State Bank of Travancore

BSE: 532191 | NSE: SBT | ISIN: INE654A01024 
Market Cap: [Rs.Cr.] 3,731 | Face Value: [Rs.] 10
Industry: Banks - Public Sector

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Director's Report



Period covered by the Report: 1st April 2013 to 31st March 2014

Economic Environment

• Global Economy

Global growth is likely to be in the vicinity of 3 per cent in 2014-15, about apercentage point higher than in 2013-14. The expansion in global output is expected to beled by Advanced Economies (AEs), especially the US. However, downside risks to growthtrajectory arise from ongoing tapering of Quantitative Easing (QE) in the US, continuingdeflation concerns and weak balance sheets in the euro area and, inflationary pressures inthe Emerging Market and Developing Economies (EMDEs). Weakening growth and financialfragilities in China that have arisen from rapid credit growth in recent years also pose alarge risk to global trade and growth.

Global inflation remains benign with activity levels staying below potential in theAdvanced Economies as well as in some of the large emerging market and developingeconomies and a softer bias for global commodity prices continuing into 2014.

The global financial markets have weathered the initial dose of actual tapering of theQuantitative Easing (QE) by the US Fed, quite well. However, the global interest ratecycle has just begun to turn. Any large withdrawal of monetary accommodation by advancedeconomies and consequent effect on capital flows to and from emerging market anddeveloping economies could lead to volatility and could translate into liquidity shocksimpacting asset prices.

• National Economy

GDP growth has been stagnant at around 5% during the year. This is attributable to thecontinued weakness in industrial activity and supply side constraints.

A moderate recovery is likely to set in 2014-15 broadly in line with the ReserveBank‘s indicated projections in January 2014. The recovery is likely to be supportedby investment activity picking up due to part resolution of stalled projects and improvedbusiness and consumer confidence. Manufacturing PMI, for the month of February 2014,touched a year‘s high on the back of higher output and new orders.

The rural demand base is likely to shore up demand, following record agriculturaloutput.

While the global environment remains challenging, policy action in India has rebuiltbuffers to cushion it against possible spillovers. There was curtailment of deficit (bothCurrent & Fiscal). There was also adjustment of rupee exchange rate and replenishmentof foreign exchange reserve which resulted in lowering of risk of near-term macroinstability. However, more efforts in terms of removing structural impediments, buildingbusiness confidence and creating fiscal space to support investments will be needed tosecure growth.

• Kerala Economy

Kerala‘s economy is one of the fastest growing economies in the country. Keralahas won international recognition for its outstanding achievements in Health and Educationsectors. The prime driver of the economy still is the remittance from abroad by lakhs ofNon- Resident Indians mainly from Gulf. Economy in Kerala is supported by traditionalindustries, Coir, Cashew, Bricks and tiles, oil milling, Handloom and Timber employing 83%of this total work force in the industrial sector.

Kerala contributes 97% of national pepper production and accounts for 85% of the areaunder natural rubber in the country. Coconut, tea, coffee, cashew, and spices -  including cardamom, vanilla, cinnamon, and nutmeg - comprise a criticalagricultural sector. A key agricultural staple is rice, with large number of varietiesgrown in Kerala's extensive paddy fields. Nevertheless, home gardens comprise asignificant portion of the agricultural sector.

Tourism continues to flourish and plays an important role in the state's economy. ITsector is on a growth path with flagship Techno Park at Thiruvananthapuram and Techno Cityat Ernakulam gaining further traction. The proposed Info Park and Smart City near Kochi,is expected to propel Kerala to become one of the leading IT destinations in the country.Mega Projects like Vallarpadam International Container Transshipment Terminal will give afillip to the economy. The proposed Vizhinjam International Deepwater Multipurpose Seaportat Thiruvananthapuram is expected to give boast to the State‘s economy. The KannurInternational Airport project is expected to transform the North Malabar region into ahighly developed Centre for Travel, Tourism and Industries.

• Banking Environment

The resilience and stability of the domestic financial system have become essential tothe country‘s own macroeconomic stability, particularly in an increasingly integratedworld. Indian banking sector demonstrated strong resilience during the global financialcrisis and was able to maintain profitability, with asset quality remaining relativelyunaffected. In India, reforms have continued with a view to building a robust andresilient financial system. More stringent capital and liquidity measures for commercialbanks have been implemented and steps have been taken to build provision buffers. RBI hasinitiated the steps for implementation of the Basel III norms embedded with provisions andguidelines for higher capital adequacy norms for adoption and implementation by Banks inIndia. The key focus areas for Indian Banks include liquidity management; gainfuldeployment of funds; availability of cheaper technology to serve thinly populated unbankedareas; grooming suitable replacement for large number of experienced manpower due forretirement; IT security; advanced Risk management approaches; and introduction ofinnovative products. The Indian Banking sector is continuing to grow with rapidtransformation, with almost all the Banks having migrated to Centralised Core BankingEnvironment, supported by technology enabled products viz. mobile banking, net banking andsmart cards..

