State Bank of Mysore

BSE: 532200 | NSE: MYSOREBANK | ISIN: INE651A01020 
Market Cap: [Rs.Cr.] 2,737.29 | Face Value: [Rs.] 10
Industry: Banks - Public Sector

Director's Report


To the State Bank of India, Reserve Bank of India and the Central Government, in termsof Section 43(1) of State Bank of India (Subsidiary Banks) Act, 1959.

1. Management Discussions And Analysis

1.1. Macro economic Scenario and Banking environment.

1.1.1. Global economic activity had strengthened in HY2 and the growth is likely to bein the vicinity of 3.5% in 2014. The expansion in global output is expected to be led byadvanced economies (AEs). However, downside risks to growth trajectory arise from ongoingtapering of quantitative easing (QE) in the US, continuing deflation concerns and weakbalance sheets in the Euro area and, inflationary pressures in the emerging market anddeveloping economies (EMDEs). Weakening growth and financial fragilities in China inrecent years pose a large risk to global trade and growth.

Since the Third Quarter Review of January 2014, global activity appears to havemoderated on slower growth in the US, UK and Japan, restrained by the uncertain externaldemand environment and structural constraints. Going forward, global growth is likely tostrengthen with risks tilted to the downside.

1.1.2. After the unexpected shock from the May 2013 tapering indication by the US Fed,policy action in India has rebuilt buffers to cushion it against possible spill-overs.These buffers effectively bulwarked the Indian economy against the two recent occasions ofspill-overs to EMDEs the first, when the US Fed started the withdrawal of its large-scaleasset purchase programme and the second, which followed escalation of the Ukraine crisis.

1.1.3. On both these occasions, Indian markets were less volatile than its peers.

The sustained FII inflows, augmented by repayments by public sector oil marketingcompanies of their foreign currency obligations to the Reserve Bank during March, coupledwith increased export earnings have led to an increase in reserves to over USD 309billion.

1.1.4. Domestically, the growth in the Indian economy shows signs of bottoming-out withmarginal improvement recorded during Q2 and Q3 of 2013-14 to 4.8% & 4.7%,respectively. This improvement has been feeble and clear signs of recovery are yet toemerge. The real GDP growth continued to be modest in Q3 of 2013-14, with somestrengthening of activity in services. Industrial activity continues to be a drag on theeconomy and the boost provided by robust agricultural production in 2013 may wane, as theIMD outlook for the 2014 south-west monsoon appears weak and uncertain. Since December2013, the sharper than expected disinflation in vegetable prices has enabled a sizablefall in headline inflation. Contingent upon the desired inflation, real GDP growth isprojected to a range of 5-6% in 2014-15, with downside risks of 5.5%. However, leadindicators do not point to a sustained revival in industry and services, as yet.Agricultural sector is contingent upon timely arrival of the monsoon. Easing of supplybottlenecks and improvements in investment climate should brighten growth outlook.

1.1.5. On the basis of an assessment of the current and evolving macro-economicsituation, RBI has decided to:

• Keep the policy repo rate under the liquidity adjustment facility (LAF)unchanged at 8.0%.

• Keep the cash reserve ratio (CRR) of scheduled Banks unchanged at 4% of netdemand and time liability (NDTL) and

• Increase the liquidity provided under 7-day and 14-day term repos from 0.5% ofNDTL of the Banking system to 0.75%, and decrease the liquidity provided under overnightrepos under the LAF from 0.5% of Bank-wise NDTL to 0.25% with immediate effect.

Consequently, the reverse repo rate will remain unchanged at 7.0% and MSF rate and theBank Rate at 9.0%.

Statutory Liquidity ratio: SLR has remained unchanged at 23 per cent w. e. f.11.08.2012.

1.2. Economy of karnataka

1.2.1. Karnataka economy is largely service-oriented, with 61% of the State revenuecoming from services sector, 24% from industrial sector and balance 14% contributioncoming from agricultural sector. The State is the largest producer of coffee, raw silk andsandalwood in the country and also adds considerably to the horticulture production of thecountry. The major manufacturing oriented industries in the state include sugar, paper,steel and cement. 1.2.2. Karnataka’s state capital Bangalore is considered theSilicon Valley of India. Several IT and also Bio-tech companies have their offices inBangalore. The city contributes over 40% of the software export earning of the country andboasts of a pool of Scientists, Engineers, Software Professionals, besides the largestnumber of HNIs in the country. 1.2.3. The general slowdown in the National economy hasimpacted the State economy also, which is expected to grow at 5% as against the originalestimate of 5.9%, and reach Rs.3,11,628 crs. in 2013-14 (from Rs.2,96,658 crs in 2012-13).The slowdown in the economy, coupled with the drought situation prevailing in parts ofKarnataka affected the growth in services sector, which grew by 7.2%, as against 8.9% in2012-13. The growth in Industrial and Agricultural sector was also 1.2% and 0.6%,respectively, as against 4.4% and - 4.9% the previous year. 1.2.4. The State’s owntax revenues increased from Rs 25,987 crs in 2007-08 to Rs 62,464 crs during 2013-14, at acompound annual growth rate (CAGR) of 19.2%. The per capita State income at current pricesis estimated at Rs.86,788 in 2012-13, an increase of 12.3%. The State’s planexpenditure has been growing steadily and today the State boasts of one of the highest percapita plan expenditure in the country.

