Description
The presentation explaining SBI in detail by covering topics like State Bank of India Organisational Structure, financial market, Technology Initiatives, Banking & Non-Banking Subsidiaries, Profile of Associate Banks, Performance of Non Banking Subsidiaries & Joint Ventures
State Bank Group
Disclaimer
This presentation is made purely for information. We have tried to give relevant information which we believe will help in knowing the Bank. The viewers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Bank nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc.
2
Group’s Vision
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Premier Indian Financial Services Group with global perspective, world class standards of efficiency and professionalism and core institutional values. Retain its position in the country as a pioneer in Development Banking. Maximize shareholder value through high sustained earnings per share. An institution with a culture of mutual care and commitment, a satisfying and exciting work environment and continuous learning opportunities.
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3
State Bank of India : Organisational Structure
State Bank Bhavan, Corporate Centre Nariman Point,Mumbai-21
14 Local Head Offices (Circles) – Chief General Manager Mumbai, Delhi, Calcutta, Madras, Ahmedabad, Bhopal, Chandigarh, Lucknow, Patna, Hyderabad, Bangalore, Kerala, Bhubaneswar and Guwahati
60 Zonal Offices – General Manager / Dy G Ms Regional Offices – Asst General Manager
10,000 Branches – Dy GM / AGM /CM / Managers
4
ORGANISATIONAL STRUCTURE
CHAIRMAN
DMD&CFO
CORPORATE CENTRE
DMD&CCO DMD(I&MA) DMD&CDO CVO DMD(IT)
BUSINESS GROUPS
MD&GE(CB)
MD&GE(NB)
DMD&GE(IB)
DMD&GE(A&S)
5
LHO STRUCTURE
Chief General Manager
DGM Circle Credit & Financial Officer DGM Circle Development Officer DGM (Vigilance) DGM (Law) @ AGM (Public Relations & Community Services Banking)
AGM BPR Implementation
General Manager - 1
General Manager - 2
@ Where DGM (Law) is posted. AGM (Law) will report to DGM & CirDO
6
Chief General Manager General Manager - 1
Modules NPA Management + Added Function Rehabilitation Cell CM (IB) Head (DGM) Personal Banking 1. Retail Assets 2. Mass Affluent 3. Customer Service 4. Marketing Comm. Head # (AGM) Government Business Direct Branches CM (GB) CM (P & HR) Head (DGM) SME Segment 1. Manufacturing 2. Services 3. Consultancy Services Cell – Manufacturing and Services Components
AGM (Agri.) if contributes 20% or more Agri. business
Support Functions CCFO, CDO, BPR, Vigilance, PR & Community Services
General Manager - 2
Modules NPA Management + Added Function Rehabilitation Cell CM (IB) Head (AGM) Personal Banking Direct Branches CM (GB) CM (P & HR) Head (AGM) SME
Head # Agri. 1. RRB, Lead Bank and Regulatory Functions 2. Technical Specialists 3. Business Planning 4. Institutional Marketing (Co-Operatives, Corporates, Govt. Bodies)
# Position will support both GMs wherever required.
7
Deputy General Manager (Module)
AGM - Operations
Chief Manager Gen. Banking/Budgeting & Per.Mon. Etc. Chief Manager - Personnel & HRD Manager - Official Languages Manager - Disc. Pro. Cell Security Officer (Module) Asst. Manager (Law) Manager MIS (Direct Branches) Chief Manager Advances, Rehab. Cum NPA Mgt. Cell Manager Adv. Cell Manager NPA MGT./REC. CELL
Chief Manager Lead Bank Cell (in a few Modules)
MMGS III - Zonal Office Computer Centre
CM Banking Operations
MMGS III - Interoffice Reconciliation – Government Accounts Department
Chief Manager -Office Administration Medical Officer Premises Officer
All branches headed by AGMs Head, Mortgage Sales Credit Processing Cell (Temporary)
AGMs (Region) AGM (Retail Asset CPC) AGM (SE Credit Cell)
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Assistant General Manager (Region)
Chief Manager
Agri.
Chief Manager CSC & Mass Affl.
Dy. Manager Performance Monitoring Cell
Chief Manager
General Bkg.
District Co-ordinator @
Manager Personnel & HRD
Manager NPA Mgt. Cum Recovery
Manager Sales (SME)
Support Officers
Dy. Manager IOR /GAD /House Keeping/ IBIT/Sundry Dep./ Suspense etc.
Dy. Manager - Premises /Fixed
Assets / Collation of all Returns (Both Advances and Deposits) /Lead Bk./Other Misc. Matters
Dy. Manager Frauds / Complaints/ Insp. & Audit Cell
Sales force (SME)
Mkg & Rec. Teams
@ - in the non-lead districts of the Bank Agl Spl.
Branches
9
ORGANISATIONAL STRUCTURE
CHAIRMAN
DMD&CFO
CORPORATE CENTRE
DMD&CCO DMD(I&MA) DMD&CDO CVO DMD(IT)
BUSINESS GROUPS
MD&GE(CB)
MD&GE(NB)
DMD&GE(IB)
DMD&GE(A&S)
10
LHO STRUCTURE
Chief General Manager
DGM Circle Credit & Financial Officer DGM Circle Development Officer DGM (Vigilance) DGM (Law) @ AGM (Public Relations & Community Services Banking)
AGM BPR Implementation
General Manager - 1
General Manager - 2
@ Where DGM (Law) is posted. AGM (Law) will report to DGM & CirDO
11
Chief General Manager General Manager - 1
Modules NPA Management + Added Function Rehabilitation Cell CM (IB) Head (DGM) Personal Banking 1. Retail Assets 2. Mass Affluent 3. Customer Service 4. Marketing Comm. Head # (AGM) Government Business Direct Branches CM (GB) CM (P & HR) Head (DGM) SME Segment 1. Manufacturing 2. Services 3. Consultancy Services Cell – Manufacturing and Services Components
AGM (Agri.) if contributes 20% or more Agri. business
Support Functions CCFO, CDO, BPR, Vigilance, PR & Community Services
General Manager - 2
Modules NPA Management + Added Function Rehabilitation Cell CM (IB) Head (AGM) Personal Banking Direct Branches CM (GB) CM (P & HR) Head (AGM) SME
Head # Agri. 1. RRB, Lead Bank and Regulatory Functions 2. Technical Specialists 3. Business Planning 4. Institutional Marketing (Co-Operatives, Corporates, Govt. Bodies)