Further, Green Channel Counters‘ are the latest innovations in the series forBanks to serve its customers in an eco-friendly atmosphere. Regulatory changes have openedup newer opportunities in rural areas for Banks. The penetration of banks in rural areashas increased manifold due to the progress made under Financial Inclusion Plans of banks.

However, the cause of concern for Indian banks is the sluggish credit off-take, lowerinvestments, supply side constraints which are adversely impacting the asset quality andprofitability of Banks.

• Regulatory Measures and Monetary Policy

The year 2013-14 witnessed a series of monetary measures initiated by Reserve Bank ofIndia to contain rising inflation, further liberalisation in the Branch AuthorisationPolicy and more security measures for electronic payment system in scheduled commercialbanks. The Reserve Bank of India has granted "in-principle" Bank licences toInfrastructure Development Finance Co and microfinance lender - Bandhan Financial ServicesLtd.

Some of the main policy changes and reforms announced by RBI during the year are asunder:

• Repo rate moved from 7.5% to 8%.

• Cash reserve ratio (CRR) of scheduled banks maintained at 4.0 per cent of netdemand and time liability (NDTL).

• Increased liquidity provided under 7-day and 14-day term repos.

• The reverse repo rate moved in tandem with repo rate and is presently at 7.0 percent.

• The Marginal Standing Facility (MSF) rate and the Bank Rate are presently at 9.0per cent.

• Under the new RBI Branch Authorisation Policy, Banks can now open brancheswithout taking permission from RBI, subject to reporting. To provide enhanced bankingservices in Tier 5 and 6 centres (Rural), domestic scheduled commercial banks shouldnecessarily open 25% of the branches, opened during the year, in unbanked rural centers.

• RBI has stipulated higher provisioning norms on Restructured assets.

• The limit of bank loans to micro and small service enterprises (MSEs) engaged inproviding or rendering of services increased from Rs 2 crore to Rs 5 crore perborrower/unit, provided they satisfy the investment criteria for equipment as definedunder the MSMED Act, 2006.

• A separate sub-sector called Commercial Real Estate - Residential Housing‘(CRE-RH) carved out from the Commercial Real Estate (CRE) sector. CRE-RH to consist ofloans to builders/developers for residential housing projects (except for captiveconsumption) under CRE segment. The CRE-RH segment to attract a lower risk weight of 75per cent and lower standard asset provisioning of 0.75 per cent as against 100 per centand 1.00 per cent, respectively for the CRE segment.

• The period for realisation and repatriation to India, of the amount representingthe full value of goods or software exported, brought down from twelve months to ninemonths from the date of export.

• Downloaded E-Aadhaar Card recognised as Valid Document.

• The new Real Time Gross Settlement (RTGS) system launched on October 19, 2013.

The Bank's Performance

Net Profit for the year stood at Rs 304.34 crore as compared to Rs 615.04 crore for theprevious year 2012 13, showing a decline of 50.52% over last year. The Operating Profit(after Staff Provisions) for the year ended 31st March, 2014 stood at Rs1,369.69 crore as compared to Rs 1,351.00 crore recorded for the year ended 31stMarch, 2013.

The Bank‘s capital funds improved from Rs 6,175.70 crore under Basel II as at theend of March 2013 to Rs 6,792.01 crore as at the end of March 2014. The capital adequacyratio under Basel II stood at 11.52% as on March 31, 2014 as compared to 11.70% as onMarch 31, 2013 against a minimum of 9% stipulated by RBI. Under

Basel III, the Bank‘s capital funds improved from Rs 5671.43 crore as on 1stApril 2013 to Rs 6,357.63 crore as on 31st March 2014. The Capital AdequacyRatio under Basel III improved from 10.74% as on 1st April 2013 to 10.79% as on31st March 2014.

Bank‘s aggregate deposits showed a growth of 5.54 % and stood at Rs 88,707 croreas on 31st March, 2014 compared to Rs 84,047 crore in the previous year. Theshare of Personal Segment Deposits is Rs 62,246.92 crore which constitute 70.17% ofAggregate Deposit. In absolute term Personal Segment Deposit has grown by Rs 9,656 croreY-O-Y.

