Management Discussion and Analysis
ECONOMIC BACKDROP AND BANKING ENVIRONMENT
The global economy has entered 2013 with reduced downside risks, as the US fiscal cliffand a flare up of the euro area crisis being averted. With downside risks receding, it isnow worth considering the prospects for an improvement in global growth. As per the IMFforecast, global economy is forecast to grow by 3.3% in 2013 (vis-a-vis 3.2% in 2012). Thehousing sector in the US economy - the epicentre of the downturn - has made considerableprogress in repairing its balance sheet. Policy makers in the euro zone area havereconfirmed their commitment to resolution of the euro crisis by working on a common euroarea integration framework. Going forward, US economy is supposed to gain continuedtraction, even though a sustained pick-up in euro area may take a while to materialize.Growth in emerging market and developing economies is projected at 5.3% in 2013 (vis-a-vis5.1% in 2012). On the whole, an environment of progressively lower global tail risks andcontinued structural reforms in various economies will favourably impact global growthoutlook in 2013.
India's economic growth touched 5% in FY13-a decadal low. This was mainly due to theprotracted weakness in industrial activity aggravated by domestic supply bottlenecks(manufacturing sector expanded at 1% in FY13 vis-a-vis 2.7% in FY12), and slowdown in theservices sector reflecting weak external demand.
Agricultural production was impacted during the year reflecting deficiency and unevendistribution of rainfall (agricultural sector expanded at 1.9% in FY13 vis-a-vis 3.6% inFY12). It dented Kharif sowing, however, recovery of rainfall from September 2012 onwardshelped maintain soil moisture during the rabi season. The third advance estimates of cropproduction for FY13 indicate a marginal decline of 1.5% in overall food grain productionto 255.4 million tonnes from 259.3 mt in the previous year. The current stock offoodgrains 59.7 million tonnes at end-March 2013 is sufficient to meet the requirement ofthe country.
Headline inflation after progressively rising from 7.5% in Apr'12 to over 8% tillSept'12, has now declined to 4.9% in April 13, a 41 month low and within the RBI comfortzone. Core inflation has also declined to 2.8% in Apr'13, a 39 month low. The CPI -RuralUrban (CPI-RU) has eased to 9.4% in Apr'13. This was the lowest CPI inflation in 13months. Various other CPI indicators support the contention that consumer inflation mayhave peaked out. Interestingly, rural inflation is coming down at a faster rate than urbanareas indicating some deceleration in rural demand as well. Moreover, the calibratedincrease in diesel prices are not likely to continue over the entire fiscal, with thecurrent under-recovery on diesel at lower levels. This will further reducethe prospects ofan upturn in inflation over FY14.
The growth of industrial production decelerated to 1% during FY13 (vis-a-vis 2.9% inFY12). Even though, there has been a pick-up in industrial activity in March 2013,contraction in capital goods and mining sector continues to pose a downside risk.
India's current account deficit (CAD) touched a sharp 6.7% of GDP in the third quarterof FY13. The widening in CAD was in part attributed to a deceleration in India's exports(decline of 1.8% in FY13). With regards to the concerns regarding the widening currentaccount deficit, we believe soft global commodity prices, reduced volatility in Indianrupee and Government's export promotion measures will facilitate a reduction in tradedeficit and subsequently CAD over the medium term.
However, the good news is that a look at the direction of Indian exports, reveal ashifting trend with exports to Asia, Africa and Latin America during FY13 touching 65% ofour total export basket. This is indeed a development with significant import as Asia'saccelerating economic growth has been shifting the global economic and industrial centresof gravity away from the US and EU, raising the importance of Asia in world trade andboosting the prospects of South-South trade.
On the hindsight, India still remains one of the fastest growing economies in theworld, and continues to be a favoured destination for investment. The foreign investmentflows into the debt markets have increased in the recent months, with a cumulative flow of$3.1 bn during the calendar year 2013 (till May'17). Moreover, the recent decision toreduce the withholding tax on Government and INR-denominated corporate debt has boostedthe FN debt flows. On the whole, portfolio capital inflows increased to $27.5 billionduring FY13 (vis-a-vis $16.8 bn in FY12). Net FDI inflows increased to $22.9 bn in FY13(vis-a-vis $21.8 bn in FY12).
The slowdown in the economy and monetary tightening has affected banks' business in2012-13. Aggregate deposit growth of All Scheduled Commercial Banks (ASCB) grew higher by14.3% in FY13 against 13.5% growth in FY12, while growth in credit decelerated sharply to14.1% in FY13 from 17.0% in FY12.