# Position will support both GMs wherever required.
12
Deputy General Manager (Module)
AGM - Operations
Chief Manager Gen. Banking/Budgeting & Per.Mon. Etc. Chief Manager - Personnel & HRD Manager - Official Languages Manager - Disc. Pro. Cell Security Officer (Module) Asst. Manager (Law) Manager MIS (Direct Branches) Chief Manager Advances, Rehab. Cum NPA Mgt. Cell Manager Adv. Cell Manager NPA MGT./REC. CELL
Chief Manager Lead Bank Cell (in a few Modules)
MMGS III - Zonal Office Computer Centre
CM Banking Operations
MMGS III - Interoffice Reconciliation – Government Accounts Department
Chief Manager -Office Administration Medical Officer Premises Officer
All branches headed by AGMs Head, Mortgage Sales Credit Processing Cell (Temporary)
AGMs (Region) AGM (Retail Asset CPC) AGM (SE Credit Cell)
13
Assistant General Manager (Region)
Chief Manager
Agri.
Chief Manager CSC & Mass Affl.
Dy. Manager Performance Monitoring Cell
Chief Manager
General Bkg.
District Co-ordinator @
Manager Personnel & HRD
Manager NPA Mgt. Cum Recovery
Manager Sales (SME)
Support Officers
Dy. Manager IOR /GAD /House Keeping/ IBIT/Sundry Dep./ Suspense etc.
Dy. Manager - Premises /Fixed
Assets / Collation of all Returns (Both Advances and Deposits) /Lead Bk./Other Misc. Matters
Dy. Manager Frauds / Complaints/ Insp. & Audit Cell
Sales force (SME)
Mkg & Rec. Teams
@ - in the non-lead districts of the Bank Agl Spl.
Branches
14
State Bank Group – A presence in every area of the Financial Sector
SBI Funds Management Ltd (with Society Generale) SBI Cards & Payment Services Pvt Ltd. 1998 (with GE Capital)
1992
SBI Factors & 1991 Commercial Services P Ltd.
SBI Life Insurance Co.Ltd ( with Cardiff SA)
2001
SBI Capital Markets Ltd.
SBI DFHI Ltd.**
1986
SBI, SBICI & 7 Associate Banks Foreign Subsidiaries & Joint Ventures
2004**
Others - RRBs, UTIAMC, C-EdgeTech
** SBI Gilts - 1996 DFHI - 1988
15
Highlights
? State
Bank Group, with 14337 branches as on 31.03.2007, has the largest branch network. Bank Group has a market share of 25.13%* in deposits and 24.68%* in advances out of total commercial banks’ business in India. out of seven Associate Banks have achieved Net NPA <1.00%.
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? State
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* (Source: ASCB data as on March 2006 from Report on Trends and Progress of Banking in India by RBI)
Technology Initiatives
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All the branches of State Bank of India and its 7 Associate Banks were fully computerized in January 2004.
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Core Banking Solution implemented in 10297 branches of the Group by June 2007.
All Associate Banks have fully migrated to CBS Platform by January 2006. Country wide network of 6921 ATMs spread across the country. Business Process Reengineering initiative launched (Consultant : Mckinsey).
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State Bank Group – Consolidated Balance Sheet 31.03.2007
Rs in Billion
Balance Sheet 8151.74 (100%)
Capital & Liabilities
Share Capital / Reserves : Minority Interest: Deposits : Saving Deposits : Term Deposits : Demand Deposits : Borrowings : Other Liabilities & Provisions : 425.36 16.90 6362.73 1726.08 3646.48 990.17 486.62 860.14 (5.2%) (0.2%) (78.1%) (21.2%) (44.7%) (12.1%) (6.0%) (10.6%)
Assets
Cash & Balances with RBI/ Bank: Investments: Loans & advances : Net Fixed Assets : Other Assets: 724.77 2165.21 4872.86 39.99 348.91 (8.9%) (26.6%) (59.8%) (0.5%) (4.3%)
(Figures in brackets indicate % to Total Assets)
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SBI Group – Financial Highlights FY 2007
Total Income: 683.77 ( 100%)
Rs in Billion
Interest Earned: 572.38 (83.7%)
Non-Interest Income: 111.39 (16.3%)
Interest Expended : 339.83 (49.7%)
Operating Income : 343.94 (50.3%)
Operating Expenses : 200.01 (29.3%) Employee Expenses 105.97 (15.5%) Other Expenses: 94.04 (13.75%)
Net Interest Income : 232.55 (34.0%) Provision for Investment Depreciation: 8.29 (1.21%) Provision for Loan Losses: 17.76 (2.60%) Provisions for Std Assets: 9.45 (1.38%) Other Provisions : 0.64 (0.09%)
Operating Profit: 143.92 (21.0%)
Provisions and Contingencies : 36.14 (5.3%) Profit Before Tax : 107.78 (15.8%) Provision for Tax: 41.57(6.1%) Net Profit: 66.21 (9.7%) Minority Interest: 2.55 (0.4%) GroupProfit: 63.64 (9.3%)
(Figures in brackets indicate % to Total Income)
19
Banking & Non-Banking Subsidiaries of State Bank of India
Domestic Banking Subsidiaries
Paid-up Capital (March 07) (Rs. in bn)
NAME
STAKE OF SBI (%)
STATE BANK OF BIKANER & JAIPUR STATE BANK OF HYDERABAD STATE BANK OF INDORE STATE BANK OF MYSORE STATE BANK OF PATIALA STATE BANK OF SAURASHTRA STATE BANK OF TRAVANCORE SBI COMM. & INT’L BANK LTD.
0.50 0.17 0.17 0.36 0.25 3.14 0.50 1.00
75.00 100.00 98.05 92.33 100.00 100.00 75.00 100.00
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Domestic Non Banking Subsidiaries & Joint Ventures
Paid-up Capital(Marc h 07) (Rs. in bn) 0.58 5.00
NAME OF SUBSIDIRIES/ JOINT VENTURES SBI Capital Markets Ltd. SBI Life Insurance Co. Ltd.
