducted from total capital, and other exposures deducted from total
capital (by exposure type).
(o) Details of Securitisation exposure in the Banking Book: Nil

(p) Details of Securitisation exposure in the Trading Book:

i. Securitisation exposures retained or purchased as on 31.03.2023

(` in Crore)
On-balance Off-balance
Exposure type1 Total
sheet sheet
Vehicle/equipment loans 2995.77 Nil 2995.77
Home loans Nil Nil Nil
Personal loans 27.89 Nil 27.89
Unsecured loans 639.88 Nil 639.88
Gold/Jewel loans Nil Nil Nil
Corporate loans Nil Nil Nil
Others Nil Nil Nil
Total 3663.54 Nil 3663.54

1. Securitisation exposures include PTCs originated by the Bank as well as PTCs purchased in case of third party originated securitisation
transactions.

ii. Details of Risk weights band break-up of securitisation exposure as on 31.03.2023

(` in Crore)
<100% risk 100% risk >100% risk
Total
weight weight weight
Exposure 3,663.54 - - 3,663.54
Total capital charge 168.42 - - 168.42

310 Annual Report 2022 – 23

DF–7: MARKET RISK IN TRADING BOOK

Company Overview
As on 31.03.2023

(a) QUALITATIVE DISCLOSURES:

(1) The Bank follows Standardised Measurement Method (SMM) for computing capital requirement for Market Risk.

(2) Market Risk Management Department (MRMD) is functioning as a part of Risk Management Department of the

Responsible Approach
Bank, in terms of Governance structure approved by the Board of the Bank.

(3) MRMD is responsible for identification, assessment, monitoring and reporting of market risk associated with
Treasury Operations.

(4) The following Board approved policies with defined Market Risk Management parameters for each asset class are
in place:

(a) Market Risk Management Policy

Governance
(b) Market Risk Limits Policy
(c) Investment Policy
(d) Trading Policy
(e) Stress Test Policy for Market Risk

5) Risk monitoring is an ongoing process and risk positions are analysed and reported to Top Management of the Bank,
Market Risk Management Committee and Risk Management Committee of the Board.

Statutory Reports
(6) Risk management and reporting is based on parameters such as Modified Duration, Convexity, PV01, Option Greeks,
Maximum permissible exposures, Value at Risk Limits, Concentration Risk Limits, Lower and upper management
Action Triggers, in line with global best practices.

(7) Forex Open position limit (Daylight/Overnight), Stop Loss Limit, Aggregate Gap Limit (AGL), Individual Gap Limit
(IGL) as approved by the Board is monitored and exceptions, if any, is reported to Top Management of the Bank,
Market Risk Management Committee and Risk Management Committee of the Board.

Financial Statements
(8) Value at Risk (VaR) computation and Back-Testing of VaR number is carried out on daily basis. Market Risk Stress
Testing is carried out at quarterly intervals as a complement to Value at Risk. Results are reported to Top Management
of the Bank, Market Risk Management Committee and Risk Management Committee of the Board.

(9) Respective Foreign offices monitor market risk of their investment portfolio, as per the local regulatory and RBI
stipulations. Further, Stop Loss limit for individual investments and exposure limits for certain portfolios have
been prescribed.

(10) Bank has submitted Letter of Intent (LOI) to RBI to migrate to advanced approach i.e. Internal Models Approach for
calculating capital charge for market risk.

(b) QUANTITATIVE DISCLOSURES:

CAPITAL CHARGE ON MARKET RISK
Bank maintains Capital Charge for Market Risk under the Standardised measurement method as under.
(` in Crore)
Category 31.03.2023
Interest rate Risk (including Derivatives) 12,373.98
Equity Position Risk 10,894.61
Foreign Exchange Risk 902.31
Total 24,170.90

311
Pillar 3 Disclosures

DF–8: OPERATIONAL RISK

As on 31.03.2023

Qualitative disclosures
A. The structure and organisation of Operational Risk Management function
 Operational Risk Management Department functions in SBI as part of the Integrated Risk Governance Structure
under the control of respective Chief Risk Officer. In SBI, Chief Risk Officer reports to Risk Management Committee
of the Board (RMCB)

 The operational risk related issues in other Group entities are being dealt with as per the requirements of the business
model and their regulators under the overall control of Chief Risk Officers of respective entities.

 Policies for control and mitigation of Operational Risk in SBI

Domestic Banking Entities (SBI)

The following Policies, Framework Documents and Manuals are in place in SBI:

Policies and Framework Documents

 Operational Risk Management policy encompasses Operational Risk Management Framework for systematic
and proactive identification, assessment, measurement, monitoring, mitigation and reporting of the
Operational Risks.

 Loss Data Management Policy.

 IT Policy and Standards.

 IT Procedures and Guidelines

 Cyber Security Policy

 Information Security Policy

 Business Continuity and Operational Resilience (BC& OR) Policy.

 SBGITC Business Continuity Management System (BCMS) Policy

 Policy on Know Your Customer (KYC) Standards and Anti Money Laundering (AML)/ Combating of Financing
of Terrorism Measures.

 Policy on Fraud Risk Management.

 IT Outsourcing and Procurement Policy.

 Policy on Insurance.

Manuals
 Operational Risk Management Manual

 Loss Data Management Manual

 Business Continuity and Operational Resilience (BC& OR) Manual

 Business Continuity Management System (BCMS) Plan

312 Annual Report 2022 – 23

 Domestic Non-Banking and Overseas Banking entities

Company Overview
Policies and Manuals, as relevant to the business model of non-Banking entities and as per the requirements of
the overseas regulators in respect of Overseas Banking subsidiaries are in place. A few of the policies in place are
– Disaster Recovery Plan/ Business Continuity Plan, Incident Reporting Mechanism, Near Miss Events Reporting
Mechanism, Outsourcing Policy, etc.

B. Strategies and Processes

Responsible Approach
Domestic Banking entities (SBI)
 To successfully embed the risk culture and operational risk management, Risk Management Committees at various
levels at Circles like RMCAOs, RMCCs, and RMCs at the Business and Support Groups (RMC-RB & O, RMC-
IBG, RMC-GMU, RMC-CAG, RMC-CCG, RMC-SARG & RMC-IT) are in place in addition to the Operational Risk
Management Committee (ORMC) and the Risk Management Committee of the Board (RMCB).

 The process of building a comprehensive database of internal and external losses due to Operational Risks as per
Basel defined 8 Business Lines and 7 Loss Event Types is in place. In addition, Near Miss Events and external losses

Governance
are also captured to improve risk management practices.

 Risk and Control Self-Assessment (RCSA) is a proactive exercise conducted in workshop-based manner to identify
gaps, if any, in the existing controls and suggestions are invited for improvement of System & Controls to mitigate the
Risks. RCSA also helps in generating risk awareness among staff members. RCSA exercise is carried out across Bank
Branches, CPCs and Offices on a yearly basis. Bank also conducts theme based RCSA for Products /Processes.
During FY 23, the Bank has conducted 16 Theme-based RCSA exercises and RCSA exercise (sign off) was conducted

Statutory Reports
at the time of launch/ review of 44 products/processes. Based on the RCSA exercise, Mitigation plans are prepared
and implemented for activities rated as High & Critical Risks. Feasibility study is carried out by Business owners for
suggestions emanated during RCSA exercise for further improvement of System & Controls in the Bank.

 Key Indicators (KIs) have been identified across the Business and Support Groups with threshold and monitoring
mechanism. KIs are being monitored at quarterly intervals by the RMCs, the ORMC and the RMCB. Top 10 KIs have
been identified during current financial year for close follow up.

Financial Statements
 Development of internal systems for quantifying and monitoring operational risk as required under Basel II guidelines
is in place.

Others
The following measures are being used to control and mitigate Operational Risks in the Domestic Banking entities:

 Book of Instructions” (Manual on General Instructions, Manual on Loans & Advances) which contains detailed
procedural guidelines for processing various banking transactions. Amendments and modifications to update these
guidelines are being carried out regularly through e-circulars/Master circulars. Guidelines and instructions are also
propagated through e-Circulars, E-Learning Lessons, Training Programs, etc.
 Updated Manuals and operating instructions relating to Business Process Re-engineering (BPR) units.

 Delegation of Financial powers, which details sanctioning powers of various levels of officials for different types of
financial and non-financial transactions.

 Training of staff-Inputs on Operational Risk is included as a part of Risk Management modules in the trainings
conducted for various categories of staff at Bank’s Apex Training Institutes and State Bank Institute of Learning
and Development.

 Insurance cover is obtained for most of the potential operational risks excluding frauds, as per Bank’s policy
on insurance.

313
Pillar 3 Disclosures

 Internal Auditors are responsible for the examination and evaluation of the adequacy and effectiveness of the control
systems and the functioning of specific control procedures. They also conduct review of the existing systems to
ensure compliance with legal and regulatory requirements, codes of conduct and the implementation of policies
and procedures.

 In order to ensure business continuity, resumption and recovery of critical business process after a disaster, the Bank
has robust Business Continuity and Operational Resilience Policy and Manuals in place.

 Stringent Implementation of vacation policy.

 Conduct of RCSA-Abridged at remaining Branches where RCSA is not proposed.

Domestic Non-Banking and Overseas Banking entities

Adequate measures by way of systems and procedures and reporting have been put in place in the Domestic Non-
Banking and Overseas Banking entities.