NRI Deposits grew by Rs 5651 crore to reach a level of Rs 24,963 crore. It constitutes28.14% of the Aggregate Deposits of the Bank as on 31st March, 2014. TotalDeposits of the Bank (including Inter Bank Deposits) stood at Rs 89,337 crore as on 31stMarch, 2014 from the level of Rs 84,624 crore as on 31st March, 2013.

The total advances of the Bank stood Rs 70,782 crore as at the end of 31stMarch, 2014 from the level of Rs 68,389 crore a year ago registering a growth of 3.50%.Personal segment advance had grown by Rs 374 crore and reached a level of Rs 18,294 crore,whereas the C&I segment declined by Rs 311 crore and reached a level of Rs 34,901crore.

The Retail lending stood at Rs 35,881 crore and constituted 50.69% of the totaladvances as at the end of 31st March, 2014. The Credit Deposit Ratio of theBank is 79.23% as on 31st March, 2014 as against 79.75% as on 31stMarch, 2013.

The Bank‘s gross business crossed Rupees One Lakh Sixty Thousand crore during thisfiscal. The total business of the Bank reached the level of Rs 1,60,119 crore as on 31stMarch, 2014, showing a growth of 5.27% from Rs.1,52,108 crore as on 31st March,2013.

The Bank continued to give special emphasis on lending to the priority sector inconformity with national policies, expectations and fulfillment of social objectives.Bank‘s gross Advances to the Priority sector increased from Rs 24,378 crore as at theend on March 2013 to Rs 27,526 crore as at the end of March 2014 and constituted 40.25% ofthe Adjusted Net Bank Credit against the benchmark of 40%.

The Bank has disbursed an amount of Rs 10,408 crore under Agriculture segment as at theend of March 2014 against the Special Agricultural Credit Plan target of Rs.7,200 crore.Agri segment showed a growth of Rs 1,137 crore during the financial year 2013-14. Creditto Agriculture segment reached a level of Rs 11,455 crore as on 31st March,2014, that is 16.77% of ANBC, against a benchmark of 18% stipulated by Government ofIndia.

MSMEs play a major role in the country's economic development. The bank gives dueimportance for the growth of this vital segment of the economy. Total lending to MSMEsector as on 31st March 2014 stood at Rs.11,460.54 crore, registering a growthof Rs.2,230.31 crore over the previous year. The lending to Micro and Small Enterprises(MSE`s) stood at Rs.7,774.10 crore which is 37.37% higher over the previous year level.

The Gross NPA level of the Bank as on 31st March, 2014 stood at Rs 3,077crore and its percentage to Gross Advances stood at 4.35% compared to 2.56% as on31.03.2013. The Net NPA level of the Bank as on 31st March, 2014 stood at Rs1,929 crore. The percentage of Net NPA was 2.78% compared to 1.46% as at the end of theprevious year.

Branch Network

Bank opened 104 new branches during the year. As at the end of 31st March2014 the total number of branches has touched 1,117, by setting its foot prints in 15states and 3 Union Territories. It has 13 extension counters.

The number of branches in Kerala increased from 758 branches in March, 2013 to 820branches as at the end of 31st March, 2014. New Zonal office at Bengaluru wasopened during this year and 37 branches / offices were shifted to new premises. SevenRegional offices have been opened at Thiruvalla, Kottarakara, Madurai, Thodupuzha,Hyderabad, Pala & Malappuram during the year for better operational control and fastercredit dispensation.

The Bank has 43 specialised Personal Segment Branches, 11 NRI Branches, 5 TreasuryBranches, 10 Service branches, 17 CBG Branches, 7 CNW Branches, 20 Gold Point Branches, 10Specialised Agricultural Development Branches, 8 Specialized SME Branches, 2 AssetRecovery Management Branches, 1 Micro Credit Branch, 1 Specialised Branch for womenentrepreneur, 1 MICR Branch, 1 Branch for State Government Transactions and 1International Service Branch. Under the BPR initiatives, Bank has 15 RASMECCCs, 2 RCPC, 1CPPC, 6 SARC, 2 TFCPCs, 1 LCPC and 19 CACs. The Bank is having 2 Exchange Bureaus, one atCochin and another at Kozhikode in addition to the above branches / offices.


The Bank declared a dividend of Rs 2.50 per share (25%) for the year to theshareholders, entailing a total payout of Rs 12.50 crore. The dividend payout Ratio forthe year 2013-14 works out to 4.11% of the Net Profit.