RBI kept the key interest rates unchanged till the end of third quarter of FY13.However, to ease pressure on liquidity, RBI has cut CRR by 75 bps from 4.75% to 4.0% andslashed SLR by 100 bps to 23%. As a part of monetary transmission, deposit rate of majorbanks for more than one year maturity softened from 8.509.25% in FY'12 to 7.5-9.0% inFY'13, and base rate of major banks fell from 10.0-10.75% to 9.70-10.25% in the sameperiod. Growth deceleration impinging on corporate profitability and move to system-drivenidentification of NPAs, non-performing assets of banks increased during the year.
In a new development, RBI is likely to issue new bank licenses during FY14, which apartfrom providing an impetus to financial inclusion, is expected to intensify competition inbanking sector in medium term. Meanwhile, with the implementation of Basel III norms byMarch 2018, Indian banks will be required to raise significant capital from the market.
The other policy initiatives taken by RBI during the last fiscal, include among others(a) Banks to provide "CTS-2010" standard cheques to customers, (b) Enhancedprovisioning requirement on certain categories of non-performing advances and restructuredadvances, (c) Revised guidelines for electronic payment transactions and (d) Internationaluse of debit and credit cards.
In the Monetary Policy announced in May 2013, RBI reduced the repo rate by 25 bps.Depending upon growth inflation dynamics, RBI is expected to cut rates further during FY14to boost growth. It will provide business opportunity for banks and threat as well to dobusiness with lower margins.
A strong and resilient banking system is the foundation for sustainable economicgrowth, as banks are at the centre of the credit intermediation process between savers andinvestors. Moreover, banks provide critical services to consumers, small and medium-sizedenterprises, large corporate firms and governments who rely on them to conduct their dailybusiness. In this context, it is needless to mention that the Indian banking sector hasdemonstrated strong resilience during the global financial crisis. Such resilience hasalso been ably abetted by RBI through initiation of Basel III norms embedded withprovisions and guidelines for higher capital adequacy norms to be adopted by the banks inIndia.
During FY14, economic activity is expected to show a modest improvement over last year,with a pick-up likely in the second half of the year. Conditional upon a normal monsoon,agricultural growth could return to trend levels.
The outlook for industrial activity remains subdued, with a recovery more likely in thelater part of FY14. In this context, the National Manufacturing Policy (NMP) sets theframework for revitalization of manufacturing sector of the country. Rapid implementationof the NMP and the creation of National Manufacturing & Investment Zones can beseedbeds not only for manufacturing, but also concomitant development of the servicesector. Additionally, continued monetary accommodation by RBI will also support industrialgrowth. A declining inflation trend, as being witnessed currently will also help to propup consumption demand to a certain extent as well.
Infrastructure however, remains an area for improvement. It is imperative that wecontinue to support a meaningful public-private partnership with inclusiveness andsustainability as essential prerequisites for sustained growth rates over the next decade.
On the inflation front, we believe average level of inflation will trend downwards andmay be closer to RBI comfort level in FY14, based on the emerging trend of continued softinternational commodity prices, and provided the rupee remain stable. Such a developmentwill also reduce the worries on CAD during the course of FY14. Additionally, capitalinflows to emerging economies, including India are likely to remain buoyant in FY14reflecting benign monetary conditions in developed economies.
We also believe that fiscal consolidation will remain a priority, with Governmentclearly making its intent clear several times. It may be noted that the Government plansto trim the fiscal deficit to 3% by 2016-17.
Exports are unlikely to post significant gains in FY14, as the global economy willwitness only a gradual recovery. The import elasticity of our growth remains significantand going forward we would need to develop a new paradigm of a low-carbon economy. It isnow becoming clear that the centre of gravity of the world economy is shifting to Southand for trade, investment and finance India may have to look more and more to the South.
On the aggregate, we believe GDP to grow by about 5.5%-6% during FY14. Fasterresolution of projects currently awaiting regulatory clearances may provide the muchneeded impetus to domestic investment and reinvigorate growth prospects.