C. The scope and nature of Risk Reporting and Measurement Systems

 A system of prompt submission of reports on Frauds is in place in all the Group entities.

 A comprehensive system of Preventive Vigilance & Whistle Blowing has been established in all the Group entities.

 Significant risks thrown up in RCSA/RCSA-Abridged exercise at all Branches, Scenario Analysis and loss data/NMEs
analysis are reported to Top Management at regular intervals and corrective actions are initiated on an ongoing basis.

 Basic Indicator Approach with capital charge of 15% of average gross income for previous 3 years is applied for
Operational Risk, except Insurance Companies, for the year ended 31st March 2023.

DF–9: INTEREST RATE RISK IN BANKING BOOK (IRRBB)

As on 31.03.2023

1. Qualitative Disclosures
Interest rate risk refers to impact on Bank’s Net Interest Income and the value of its assets and liabilities arising from
fluctuations in interest rate due to internal and external factors. Internal factors include the composition of the Bank’s
assets and liabilities, quality, maturity, existing rates and re-pricing period of deposits, borrowings, loans and investments.
External factors cover general economic conditions. Rising or falling interest rates impact the Bank depending on whether
the Balance Sheet is asset sensitive or liability sensitive. The Bank identifies the inherent risks associated with the changing
interest rates on its on-balance sheet and off-balance sheet exposures in the banking book from both a short-term and
long-term perspective.

1.1 Structure and organisation

The Asset-Liability Management Committee (ALCO) is responsible for evolving appropriate systems and procedures
for ongoing identification and analysis of Balance Sheet risks and laying down parameters for efficient management
of these risks through ALM Policy of the Bank. ALCO, therefore, periodically monitors and controls the risks and
returns, funding and deployment, setting Bank’s lending and deposit rates, and directing the investment activities of
the Bank. The Risk Management Committee of the Board of Directors (RMCB) oversees the implementation of the
system for ALM and reviews its functioning periodically and provides direction. It reviews various decisions taken by
ALCO for managing interest rate risk.

314 Annual Report 2022 – 23

 1.2 Scope and nature of risk reporting and measurement systems

Company Overview
RBI has stipulated monitoring of Interest Rate Risk at monthly intervals through a Statement of Interest Rate
Sensitivity under Traditional Gap Analysis (IRS-TGA). Accordingly, ALCO reviews IRS-TGA on monthly basis and
monitors the Earnings at Risk (EaR) which measures the change in Net Interest Income of the Bank due to parallel
change in interest rate on both the assets & liabilities.

RBI has also stipulated to estimate the impact of change in interest rates on economic value of Bank’s assets and
liabilities through Interest Rate Sensitivity under Duration Gap Analysis (IRS-DGA), which Bank carries out on

Responsible Approach
monthly basis. The impact of interest rate changes on the Market Value of Equity is monitored through IRS-DGA
by recognising the changes in the value of assets and liabilities by a given change in the market interest rate. The
change in value of equity (including reserves) with 2% parallel shift in interest rates for both assets and liabilities
is estimated.

EaR: The immediate impact of changes in interest rates is on Bank’s earnings through changes in its Net Interest
Income (NII). EaR is useful in calculating the impact of the change in interest rate on the NII for a shorter period of
time (impact over a one-year period). The EaR computations include the banking book as well as the trading book.

Governance
MVE: A long-term impact of changes in interest rates is on Bank’s Market Value of Equity (MVE) or Net Worth
through changes in the economic value of its liabilities and off-balance sheet positions. Although these changes in
value do not pass through earnings, they have a bearing on Bank’s capital position.

The Bank uses MVE approach as part of a framework to manage IRRBB for its domestic and foreign operations.
Impact on MVE is assessed for the overall Bank and Banking Book separately. In order to effectively monitor and
manage IRRBB, the ALM Policy stipulates separate MVE limits for overall Bank and Banking Book.

Statutory Reports
1.3 Policies for hedging and mitigating risk
The Bank has a policy for undertaking hedge transactions. Depending on the underlying and prevailing market
conditions, the Bank enters into hedge transactions for identified assets or liabilities. Derivative instruments like
Interest Rate Swaps, OIS, Forward Rate Agreements and Cross Currency Swaps are used as a hedging technique by
the Bank.

Financial Statements
2. Quantitative Disclosures
2.1 The following table sets forth, estimated impact on NII due to changes in interest rates on interest sensitive positions
as on 31st March 2023, assuming a parallel shift in the yield curve.

Earnings at Risk (EaR)

(₹ in Crore)
Impact on NII
Impact of 100 bps parallel shift in interest rate on both assets & liability on Net Interest Income (NII) 10,117.34
Impact of 200 bps parallel shift in interest rate on both assets & liability on Net Interest Income (NII) 20,234.68

2.2 The following table sets forth, estimated impact on MVE due to changes in interest rates on interest sensitive
positions as on 31st March 2023, assuming a parallel shift in the yield curve.

Market Value of Equity (MVE)

(₹ in Crore)
Impact on MVE
Impact of 100 bps parallel shift in interest rate on both assets & liability on Market Value of Equity (MVE) 19,458.89
- Banking Book
Impact of 200 bps parallel shift in interest rate on both assets & liability on Market Value of Equity (MVE) 38,917.78
- Banking Book

315
Pillar 3 Disclosures

DF-10: GENERAL DISCLOSURE FOR EXPOSURE RELATED TO COUNTERPARTY CREDIT RISK

As on 31.03.2023

Qualitative Disclosure:
Credit Risk Management Department of the Bank uses scoring models for setting limits for amounts of counterparty exposure
for Domestic Banks, Foreign Banks, Development Financial Institution, Primary Dealers, Small Finance Banks & Payment Banks.

Credit Risk Management Department allocates the exposure limits to all business units, viz., CAG, CCG, R&DB, Global Markets
& IBG, who in turn allocate the limits among various operating units under their respective control.

Classification and recognition of collaterals

The Bank will accept, recognise and attribute value to collateral, both for internal sanctioning and/or regulatory capital relief
purposes, only when the following conditions are fulfilled:

y There is a legal certainty of enforceability and effectiveness of collateral in all relevant jurisdictions
y All contractual and statutory requirements with respect to the loan and collateral documentation are fulfilled.
y The Bank has obtained a legal charge to the said collateral (including second/subordinate or paripassu charges, in addition
to first legal charge).
y The legal mechanism by which the collateral is pledged or transferred ensures that the Bank has the right to liquidate or
take possession of it in a timely manner, in the event of a default, insolvency or bankruptcy on the part of the counterparty
or any third party.
y The Bank has clear and robust procedures for the timely liquidation of collateral to ensure that any legal conditions required
for declaring the default of the counterparty and liquidating the collateral are fulfilled and collateral can be liquidated promptly.

For the purposes of eligibility for IRB capital computation, collaterals are required to satisfy all operational criteria outlined in
RBI IRB guidelines.

Counterparty Credit Risk is the risk that the counterparty to a derivative transaction can default before the final settlement of
the transaction’s cash flow. To mitigate this risk, derivative transactions are undertaken only with those counterparties where
approved counterparty limits are in place. Counterparty limits for banks are assessed using internal models considering a
number of financial parameters like networth, capital adequacy ratio, rating etc. For corporates, the Derivatives limits are
assessed and sanctioned in conjunction with regular credit limit as part of regular appraisal.

Quantitative Disclosure:
(` In Crore)
Exposure
Current credit under Current
Distribution of Notional and Current Credit Exposure Notional
exposure Exposure
Method (CEM)
a) Interest rate Swaps 768634.27 4021.11 9932.30
b) Cross Currency Swaps 92668.63 2299.24 9080.65
c) Currency Options 55325.81 29.39 1774.55
d) Foreign Exchange Contracts 906106.51 5011.26 26990.90
e) Currency Futures - - -
f) Forward Rate Agreements 300.66 - -
g) Others (please specify product name) - NDF 103372.16 333.63 2401.07
Total 1926408.04 11694.62 50179.47
Credit Derivative transactions NIL

316 Annual Report 2022 – 23

DF-11: COMPOSITION OF CAPITAL

Company Overview
As on 31.03.2023
(` in Crore)
Basel III common disclosure template to be used from March 31, 2017
Ref No. (with
Common Equity Tier 1 capital: instruments and reserves respect to DF -
12: Step 2)

Responsible Approach
1 Directly issued qualifying common share capital plus related stock surplus (share 80007.94 A1 + B3
premium)
2 Retained earnings 209920.68 B1 + B2 + B7 +
B8 + B9 (#)
3 Accumulated other comprehensive income (and other reserves) 23237.42 B5 * 75% + B6
* 45%
4 Directly issued capital subject to phase out from CET1 (only applicable to non-joint 0.00
stock companies)

Governance
5 Common share capital issued by subsidiaries and held by third parties (amount 2165.45
allowed in group CET1)
6 Common Equity Tier 1 capital before regulatory adjustments 315331.49
Common Equity Tier 1 capital: regulatory adjustments
7 Prudential valuation adjustments 530.86
8 Goodwill (net of related tax liability) 1538.36 D

Statutory Reports
9 Intangibles (net of related tax liability) 10.66
10 Deferred Tax Assets 48.47
11 Cash-flow hedge reserve 0.00
12 Shortfall of provisions to expected losses 0.00
13 Securitisation gain on sale 0.00
14 Gains and losses due to changes in own credit risk on fair valued liabilities 0.00
15 Defined-benefit pension fund net assets 0.00