Market Share

The Bank‘s market share in ASCB Deposits was 1.16% as on 21st March,2014 as compared to1.22% as on 22nd March, 2013 mainly on account of hiving offof high cost deposits and Certificate of Deposits. The market share in Advances has comedown from1.25% as on 22nd March 2013 to 1.16% as on 21st March,2014. The Bank‘s All India Market share in total business as on 21stMarch, 2014 stood at 1.16%.

The Bank continued to maintain its position as the premier bank in Kerala among allCommercial banks with a market share of 21.32% in business ( as at the end of December2013) with14.06% of the total branch network. In respect of NRI deposits, our market sharein the state is 24.24% (Source SLBC Kerala).

Business Initiatives

The Bank has entered into an agreement with Export Credit Guarantee Corporation ofIndia (ECGC) to cover its export credit portfolio. Accordingly eligible accounts have beencovered under Whole Turnover Packing Credit Guarantee (WTPCG) and Whole Turnover PostShipment Guarantee (WTPSG) .With a view to speeding up issuing Bank RealisationCertificate (issued to exporters) for claiming export incentives and as part of messageexchange initiative of Directorate General of Foreign Trade (DGFT), the bank has commenceddigital transmission of Bank Realisation Certificate (e-BRCs) through DGFT website.

The Bank has been constantly endeavoring to meet the financial requirements of itscustomers by making available Life, Non-life insurance products as well as othernon-banking investment products like Mutual Funds and also Credit Card to its customerswith a perspective of being a Complete Financial super market.

Bank's cross selling products include life insurance products of SBI Life InsuranceCompany, Non Life Insurance (General Insurance) products of SBI General Insurance Company,Mutual fund products offered by SBI Mutual Fund, Credit cards of SBI Cards. The productsof these companies, with whom the Bank has, tie up arrangements for selling their productsas Corporate Agents are made available to the customers of the Bank.

Development Banking

The Marketing Department of the Bank continues to play its role in facilitatingcustomer acquisition, retention and broadening of the Bank‘s customer base byconducting segment centric marketing drives.

Financial Inclusion is delivery of banking services at an affordable cost to the vastsections of the disadvantaged and low-income groups. The Bank has opened over 25.56 lacNo-frills accounts (Janapriya accounts). 90% of the 25.56 lac ?No-frills accounts wereopened in the state of Kerala. Joint Liability Group (JLG) schemes, Biometric Smart CardProject, General Credit Cards to the Janapriya Account Holders etc. are other initiativesin this direction.

In conformity with the directions of Reserve Bank of India, the Bank has formulated aFinancial Inclusion Plan, which has been rolled out during 2013-14 and all FI villagesallotted to the Bank has been covered in the state of Kerala. This plan for FinancialInclusion will be an integral part of the business plan of the Bank. The FI Project of thebank has been christened ?SBT-SAHAYA HASTHAM . As of 31st March 2014 the Bankhas enrolled approximately 27500 customers under ?SAHAYA HASTHAM in the 35 FI Villages.The Bank‘s Board has also approved a 3 year Financial Inclusion plan, for the years2013 to 2016, in tune with the Bank‘s future plans for Financial Inclusion. TheBank‘s Board has also approved the plan for the implementation of

Direct Benefit Transfers of the Government.

SBT has got Lead Bank responsibility in three Districts in Kerala. They are Alappuzha,Kottayam and Pathanamthitta Districts. CRISIL with the support from Ministry of Finance,GOI, and RBI has conducted a study called CRISIL Inclusix which is an index to measure theprogress in Financial Inclusion. ie. Penetration of banking services in all the Districtsin the country.

Pathanamthitta district has been ranked as Number one District in the country by CRISILin their study report. The other two Districts i.e., Kottayam and Alappuzha are rankedfive and fifteen in the CRISIL Study.

DBT rollout of the Government of India:

The Government of India has selected 43 districts, including two districts of KeralaViz., Wayanad and Pathanamthitta, for roll out of the Direct Benefits Transfer (DBT) inrespect of 26 schemes. Out of the 43 districts we have one district where we have LeadBank responsibility ie, Pathanamthitta. In the second phase the GOI has selected 78districts for DBT Roll out. In Kerala we have 9 districts from among the 78 selecteddistricts. Out of these nine districts in Kerala, we have Lead Bank responsibility in twoviz., Alappuzha and Kottayam. We have opened accounts for the beneficiaries under the 26schemes launched in the 121 districts. All these accounts are linked to Aadhaar numbers ofthe beneficiaries. Issuing of ATM Debit cards to all the DBT beneficiaries have also beentaken up.

