State Bank GroupState Bank Group

AMIT SONI

ROLL NO 34

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FUTURE PLANNINGFUTURE PLANNING

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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BANKING INDUSTRIES- An OVERVIEWBANKING INDUSTRIES- An OVERVIEW

The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806.

The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935.

The Bank of Bengal, which later became the State Bank of India.

By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

GOI issued nationalized the 14 largest commercial banks on July 19, 1969, 6 more commercial banks followed in 1980. the first and only merger between nationalized banks New Bank of India with Punjab National Bank.and resulted in the reduction of the number of nationalised banks from 20 to 19.

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COND.COND.

India has 88 scheduled commercial banks

27 public sector banks

29 private banks and 31 foreign banks.

Combined network of over 53,000 branches and 17,000 ATMs.

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Profile of State Bank of IndiaProfile of State Bank of IndiaProfile of State Bank of IndiaProfile of State Bank of India

Type Public (BSE, NSE:SBI) & (LSE: SBID)

Founded Calcutta, 1806 (as Bank of Calcutta)

Headquarters Corporate Centre, Madame Cama road,Mumbai400021

Key people Chairman Om Prakash Bhatt

Industry Banking, Insurance and Capital Markets

Products Loans, Credit Cards, Savings, Investment vehicles,

SBI Life (Insurance) etc.

Revenue USD 22.4 billion (2008)

Total assets USD 255.9 billion (2008)

Website www.statebankofindia.com

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Recent Awards and AchievementsRecent Awards and Achievements

SHRI O.P.BHATT DECLARED CNN IBN’S BUSINESSMAN OF THE YEAR 2007

SBI CHAIRMAN SHRI.O.P.BHATT AWARDED THE TRANSFORMATIONAL LEADER AWARD 2007

All Associate Banks have fully migrated to CBS Platform by January 2006.

State Bank Group, with 14337 branches as on 31.03.2007, has the largest branch network.

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CONT.CONT.

Core Banking Solution implemented in 10297 branches of the Group by June 2007.

Country wide network of 6921 ATMs spread across the country.

State Bank Group has a market share of 25.13% in deposits and 24.68% in advances out of total commercial banks’ business in India.

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ABOUT SBIABOUT SBI

1806: On June 2, the Bank of Calcutta was established.

1809: On January 2, the Bank of Calcutta changed its name to the Bank of Bengal.

1840: On April 15, the Bank of Bombay was established.

1843: On July 1, the Bank of Madras was established.

1861: The government passed the Paper Currency Act, limiting the right to issue paper currency to the three Presidency banks, .

1955: On 30 April, the Parliament of India enacted the State Bank of India Act authorizing the Reserve Bank of India (RBI), which is the central bank, to acquire a controlling interest in the Imperial Bank of India. The RBI then took a 60% ownership stake. On July 1, Imperial Bank of India became State Bank of India.

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CONT.CONT.

1959: the Government of India passed the State Bank of India (Subsidiary Banks) Act, which enabled SBI to take over eight former State-associated banks as its subsidiaries.

1980s When Bank of Cochin in Kerala faced a financial crisis, the government merged it with State Bank of India.

2007: On June 29, the Government of India acquired the entire Reserve Bank of India (RBI) shareholding in State Bank of India (SBI), consisting of over 314 million equity shares, with a market value of over 355 billion rupees.

2008: 9 March 2008 State Bank of India on Sunday became the second bank in the world to have 10,000 branches when Union Finance Minister P Chidambaram inaugurated its latest branch at his native place Puduvayal.

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State Bank Group – Consolidated Balance Sheet 31.03.2008State Bank Group – Consolidated Balance Sheet 31.03.2008

Balance Sheet 8151.74 (100%) Balance Sheet 8151.74 (100%)

Capital & LiabilitiesCapital & Liabilities AssetsAssets

Rs in Billion

Share Capital / Reserves : 425.36 (5.2%)

Minority Interest: 16.90 (0.2%)

Deposits : 6362.73 (78.1%)

Saving Deposits : 1726.08 (21.2%)

Term Deposits : 3646.48 (44.7%)

Demand Deposits : 990.17 (12.1%)

Borrowings : 486.62 (6.0%)

Other Liabilities & Provisions : 860.14 (10.6%)

Cash & Balances with RBI/ Bank: 724.77 (8.9%)

Investments: 2165.21 (26.6%)

Loans & advances : 4872.86 (59.8%)

Net Fixed Assets : 39.99 (0.5%)