Financial Statements
16 Investments in own shares (if not already netted off paid-up capital on reported 258.57
balance sheet)
17 Reciprocal cross-holdings in common equity 3.95
18 Investments in the capital of banking, financial and insurance entities that are 0.00
outside the scope of regulatory consolidation, net of eligible short positions, where
the bank does not own more than 10% of the issued share capital (amount above
10% threshold)
19 Significant investments in the common stock of banking, financial and insurance 0.00
entities that are outside the scope of regulatory consolidation, net of eligible short
positions (amount above 10% threshold)
20 Mortgage servicing rights (amount above 10% threshold) 0.00
21 Deferred tax assets arising from temporary differences (amount above 10% 0.00
threshold, net of related tax liability)
22 Amount exceeding the 15% threshold 0.00
23 of which: significant investments in the common stock of financial entities 0.00
24 of which: mortgage servicing rights 0.00
25 of which: deferred tax assets arising from temporary differences 0.00
26 National specific regulatory adjustments (26a+26b+26c+26d) 1373.66
26a of which: Investments in the equity capital of unconsolidated insurance subsidiaries 1319.68
26b of which: Investments in the equity capital of unconsolidated non-financial subsidiaries 53.98

317
Pillar 3 Disclosures

(` in Crore)
Basel III common disclosure template to be used from March 31, 2017
Ref No. (with
Common Equity Tier 1 capital: instruments and reserves respect to DF -
12: Step 2)
26c of which: Shortfall in the equity capital of majority owned financial entities which 0.00
have not been consolidated with the bank
26d of which: Unamortised pension funds expenditures 0.00
27 Regulatory adjustments applied to Common Equity Tier 1 due to insufficient 0.00
Additional Tier 1 and Tier 2 to cover deductions
28 Total regulatory adjustments to Common equity Tier 1 3764.53
29 Common Equity Tier 1 capital (CET1) 311566.96
Additional Tier 1 capital: instruments
30 Directly issued qualifying Additional Tier 1 instruments plus related stock surplus 49842.70
(share premium) (31+32)
31 of which: classified as equity under applicable accounting standards (Perpetual 0
Non-Cumulative Preference Shares)
32 of which: classified as liabilities under applicable accounting standards (Perpetual 49842.70
debt Instruments)
33 Directly issued capital instruments subject to phase out from Additional Tier 1 0
34 Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued 406.02
by subsidiaries and held by third parties (amount allowed in group AT1)
35 of which: instruments issued by subsidiaries subject to phase out 0.00
36 Additional Tier 1 capital before regulatory adjustments 50248.72
Additional Tier 1 capital: regulatory adjustments
37 Investments in own Additional Tier 1 instruments 0.00
38 Reciprocal cross-holdings in Additional Tier 1 instruments 150.00
39 Investments in the capital of banking, financial and insurance entities that are 0.00
outside the scope of regulatory consolidation, net of eligible short positions, where
the bank does not own more than 10% of the issued common share capital of the
entity (amount above 10% threshold)
40 Significant investments in the capital of banking, financial and insurance entities that 0.00
are outside the scope of regulatory consolidation (net of eligible short positions)
41 National specific regulatory adjustments (41a+41b) 0.00
41a of which: Investments in the Additional Tier 1 capital of unconsolidated insurance 0.00
subsidiaries
41b of which: Shortfall in the Additional Tier 1 capital of majority owned financial entities 0.00
which have not been consolidated with the bank
42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to 0.00
cover deductions
43 Total regulatory adjustments to Additional Tier 1 capital 150.00
44 Additional Tier 1 capital (AT1) 50098.72
45 Tier 1 capital (T1 = CET1 + AT1) (29 + 44) 361665.68
Tier 2 capital: instruments and provisions
46 Directly issued qualifying Tier 2 instruments plus related stock surplus 35014.10
47 Directly issued capital instruments subject to phase out from Tier 2 513.88
48 Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) 854.52
issued by subsidiaries and held by third parties (amount allowed in group Tier 2)
49 of which: instruments issued by subsidiaries subject to phase out
50 Provisions 38527.59
51 Tier 2 capital before regulatory adjustments 74910.09

318 Annual Report 2022 – 23

 (` in Crore)

Company Overview
Basel III common disclosure template to be used from March 31, 2017
Ref No. (with
Common Equity Tier 1 capital: instruments and reserves respect to DF -
12: Step 2)
Tier 2 capital: regulatory adjustments
52 Investments in own Tier 2 instruments 2.4
53 Reciprocal cross-holdings in Tier 2 instruments 0

Responsible Approach
54 Investments in the capital of banking, financial and insurance entities that are 0.00
outside the scope of regulatory consolidation, net of eligible short positions, where
the bank does not own more than 10% of the issued common share capital of the
entity (amount above the 10% threshold)
55 Significant investments in the capital banking, financial and insurance entities that 13.48
are outside the scope of regulatory consolidation (net of eligible short positions)
56 National specific regulatory adjustments (56a+56b) 0.00

Governance
56a of which: Investments in the Tier 2 capital of unconsolidated insurance subsidiaries 0.00
56b of which: Shortfall in the Tier 2 capital of majority owned financial entities which 0.00
have not been consolidated with the bank
57 Total regulatory adjustments to Tier 2 capital 15.88
58 Tier 2 capital (T2) 74894.21
59 Total capital (TC = T1 + T2) (45 + 58) 436559.89
60 Total risk weighted assets (60a + 60b + 60c) 2941677.94

Statutory Reports
60a of which: total credit risk weighted assets 2349191.85
60b of which: total market risk weighted assets 302136.3
60c of which: total operational risk weighted assets 290349.79
Capital ratios and buffers
61 Common Equity Tier 1 (as a percentage of risk weighted assets) 10.59
62 Tier 1 (as a percentage of risk weighted assets) 12.29
63 Total capital (as a percentage of risk weighted assets) 14.84

Financial Statements
64 Institution specific buffer requirement (minimum CET1 requirement plus 8.60
capital conservation plus countercyclical buffer requirements plus G-SIB buffer
requirement, expressed as a percentage of risk weighted assets)
65 of which: capital conservation buffer requirement 2.50
66 of which: bank specific countercyclical buffer requirement 0.00
67 of which: D-SIB buffer requirement 0.60
68 Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted 5.09
assets)
National minima (if different from Basel III)
69 National Common Equity Tier 1 minimum ratio (if different from Basel III minimum) 5.50
70 National Tier 1 minimum ratio (if different from Basel III minimum) 7.00
71 National total capital minimum ratio (if different from Basel III minimum) 9.00
Amounts below the thresholds for deduction (before risk weighting)
72 Non-significant investments in the capital of other financial entities 0.00
73 Significant investments in the common stock of financial entities 562.58
74 Mortgage servicing rights (net of related tax liability) 0.00
75 Deferred tax assets arising from temporary differences (net of related tax liability) 11060.24

319
Pillar 3 Disclosures

(` in Crore)
Basel III common disclosure template to be used from March 31, 2017
Ref No. (with
Common Equity Tier 1 capital: instruments and reserves respect to DF -
12: Step 2)
Applicable caps on the inclusion of provisions in Tier 2
76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to 38527.59
standardised approach (prior to application of cap)
77 Cap on inclusion of provisions in Tier 2 under standardised approach 29364.90
78 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal 0.00
ratings-based approach (prior to application of cap)
79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach 0.00
Capital instruments subject to phase-out arrangements (only applicable between March 31,
2017 and March 31, 2022)
80 Current cap on CET1 instruments subject to phase out arrangements 0.00
81 Amount excluded from CET1 due to cap (excess over cap after redemptions and 0.00
maturities)
82 Current cap on AT1 instruments subject to phase out arrangements 0%
83 Amount excluded from AT1 due to cap (excess over cap after redemptions and 0.00
maturities)
84 Current cap on T2 instruments subject to phase out arrangements 0%
85 Amount excluded from T2 due to cap (excess over cap after redemptions and 0.00
maturities)

Notes to the Template

Row No. of
Particular (` in Crore)
the template
10 Deferred tax assets associated with accumulated losses 48.47
Deferred tax assets (excluding those associated with accumulated losses) net of 11060.24
Deferred tax liability
Total as indicated in row 10 48.47
19 If investments in insurance subsidiaries are not deducted fully from capital and 0.00
instead considered under 10% threshold for deduction, the resultant increase in
the capital of bank
of which: Increase in Common Equity Tier 1 capital 0.00
of which: Increase in Additional Tier 1 capital 0.00
of which: Increase in Tier 2 capital 0.00
26b If investments in the equity capital of unconsolidated non-financial subsidiaries are 0.00
not deducted and hence, risk weighted then:
(i) Increase in Common Equity Tier 1 capital 0.00
(ii) Increase in risk weighted assets 0.00
50 Eligible Provisions included in Tier 2 capital 38527.59
Eligible Revaluation Reserves included in Tier 2 capital 0.00
Total of row 50 38527.59

# B7: Revenue & Other Reserves is taken net of Integration & Development Fund (`5 Crore)

320 Annual Report 2022 – 23

DF-12: COMPOSITION OF CAPITAL – RECONCILIATION REQUIREMENT

Company Overview
As on 31.03.2023

Step 1
(` in Crore)
Balance sheet under
Balance sheet as in
COMPOSITION OF CAPITAL – RECONCILIATION REQUIREMENT regulatory scope of
financial statements
consolidation