Linking or seeding of Aadhaar accounts to the customers‘ accounts are also beingdone and we have seeded / linked approximately 19.74 lac accounts as on 31/03/2014.

The Bank continues to give due importance to extending financial assistance to meet thecredit requirements of the SC/ST citizens. A credit Cell is functioning at Head Officeunder the control of Deputy General Manager (MSME) for monitoring flow of credit to thesecommunities. The advances to SC and ST borrowers under Priority sector aggregated toRs.4,038 crore constituting 14.67% of priority sector lending advances. The Bank continuesto give due importance in extending financial assistance to meet the credit requirementsof the Minority Community (MC) borrowers. The advance to MC borrowers under Prioritysector stood at Rs 9,692 crore as against Rs 8,536 crore during the previous year, whichconstitutes 35% of the Bank's priority sector advances.

The Bank is spearheading the Lead Bank activities in three districts of Kerala Stateviz. Alappuzha, Kottayam and Pathanamthitta. The District Credit Plans for the year2013-14 were launched in our lead districts during March 2013. For widening the coverageof banking services, a campaign for opening of savings bank accounts was conducted by ourLead Bank Offices in the Lead Districts. Bank has RSETIs in Wayanad, Pathanamthitta,Alappuzha, and Kottayam for providing skill up gradation trainings to the rural youth withfocus on BPL category. RSETIs also imparted EDP training to beneficiaries selected underKerala State Entrepreneurs Development Mission (KSSEDM). In Bank‘s Lead Districts,Bank has started Financial Literacy Centres (FLC) along with RSETIs for providingfinancial literacy & credit counseling.

Technology Initiatives

The Bank has a network of 1,352 ATMs. The Bank's ATM cum Debit cards are accepted inall outlets having Master Card / Visa logo. Several facilities such as Visa Money Transfer(VMT), Money Send, SBI Credit Card payment, SBI Life Premium payment, Mobile recharge,Donations, Fee payment, JMET / GATE Application Fee payment, Mobile Banking registration,Cheque Book order etc have also been enabled in our ATMs.

Our highly secure Internet Banking platform supported by 256 bit EVSSL (ExtendedValidation Secured Socket Layer) encryption offers utmost security to our Internet Bankingcustomers against phishing / hacking threats and provides Intra-bank / Inter-bank fundstransfer facility up to a limit of Rs 500 crore per transaction. 1,55,527 newregistrations were activated during the current year, ie, an increase of 27.71% over theregistrations as at the end of previous year.

Mobile Banking provides our customers with another safe, secure, fast and convenientchannel for banking transactions. The services provided includes enquiry services, fundstransfer, Interbank Mobile Payment System (IMPS), Demat account services, bill payment,mobile top-up, DTH recharge, M-commerce etc. The daily limit for MBS transaction isRs.50,000/- for aggregate of funds transfer & transactions involving purchase of goods& services, within an overall calendar month limit of Rs.2,50,000/-. A more advancedfund transfer channel, P2A, was added to the existing IMPS payment services enhancing theease and convenience of the Mobile Banking facility.

All the branches of the Bank are enabled for RTGS/GRPT/NEFT remittances. The totalnumber of outward electronic remittances for the year ended 31.03.2014 had been at63,74,055 registering an increase of 32% over the previous year. While growth in number ofRTGS transactions had remained at the same level of 14% recorded in the previous year,number of GRPT outward transactions increased by 50% in the current year. NEFTtransactions registered an increase of 50% over the last year level. Cheque TruncationSystem (CTS) implemented in all MICR centres across the country.

Customer Service

Customer service in the Bank is accorded top priority and every endeavor is made toimprove the quality of service to the customers and redress their grievances.

A well defined and full- fledged Customer Grievances Redressal Mechanism is put inplace in the Bank. An official of the rank of Deputy General Manager is placed as head ofthe Customer Service Department to give greater focus on complaints received fromcustomers and speedy redressal of complaints.

Bank has provided a facility (SMS SBT CARE) to the customers whereby they can send amessage from anywhere by SMS to 56363 or give a missed call to 9847198471 from theirmobile.

Bank has also established a call centre with toll free number: 1800 425 5566 whichenables the customers and general public to seek clarification on Bank‘s products,service etc. Online complaint registration is an alternate channel activated from13.9.2012 for customers to lodge complaints .On submission of complaint online, anautomatic acknowledgement will be generated with reference number, date and name ofcomplainant and the status of the complaint can be monitored by the complainant online.