Stake of SBI (%) 86.16 74.00
SBI Funds Management Pvt. Ltd. SBI Cards & Payment Services Pvt. Ltd.
SBI DFHI Ltd. SBI Factors & Commercial Services Pvt. Ltd. C-Edge Technologies Ltd.
0.50
2.50 2.91 0.45 0.0005
63.00
60.00 56.96 54.00 49.00
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Foreign Subsidiaries / Joint Ventures
NAME Paid-up Capital (March 07) (In US $ mio) STAKE OF SBI (%)
SBI (Canada)
SBI (California) SBI Intl (Mauritius) Ltd Indian Ocean Intl. Bank Ltd PT Bank Indo Monex Bank of Bhutan Nepal SBI Bank Ltd
14.12
24.50 10.00 5.24 2.20 2.30 9.21
100%
100% 98% 56.84% 76% 20% 50%
Commercial Bank of India LLC, Moscow
20.00
60%
23
Profile of Associate Banks of State Bank of India
Net Worth
Rs in Billion
120 107.1 98.82 100 86.92 80
NET WORTH
FY05
FY06
FY07
SBBJ SBH
SBIr
12.98 17.66
9.04 7.56 20.44 7.94 11.30 86.92
14.06 21.14
10.18 9.27 22.35 8.50 13.32 98.82
16.54 24.88
11.77 11.41 24.88 9.22 15.99 114.69
60
SBM
40
SBP SBS SBT
20
0 FY 05 FY 06 FY 07
TOTAL ABs
25
Branch Network – Associate Banks as on 31.03.2007
SBS 452 SBH 965
SBIr. 445
SBM 644
SBBJ 844
SBT 704 SBP 766
TOTAL NUMBER OF BRANCHES : 4,820
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Operating Profit
Rs in Billion
45 44.34 44
OPERATING PROFIT SBBJ
FY05 7.30 7.13 3.52 4.52 8.53 3.68 8.02 42.70
FY06 5.92 8.68 4.20 4.38 7.32 3.06 6.74 40.31
FY07 6.79 10.04 3.89 4.72 7.89 2.49 8.52 44.34
43
42.7
SBH
42
SBIr.
40.31
41
SBM SBP SBS SBT
40
39
38 FY 05 FY 06 FY 07
TOTAL ABs
27
Net Profit
Rs in Billion
25
NET PROFIT
20.31
FY05 2.06 2.51 1.33 2.06 2.87
FY06 1.45 4.27 1.39 2.17 3.03
FY07 3.06 5.06 1.90 2.49 3.67
SBBJ SBH
20
15.50 15 13.71
SBIr. SBM
10
SBP
SBS
5
0.41
2.47 13.71
0.60
2.59 15.50
0.87
3.26 20.31
SBT
0 FY 05 FY 06 FY 07
TOTAL ABs
Robust performance by all Associate Banks
28
Balance Sheet Size
Rs in Billion
2,500
B.SHEET SIZE
2,083.31 2,000 1,671.93 1,500 1,980.01
FY 05 234 349 169 166 315 150 289 1672
FY 06 275 406 207 193 414 165 319 1980
FY 07 345 491 245 268 475 188 380 2392
SBBJ SBH SBIr. SBM
1,000
SBP
500
SBS SBT
0 FY 05 FY 06 FY 07
TOTAL ABs
29
Return On Equity (%)
18.0 17.70 17.5
ROE
SBBJ SBH SBIr. SBM
FY 05
15.85 14.21 14.74 27.27 14.04
FY06
10.32 20.20 13.67 23.37 13.74
FY 07
18.49 20.31 16.14 21.84 14.73
17.0
16.5
16.0
15.78
15.73
SBP
15.5
SBS
15.0
5.18
21.87 15.78
7.07
19.43 15.73
9.48
20.40 17.70
SBT
14.5 FY 05 FY 06 FY 07
ALL ABs
30
Return On Average Assets (%)
1.0 0.97 1.0
ROA SBBJ SBH
FY 05 0.88 0.72 0.79
FY06 0.59 1.13 0.76
FY 07 1.04 1.15 0.87
0.9
0.88
SBIr.
0.9 0.82 0.8
SBM
SBP SBS SBT
1.25
0.91 0.27 0.86 0.82
1.26
0.90 0.40 0.86 0.88
1.13
0.92 0.49 0.95 0.97
0.8
0.7 FY 05 FY 06 FY 07
ALL ABs
31
Capital Adequacy Ratio (%)
12.25 12.22 12.20 12.18
CAR
SBBJ SBH
FY 05
12.60 11.74
FY 06
12.08 12.08
FY 07
12.89 12.51
12.15
SBIr.
12.10 12.06 12.05
11.61
12.08 14.21 11.45 11.05 12.18
11.40
11.37 13.55 12.03 11.15 12.06
11.77
11.47 12.38 12.78 11.68 12.22
SBM SBP SBS
12.00
SBT
11.95 FY 05 FY 06 FY 07
ALL ABs
32
Net Interest Margin (%)
3.8 3.72 3.7
N.I.M. SBBJ
FY 05 4.20 3.45 3.63 3.81 3.53 3.80 3.61 3.72
FY06 4.18 3.25 3.18 3.59 3.08 3.32 3.27 3.39
FY 07 3.64 3.44 2.79 3.28 3.04 2.91 3.39 3.26
3.6
SBH
3.5
SBIr.
3.4 3.3 3.2 3.39
SBM
3.26
SBP SBS
3.1
SBT
3 FY 05 FY 06 FY 07
ALL ABs
33
Yields , Costs & Spread (%)
YOA ABs FY05 8.60 8.32 8.21 8.64 7.95 7.81 7.94 FY06 8.70 8.21 8.24 8.39 8.06 7.87 7.92 FY07 9.46 9.16 9.02 8.92 8.90 8.50 8.74 FY05 4.84 5.20 5.05 4.96 4.73 5.09 4.87 COD FY06 4.53 4.89 4.95 4.65 4.90 5.03 4.96 FY07 5.30 5.43 5.62 5.30 5.52 5.52 5.27 FY05 3.76 3.12 3.16 3.68 3.22 2.72 3.07 SPREAD FY06 4.17 3.32 3.29 3.74 3.16 2.84 2.96 FY07 4.16 3.73 3.40 3.62 3.38 2.98 3.47 YOI
FY05
8.73 8.00 8.49 8.46 8.07 8.56 8.51
FY06 8.54 8.02 8.34 7.93 7.84 8.28 8.47
FY07 7.84 7.98 8.20 7.77 7.76 7.88 8.71
SBBJ SBH SBIr. SBM SBP SBS SBT
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Asset Quality (%)
NET NPA
1.4 1.23 1.2 1.05 1.0
FY05 1.61
0.61 1.00 0.92 1.23 1.40 1.81 1.23
FY 06 1.18
0.36 1.83 0.74 0.99 1.16 1.47 1.05
FY07 1.09
0.22 1.04 0.45 0.83 0.70 1.08 0.76
SBBJ
SBH SBIr.