Responsible Approach
As on reporting date As on reporting date
A Capital & Liabilities
i Paid-up Capital 892.46 892.46
Reserves & Surplus 3,58,038.86 3,43,398.27
Minority Interest 12,836.62 6,102.95
Total Capital 3,71,767.94 3,50,393.68
ii Deposits 44,68,535.51 44,69,795.24

Governance
of which: Deposits from banks 10,772.06 10,772.06
of which: Customer deposits 44,57,763.45 44,59,023.18
of which: Other deposits (pl. specify) - -
iii Borrowings 5,21,151.95 5,21,301.95
of which: From RBI 26,467.44 26,467.44
of which: From banks 2,25,240.03 2,25,240.03
of which: From other institutions & agencies 1,55,559.17 1,55,559.17

Statutory Reports
of which: Others (Bonds Other than Capital Instrument Bonds) 23,073.00 23,223.00
of which: Capital instruments 90,812.31 90,812.31
iv Other liabilities & provisions 5,92,962.92 2,80,022.21
Total 59,54,418.32 56,21,513.08
B Assets
i Cash and balances with Reserve Bank of India 2,47,321.05 2,47,256.27

Financial Statements
Balance with banks and money at call and short notice 70,990.86 66,628.36
ii Investments 19,13,107.86 15,93,526.27
of which: Government securities 13,92,137.38 12,90,214.75
of which: Other approved securities 35,059.73 297.54
of which: Shares 1,05,387.92 14,374.82
of which: Debentures & Bonds 3,14,619.79 2,44,407.30
of which: Subsidiaries / Joint Ventures / Associates 16,189.21 10,701.76
of which: Others (Commercial Papers, Mutual Funds etc.) 49,713.83 33,530.10
iii Loans and advances 32,67,902.13 32,67,512.67
of which: Loans and advances to banks 1,52,608.02 1,52,608.02
of which: Loans and advances to customers 31,15,294.11 31,14,904.65
iv Fixed assets 44,407.38 43,562.02
v Other assets 4,09,150.68 4,01,489.13
of which: Goodwill - -
of which: Other intangibles (excluding MSRs) - -
of which: Deferred tax assets 11,136.38 11,112.51
vi Goodwill on consolidation 1,538.36 1,538.36
vii Debit balance in Profit & Loss account - -
Total Assets 59,54,418.32 56,21,513.08

321
Pillar 3 Disclosures

Step 2
(` in Crore)
Balance sheet under
Balance sheet as in
regulatory scope of Reference
COMPOSITION OF CAPITAL – RECONCILIATION REQUIREMENT financial statements
consolidation number
As on reporting date As on reporting date
A Capital & Liabilities
i Paid-up Capital 892.46 892.46 A
of which: Amount eligible for CET 1 892.46 892.46 A1
of which: Amount eligible for AT1 - - A2
Reserves & Surplus 3,58,038.86 3,43,398.27 B
of which: Statutory Reserve 1,02,309.50 1,02,309.50 B1
of which: Capital Reserves 16,348.61 16,318.16 B2
of which: Share Premium 79,115.48 79,115.48 B3
of which: Investment Reserve - - B4
of which: Investment Revaluation Reserve 12,271.38 12,271.38
of which: Foreign Currency Translation Reserve 14,331.75 14,329.47 B5
of which: Revaluation Reserve on Fixed Assets 27,756.26 27,756.26 B6
of which: Revenue and Other Reserves 46,233.27 39,455.31 B7
of which: Reserves under Sec. 36(1)(viii) of Income Tax Act, 1961 17,749.31 17,749.31 B8
of which: Balance in Profit & Loss Account 41,923.30 34,093.40 B9
Minority Interest 12,836.62 6,102.95
Total Capital 3,71,767.94 3,50,393.68
ii Deposits 44,68,535.51 44,69,795.24
of which: Deposits from banks 10,772.06 10,772.06
of which: Customer deposits 44,57,763.45 44,59,023.18
of which: Other deposits (pl. specify) - -
iii Borrowings 5,21,151.95 5,21,301.95
of which: From RBI 26,467.44 26,467.44
of which: From banks 2,25,240.03 2,25,240.03
of which: From other institutions & agencies 1,55,559.17 1,55,559.17
of which: Others (Bonds Other than Capital Instrument Bonds) 23,073.00 23,223.00
of which: Capital instruments 90,812.31 90,812.31
iv Other liabilities & provisions 5,92,962.92 2,80,022.21
of which: DTLs related to goodwill - -
of which: DTLs related to intangible assets - -
Total 59,54,418.32 56,21,513.08

322 Annual Report 2022 – 23

 (` in Crore)

Company Overview
Balance sheet under
Balance sheet as in
regulatory scope of Reference
COMPOSITION OF CAPITAL – RECONCILIATION REQUIREMENT financial statements
consolidation number
As on reporting date As on reporting date
B Assets
i Cash and balances with Reserve Bank of India 2,47,321.05 2,47,256.27
Balance with banks and money at call and short notice 70,990.86 66,628.36

Responsible Approach
ii Investments 19,13,107.86 15,93,526.27
of which: Government securities 13,92,137.38 12,90,214.75
of which: Other approved securities 35,059.73 297.54
of which: Shares 1,05,387.92 14,374.82
of which: Debentures & Bonds 3,14,619.79 2,44,407.30
of which: Subsidiaries / Joint Ventures / Associates 16,189.21 10,701.76
of which: Others (Commercial Papers, Mutual Funds etc.) 49,713.83 33,530.10

Governance
iii Loans and advances 32,67,902.13 32,67,512.67
of which: Loans and advances to banks 1,52,608.02 1,52,608.02
of which: Loans and advances to customers 31,15,294.11 31,14,904.65
iv Fixed assets 44,407.38 43,562.02
v Other assets 4,09,150.68 4,01,489.13
of which: Goodwill - -

Statutory Reports
of which: Other intangibles (excluding MSRs) - -
of which: Deferred tax assets 11,136.38 11,112.51 C
vi Goodwill on consolidation 1,538.36 1,538.36 D
vii Debit balance in Profit & Loss account - -
Total Assets 59,54,418.32 56,21,513.08

Step 3

Financial Statements
(` in Crore)
Component of
Ref No. (with respect
Common Equity Tier 1 capital (CET1): instruments and reserves regulatory capital
to DF - 12: Step 2)
reported by bank
1 Directly issued qualifying common share (and equivalent for non - joint stock 80007.94 A1 + B3
companies) capital plus related stock surplus
2 Retained earnings 209920.68 B1 + B2 + B7 +
B8 + B9 (#)
3 Accumulated other comprehensive income (and other reserves) 23237.42 B5 * 75% + B6 * 45%
4 Directly issued capital subject to phase out from CET1 (only applicable to non- 0.00
joint stock companies)
5 Common share capital issued by subsidiaries and held by third parties (amount 2165.45
allowed in group CET1)
6 Common Equity Tier 1 capital before regulatory adjustments 315331.49
7 Prudential valuation adjustments 530.86
8 Goodwill (net of related tax liability) 1538.36 D

# B7: Revenue & Other Reserves is taken net of Integration & Development Fund (`5 Crore)

323
Pillar 3 Disclosures

DF 13: Main features of Regulatory Capital Instruments

DF 14: Full Terms and Conditions of Regulatory Capital Instruments

These disclosures i.e. DF 13 and DF 14 have been uploaded on the Bank’s website i.e. www.sbi.co.in/portal/web/corporate-
governance/basel-iii-disclosures

DF 15 – Disclosure Requirements for Remuneration

Not applicable, as Private sector and foreign banks operating in India are required to make this disclosure.

DF-16: Equities - Disclosure for Banking Book Positions as on 31.03.2023

Qualitative Disclosures
1 The general qualitative disclosure with respect to equity risk, including:
y Differentiation between holdings on which capital gains are expected and those taken All equity investments in HTM
under other objectives including for relationship and strategic reasons; Category are made in Associates,
Subsidiaries, Joint Ventures and
RRBs. These are strategic in
nature.
y Discussion of important policies covering the valuation and accounting of equity holdings Accounting and valuation policies
in the banking book. This includes the accounting techniques and valuation methodologies for securities held under HTM
used, including key assumptions and practices affecting valuation as well as significant category are detailed under
changes in these practices Schedule 17 para 2.3(ii) of Bank’s
Annual Report 2022-23.