Other Assets: 348.91 (4.3%)

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SBI Group – Financial Highlights FY 2008SBI Group – Financial Highlights FY 2008

Total Income: 683.77 ( 100%)

Non-Interest Income: 111.39 (16.3%)

Interest Earned: 572.38 (83.7%)

Interest Expended : 339.83 (49.7%) Operating Income :

343.94 (50.3%)

Net Interest Income : 232.55 (34.0%) Operating Expenses :

200.01 (29.3%)

Employee Expenses 105.97 (15.5%)

Other Expenses: 94.04 (13.75%)

Operating Profit:143.92 (21.0%)

Provision for Investment Depreciation: 8.29 (1.21%)

Provision for Loan Losses:17.76 (2.60%)

Provisions for Std Assets:9.45 (1.38%)

Provisions and Contingencies :36.14 (5.3%)

Profit Before Tax : 107.78 (15.8%)

Provision for Tax: 41.57(6.1%)

GroupProfit: 63.64 (9.3%)

Other Provisions :0.64 (0.09%)

Net Profit: 66.21 (9.7%)

Minority Interest: 2.55 (0.4%)

Rs in Billion

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Domestic Banking SubsidiariesDomestic Banking Subsidiaries

NAMEPaid-up Capital

(Rs. in bn)

STAKE OFSBI (%)

STATE BANK OF BIKANER & JAIPUR

0.50 75.00

STATE BANK OF HYDERABAD 0.17 100.00

STATE BANK OF INDORE 0.17 98.05

STATE BANK OF MYSORE 0.36 92.33

STATE BANK OF PATIALA 0.25 100.00

STATE BANK OF SAURASHTRA 3.14 100.00

STATE BANK OF TRAVANCORE 0.50 75.00

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Domestic Non Banking Subsidiaries & Joint VenturesDomestic Non Banking Subsidiaries & Joint Ventures

NAME OF SUBSIDIRIES/ JOINT VENTURES

Paid-up Capital

(Rs. in bn)

Stake ofSBI (%)

SBI Capital Markets Ltd. 0.58 86.16

SBI Life Insurance Co. Ltd. 5.00 74.00

SBI Funds Management Pvt. Ltd. 0.50 63.00

SBI Cards & Payment Services Pvt. Ltd.

2.50 60.00

SBI DFHI Ltd. 2.91 56.96

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Foreign Subsidiaries / Joint VenturesForeign Subsidiaries / Joint Ventures

NAME Paid-up Capital

(In US $ mi)

STAKE OFSBI (%)

SBI (Canada) 14.12 100%

SBI (California) 24.50 100%

SBI Intl (Mauritius) Ltd 10.00 98%

Indian Ocean Intl. Bank Ltd 5.24 56.84%

PT Bank Indo Monex 2.20 76%

Bank of Bhutan 2.30 20%

Nepal SBI Bank Ltd 9.21 50%

Commercial Bank of India LLC, Moscow

20.00 60%

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Branch Network – Associate Banks as on 31.03.2008Branch Network – Associate Banks as on 31.03.2008

SBH965

SBS452

SBIr.445

SBM644

SBT704

SBP766

SBBJ844

TOTAL NUMBER OF BRANCHES : 4,820

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Highlights of Group CompaniesHighlights 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 LifeSBI Life

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

SBI Funds SBI Funds Mgmt (P) Ltd.Mgmt (P) Ltd.

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)

SBI CardsSBI Cards

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 CapsSBI Caps

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Way Forward – Other Business InitiativesWay Forward – Other Business Initiatives

Introduction of multicity cheques and relationship managers for HNIs

Centralized Pension Processing & Payments

Customer Customer ServiceService

Bouquet of products offerings being enhanced by inviting expertise from market leadersTreasury Treasury ProductsProducts

Centralised Processing Cells

Initiatives for improved customer service

Currency Administration Cells

Sales Forces

Relationship Management

Alternate Delivery Channels

Branch Redesign

BusinessBusinessprocess process

Re-engineeringRe-engineering

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New OpportunitiesNew Opportunities

General InsuranceGeneral Insurance General InsuranceGeneral Insurance

Pension Fund ManagementPension Fund ManagementPension Fund ManagementPension Fund Management

Venture CapitalVenture CapitalVenture CapitalVenture Capital

Private EquityPrivate EquityPrivate EquityPrivate Equity

Infrastructure FundInfrastructure FundInfrastructure FundInfrastructure Fund

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ANY QUESTIONSANY QUESTIONS

Thank YouThank You