Finally, amidst growth slowdown in emerging Asian economies, fears of a"middle-income trap" are now growing rapidly. Empirical evidences (IMF, 2013)suggest that sound economic institutions, favourable demographics and trade structures canall reduce the likelihood of such a growth trap. Though India is currently poisedfavourably on demographics and trade structures, the current slowdown may just provide theright occasion for India to move from physical resource intensive growth to human resourceintensive growth. Over the medium term, India's opportunity for accelerated developmentlies in human capital formation. There are huge opportunities for expansion of servicesector provided we can accelerate our programs for skill formation. This is all the moreimportant given that services sector currently contributes to more than 60% of India'sGDP.
The fact that India has a young population also implies that Indian banks are movingtowards a right mix of assisted and self-serviced channels to provide a rich, unified andconsistent banking experience.
For example, Green Channel Counters are the latest innovation in the series for banksto serve its customers in an eco friendly atmosphere. With continued regulatory changes,Indian banks will have more of opportunities in the area of financial inclusion, ruralbanking and mobile banking in their quest for a new banking paradigm.
The Operating Profit of the Bank for 2012-13 stood at Rs 31,081.72 crores as comparedto Rs 31,573.54 crores in 2011-12 registering a marginal decline of 1.56%. The Bank hasposted a Net Profit ofRs 14,104.98 crores for 2012-13 as compared to Rs 11,707.29 croresin 2011-12 registering a growth of 20.48%.
While Net Interest Income recorded a growth of 2.40%, the Other Income increased by11.73%, Operating Expenses increased by 12.33% attributable to higher staff cost and otherexpenses.
Net Interest Income
The Net Interest Income of the Bank registered a growth of 2.40% from Rs 43,291.08crores in 2011-12 to Rs 44,331.30 crores in 2012-13. This was due to higher growth in theadvances and investment portfolios.
The gross interest income from global operations correspondingly rose from Rs1,06,521.45 crores to Rs 1,19,657.10 crores during the year registering a growth of12.33%.
Interest income on advances in India registered an increase from Rs 77,309.15 crores in2011-12 to Rs 85,782.26 crores in 2012-13 due to higher volumes. The average yield onadvances in India has declined from 11.05% in 2011-12 to 10.54% in 2012-13. Interestincome on advances at foreign offices has grown by 26.17%.
Income from resources deployed in treasury operations in India increased by 13.82%mainly due to higher average resources deployed. The average yield, which was 7.51% in2011-12, has increased to 7.54% in 2012-13.
Total interest expenses of global operations increased from Rs 63,230.37 crores in2011-12 to Rs 75,325.80 crores in 2012-13. Interest expenses on deposits in India during2012-13 recorded an increase of 20.88% compared to the previous year, whereas the averagelevel of deposits in India grew by 14.3%. The average cost of deposits has consequentlyincreased from 5.95% in 2011-12 to 6.29% in 2012-13.
Non-interest income stood at Rs 16,034.84 crores in 2012-13 as against Rs 14,351.45crores in 2011-12 registering an increase of 11.73%.
During the year, the Bank received an income of Rs 715.51 crores (Rs 767.35 crores inthe previous year) by way of dividends from Associate Banks/ subsidiaries and jointventures in India and abroad.
There was an increase of 8.29% in the Staff Cost from Rs 16,974.04 crores in 2011-12 toRs 18,380.90 crores in 2012-13. Other Operating Expenses registered an increase of 19.89%mainly due to increase in expenses on rent, taxes and lighting, advertisement &publicity, law charges, postage, telegrams & telephones, insurance and miscellaneousexpenditure.
Operating Expenses, comprising both staff cost and other operating expenses, haveregistered an increase of 12.33% over the previous year.
Provisions and Contingencies
Major amounts of provisions made in 2012-13 were as under:
Rs 961.29 crores write back from provisions for depreciation on investments,excluding amortization of premium on 'Held to Maturity' category (as against Rs 663.70crores provided towards depreciation on investments in 2011-12).
Rs 5,953.88 crores towards Provision for Tax, excluding deferred tax creation ofRs 107.97 crores (as against Rs 6,320.09 crores in 2011-12 excluding deferred tax reversalof Rs 455.93 crores).
Rs 11,367.79 crores (net of write-back) for non-performing assets (as against Rs11,545.85 crores in 2011-12).
Rs 749.61 crores towards Standard Assets (as against Rs 978.81 crores in2011-12). Including the current year's provision, the total provision held on StandardAssets amounts to Rs 5,289.58 crores.
Reserves and Surplus
An amount of Rs 4,417.86 crores (as against Rs 3,516.98 crores in 2011-12)was transferred to Statutory Reserves.
An amount of Rs 19.17 crores (as against Rs 14.38 crores in 2011-12) wastransferred to Capital Reserve Fund.