0.8
0.76
SBM SBP SBS SBT ALL ABs
0.6
0.4
0.2
0.0 FY 05 FY 06 FY 07
35
Cost-Income Ratio (%)
COST-INCOME RATIO
51% 50% 49% 48% 47% 46% 45% 44.20% 44% 43% 42% 41% FY 05 FY 06 FY 07 49.73% 49.73%
FY 05
46.03 48.47
FY06
56.19 48.46
FY 07
52.57 48.24
SBBJ SBH
SBIr
SBM SBP SBS SBT ALL ABs
48.26
51.47 35.96 44.84 38.53 44.20
48.60
54.31 45.51 45.72 48.41 49.73
51.31
54.38 45.49 52.09 43.09 48.89
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TRANSACTION COST (%)
1.52% 1.51% 1.50%
FY05 SBBJ SBH SBIr
1.47%
FY06 2.01 1.44 1.38 1.83 1.09 1.37 1.40 1.47
FY 07 1.53 1.13 1.16 1.45 0.97 1.21 1.15 1.20
1.99 1.47 1.42 2.11 1.13 1.54 1.28 1.51
1.48%
SBM
1.46%
SBP
1.44% 1.44%
SBS SBT AVERAGE ABs
H1 FY 06 FY 06 H1 FY 07
1.42%
1.40%
37
Performance of Non Banking Subsidiaries & Joint Ventures
Performance of Domestic Non-bkg. Subsidiaries
AS ON 31/03/2007 NAME SBI CAPITAL MARKETS LTD. SBI CARDS SBI DFHI LTD. SBI FUNDS MANAGEMENT (P) LTD. GROSS INCOME 1.49 9.30 0.88 1.10 0.95 29.28 NET PROFIT 0.6 0.6 0.5 0.3 0.1 38.2 mio Rs. in Billion
SBI'S INVESTMENT
0.5 1.5 3.0 0.2 0.3 3.7
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SBI FACTORS & COMMER- CIAL SERVICES (P) LTD.
SBI LIFE
Performance of Domestic Non-bkg. Subsidiaries
AS ON 31/03/2007 NAME Rs. in Billion
NET WORTH
10.09 3.78 4.7
ROE (%)
5.28 17.02 0.81
TOTAL ASSETS
15.97 4.29 49.45
B.V. PER SHARE (Rs) 346.98 65.16 9.41
SBI DFHI LTD SBI CAPITAL MARKETS LTD. SBI LIFE SBI FACTORS & COMMER- CIAL SERVICES (P) LTD. SBI FUNDS MANAGEMENT (P) LTD. SBI CARDS
0.93
0.92 3.62
14.16
32.43 16.25
13.13
1.24 27.61
20.67
183.58 14.46
40
Performance of Foreign Subsidiaries / Joint Ventures
AS ON 31/03/2007 NAME SBI (Canada) SBI (California) ( In US $ mio) OPERATING NET PROFIT PROFIT 3.32 2.05 5.34 3.31 ASSET SIZE 395.82 353.76
SBI Intl (Mauritius) Ltd Indian Ocean Intl. Bank Ltd
PT Bank Indo Monex Bank of Bhutan Nepal SBI Bank Ltd Commercial Bank of India LLC, Moscow
3.39 2.02
0.01 7.01 4.53 1.71
2.98 1.40
-0.12 4.57 1.68 1.02
259.97 172.75
39.80 394.32 187.57 42.79
41
Highlights of Group Companies
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Only Pvt Sector Insurance company to declare profit of Rs.38.3 mio in FY07 (Rs.20.2 mio in FY06). Gross Premium in FY 07: Rs.29.28 bn ( Growth : 172%) ( FY 06 : Rs 10.75bn) First Year Premium grown by 275% to Rs.17.18 bn. 12% Market Share among Private players. Third position in terms of New Business Income among private players. Number of Lives insured : 6.49 million ( March 06 : 4.32 million) SBI MF currently ranked 7th in the industry; AUM at Rs 16.8 bn PAT Rs. 297.8 mio ( YOY growth 59.76%) for FY07. SBI MF won the prestigious CNBC TV 18 CRISIL Mutual Fund of the Year Award 2007 in February 2007. Also won 5 CNBC TV 18 CRISIL Awards and 3 Lipper India Fund Awards 2nd largest card issuer in India with 3.36 million cards. Cards spends amounted to Rs.48.38 bn in March 2007 an increase of 54%. PAT of Rs. 587.7 mio a growth of 62% in FY07 (Rs. 362.0 mio in FY06) Mandated Lead Arranger in Project Finance 9th Globally and 1st in Asia Pacific and India. Project Finance Advisor 3rd Globally and 1st in Asia Pacific. Gross Income increased to Rs.1.93 bn in FY 07.
SBI Life
? ? ? ?
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SBI Funds Mgmt (P) Ltd.
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SBI Cards
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SBI Caps
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42
Way Forward – Other Business Initiatives
Customer Service
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Introduction of multicity cheques and relationship managers for HNIs Centralized Pension Processing & Payments
Treasury Products
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Bouquet of products offerings being enhanced by inviting expertise from market leaders
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Centralised Processing Cells
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Initiatives for improved customer service
Currency Administration Cells Sales Forces Relationship Management Alternate Delivery Channels Branch Redesign
Business process Reengineering
? ? ? ? ?