To have an effective resolution of complaints, we are providing data of outstandingcomplaints Zone wise in the drop box maintained by Organisational Planning Department atHead Office. The same can be accessed at Zonal Office and updated position can be placedin the drop box for discussion during the coordination meeting.

Corporate Social Responsibility (CSR)

Social circles are voluntary organizations formed by the staff members working inbranches and administrative offices for undertaking social services. Bank is having 639social circles functioning at various branches and administrative offices, spread all overIndia. Community Services Banking Department at Head office spearheads the activities ofthe Circles.

Major activities undertaken by the Bank during the year includes:

Health care programmes, welfare programmes for differentially abled people and inmatesof orphanages & geriatric centres, associating with regional festivals, studentwelfare activities such as distribution of uniforms, books, bags, umbrellas, stationeryitems, Improving infrastructure facilities like installation of water purifiers, fans,pump sets, to set up library, computer rooms, providing furniture, Adopting schoolchildren for their education, Clean toilet facilities in selected Girls‘ Schools inassociation with other organisations. Reimbursed the full treatment and food expenses ofidentified deserving patients at Regional Cancer Centre Thiruvananthapuram, for one dayand at Malabar Cancer Thalassery for 2 days.

Other activities include:

Scholarships to HIV infected children to continue their education up to Post Graduatelevel. Provision of noon meal to 12,000 students in 52 institutions in Central Kerala.Health Care activities like Blood donation camps, medical camps, providing equipments,cots, water purifier, washing machines, wheel chairs, medicines to hospitals and primaryhealth centres, bed sheets and food packets to patients. Financial support to pain &palliative clinics to improve the home care treatment provided to terminally ill & bedridden patients, taking care of HIV affected children, cleaning the premises of Governmenthospital etc. Support to physically, mentally and visually disabled communities bysupplying wheel chairs, walkers etc.

Internal Control Systems & Supervision

The Integrated Risk Management facilitates the Bank to have a holistic view of the riskmanagement. Modular structure under Integrated Risk Management has various divisionsfocused on management of a specific risk Asset Liability, Market Risk, Credit Risk,Operational Risk, and Information Systems Security.

Asset Liability Management (ALM) system has been implemented in the Bank, since April1, 1999, as per the Reserve Bank of India guidelines on ALM and Liquidity Risk Management.As per the Bank‘s ALM Policy, the Asset Liability Management Committee (ALCO) isauthorised to evolve appropriate systems and procedures for ongoing identification andanalysis of liquidity and market risks and to prescribe parameters for efficientmanagement of these risks. The ALCO headed by Managing Director meets regularly to reviewand monitor the same.

Liquidity and interest rate risks are identified, measured and monitored by the ALCOthrough the prescribed statements, viz. Statement of Structural Liquidity, Statement ofShort Term Dynamic Liquidity, Statement of Interest Rate Risk Sensitivity (Traditional andDuration Gap methods), Stress Testing on Liquidity and Earnings etc. ALCO discusses thesestatements in detail and takes corrective actions whenever necessary. Bank's BenchmarkLending Rates (Base Rate and BPLR) and Card Rates for Deposits are discussed and decidedby the ALCO.

For Credit Risk management, the Bank has a structured and standardised credit approvalprocess which includes comprehensive credit rating of proposals. For retail loans, Bankuses a risk scoring model. Bank has in place various exposure limits for single borrower,group of borrowers, specific sectors, industries etc. as per regulatory requirement and asper its internal policies. Bank takes up regular reviews of its various loan portfolios toassess the risk profile and initiates proactive measures.

Inspection and Audit Department at Head Office monitors various risk parameters byconducting regular Internal Inspection, IS Audit, Compliance Audit of Branches and SystemAudit of various Head Office Departments and Modules.

Apart from the above, Bank has put in place an effective institutional mechanism forRisk Based Supervision through RBS Cell in the Inspection Department. As envisaged by theRegulator, the Bank introduced Risk Focused Internal Audit (RFIA) under RBS with effectfrom 1st April 2003. Based on the guidelines on Internal Audit issued by Government ofIndia, Bank‘s Inspection & Audit Policy has been suitably modified. The Bank hasalso incorporated the RBI guidelines on Information System Audit in the IS Audit Policy.

Preventive Vigilance

Due to initiation of Preventive Vigilance mechanism through various measures, such asSurprise Inspections, branch visits, circulars, vigilance awareness meetings etc, Bankcould inculcate a sense of positive approach towards compliances from vigilance angleamong all the functionaries including adherence to systems and procedures.