An amount of Rs 6,453.26 crores (as against Rs 5,536.50 crores in 2011-12) wastransferred to Other Reserve Funds.
Table 1: Key Performance Indicators
|Indicators || |
| ||2011-12 ||2012-13 ||2011-12 ||2012-13 |
|Return on Average Assets (%) ||0.88 ||0.91 ||0.89 ||0.89 |
|Return on Equity (%) ||16.05 ||15.94 ||16.49 ||15.97 |
|Expenses to Income (%) (Operating Expenses to Total Net Income) ||45.23 ||48.51 ||53.51 ||56.35 |
|Book Value per share (Rs ) ||1214.78 ||1394.79 ||1540.64 ||1769.19 |
|Basic Earnings Per Share (Rs ) ||184.31 ||210.06 ||241.55 ||266.82 |
|Diluted Earnings Per Share (Rs ) ||184.31 ||210.06 ||241.55 ||266.82 |
|Capital Adequacy Ratio (%) (Basel-I) ||12.05 ||11.22 ||11.84 ||11.07 |
|Tier 1 ||8.50 ||8.23 ||8.30 ||8.10 |
|Tier II ||3.55 ||2.99 ||3.54 ||2.97 |
|Capital Adequacy Ratio (%) (Basel-ll) ||13.86 ||12.92 ||13.68 ||12.82 |
|Tier I ||9.79 ||9.49 ||9.65 ||9.46 |
|Tier II ||4.07 ||3.43 ||4.03 ||3.36 |
|Net NPAs to Net Advances (%) ||1.82 ||2.10 ||1.81 ||2.07 |
The total assets of the Bank increased by 17.28% from Rs 13,35,519.23 crores at the endof March 2012 to Rs 15,66,261.04 crores as at the end of March 2013. During the period,the loan portfolio increased by 20.52% from Rs 8,67,578.89 crores to Rs 10,45,616.55crores. Investments increased by 12.41% from Rs 3,12,197.61 crores to Rs 3,50,927.27crores as at the end of March 2013. A major portion of the investment was in the domesticmarket in government securities.
The Bank's aggregate liabilities (excluding capital and reserves) rose by 17.24% fromRs 12,51,568.03 crores on 31st March 2012 to Rs 14,67,377.36 crores on 31st March 2013.The increase in liabilities was mainly contributed by increase in deposits and borrowings.The Global deposits stood at Rs 12,02,739.57 crores as on 31st March 2013 against Rs10,43,647.36 crores as on 31st March 2012, representing an increase of 15.24% over thelevel on 31st March 2012. The borrowings increased by 33.21% from Rs 1,27,005.57 crores atthe end of March 2012 to Rs 1,69,182.71 crores as at the end of March 2013 mainlyattributable to borrowings from RBI in India and borrowings & refinance outside India.
I CORE OPERATIONS
1.1. Customer Service
Our vision statement unambiguously spells out the centricity of the customer in theBank's business strategies and operations. A multi-tiered structure of committeesconstantly review existing services and suggest improvements. Important issues raised bythese Committees and action taken thereon, as well as analysis of the consolidated datafor customer grievances for all Circles are placed before the Customer Service Committeeof the Board every quarter, to identify common systemic and policy issues that requirerectification.
The Bank has a well defined and documented Grievance Redressal Policy which providesfor:
A dedicated Customer Care Cell
Bank's Web based Complaint Management System (CMS) has been redesigned andlaunched as a single online Grievance Lodging and Redressing System for the Bank.Customers can lodge their complaints through various channels including written complaintat branch, by calling at the toll free number of Bank's Contact Centre 1800 425 3800 /1800 11 22 11, online through Bank's website www.sbi.co.in, sending SMS message 'UNHAPPY'to number 8008 202020 etc. All complaints are lodged through CMS and are acknowledged witha unique ticket number immediately on lodging. Bank has mandated and has been able toredress a majority of the customer grievances within a maximum period of three weeks ofreceipt, as against the time limit of 30 days prescribed in the BCSBI Code. All ATMrelated complaints of Bank customers are redressed within the RBI-prescribed 7 days.
While the Bank strives to achieve the highest standards in customer service, ithas also put in place a Board approved Compensation Policy to compensate the customerfinancially in the unlikely event of any slippage in services extended. The Policy ensuresthat the aggrieved customer is compensated without having to ask for it.
Over 70% of the recommendations of the Damodaran Committee have already beenimplemented.