43
New Opportunities
General Insurance
Pension Fund Management
Venture Capital
Private Equity
Infrastructure Fund
44
doc_143166972.ppt
The presentation explaining SBI in detail by covering topics like State Bank of India Organisational Structure, financial market, Technology Initiatives, Banking & Non-Banking Subsidiaries, Profile of Associate Banks, Performance of Non Banking Subsidiaries & Joint Ventures
State Bank Group
Disclaimer
This presentation is made purely for information. We have tried to give relevant information which we believe will help in knowing the Bank. The viewers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Bank nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc.
2
Group’s Vision
?
Premier Indian Financial Services Group with global perspective, world class standards of efficiency and professionalism and core institutional values. Retain its position in the country as a pioneer in Development Banking. Maximize shareholder value through high sustained earnings per share. An institution with a culture of mutual care and commitment, a satisfying and exciting work environment and continuous learning opportunities.
?
?
?
3
State Bank of India : Organisational Structure
State Bank Bhavan, Corporate Centre Nariman Point,Mumbai-21
14 Local Head Offices (Circles) – Chief General Manager Mumbai, Delhi, Calcutta, Madras, Ahmedabad, Bhopal, Chandigarh, Lucknow, Patna, Hyderabad, Bangalore, Kerala, Bhubaneswar and Guwahati
60 Zonal Offices – General Manager / Dy G Ms Regional Offices – Asst General Manager
10,000 Branches – Dy GM / AGM /CM / Managers
4
ORGANISATIONAL STRUCTURE
CHAIRMAN
DMD&CFO
CORPORATE CENTRE
DMD&CCO DMD(I&MA) DMD&CDO CVO DMD(IT)
BUSINESS GROUPS
MD&GE(CB)
MD&GE(NB)
DMD&GE(IB)
DMD&GE(A&S)
5
LHO STRUCTURE
Chief General Manager
DGM Circle Credit & Financial Officer DGM Circle Development Officer DGM (Vigilance) DGM (Law) @ AGM (Public Relations & Community Services Banking)
AGM BPR Implementation
General Manager - 1
General Manager - 2
@ Where DGM (Law) is posted. AGM (Law) will report to DGM & CirDO
6
Chief General Manager General Manager - 1
Modules NPA Management + Added Function Rehabilitation Cell CM (IB) Head (DGM) Personal Banking 1. Retail Assets 2. Mass Affluent 3. Customer Service 4. Marketing Comm. Head # (AGM) Government Business Direct Branches CM (GB) CM (P & HR) Head (DGM) SME Segment 1. Manufacturing 2. Services 3. Consultancy Services Cell – Manufacturing and Services Components
AGM (Agri.) if contributes 20% or more Agri. business
Support Functions CCFO, CDO, BPR, Vigilance, PR & Community Services
General Manager - 2
Modules NPA Management + Added Function Rehabilitation Cell CM (IB) Head (AGM) Personal Banking Direct Branches CM (GB) CM (P & HR) Head (AGM) SME
Head # Agri. 1. RRB, Lead Bank and Regulatory Functions 2. Technical Specialists 3. Business Planning 4. Institutional Marketing (Co-Operatives, Corporates, Govt. Bodies)
# Position will support both GMs wherever required.
7
Deputy General Manager (Module)
AGM - Operations
Chief Manager Gen. Banking/Budgeting & Per.Mon. Etc. Chief Manager - Personnel & HRD Manager - Official Languages Manager - Disc. Pro. Cell Security Officer (Module) Asst. Manager (Law) Manager MIS (Direct Branches) Chief Manager Advances, Rehab. Cum NPA Mgt. Cell Manager Adv. Cell Manager NPA MGT./REC. CELL
Chief Manager Lead Bank Cell (in a few Modules)
MMGS III - Zonal Office Computer Centre
CM Banking Operations
MMGS III - Interoffice Reconciliation – Government Accounts Department
Chief Manager -Office Administration Medical Officer Premises Officer
All branches headed by AGMs Head, Mortgage Sales Credit Processing Cell (Temporary)
AGMs (Region) AGM (Retail Asset CPC) AGM (SE Credit Cell)
8
Assistant General Manager (Region)
Chief Manager
Agri.
Chief Manager CSC & Mass Affl.
Dy. Manager Performance Monitoring Cell
Chief Manager
General Bkg.
District Co-ordinator @
Manager Personnel & HRD
Manager NPA Mgt. Cum Recovery
Manager Sales (SME)
Support Officers
Dy. Manager IOR /GAD /House Keeping/ IBIT/Sundry Dep./ Suspense etc.
Dy. Manager - Premises /Fixed
Assets / Collation of all Returns (Both Advances and Deposits) /Lead Bk./Other Misc. Matters
Dy. Manager Frauds / Complaints/ Insp. & Audit Cell
Sales force (SME)
Mkg & Rec. Teams
@ - in the non-lead districts of the Bank Agl Spl.
Branches
9
ORGANISATIONAL STRUCTURE
CHAIRMAN
DMD&CFO
CORPORATE CENTRE
DMD&CCO DMD(I&MA) DMD&CDO CVO DMD(IT)
BUSINESS GROUPS
MD&GE(CB)
MD&GE(NB)
DMD&GE(IB)
DMD&GE(A&S)
10
LHO STRUCTURE
Chief General Manager
DGM Circle Credit & Financial Officer DGM Circle Development Officer DGM (Vigilance) DGM (Law) @ AGM (Public Relations & Community Services Banking)
AGM BPR Implementation
General Manager - 1
General Manager - 2
@ Where DGM (Law) is posted. AGM (Law) will report to DGM & CirDO
11
Chief General Manager General Manager - 1
Modules NPA Management + Added Function Rehabilitation Cell CM (IB) Head (DGM) Personal Banking 1. Retail Assets 2. Mass Affluent 3. Customer Service 4. Marketing Comm. Head # (AGM) Government Business Direct Branches CM (GB) CM (P & HR) Head (DGM) SME Segment 1. Manufacturing 2. Services 3. Consultancy Services Cell – Manufacturing and Services Components
AGM (Agri.) if contributes 20% or more Agri. business
Support Functions CCFO, CDO, BPR, Vigilance, PR & Community Services
General Manager - 2
Modules NPA Management + Added Function Rehabilitation Cell CM (IB) Head (AGM) Personal Banking Direct Branches CM (GB) CM (P & HR) Head (AGM) SME
Head # Agri. 1. RRB, Lead Bank and Regulatory Functions 2. Technical Specialists 3. Business Planning 4. Institutional Marketing (Co-Operatives, Corporates, Govt. Bodies)