A programme on positive vigilance in Contracts and Procurements was conducted in May2013 for the benefit of officers handling various contracts and procurements in the bank.At the request of CBI a training programme for inspecting officials of the CBI wasconducted by the Department at Thiruvananthapuram from 2/09/2013 to 6/09/2013.

A conference of Chief Vigilance Officers of Associate Banks was organised by theVigilance Department on 4/11/2013 at Head Office, Thiruvananthapuram. The conferenceprovided a platform to discuss the best vigilance practices adopted in various AssociateBanks of SBI and to share common problems / difficulties for a collective approach andsolution.

"A Whistle Blower Policy was introduced by the bank as a part of anti corruptioninitiative and also to detect and prevent unfair practices wherever reported. Thecomplaints received under the policy were studied and investigations were conducted. Thedetails of Whistle Blower are kept confidential.

Human Resources

As on 31-03-2014 the Bank had on its rolls 14,491 members of staff, comprising 5,094officers, 7,005 clerical and cash department staff and 2,392 subordinate staff inclusiveof 643 Maintenance Staff. The number of women employees and ex-service personnelconstituted 5,864 and 1,665 respectively of the total work force.

Out of the women employees, 1,557 are officers, 3,521 non-subordinate staff and 786subordinate staff. The Bank has also on its rolls 231 persons with disability. During theyear, 2,761 staff were recruited (116 in the officers‘ cadre, 2,210 in Nonsubordinate and 435 in the subordinate cadre).

Business per employee stood at Rs 11.56 crore as at the end of March 2014 as againstRs. 12.59 crore for the same period a year ago. Net Profit per employee is Rs 2.20 lac ason March 2014 compared to Rs.5.06 lac for the year ended March 2013.

We have formulated a scheme to recognize and motivate high achievers among our branchesby awarding the honour of MD‘s Club, CGM‘s Club and GM‘s Club membership totop performing branches.

Changes in the Board of Directors

During the course of the financial year 2013-14, the following changes have occurred inthe Board of Directors of the Bank.

1. Shri P Nanda Kumaran, Managing Director, State Bank of Travancore, uponsuperannuation on 31st May 2013 has tendered his resignation from the Board ofDirectors.

2. Shri S Vishvanathan, Managing Director & Group Executive (A&S) appointed asDirector under clause (c) of sub-section (1) of Section 25 of the State Bank of India(Subsidiary Banks) Act, 1959 with effect from 17th July 2013.

3. The tenure of Shri K Muraleedharan Pillai, Director ended on 18th July 2013.

4. Shri P V Prasad, Special Assistant, State Bank of Travancore, NRI Thiruvalla Branch,appointed as Workmen Employee Director under Clause (ca) of sub-section (1) of Section 25of the State Bank of India (Subsidiary Banks) Act 1959 with effect from 19thJuly 2013 in place of Shri K Muraleedharan Pillai, Director.

5 Shri Pratip Chaudhuri, Chairman, State Bank of India, under Clause (a) of subsection(1) of Section 25 of the State Bank of India (Subsidiary Banks) Act 1959 uponsuperannuation on 30th September 2013 has tendered his resignation from theBoard of Directors.

6. Shri C Rajkumar, Chief Manager, State Bank of Travancore, reappointed as Directorunder Clause (cb) of sub-section (1) of Section 25 of the State Bank of India (SubsidiaryBanks) Act 1959 with effect from 1st October 2013.

7. Smt Arundhati Bhattacharya has become a Director and Chairman of the Board ofDirectors of the Bank in terms of under Clause (a) of sub-section (1) of Section 25 of theState Bank of India (Subsidiary Banks) Act 1959 with effect from 7th October2013.

8. Shri V Kaliappan, has become a Director Clause (c) of sub-section (1) of Section 25of the State Bank of India (Subsidiary Banks) Act 1959, from 11th November2013.

9. Shri Pradip Kumar Sanyal, General Manager (A&S), State Bank of India, Director,in terms under Clause (c) of sub-section (1) of Section 25 of the State Bank of India(Subsidiary Banks) Act 1959 has tendered his resignation from the Board Of Directors ofthe Bank with effect from 20th November 2013

10. Shri. Purna Chandra Jena, General Manager (A&S), State Bank of India, appointedas Director under Clause (c) of sub-section (1) of Section 25 of the State Bank of India(Subsidiary Banks) Act 1959 with effect from 26th November 2013 in place ofShri Pradip Kumar Sanyal.