Suitable structure has been put in place at the Branches, Regional BusinessOffices, Local Head Offices, Administrative offices and at the Corporate Centre of theBank for handling requests and appeals under the RTI Act 2005, Consumer Forums, etc.
Customer Friendly Initiatives
During 2012-2013, in the backdrop of slowing investment/consumption/net exports,constrained food production, high inflation, distress in several industry andinfrastructure sectors-textile, chemicals, iron and steel, food processing, construction,telecom-major initiatives were taken by your Bank towards catalyzing investment &growth, to facilitate the flow of credit to critical sectors of the economy includingagriculture, infrastructure, micro, small & medium enterprises, housing, exports, andwith a view to reducing customer distress/pain points & raising levels of customersatisfaction. These initiatives include:
> Pricing concessions
Interest rates Base rate was twice reduced during the year from 10% to9.75% as on 20/9/2012, and then again to 9.70% as on 4/2/2013, the lowest amongst allbanks and so pegged, to bring relief to all borrowers, particularly SME units, home loanborrowers, who continued to enjoy the lowest home loan interest rates, and commercial realestate accounts, which were aligned with the prevailing retail housing loans in terms ofinterest rates.
Guarantee fees were absorbed by the Bank, both for exporters( ECGC fees) andfees payable by MSE units to CGTMSE for guarantee cover on collateral free loans upto Rs 1crore.
> Process innovations
Relationship management platform was strengthened across businessverticals-Accounts Management teams for corporates, premier banking services for highnetworth customers, relationship managers for SMEs (ME&SE)
The number of processing cells(RACPCs/ SMECCs), supported by loan originationsoftware, were increased and revamped, for quicker processing of loans
Touch-points with customers were expanded, through opening of branches andincreasing Customer Service Points, BC outlets in remote areas
Cluster models were introduced at all currency chest branches for efficient cashmanagement at semi-urban/rural areas
A dedicated wing was created in all processing cells to monitor NPA accounts
> Product changes
We have a great CASA franchise and savings bank accounts form thebulwark. The savings bank account is normally the first on-board facility availed by acustomer and the referral point for all future services from the Bank. To preserve andenhance the value of our savings bank offering, your Bank introduced the followinginitiatives during the year :
Minimum balance in savings account was done away with.
The penalty on non-maintenance of Average Quarterly Balance stands withdrawn.
The inter-core transfer transactions have been made free, and cash depositminimum charges were reduced from Rs 25 to Rs 10.
Introduction of Personal Accident Insurance Policy for all savings bank accountholders at a nominal rate received tremendous response.
Proactively, providing CTS-2010 compliant multi- city chequebooks benefited allour customers
Unfixed Deposits scheme applicable to term deposits of 6 months was extended toterm deposits upto one year.
A new tractor loan scheme with relaxations in eligibility, margin, security,interest & upfront fee was launched. Also a revised KCC scheme was rolled out for thebenefit of farmers. Relaxed collateral security norms for all agri loans upto Rs 1 lac wasintroduced.
SBI loan scheme for Vocational Education & Training was launched while loanamount for studies abroad was raised to Rs 30 lacs
> Technology upgrades
SBI through CMP Centre was the first Bank to use NPCI Aadhar PaymentBridge System (APBS) for transferring LPG subsidy based on Aadhar Number.
The Bank launched an Online Savings Bank Application facility and e-RD,TDR/STDRaccounts which evoked enthusiastic response from the customers. Issuance of TDR/STDRthrough ATMs have been operationalised.
Centralised printing and mailing of current account/OD/Cash credit statements,housing loan interest certificates, deposit accounts' certificates to enhance customerconvenience, were initiated during the year
The Bank issued a series of new plastic cards for the convenience of theirtarget groups, e.g State Bank Business debit card for corporate customers in twovariants-Pride & Premium, Insta Deposit cards enabling traders & service providersto quickly deposit cash, State Bank Virtual Card for retail customers
State Bank MobiCash Easy, a mobile wallet, was introduced during the year
E-challan cum return for collection of Employees Provident fund, throughbranches and corporate internet, commenced during the year.
I.2. BUSINESS GROUPS
A. GLOBAL MARKETS OPERATIONS
Global Markets Unit manages the Bank's rupee liquidity, compliance with reserverequirements and investment portfolio of the Bank besides offering a wide range of foreignexchange and hedging products to the customers. It also offers portfolio managementservices to large retirement funds. It constantly endeavors to keep liquidity at theoptimum level while maximizing the returns.