Quantitative Disclosures
1 Value disclosed in the balance sheet of investments, as well as the fair value of those `909.28 Crore
investments; for quoted securities, a comparison to publicly quoted share values where the
share price is materially different from fair value.
2 The types and nature of investments, including the amount that can be classified as:

Book Value
Particulars Type
(In Crore)
Publicly traded Subsidiaries HTM 2641.49
Associate AFS 7810.00
Others HTM 127.00
Privately held Associates, Subsidiaries, JVs & Others HTM 9328.73

3 The cumulative realised gains (losses) arising from sales and liquidations in the reporting Nil
period
4 Total unrealised gains (losses)13 `164.01 Crore (Unrealised loss)
5 Total latent revaluation gains (losses)14 `3502.58 Crore (MTM Gain)
6 Any amounts of the above included in Tier 1 and/or Tier 2 capital `84.80 Crore
7 Capital requirements broken down by appropriate equity groupings, consistent with the `45.70 Crore
bank’s methodology, as well as the aggregate amounts and the type of equity investments
subject to any supervisory transition or grandfathering provisions regarding regulatory capital
requirements

13 Unrealised gains (losses) recognised through the profit and loss account.

14 Unrealised gains (losses) not recognised either in the balance sheet or through the profit and loss account.

324 Annual Report 2022 – 23

DF-17: COMPARISON OF ACCOUNTING ASSETS VS. LEVERAGE RATIO EXPOSURE MEASURE

Company Overview
As on 31.03.2023

ITEM ` (In Million)

1 Total consolidated assets as per published financial statements 5,95,44,183.17
2 Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for -33,29,052.33
accounting purposes but outside the scope of regulatory consolidation
3 Adjustment for fiduciary assets recognised on the balance sheet pursuant to the operative accounting 0.00

Responsible Approach
framework but excluded from the leverage ratio exposure measure
4 Adjustments for derivative financial instruments 4,37,572.75
5 Adjustment for securities financing transactions (i.e. repos and similar secured lending) 11,553.60
6 Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet 53,25,977.76
exposures)
7 Other adjustments -1,55,373.54
8 Leverage ratio exposure (State Bank Group) 6,18,34,861.41

Governance
DF-18: LEVERAGE RATIO COMMON DISCLOSURE TEMPLATE
As on 31.03.2023

ITEM (` in Million)
On balance sheet exposures
1 On-balance sheet items (excluding derivatives and SFTs, but including collateral) 5,62,15,130.84

Statutory Reports
2 (Asset amounts deducted in determining Basel III Tier 1 capital) -1,55,373.54
3 Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of lines 1 and 2) 5,60,59,757.30
Derivatives exposures
4 Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation margin) 1,85,617.47
5 Add-on amounts for PFE associated with all derivatives transactions 2,51,955.28
6 Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to the 0.00
operative accounting framework
7 (Deductions of receivables assets for cash variation margin provided in derivatives transactions) 0.00

Financial Statements
8 (Exempted CCP leg of client-cleared trade exposures) 0.00
9 Adjusted effective notional amount of written credit derivatives 0.00
10 (Adjusted effective notional offsets and add-on deductions for written credit derivatives) 0.00
11 Total derivative exposures (sum of lines 4 to 10) 4,37,572.75
Securities financing transaction exposure
12 Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions 11,553.60
13 (Netted amounts of cash payables and cash receivables of gross SFT assets) 0.00
14 CCR exposure for SFT assets 0.00
15 Agent transaction exposures 0.00
16 Total securities financing transaction exposures (sum of lines 12 to 15) 11,553.60
Other off balance sheet exposures
17 Off-balance sheet exposure at gross notional amount 1,32,56,329.55
18 (Adjustments for conversion to credit equivalent amounts) -79,30,351.79
19 Off-balance sheet items (sum of lines 17 and 18) 53,25,977.76
Capital and total exposures
20 Tier 1 capital 36,16,656.81
21 Total exposures (sum of lines 3,11,16 and 19) 6,18,34,861.41
Leverage ratio
22 Basel III leverage ratio (%) (State Bank Group) 5.85%

325
Pillar 3 Disclosures

DF- GR: Additional Disclosures on Group Risk

As on 31.03.2023

Qualitative Disclosure
In respect of Group entities *

[Overseas Banking entities and Non-Banking entities]

General Description on
Corporate Governance Practices All Group entities adhere to good Corporate Governance practices.
Disclosure Practices All Group entities adhere to / follow good disclosure practices.
Arm’s Length Policy in respect of All Intra-Group transactions within the State Bank Group have been effected on Arm’s Length
Intra Group Transactions basis, both as to their commercial terms and as to matters such as provision of security.
Common marketing, branding and No Group entity has made use of SBI symbol in a manner that may indicate to public that
use of SBI’s Symbol common marketing, branding implies implicit support of SBI to the Group entity.
Details of Financial Support,# if any No Group entity has provided / received Financial Support from any other entity in the Group.
Adherence to all other covenants of All covenants of the Group Risk Management Policy have meticulously been complied with by
Group Risk Management policy the Group entities.
Intra-group transactions which may lead to the following have been broadly treated as ‘Financial Support’ #:

a) inappropriate transfer of capital or income from one entity to the other in the Group;

b) vitiation of the Arm’s Length Policy within which the Group entities are expected to operate;

c) adverse impact on the solvency, liquidity and profitability of the individual entities within the Group;

d) evasion of capital or other regulatory requirements;

e) operation of ‘Cross Default Clauses’ whereby a default by a related entity on an obligation (whether financial or otherwise) is deemed to trigger a
default on itself.

326 Annual Report 2022 – 23

* Entities covered:

Company Overview
BANKING - OVERSEAS NON - BANKING
SBI Canada Bank SBI Capital Markets Ltd.
State Bank of India (California) SBI Cards & Payment Services Ltd.
SBI (Mauritius) Ltd. SBI DFHI Ltd.
PT Bank SBI Indonesia SBI Funds Management Ltd.

Responsible Approach
Commercial Indo Bank LLC, Moscow SBI General Insurance Company Ltd.
Nepal SBI Bank Ltd. SBI Global Factors Ltd.
State Bank of India (UK) Ltd. SBI Life Insurance Co. Ltd.
SBI Pension Funds Pvt. Ltd.
SBI-SG Global Securities Services Pvt. Ltd.

Governance
Statutory Reports
Financial Statements

327
Notice

STATE BANK OF INDIA

(Constituted under the State Bank of India Act, 1955)

The 68th Annual General Meeting of Shareholders of the State Bank of India will be held at the “State Bank Auditorium”, State
Bank Bhavan, Madame Cama Road, Mumbai – 400021 on Tuesday, the 27th June 2023 at 3.00 P.M. The Meeting will be held
through Video Conferencing (VC) / Other Audio Visual Means (OAVM) facility to transact the following business:

“To discuss and adopt the Balance Sheet and the Profit and Loss Account of the State Bank of India made up to the 31st day of
March 2023, the report of the Central Board on the working and activities of the State Bank of India for the period covered by
the Accounts and the Auditor’s Report on the Balance Sheet and Accounts.”

Corporate Centre,
State Bank Bhavan, (Dinesh Kumar Khara)
Madame Cama Road Chairman

Mumbai - 400 021

Date: 20th May 2023

328 Annual Report 2022 – 23

ANNEXURE
General instructions for accessing and participating in the Annual General Meeting through VC / OAVM facility and voting
through electronic means including remote e-voting

1. Pursuant to the General Circular No. 14/2020 dated April 08, 2020, issued by the Ministry of Corporate Affairs followed
by General Circular No. 20/2020 dated May 05, 2020 and General Circular No. 02/2021 dated January 13, 2021 and the
General Circular No.: 21/2021 dated December 14, 2021 and the General Circular No.: 02/2022 dated May 05, 2022
and General Circular No. 10/2022 dated December 28,2022, (“MCA Circulars”), Annual General Meeting (AGM) can be
conducted through Video Conferencing (VC) or Other Audio Visual Means (OAVM). Accordingly, physical attendance
of the Shareholders at venue is not required. The Central Board of the Bank has decided to adopt the above guidelines
issued by MCA in conducting Annual General Meeting of the Bank. Hence, Shareholders can attend and participate in
the ensuing Annual General Meeting through VC / OAVM, which may not require physical presence of shareholders at a
common venue. The deemed venue for the meeting shall be State Bank Auditorium, Corporate Centre of the Bank.

2. In view of the VC facility being provided to the shareholders of the Bank, the facility to appoint proxy to attend and cast
vote for the shareholders as provided in Regulation 34 of SBI General Regulations, 1955 is not available for this Annual
General Meeting. However, the shareholders being Body Corporates are entitled to appoint authorised representatives as
provided in Regulation 32 and 33 of SBI General Regulations, 1955 to attend the Annual General Meeting through VC /
OAVM and participate thereat and cast their votes through e-voting.

3. The Shareholders can join the Annual General Meeting in the VC / OAVM mode 30 minutes before and after the scheduled
time of the commencement of the Meeting by following the procedure mentioned in the Notice. The facility of participation
at the Annual General Meeting through VC / OAVM will be made available for at least 1000 members on first come
first served basis. This will not include large Shareholders (Shareholders holding 2% or more shareholding), Promoters,
Institutional Investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and
Remuneration Committee and Stakeholders Relationship Committee, Auditors etc. who are allowed to attend the Annual
General Meeting without restriction on account of first come first served basis.

4. The attendance of the Shareholder attending the Annual General Meeting through VC / OAVM will be counted for the
purpose of reckoning the quorum under Regulation 24 of SBI General Regulations, 1955.

5. Pursuant to the provisions Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015
(as amended) read with Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and
Administration) Rules 2014, (as amended), and the MCA Circulars, the Bank is providing facility of remote e-voting to its
Shareholders in respect of the business to be transacted at the Annual General Meeting. Shareholder will be provided
with a facility to attend the AGM through video conferencing platform provided by National Securities Depository Limited
(NSDL). The facility of casting votes by a member using remote e-voting system as well as venue voting on 27th June 2023
the date of the Annual General Meeting will be provided by National Securities Depository Limited (NSDL).