11. Shri Jeevandas Narayan, appointed as Managing Director from 10th January2014, has become a Director, of the Board of Directors in terms of section 25(1) (aa) ofthe State Bank of India (subsidiary Banks Act 1959).

12. The tenure of Shri C N Venugopalan, Director, ended on 10th January2014.

13. The tenure of Shri T Balakrishnan and Shri K T Rajagopalan, Directors, ended on 31stJanuary 2014.

The Board of Directors welcomed Smt Arundhati Bhattacharya, Shri S Vishvanathan, ShriJeevandas Narayan, Shri P V Prasad, Shri C Rajkumar, Shri V Kaliappan, Shri. Purna ChandraJena as Directors of the Bank.

The Board of Directors placed on record their appreciation and thanks for the valuableservices rendered by Shri Pratip Chaudhuri, Shri P Nanda Kumaran, Shri Pradip KumarSanyal, Shri K Muraleedharan Pillai, Shri T Balakrishnan, Shri K T Rajagopalan and Shri CN Venugopalan during their tenure as Directors of the Bank.

Statutory Audit

M/s. Abraham & Jose, Thrissur, M/s. G.K.Rao & Co., Hyderabad, M/s R.G.N.Price& Co, Chennai, and M/s Kumar Vijay Gupta & Co. New Delhi were appointed asStatutory Auditors of the Bank for the year 2013-14 by State Bank of India, with theapproval of Reserve Bank of India. The Board of Directors sincerely appreciates thevaluable suggestions offered and the excellent support and cooperation extended by theStatutory Central Auditors for the completion of the audit well in time.


The Board of Directors gratefully acknowledge the valuable advice and support extendedby the Ministry of Finance, Government of India, Reserve Bank of India,  IndianBank‘s Association, State Bank of India and the cooperation and support extended bythe Securities and Exchange Board of India, Financial Institutions, Stock Exchanges andCorrespondents. The Board also wishes to place on record its sincere appreciation for theexcellent support, goodwill and patronage received from the esteemed customers andshareholders, the support and cooperation extended and contributions made by the membersof staff- award and supervising. The Board also places on record its appreciation for thecontributions made by the Employees‘ Union and Officers‘ Association.

By Order of the Board,

Jeevandas Narayan

Managing Director.


Peer Comparison

Company Market Cap
(Rs. in Cr.)
St Bk of India 188,434.27 17.24 1.59 15.19 10.0 0.0 0.00
Bank of Baroda 35,948.40 8.20 1.00 15.42 13.4 0.0 0.00
Punjab Natl.Bank 33,295.96 9.98 0.93 14.98 10.0 0.0 0.00
Canara Bank 18,526.51 7.55 0.77 12.25 10.4 0.0 0.00
Bank of India 18,301.20 6.84 0.70 15.52 11.2 0.0 0.00
IDBI Bank 14,820.41 13.55 0.68 12.91 5.4 0.0 0.00
Union Bank (I) 12,404.30 7.57 0.73 13.17 10.4 0.0 0.00
UCO Bank 10,289.16 6.81 0.97 15.18 16.8 0.0 0.00
Central Bank 9,351.80 0.00 0.76 14.96 0.0 0.0 0.00
Syndicate Bank 9,162.59 5.55 0.84 15.00 16.7 0.0 0.00
I O B 9,011.87 15.52 0.63 13.25 4.5 0.0 0.00
Oriental Bank 8,551.72 7.83 0.67 12.42 9.2 0.0 0.00
Indian Bank 7,486.41 6.84 0.65 13.00 10.3 0.0 0.00
Allahabad Bank 6,573.44 5.72 0.60 12.78 10.9 0.0 0.00
Corporation Bank 6,235.84 11.49 0.62 13.55 5.7 0.0 0.00

Futures & Options Quote

Expiry Date
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Expiry Date: NA
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Average Price: NA
No. of Contracts Traded: NA
Open Interest: NA
Underlying: NA
Option Type: NA
Market Lot: NA
Previous Close: NA
Day’s High | Low: NA | NA
Turnover (Cr.): NA
Open Int. Change: NA | NA
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Key Information

Key Executives:

Arudhati Bhattacharya , Chairman & Director  

J Sadakkadulla , Director  

C Rajkumar , Director  

Jitendar Kumar Mehna , Director  

Company Head Office / Quarters:
Poojappura P O,
Phone : 91-471-2359975/2351244 (10 Lines)
Fax : 91-471-2351137/2351861
E-mail :
Web :
Integrated Enterprises (I) Ltd
Kences Tower
2nd Floor No 1
Ramakrishna Street
Chennai - 600 017

Fund Holding


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