During the year the Reserve Bank of India reduced Cash Reserve Ratio by 0.75% andStatutory Liquidity Ratio by 1%. The Bank therefore had ample liquidity during the year.This offered the Bank opportunities to invest in short term money market instruments likeCommercial Papers (CPs) and Certificate of Deposits (CDs). Bank invested over Rs 75,000Crores in CDs and CPs at an average spread of 65 to 75 basis points (BPs) over applicableyield on Treasury Bills, thereby earning additional interest income.
The yield on Government securities declined during the year responding to the Repo ratecuts of 100 BPs by the RBI and moderation in inflation. Yield on the benchmark 10 yearCentral Government securities declined from 8.63% in April 2012 to 7.99% by 31stMarch 2013.
This reduction in yield offered opportunities for churning the SLR portfolio of theBank.
We booked more than Rs 200 Crores from active management of the portfolio. Despite afall of 64 BPs in yield on Government Securities, the return on SLR portfolio was onlymarginally lower by 5 basis points, because of dynamic rebalancing of the portfolio.
As the yields were in a declining trend, the Bank decided to increase duration of theportfolio. The Bank purchased long dated Securities of over Rs 35,000 Crores of Centraland State Governments. The Bank also invested in high yielding corporate bonds aggregatingto more than Rs 10,000 Crores during the year. The gross corpus of funds under themanagement of Global Markets was close to Rs 4 lac Crores as on 31st March2013.
Equities witnessed a turnaround this year led by improved economic situation in theUSA, reduced stress in Eurozone, pro-reform measures of the Indian Government as well asrate cuts by the RBI. While the Bank remains invested in multiple strategic positions,Global Markets increased proprietary trading in Nifty stocks. The Bank also used Mutualfund schemes for liquidity management and higher returns. The Bank made a profit of aboutRs 600 Crores from Equity and Mutual Funds.
The Bank continued to explore opportunities in the area of private equity and venturecapital fund investments. During the year, investments of Rs 100 Crores were made indifferent venture capital funds. Bank also partially exited from one of the private equityinvestments during FY13 resulting in a profit in excess of Rs 50 Crores at an IRR of morethan 45.25%. Due to favorable valuations and market conditions, Bank also exited fromanother strategic investment resulting in a profit of Rs 65 Crores. The Bank alsoparticipated in the primary market and disinvestment programme of the Government of Indiathrough Offer For Sale (OFS) route by investing about Rs 1,300 Crores.
Global Markets provides foreign exchange solutions to the customers in all currenciesfor managing their currency flows and hedging risks through options, swaps, forwards andbullion services. Given the large presence across the country, the Bank provides a worldclass technology platform to seamlessly process currency flows between its customersthrough branches and the dealing room. This is part of our continuous endeavour to provideenhanced services to our customers. The Treasury Marketing outfits complement this byengaging with customers to provide them with inputs about markets and suggest products tosuit their requirements. The Bank earned income of over Rs 1600 Crores from covering thecustomer flows in foreign exchange, hedging, gold, and proprietary trading, registering anincrease of 18%. Global Markets also manages FCNR(B) corpus of the Bank and provides fundsfor Export Finance in Foreign Currency and FCNR(B) loans.
The Bank was also ranked number one in the "Best for FX options" and"Best for FX Products and Services" categories and number two in the "Bestfor FX Research & Market Coverage" category in the same poll. These help us toconsistently improve our service to our esteemed customers.
The Bank provides portfolio management services to an array of retirement funds in thecountry consistently giving better returns. The Portfolio Management Services section,with an AUM of over Rs 2,38,000 Crores, has consistently outperformed private sector peersin generating returns for the EPFO funds. Last year, the bank was adjudged the best fundmanager for EPFO.
B. CORPORATE BANKING GROUP
The Bank's Corporate Banking Group consists of three Strategic Business Units viz.Corporate Accounts Group, Transaction Banking Unit and Project Finance & Leasing SBU.
B.1. Corporate Accounts Group (CAG)
CAG is the dedicated SBU for handling the large credit portfolio of the Bank. The SBUhas Offices in 6 regional centers viz. Mumbai, Delhi, Chennai, Kolkata, Hyderabad andAhmedabad headed by General Managers. The business model of CAG is centered around theRelationship Management concept and each client is mapped to a Relationship Manager whospear-heads a cross-functional Client Service Team. The