6. In line with the Ministry of Corporate Affairs (MCA) Circular No. 17/2020 dated April 13, 2020, the Notice convening
the Annual General Meeting has been uploaded on the website of the Bank at www.sbi.co.in. The Notice can also be
accessed from the websites of the Stock Exchanges i.e. BSE Limited (BSE) and National Stock Exchange of India Limited
(NSE) at www.bseindia.com and www.nseindia.com respectively and the Annual General Meeting Notice is also available
on the website of National Securities Depository Limited (NSDL) (agency for providing the remote e-voting facility)
i.e. https://www.evoting.nsdl.com/

7. Annual General Meeting has been convened through VC / OAVM in compliance with applicable provisions of the Companies
Act, 2013 read with MCA Circulars and SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated 12th May 2020,

329
Notice

8. In terms of Regulation 7 of SBI General Regulations, 1955, in case of joint holders, the person whose name appears first
as per the Register of Shareholders of the Bank will be entitled to vote at the Annual General Meeting provided the votes
are not already cast through remote e-voting.

9. Members who opt to be present through VC and who do not cast their vote through remote e-voting on a particular
resolution will be allowed to vote through e-voting at the Annual General Meeting for that particular resolution.

INSTRUCTIONS FOR MEMBERS FOR REMOTE E-VOTING ARE AS GIVEN BELOW:

y The remote e-voting period commences on 22nd June 2023 at 10.00 AM IST and ends on 26th June 2023 at 05:00
PM IST. The remote e-voting module shall be disabled by National Securities Depository Limited (NSDL) for voting
thereafter. Once the vote is cast by the Shareholder, the Shareholder shall not be allowed to change it subsequently.
y During the above period, Shareholders of the Bank, holding shares either in physical form or in dematerialized form
as on the cut-off date as provided in Regulation 31 of SBI General Regulations, 1955 may cast their vote by remote
e-voting.
y Shareholders holding multiple folios / demat account shall choose the voting process separately for each folio / demat account.
y The portal will close as aforesaid, and the facility will be disabled immediately upon closure.
y The Bank has appointed Parikh & Associates, Company Secretaries, as the Scrutinizer to ensure that the e-voting process
is conducted in a fair and transparent manner.
y Shareholders acquiring shares between the cut-off date for E-voting and cut–off date for dispatch of the Notice for 68th AGM
/ Annual Report 2022-23 and have registered their e-mail IDs with their respective DP, shall be sent communication by the
Registrar and Transfer Agent of the Bank, for attending the AGM. Such shareholders may also visit Bank’s website to get
the details.

How do I vote electronically using NSDL e-Voting system?

The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below:

Step 1: Access to NSDL e-Voting system

A) Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode
In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual Shareholders
holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and
Depository Participants. Shareholders are advised to update their mobile number and email Id in their demat accounts in
order to access e-Voting facility.

Login method for Individual Shareholders holding securities in demat mode is given below:

Type of shareholders Login Method

Individual Shareholders 1. Existing IDeAS user can visit the e-Services website of NSDL Viz. https://eservices.nsdl.
holding securities in demat com either on a Personal Computer or on a mobile. On the e-Services home page click on
mode with NSDL. the “Beneficial Owner” icon under “Login” which is available under ‘IDeAS’ section , this
will prompt you to enter your existing User ID and Password. After successful authentication,
you will be able to see e-Voting services under ‘Value Added Services’. Click on “Access to
e-Voting” under e-Voting services and you will be able to see e-Voting page. Click on Company
name i.e. State Bank of India or e-Voting service provider i.e. NSDL and you will be re-directed
to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining
virtual meeting & voting during the meeting.
2. 
If you are not registered for IDeAS e-Services, option to register is available at
https://eservices.nsdl.com. Select “Register Online for IDeAS Portal” or click at
https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp

330 Annual Report 2022 – 23

 Type of shareholders Login Method
3. 
Visit the e-Voting website of NSDL. Open web browser by typing the following URL:
https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the
home page of e-Voting system is launched, click on the icon “Login” which is available under
‘Shareholder/Member’ section. A new screen will open. You will have to enter your User ID (i.e.
your sixteen digit demat account number held with NSDL), Password/OTP and a Verification
Code as shown on the screen. After successful authentication, you will be redirected to NSDL
Depository site wherein you can see e-Voting page. Click on Company name i.e. State Bank of
India or e-Voting service provider i.e. NSDL and you will be redirected to e-Voting website
of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting &
voting during the meeting.
4. Shareholders/Members can also download NSDL Mobile App “NSDL Speede” facility by
scanning the QR code for seamless voting experience.
Individual Shareholders 1. 
Users who have opted for CDSL Easi / Easiest facility, can login through their existing
holding securities in demat user id and password. Option will be made available to reach e-Voting page without any
mode with CDSL further authentication. The users to login Easi /Easiest are requested to visit CDSL website
www.cdslindia.com and click on login icon & New System Myeasi Tab and then user your
existing my easi username & password.
2. After successful login, the Easi / Easiest user will be able to see the e-Voting option for eligible
companies where the evoting is in progress as per the information provided by the Bank. On
clicking the evoting option, the user will be able to see e-Voting page of the e-Voting service
provider for casting vote during the remote e-Voting period or joining virtual meeting & voting
during the meeting. Additionally, there is also links provided to access the system of all e-Voting
Service Providers, so that the user can visit the e-Voting service providers’ website directly.
3. If the user is not registered for Easi/Easiest, option to register is available at CDSL website
www.cdslindia.com and click on login & New System Myeasi Tab and then click on registration
option.
4. Alternatively, the user can directly access e-Voting page by providing Demat Account Number
and PAN No. from a e-Voting link available on www.cdslindia.com home page. The system will
authenticate the user by sending OTP on registered Mobile & Email as recorded in the Demat
Account. After successful authentication, user will be able to see the e-Voting option where
the evoting is in progress and also able to directly access the system of all e-Voting Service
Providers.
Individual Shareholders You can also login using the login credentials of your demat account through your Depository
(holding securities in demat Participant registered with NSDL/CDSL for e-Voting facility. upon logging in, you will be able to
mode) login through their see e-Voting option. Click on e-Voting option, you will be redirected to NSDL/CDSL Depository site
depository participants after successful authentication, wherein you can see e-Voting feature. Click on Company name i.e.
State Bank of India or e-Voting service provider i.e. NSDL and you will be redirected to e-Voting
website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting
& voting during the meeting.

Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget

Password option available at abovementioned website.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through
Depository i.e. NSDL and CDSL

Login type Helpdesk details

Individual Shareholders holding Members facing any technical issue in login can contact NSDL helpdesk by sending a
securities in demat mode with NSDL request at [email protected] or call at 022 - 4886 7000 and 022 - 2499 7000
Individual Shareholders holding Members facing any technical issue in login can contact CDSL helpdesk by sending
securities in demat mode with CDSL a request at [email protected] or contact at toll free no. 1800 22 55 33

331
Notice

B) Login Method for e-Voting and joining virtual meeting for shareholders other than Individual Shareholders
holding securities in demat mode and shareholders holding securities in physical mode
How to Log-in to NSDL e-Voting website?

1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/
either on a Personal Computer or on a mobile.

2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/
Member’ section.

3. A new screen will open. You will have to enter your User ID, your Password/OTP and a Verification Code as shown
on the screen.

Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with
your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting
and you can proceed to Step 2 i.e. Cast your vote electronically.

4. Your User ID details are given below :

Manner of holding shares i.e. Demat

Your User ID is:
(NSDL or CDSL) or Physical
a) 
For Members who hold shares in 8 Character DP ID followed by 8 Digit Client ID
demat account with NSDL For example if your DP ID is IN300*** and Client ID is 12****** then your user ID
is IN300***12******.
For Members who hold shares in 16 Digit Beneficiary ID
b) 
demat account with CDSL For example if your Beneficiary ID is 12************** then your user ID is
12**************
c) 
For Members holding shares in EVEN Number followed by Folio Number registered with the State Bank of India
Physical Form For example if folio number is 001*** and EVEN is 101456 then user ID is
101456001***

5. Password details for shareholders other than Individual Shareholders are given below:

a) If you are already registered for e-Voting, then you can use your existing password to login and cast your vote.

b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’ which was
communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the
system will force you to change your password.

c) How to retrieve your ‘initial password’?

(i) If your email ID is registered in your demat account or with the Company i.e. State Bank of India, your ‘initial
password’ is communicated to you on your email ID. Trace the email sent to you from NSDL from your
mailbox. Open the email and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open
the .pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folio
number for shares held in physical form. The .pdf file contains your ‘User ID’ and your ‘initial password’.

(ii) If your email ID is not registered, please follow steps mentioned below in process for those shareholders
whose email ids are not registered.

6. If you are unable to retrieve or have not received the “Initial password” or have forgotten your password:

Click on “Forgot User Details/Password?” (If you are holding shares in your demat account with NSDL or
a) 
CDSL) option available on www.evoting.nsdl.com.

332 Annual Report 2022 – 23

 b) Physical User Reset Password?” (If you are holding shares in physical mode) option available on www.evoting.
nsdl.com.

c) If you are still unable to get the password by aforesaid two options, you can send a request at [email protected]
mentioning your demat account number/folio number, your PAN, your name and your registered address etc.

d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting system
of NSDL.

7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.

8. Now, you will have to click on “Login” button.

9. After you click on the “Login” button, Home page of e-Voting will open.

Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system.
How to cast your vote electronically and join General Meeting on NSDL e-Voting system?
1. After successful login at Step 1, you will be able to see all the companies “EVEN” in which you are holding shares and
whose voting cycle and General Meeting is in active status.