# Position will support both GMs wherever required.
12
Deputy General Manager (Module)
AGM - Operations
Chief Manager Gen. Banking/Budgeting & Per.Mon. Etc. Chief Manager - Personnel & HRD Manager - Official Languages Manager - Disc. Pro. Cell Security Officer (Module) Asst. Manager (Law) Manager MIS (Direct Branches) Chief Manager Advances, Rehab. Cum NPA Mgt. Cell Manager Adv. Cell Manager NPA MGT./REC. CELL
Chief Manager Lead Bank Cell (in a few Modules)
MMGS III - Zonal Office Computer Centre
CM Banking Operations
MMGS III - Interoffice Reconciliation – Government Accounts Department
Chief Manager -Office Administration Medical Officer Premises Officer
All branches headed by AGMs Head, Mortgage Sales Credit Processing Cell (Temporary)
AGMs (Region) AGM (Retail Asset CPC) AGM (SE Credit Cell)
13
Assistant General Manager (Region)
Chief Manager
Agri.
Chief Manager CSC & Mass Affl.
Dy. Manager Performance Monitoring Cell
Chief Manager
General Bkg.
District Co-ordinator @
Manager Personnel & HRD
Manager NPA Mgt. Cum Recovery
Manager Sales (SME)
Support Officers
Dy. Manager IOR /GAD /House Keeping/ IBIT/Sundry Dep./ Suspense etc.
Dy. Manager - Premises /Fixed
Assets / Collation of all Returns (Both Advances and Deposits) /Lead Bk./Other Misc. Matters
Dy. Manager Frauds / Complaints/ Insp. & Audit Cell
Sales force (SME)
Mkg & Rec. Teams
@ - in the non-lead districts of the Bank Agl Spl.
Branches
14
State Bank Group – A presence in every area of the Financial Sector
SBI Funds Management Ltd (with Society Generale) SBI Cards & Payment Services Pvt Ltd. 1998 (with GE Capital)
1992
SBI Factors & 1991 Commercial Services P Ltd.
SBI Life Insurance Co.Ltd ( with Cardiff SA)
2001
SBI Capital Markets Ltd.
SBI DFHI Ltd.**
1986
SBI, SBICI & 7 Associate Banks Foreign Subsidiaries & Joint Ventures
2004**
Others - RRBs, UTIAMC, C-EdgeTech
** SBI Gilts - 1996 DFHI - 1988
15
Highlights
? State
Bank Group, with 14337 branches as on 31.03.2007, has the largest branch network. Bank Group has a market share of 25.13%* in deposits and 24.68%* in advances out of total commercial banks’ business in India. out of seven Associate Banks have achieved Net NPA <1.00%.
16
? State
? Four
* (Source: ASCB data as on March 2006 from Report on Trends and Progress of Banking in India by RBI)
Technology Initiatives
?
All the branches of State Bank of India and its 7 Associate Banks were fully computerized in January 2004.
?
Core Banking Solution implemented in 10297 branches of the Group by June 2007.
All Associate Banks have fully migrated to CBS Platform by January 2006. Country wide network of 6921 ATMs spread across the country. Business Process Reengineering initiative launched (Consultant : Mckinsey).
17
?
? ?
State Bank Group – Consolidated Balance Sheet 31.03.2007
Rs in Billion
Balance Sheet 8151.74 (100%)
Capital & Liabilities
Share Capital / Reserves : Minority Interest: Deposits : Saving Deposits : Term Deposits : Demand Deposits : Borrowings : Other Liabilities & Provisions : 425.36 16.90 6362.73 1726.08 3646.48 990.17 486.62 860.14 (5.2%) (0.2%) (78.1%) (21.2%) (44.7%) (12.1%) (6.0%) (10.6%)
Assets
Cash & Balances with RBI/ Bank: Investments: Loans & advances : Net Fixed Assets : Other Assets: 724.77 2165.21 4872.86 39.99 348.91 (8.9%) (26.6%) (59.8%) (0.5%) (4.3%)
(Figures in brackets indicate % to Total Assets)
18
SBI Group – Financial Highlights FY 2007
Total Income: 683.77 ( 100%)
Rs in Billion
Interest Earned: 572.38 (83.7%)
Non-Interest Income: 111.39 (16.3%)
Interest Expended : 339.83 (49.7%)
Operating Income : 343.94 (50.3%)
Operating Expenses : 200.01 (29.3%) Employee Expenses 105.97 (15.5%) Other Expenses: 94.04 (13.75%)
Net Interest Income : 232.55 (34.0%) Provision for Investment Depreciation: 8.29 (1.21%) Provision for Loan Losses: 17.76 (2.60%) Provisions for Std Assets: 9.45 (1.38%) Other Provisions : 0.64 (0.09%)
Operating Profit: 143.92 (21.0%)
Provisions and Contingencies : 36.14 (5.3%) Profit Before Tax : 107.78 (15.8%) Provision for Tax: 41.57(6.1%) Net Profit: 66.21 (9.7%) Minority Interest: 2.55 (0.4%) GroupProfit: 63.64 (9.3%)
(Figures in brackets indicate % to Total Income)
19
Banking & Non-Banking Subsidiaries of State Bank of India
Domestic Banking Subsidiaries
Paid-up Capital (March 07) (Rs. in bn)
NAME
STAKE OF SBI (%)
STATE BANK OF BIKANER & JAIPUR STATE BANK OF HYDERABAD STATE BANK OF INDORE STATE BANK OF MYSORE STATE BANK OF PATIALA STATE BANK OF SAURASHTRA STATE BANK OF TRAVANCORE SBI COMM. & INT’L BANK LTD.
0.50 0.17 0.17 0.36 0.25 3.14 0.50 1.00
75.00 100.00 98.05 92.33 100.00 100.00 75.00 100.00
21
Domestic Non Banking Subsidiaries & Joint Ventures
Paid-up Capital(Marc h 07) (Rs. in bn) 0.58 5.00
NAME OF SUBSIDIRIES/ JOINT VENTURES SBI Capital Markets Ltd. SBI Life Insurance Co. Ltd.