2. Select “EVEN” of Company i.e. State Bank of India for which you wish to cast your vote during the remote e-Voting period
and casting your vote during the General Meeting. For joining virtual meeting, you need to click on “VC/OAVM” link placed
under “Join Meeting”.

3. Now you are ready for e-Voting as the Voting page opens.

4. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you
wish to cast your vote and click on “Submit” and also “Confirm” when prompted.

5. Upon confirmation, the message “Vote cast successfully” will be displayed.

6. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.

7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

General Guidelines for Shareholders

1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format)
of the relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly authorized signatory(ies)
who are authorized to vote, to the Scrutinizer by e-mail to ‘[email protected]’ with a copy marked to evoting@
nsdl.co.in. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) can also upload their Board Resolution
/ Power of Attorney / Authority Letter etc. by clicking on “Upload Board Resolution / Authority Letter” displayed under
“e-Voting” tab in their login.
2. It is strongly recommended not to share your password with any other person and take utmost care to keep your password
confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the correct password.
In such an event, you will need to go through the “Forgot User Details/Password?” or “Physical User Reset Password?”
option available on www.evoting.nsdl.com to reset the password.

3. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user manual
for Shareholders available at the download section of www.evoting.nsdl.com or call on.: 022 - 4886 7000 and 022 -
2499 7000 or send a request to Ms. Pallavi Mhatre, Senior Manager, NSDL, TradeWorld, ‘A’Wing, 4th Floor, Kamala Mills
Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013 at [email protected] or call on 022 - 4886 7000 and
022 - 2499 7000.

333
Notice

Process for those shareholders whose email ids are not registered with the depositories for procuring user id
and password and registration of email ids for e-voting for the resolutions set out in this notice:
1. In case shares are held in physical mode, please provide Folio No., Name of shareholder, scanned copy of the share
certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of
Aadhar Card) by email to: [email protected]

2. In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name,
client master or copy of Consolidated Account statement, PAN (self attested scanned copy of PAN card), AADHAR (self
attested scanned copy of Aadhar Card) to: [email protected] If you are an Individual Shareholder holding
securities in demat mode, you are requested to refer to the login method given above, i.e. Login method for e-voting -
Applicable only for Individual members holding securities in Demat.

3. Alternatively, shareholders / members may send a request to [email protected] for procuring user id and password for
e-voting by providing above mentioned documents.

4. In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual Shareholders
holding securities in demat mode are allowed to vote through their demat account maintained with Depositories and
Depository Participants. Shareholders are required to update their mobile number and email id correctly in their demat
account in order to access e-voting facility.

INSTRUCTIONS FOR MEMBERS FOR e-VOTING ON THE DAY OF THE ANNUAL GENERAL MEETING
ARE AS UNDER:
1. The procedure for e-Voting on the day of the Annual General Meeting is same as the instructions mentioned above for
remote e-voting.

2. Only those Members / Shareholders, who will be present in the Annual General Meeting through VC / OAVM facility and
have not casted their vote on the resolutions through remote e-Voting and are otherwise not barred from doing so, shall
be eligible to vote through e-Voting system in the Annual General Meeting.

3. Members who have voted through Remote e-Voting will be eligible to attend the Annual General Meeting. However, they
will not be eligible to vote at the Annual General Meeting.

4. The details of the person who may be contacted for any grievances connected with the facility for e-Voting on the day of
the Annual General Meeting shall be the same person mentioned for Remote e-voting.

INSTRUCTIONS FOR SHAREHOLDERS FOR ATTENDING THE ANNUAL GENERAL MEETING

THROUGH VC / OAVM ARE AS UNDER:
1. Shareholder will be provided with a facility to attend the Annual General Meeting through VC / OAVM through the National
Securities Depository Limited (NSDL) e-Voting system. Members may access by following the steps mentioned above for
access to National Securities Depository Limited (NSDL) e-Voting system. After successful login, you can see link of “VC /
OAVM link” placed under “Join Meeting” menu against Company name i.e. State Bank of India. You are requested to click
on VC / OAVM link placed under Join Meeting menu. The link for VC / OAVM will be available in Shareholder / Member
login where the EVEN of State Bank of India will be displayed. Please note that the members who do not have the User
ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by following the remote
e-Voting instructions mentioned in the notice to avoid last minute rush.

2. Members are encouraged to join the Meeting through Laptops for better experience.

3. Further, Members will be required to allow Camera and use Internet with a good speed to avoid any disturbance during
the meeting.

334 Annual Report 2022 – 23

4. Please note that participants connecting from Mobile Devices or Tablets or through Laptops connecting via Mobile
Hotspot may experience Audio / Video loss due to fluctuation in their respective network. It is therefore recommended to
use stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.

5. Shareholders who would like to express their views / have questions pertaining to the Agenda of the Annual General
Meeting may send their questions in advance mentioning their name, demat account number / folio number, email id,
mobile number at: [email protected] latest by 22.06.2023 by 01.00 P.M.

6. Those shareholders who have registered themselves as a speaker will only be allowed to express their views / ask questions.

Determination of voting rights - Subject to the provisions contained in Section 11 of the State Bank of India Act, 1955,

each shareholder who has been registered as a shareholder for a period of not less than three months prior to the date of
a general meeting (i.e. 24.03.2023) shall, at such meeting, have one vote for each fifty shares held by him/her or it.
Every shareholder other than the Central Government entitled to vote as aforesaid who, not being a company is present in
person or by proxy or who being a company is present by a duly authorised representative, or by proxy shall have one vote
on a show of hands and in case of a poll shall have one vote for each fifty shares held by him or it for the whole period of
three months prior to the date of such meeting. i.e. 24.03.2023.

The duly authorized person representing the Central Government shall have one vote on a show of hands and, in case
of a poll, shall have one vote for each fifty shares held by it for the whole period of three months prior to the date of such
meeting. i.e. 24.03.2023.

The Scrutinizers shall, immediately after the conclusion of voting at the Annual General Meeting, first count the votes cast
during the Annual General Meeting, thereafter unblock the votes cast through remote e-voting and make, not later than
two working days of conclusion of the Annual General Meeting, a consolidated Scrutinizer’s Report of the total votes cast
in favour of or against, if any, and submit to the Chairman or a person authorised by him in writing, who shall countersign
the same.

The result declared along with the Scrutinizer’s Report shall be placed on the Bank’s website www.sbi.co.in and on the
website of National Securities Depository Limited (NSDL): https://www.evoting.nsdl.com/ immediately. The Bank shall
simultaneously forward the results to National Stock Exchange of India Limited and BSE Limited, where the shares of the
Bank are listed.

Corporate Centre,
State Bank Bhavan, (Dinesh Kumar Khara)
Madame Cama Road Chairman

Mumbai - 400 021

Date: 20th May 2023

335
Green Initiative

Dear Shareholder,

Green Initiative in Corporate Governance

In accordance with SEBI guidelines, we are issuing Annual Report in electronic form to those shareholders whose e-mail
addresses are available.

Your Bank invites you to participate in the Green Initiative by enabling the Bank to communicate with you through electronic
mode i.e. e-mail. It will not only contribute to conservation of environment, but also bring in better efficiency in communication
by obviating transit delays and losses. We request you to join us in this initiative by updating your email ID with your Depository
Participant, if your shareholding is in demat form. Shareholders holding shares in physical form shall have to send their updated
information / changes to the Registrar & Transfer Agent (RTA), M/s Alankit Assignments Ltd. through email to sbi.igr@alankit.
com

Further, while most of you hold shares of your Bank in demat form, some of you are still retaining the shares in physical form.
SEBI has banned transfer of securities in physical form w.e.f. 01.04.2019. The Shares held by you in physical form can be easily
dematerialised i.e converted into electronic form. The various benefits derived out of dematerialisation of shares are:-

y Immediate transfer of securities.

y Reduction in risks associated with holding securities in paper form such as theft, damage due to fire, wear & tear, fake /
forged securities etc.
y Change in address recorded with DP gets registered electronically with all companies in which investor holds securities
y Eliminating the need of correspondence with each Company separately.
y Transmission of securities is done by DP eliminating correspondence with each Company
y Holding investments in equity, debt instruments and Government securities in a single account.
y Automatic credit into demat account, of shares, arising out of bonus/ split/ consolidation/ merger etc;

If you are holding shares in physical form, please approach any Depository Participant (DP) (like SBICAP Securities Limited,
phone no-022-68545555, email- [email protected]) of your choice for opening the Demat account. Fill in a Demat
Request Form (DRF) and handover the shares certificate(s) of face value of `1 to your DP for forwarding the same to Bank’s RTA
for Dematerialisation. Shares will get converted into electronic form and will automatically be credited to your Demat Account.

If you are receiving dividend by way of dividend warrant, you are requested to furnish/ update bank account details with DP/
RTA, as the case may be, to receive dividend directly in your bank account.

We are sure that you will appreciate the “Green Initiative” taken by your Bank and hope that you will enthusiastically participate
in the effort.

Kind Attention of shareholders is brought to Section 38A of the State Bank of India Act, 1955 inserted with effect from 15.09.2010 by the State Bank
of India (Amendment) Act, 2010. As per the said section, a dividend declared by the State Bank of India which has not been paid to a shareholder
or claimed by any eligible shareholder, within thirty days from the date of declaration shall be transferred to a special account called as “unpaid
dividend account”. Further, all unpaid dividend amount of period prior to the above amendment was already transferred to the said “unpaid
dividend account.” Any money transferred to the unpaid dividend account of the State Bank of India as above which remains unpaid or unclaimed
for a period of seven years from the date of such transfer shall be transferred by the Bank to the Investor Education and Protection Fund established
under Section 125 of the Companies Act, 2013, for being utilised for the purpose and in the manner specified in that section. In view of the above,
shareholders are requested to ensure that unclaimed / unpaid dividend if any, is claimed without any delay.

336 Annual Report 2022 – 23

 APPEAL TO ALL SBI SHAREHOLDERS
All the shareholders holding equity Shares of SBI in physical form are requested to update the following
details and submit it by registered/speed post to our RTA at the following address:
M/s Alankit Assignments Limited (AAL), 205-208, Anarkali Complex, Jhandewalan Extension, New Delhi – 110055.
Phone No.: 7290071335, e-mail: [email protected].

  

FORM ISR – 1
(Circulated vide. SEBI circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 03, 2021 on Common
and Simplified Norms for processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and
Nomination)

REQUEST FOR REGISTERING PAN, KYC DETAILS OR CHANGES / UPDATION THEREOF

[For Securities (Shares / Debentures / Bonds, etc.) of listed companies held in physical form]

Date:___ /___ /______

A. I / We request you to Register / Change / Update the following (Tick  relevant box)
PAN Postal Address
Bank Details E-mail Address
Signature Mobile Number
Demat Account Details

B. Security Details:
Name of the Issuer Company State Bank of India Folio No:
Name(s) of the Security holder(s) as per 1.
the Certificate(s)
2.
3.
Number & Face value of securities No : Face Value:
Distinctive number of securities From To

C. I / We are submitting documents as per Table below (tick  as relevant, refer to the instructions):
Document / Information /
 Instruction / Remark
Details
1 PAN of (all) the (joint) holder(s)

PAN

Whether it is Valid PAN shall be valid only if it is linked to Aadhaar by March 31, 2022*
(linked to Aadhaar):
Yes
No

2 Demat Account Number

Also provide Client Master List (CML) of your Demat Account, provided by the
Depository Participant.

337
 Document / Information /
 Instruction / Remark
Details
3 Proof of Address of the first Provide any one of the documents, only if there is change in the address.
holder
y Client Master List (CML) of your Demat Account, provided by the
Depository Participant
y Valid Passport/ Ration Card/ Registered Lease or Sale Agreement of Residence /
Driving License / Flat Maintenance bill.
y Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill - Not more
than 3 months old.
y Identity card / document with address, issued by any of the following: Central/State
Government and its Departments, Statutory / Regulatory Authorities, Public Sector
Undertakings, Scheduled Commercial Banks, Public Financial Institutions.
y For FII / sub account, Power of Attorney given by FII / sub-account to the
Custodians (which are duly notarised and / or apostilled or consularised) that gives
the registered address should be taken.
y The proof of address in the name of the spouse
4 Bank details Provide the copy of the bank statement with details of bank name, branch, account
number and IFS Code or copy of cheque leaf.
Alternatively, Bank details available in the CML will be updated in the folio.

5 E-mail address
Alternatively, the e-mail address available in the CML will be updated in the folio

6 Mobile Number
Alternatively, the mobile number available in the CML will be updated in the folio
7 Specimen Signature y Provide banker’s attestation of the signature of the holder(s) as per Form ISR – 2 in
SEBI circular SEBI/HO/MIRSD/MIRSDRTAMB/P/CIR/2021/655 dated
03rd November 2021) and
y Original cancelled cheque
8 Nomination** y Providing Nomination: Please submit the duly filled up Nomination Form (SH-13) or
Declaration to Opt out of Nomination’ as per Form ISR–3, in SEBI circular SEBI/HO/
MIRSD/MIRSDRTAMB/P/CIR/2021/655 dated 03rd November 2021

y Change in Existing Nomination: Please use Form SH-14 in SEBI circular SEBI/HO/
MIRSD/MIRSDRTAMB/P/CIR/2021/655

y Cancellation of Existing Nomination: Please use Form SH-14 and Form ISR – 3

* or any date as may be specified by the CBDT

** Nomination (Form SH-13 or SH-14) / ‘Declaration to Opt-Out of nomination’ (Form ISR – 3), has to furnished by the holder(s) separately for
each listed company.

338 Annual Report 2022 – 23

Mode of submission of documents to the RTA

Please use any one of the following mode;

1. In Person Verification (IPV): by producing the originals to the authorised person of the RTA, who will retain copy(ies) of the
document(s)

2. In hard copy: by furnishing self-attested photocopy(ies) of the relevant document, with date

3. Through e-mail address already registered with the RTA, with e-sign of scanned copies of documents

4. Service portal of the RTA with e-sign with scanned copies of documents, if the RTA is providing such facility

Note

y It is mandatory for holders of physical securities in listed company to furnish PAN, full KYC details (address proof, bank
details, e-mail address, mobile number) and Nomination (for all the eligible folios).
y Upon receipt or up-dation of bank details, the RTA automatically, pay electronically, all the moneys of / payments to the
holder that were previous unclaimed / unsuccessful.
y RTA shall update the folio with PAN, KYC details and Nominee, within seven working days of its receipt. However, cancellation
of nomination, shall take effect from the date on which this intimation is received by the company / RTA.
y RTA shall not insist on Affidavits or Attestation / Notarisation or indemnity for registering / up-dating / changing PAN, KYC
details and Nomination.
y All the forms namely ISR-1, ISR-2, ISR-3, SH-13, SH-14 can be downloaded from Bank’s website through the link https://
bank.sbi/web/investor-relations/share-holder-bond-holder-information

Authorisation: I / We authorise you (RTA) to update the above PAN and KYC details in my / our folio (s) __________,
_________, in which I / We are the holder(s) (strike off what is not applicable).

Declaration: All the above facts stated are true and correct.

Holder 1 Holder 2 Holder 3

Signature   

Name   

Full Postal address 

PIN 

339
 Form ISR – 2
(see circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated 03rd November 2021 on Common and Simplified
Norms for processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and Nomination)

Confirmation of Signature of securities holder by the Banker

1. Bank Name and Branch

2. Bank contact details

Postal Address

Phone number

E-mail address

3. Bank Account number

4. Account opening date

5. Account holder(s) name(s) 1)

2)

3)

6. Latest photograph of the account holder(s)

1st Holder 2nd Holder 3rd Holder

7. Account holder(s) details as per Bank Records

a) Address :

b) Phone number :

c) Email address :

d) Signature(s) :

Seal of the Bank Signature verified as recorded with the Bank (Signature)

Name of the Bank Manager :

Place: Employee Code :

Date: E-mail address :

340 Annual Report 2022 – 23

 Form No. SH-13
Nomination Form
[Pursuant to section 72 of the Companies Act, 2013 and rule 19(1) of the Companies
(Share Capital and Debentures) Rules 2014] To

Name of the company:

Address of the company:

I/We …………………………………….. the holder(s) of the securities particulars of which are given hereunder wish to make
nomination and do hereby nominate the following persons in whom shall vest, all the rights in respect of such securities in the
event of my/our death.

(1) PARTICULARS OF THE SECURITIES (in respect of which nomination is being made)

Nature of securities Folio No. No. of securities Certificate No. Distinctive No.

(2) PARTICULARS OF NOMINEE/S —

(a) Name :

(b) Date of Birth :

(c) Father’s/Mother’s/Spouse’s name :

(d) Occupation :

(e) Nationality :

(f) Address :

For urgent attention of our Shareholders –

y SEBI has mandated that transfer/sale of securities held in physical form shall not be processed unless the same are held in the dematerialised
form with a depository. This implies that shareholders will not be able to transfer/sell the shares held in physical form. Such shareholders
are requested to dematerialise their shares at the earliest to avoid risk as well as reap the multiple benefits of dematerialisation.
y Please also note that the `1 face value share certificate was sent to concerned physical shareholders pursuant to stock split by the Bank
on 22.11.2014 and to erstwhile Associate Banks physical shareholders in April 2017, upon merger of these Banks with SBI. The same is
required/valid for dematerialisation. In case, Re.1 face value share certificate is not available, please contact Bank’s RTA.
y Physical shareholders are also requested to update, detail of PAN, KYC including E-MAIL, CONTACT No., BANK ACCOUNT
and NOMINATION, by submitting forms ISR-1, ISR-2 and SH-13 to Bank’s RTA whose address is given hereinabove, latest by
September30, 2023, to avoid freezing of your shares thereafter as per SEBI guidelines. Demat shareholders are requested to update
the same with their DP.
y As you might be aware that dividend which remains unclaimed for seven years, is required to be transferred to IEPF, therefore, please claim
your dividend by sending claim to Bank’s RTA, if unpaid, for the period from FY2016 onwards (Note: SBI has not declared any dividend
during the FYs 2017-18, 2018-19 and 2019-20). For earlier periods, same may be claimed from IEPF, as the unclaimed dividends of earlier
periods has been transferred to IEPF.

341
Route Map to Venue of AGM

Venue: “SBI Auditorium”, State Bank Bhavan,

Madame Cama Road, Nariman Point,
Mumbai-400021 (Maharashtra)
Distance from Churchgate Station : 0.95 km
Distance from Chhatrapati Sivaji Terminus : 2.20 km

342 Annual Report 2022 – 23

 Scan QR Code to download
https://bank.sbi/documents/17826/35696/Annual_Report_2023.pdf