Stake of SBI (%) 86.16 74.00
SBI Funds Management Pvt. Ltd. SBI Cards & Payment Services Pvt. Ltd.
SBI DFHI Ltd. SBI Factors & Commercial Services Pvt. Ltd. C-Edge Technologies Ltd.
0.50
2.50 2.91 0.45 0.0005
63.00
60.00 56.96 54.00 49.00
22
Foreign Subsidiaries / Joint Ventures
NAME Paid-up Capital (March 07) (In US $ mio) STAKE OF SBI (%)
SBI (Canada)
SBI (California) SBI Intl (Mauritius) Ltd Indian Ocean Intl. Bank Ltd PT Bank Indo Monex Bank of Bhutan Nepal SBI Bank Ltd
14.12
24.50 10.00 5.24 2.20 2.30 9.21
100%
100% 98% 56.84% 76% 20% 50%
Commercial Bank of India LLC, Moscow
20.00
60%
23
Profile of Associate Banks of State Bank of India
Net Worth
Rs in Billion
120 107.1 98.82 100 86.92 80
NET WORTH
FY05
FY06
FY07
SBBJ SBH
SBIr
12.98 17.66
9.04 7.56 20.44 7.94 11.30 86.92
14.06 21.14
10.18 9.27 22.35 8.50 13.32 98.82
16.54 24.88
11.77 11.41 24.88 9.22 15.99 114.69
60
SBM
40
SBP SBS SBT
20
0 FY 05 FY 06 FY 07
TOTAL ABs
25
Branch Network – Associate Banks as on 31.03.2007
SBS 452 SBH 965
SBIr. 445
SBM 644
SBBJ 844
SBT 704 SBP 766
TOTAL NUMBER OF BRANCHES : 4,820
26
Operating Profit
Rs in Billion
45 44.34 44
OPERATING PROFIT SBBJ
FY05 7.30 7.13 3.52 4.52 8.53 3.68 8.02 42.70
FY06 5.92 8.68 4.20 4.38 7.32 3.06 6.74 40.31
FY07 6.79 10.04 3.89 4.72 7.89 2.49 8.52 44.34
43
42.7
SBH
42
SBIr.
40.31
41
SBM SBP SBS SBT
40
39
38 FY 05 FY 06 FY 07
TOTAL ABs
27
Net Profit
Rs in Billion
25
NET PROFIT
20.31
FY05 2.06 2.51 1.33 2.06 2.87
FY06 1.45 4.27 1.39 2.17 3.03
FY07 3.06 5.06 1.90 2.49 3.67
SBBJ SBH
20
15.50 15 13.71
SBIr. SBM
10
SBP
SBS
5
0.41
2.47 13.71
0.60
2.59 15.50
0.87
3.26 20.31
SBT
0 FY 05 FY 06 FY 07
TOTAL ABs
Robust performance by all Associate Banks
28
Balance Sheet Size
Rs in Billion
2,500
B.SHEET SIZE
2,083.31 2,000 1,671.93 1,500 1,980.01
FY 05 234 349 169 166 315 150 289 1672
FY 06 275 406 207 193 414 165 319 1980
FY 07 345 491 245 268 475 188 380 2392
SBBJ SBH SBIr. SBM
1,000
SBP
500
SBS SBT
0 FY 05 FY 06 FY 07
TOTAL ABs
29
Return On Equity (%)
18.0 17.70 17.5
ROE
SBBJ SBH SBIr. SBM
FY 05
15.85 14.21 14.74 27.27 14.04
FY06
10.32 20.20 13.67 23.37 13.74
FY 07
18.49 20.31 16.14 21.84 14.73
17.0
16.5
16.0
15.78
15.73
SBP
15.5
SBS
15.0
5.18
21.87 15.78
7.07
19.43 15.73
9.48
20.40 17.70
SBT
14.5 FY 05 FY 06 FY 07
ALL ABs
30
Return On Average Assets (%)
1.0 0.97 1.0
ROA SBBJ SBH
FY 05 0.88 0.72 0.79
FY06 0.59 1.13 0.76
FY 07 1.04 1.15 0.87
0.9
0.88
SBIr.
0.9 0.82 0.8
SBM
SBP SBS SBT
1.25
0.91 0.27 0.86 0.82
1.26
0.90 0.40 0.86 0.88
1.13
0.92 0.49 0.95 0.97
0.8
0.7 FY 05 FY 06 FY 07
ALL ABs
31
Capital Adequacy Ratio (%)
12.25 12.22 12.20 12.18
CAR
SBBJ SBH
FY 05
12.60 11.74
FY 06
12.08 12.08
FY 07
12.89 12.51
12.15
SBIr.
12.10 12.06 12.05
11.61
12.08 14.21 11.45 11.05 12.18
11.40
11.37 13.55 12.03 11.15 12.06
11.77
11.47 12.38 12.78 11.68 12.22
SBM SBP SBS
12.00
SBT
11.95 FY 05 FY 06 FY 07
ALL ABs
32
Net Interest Margin (%)
3.8 3.72 3.7
N.I.M. SBBJ
FY 05 4.20 3.45 3.63 3.81 3.53 3.80 3.61 3.72
FY06 4.18 3.25 3.18 3.59 3.08 3.32 3.27 3.39
FY 07 3.64 3.44 2.79 3.28 3.04 2.91 3.39 3.26
3.6
SBH
3.5
SBIr.
3.4 3.3 3.2 3.39
SBM
3.26
SBP SBS
3.1
SBT
3 FY 05 FY 06 FY 07
ALL ABs
33
Yields , Costs & Spread (%)
YOA ABs FY05 8.60 8.32 8.21 8.64 7.95 7.81 7.94 FY06 8.70 8.21 8.24 8.39 8.06 7.87 7.92 FY07 9.46 9.16 9.02 8.92 8.90 8.50 8.74 FY05 4.84 5.20 5.05 4.96 4.73 5.09 4.87 COD FY06 4.53 4.89 4.95 4.65 4.90 5.03 4.96 FY07 5.30 5.43 5.62 5.30 5.52 5.52 5.27 FY05 3.76 3.12 3.16 3.68 3.22 2.72 3.07 SPREAD FY06 4.17 3.32 3.29 3.74 3.16 2.84 2.96 FY07 4.16 3.73 3.40 3.62 3.38 2.98 3.47 YOI
FY05
8.73 8.00 8.49 8.46 8.07 8.56 8.51
FY06 8.54 8.02 8.34 7.93 7.84 8.28 8.47
FY07 7.84 7.98 8.20 7.77 7.76 7.88 8.71
SBBJ SBH SBIr. SBM SBP SBS SBT
34
Asset Quality (%)
NET NPA
1.4 1.23 1.2 1.05 1.0
FY05 1.61
0.61 1.00 0.92 1.23 1.40 1.81 1.23
FY 06 1.18
0.36 1.83 0.74 0.99 1.16 1.47 1.05
FY07 1.09
0.22 1.04 0.45 0.83 0.70 1.08 0.76
SBBJ
SBH SBIr.
0.8
0.76
SBM SBP SBS SBT ALL ABs
0.6
0.4
0.2
0.0 FY 05 FY 06 FY 07
35
Cost-Income Ratio (%)
COST-INCOME RATIO
51% 50% 49% 48% 47% 46% 45% 44.20% 44% 43% 42% 41% FY 05 FY 06 FY 07 49.73% 49.73%
FY 05
46.03 48.47
FY06
56.19 48.46
FY 07
52.57 48.24
SBBJ SBH
SBIr
SBM SBP SBS SBT ALL ABs
48.26
51.47 35.96 44.84 38.53 44.20
48.60
54.31 45.51 45.72 48.41 49.73
51.31
54.38 45.49 52.09 43.09 48.89
36
TRANSACTION COST (%)
1.52% 1.51% 1.50%
FY05 SBBJ SBH SBIr
1.47%
FY06 2.01 1.44 1.38 1.83 1.09 1.37 1.40 1.47
FY 07 1.53 1.13 1.16 1.45 0.97 1.21 1.15 1.20
1.99 1.47 1.42 2.11 1.13 1.54 1.28 1.51
1.48%
SBM
1.46%
SBP
1.44% 1.44%
SBS SBT AVERAGE ABs
H1 FY 06 FY 06 H1 FY 07
1.42%
1.40%
37
Performance of Non Banking Subsidiaries & Joint Ventures
Performance of Domestic Non-bkg. Subsidiaries
AS ON 31/03/2007 NAME SBI CAPITAL MARKETS LTD. SBI CARDS SBI DFHI LTD. SBI FUNDS MANAGEMENT (P) LTD. GROSS INCOME 1.49 9.30 0.88 1.10 0.95 29.28 NET PROFIT 0.6 0.6 0.5 0.3 0.1 38.2 mio Rs. in Billion
SBI'S INVESTMENT
0.5 1.5 3.0 0.2 0.3 3.7
39
SBI FACTORS & COMMER- CIAL SERVICES (P) LTD.
SBI LIFE
Performance of Domestic Non-bkg. Subsidiaries
AS ON 31/03/2007 NAME Rs. in Billion
NET WORTH
10.09 3.78 4.7
ROE (%)
5.28 17.02 0.81
TOTAL ASSETS
15.97 4.29 49.45
B.V. PER SHARE (Rs) 346.98 65.16 9.41
SBI DFHI LTD SBI CAPITAL MARKETS LTD. SBI LIFE SBI FACTORS & COMMER- CIAL SERVICES (P) LTD. SBI FUNDS MANAGEMENT (P) LTD. SBI CARDS
0.93
0.92 3.62
14.16
32.43 16.25
13.13
1.24 27.61
20.67
183.58 14.46
40
Performance of Foreign Subsidiaries / Joint Ventures
AS ON 31/03/2007 NAME SBI (Canada) SBI (California) ( In US $ mio) OPERATING NET PROFIT PROFIT 3.32 2.05 5.34 3.31 ASSET SIZE 395.82 353.76
SBI Intl (Mauritius) Ltd Indian Ocean Intl. Bank Ltd
PT Bank Indo Monex Bank of Bhutan Nepal SBI Bank Ltd Commercial Bank of India LLC, Moscow
3.39 2.02
0.01 7.01 4.53 1.71
2.98 1.40
-0.12 4.57 1.68 1.02
259.97 172.75
39.80 394.32 187.57 42.79
41
Highlights of Group Companies
? ?
Only Pvt Sector Insurance company to declare profit of Rs.38.3 mio in FY07 (Rs.20.2 mio in FY06). Gross Premium in FY 07: Rs.29.28 bn ( Growth : 172%) ( FY 06 : Rs 10.75bn) First Year Premium grown by 275% to Rs.17.18 bn. 12% Market Share among Private players. Third position in terms of New Business Income among private players. Number of Lives insured : 6.49 million ( March 06 : 4.32 million) SBI MF currently ranked 7th in the industry; AUM at Rs 16.8 bn PAT Rs. 297.8 mio ( YOY growth 59.76%) for FY07. SBI MF won the prestigious CNBC TV 18 CRISIL Mutual Fund of the Year Award 2007 in February 2007. Also won 5 CNBC TV 18 CRISIL Awards and 3 Lipper India Fund Awards 2nd largest card issuer in India with 3.36 million cards. Cards spends amounted to Rs.48.38 bn in March 2007 an increase of 54%. PAT of Rs. 587.7 mio a growth of 62% in FY07 (Rs. 362.0 mio in FY06) Mandated Lead Arranger in Project Finance 9th Globally and 1st in Asia Pacific and India. Project Finance Advisor 3rd Globally and 1st in Asia Pacific. Gross Income increased to Rs.1.93 bn in FY 07.
SBI Life
? ? ? ?
?
SBI Funds Mgmt (P) Ltd.
? ?
? ?
SBI Cards
? ?
?
SBI Caps
?
42
Way Forward – Other Business Initiatives
Customer Service
? ?
Introduction of multicity cheques and relationship managers for HNIs Centralized Pension Processing & Payments
Treasury Products
?
Bouquet of products offerings being enhanced by inviting expertise from market leaders
?
Centralised Processing Cells
?
Initiatives for improved customer service
Currency Administration Cells Sales Forces Relationship Management Alternate Delivery Channels Branch Redesign
Business process Reengineering
? ? ? ? ?
43
New Opportunities
General Insurance
Pension Fund Management
Venture Capital
Private Equity
Infrastructure Fund
44
doc_143166972.ppt