1.2.5. The business growth of our Bank depends to a large extent on the Karnatakaeconomy, since 82% of branches (772 out of 944 branches, as on 31.03.2014) are located inKarnataka. The budget size and State plan 2014-15 envisages a total expenditure of Rs1,38,008 crs on various development activities and regulatory functions of the Government,which is an increase of 18.75% over the budget of Rs 1,16,213 crs of 2013-14. TheGovernment has facilitated sanction of special economic status to Hyderabad-KarnatakRegion under Article 371J of the Constitution, which will result in massive investment bythe Govt., thereby paving the way for accelerated development in that Region. Taking a cuefrom their action, we have also opened our Regional Office at Gulbarga under thenewly-created Belgaum Zone, to undertake branch expansion for business growth andoutreach.


2.1. Market Share and Business Growth

2.1.1. The business levels of the Bank and the position of market share in recent yearsare furnished hereunder:-

31 year ended 31st March 2010 2011 2012 2013 2014
Aggregate Deposits 38,437 42,779 49,663 56,712 61,087
(Percentage of growth) (18.7) (11.3) (16.1) (14.2) (7.7)
C WmoH$ O-mE (%) 27,724 29,844 35,041 42,360 50,753
Of which Non-Bulk Deposits (%) (72.1) (69.9) (70.6) (74.7) (83.1)
Gr. In Non-Bulk Dep (%) (27.2) (7.7) (17.4) (20.9) (19.8)
Deposits Market share % 0.86 0.79 0.78 0.83 0.76*
Total Advances 29,874 34,442 40,653 45,981 50,894
Percentage of growth) (15.4) (15.3) (18.0) (13.1) (10.7)
Advances Market share % 0.92 0.87 0.85 0.85 0.79*

2.1.2. The Bank has seen continuity in growth during the current year also, withaggregate deposits reaching a level of Rs 61,087 crs, a growth of Rs 4,375 crs over theprevious year at a rate of 7.7%. However the growth in Non Bulk deposit at 19.8% is intune with the past trend and in accordance with our conscious policy of shedding highcost/bulk deposits. The total advances have reached a level of Rs 50,894 crs, recording agrowth of Rs 4,913 crs over the previous year at a growth rate of 10.7%. As on 21.03.2014the Bank’s market share of Deposits decreased to 0.76% from 0.83% and alsoBank’s market share of Advances decreased to 0.79% from 0.85%.

2.2 Key Performance Indicators

Sl. No. Key Indicators 2011-12 2012-13 2013-14
1. Net Profit Rs  . in crs) 369.15 416.10 274.25
2. Return on Assets (%) 0.67 0.66 0.40
3. Return on Equity (%) 10.82 11.05 6.84
4. Expenses – Income Ratio (%) 49.55 46.26 53.40
5. Earnings per Share (in Rs .) 78.88 88.91 57.39
6. Gross NPA to Gross Advances (%) 3.70 4.53 5.54
7. Net NPA to Net Advance (%) 1.93 2.69 3.29
8. Cost of Deposit 7.09 7.32 7.21
9. Yield on Advances 11.44 11.62 10.93
10. - NIM 3.16 3.22 3.02

2.3. Income

Total Income of the Bank increased by 6%, from Rs 6,514 crs as at March, 2013 to Rs6895 crs in March,2014. Interest Income increased from Rs 5,965 crs to Rs6,322 crs (6%). Average Yield on Advances decreased from 11.62% in 2012-13 to 10.93%during 2013-14, while Average Yield on Investments increased from 7.30% in March 2013 to7.37% during the same period. Non Interest Income increased by 4.4% from Rs 548 crs to Rs572 crs with the growth in profit from sale of securities improving marginally from Rs66.53 crs to Rs 69.36 crs. The ratio of Non-Interest Income to Total Income,therefore, stood at a lower level of 8.3% (8.4% last year). Efforts are being made toimprove this ratio, in the coming years.

2.4. Expenses

The Total Expenditure (before provisions and contingencies) increased by Rs 501 crs,from Rs 5,230 crs in 2012-13 to Rs 5730 crs in 2013-14. While Interest Expenses increasedby Rs 271 crs (6.6%), the Operating Expenses increased by Rs 230 crs (21%) during thecurrent year. The Average Cost of Deposits decreased from 7.32% in March, 2013 to 7.21% inMarch, 2014 predominantly owing to increase in CASA share from 31.4% (31.03.13) to 33.3%(31.03.14) and decrease in higher cost bulk deposits.

2.5. Profit

While the Operating Profit decreased from Rs 1,331.03 crs in 2012-13 to Rs 1164.44 crsin 2013-14 (-12.5%), the Net Profit decreased fromRs 416.10 crs to Rs 274.25 crs (-34.1%).The reduction in net profits was predominantly on account of the steep increase inprovisioning on non-performing assets, wage revision & depreciation investment. WhileReturn on Assets (ROA) decreased from 0.66% to 0.40% owing to the expansion in the creditbase, besides subdued growth in net profits, Return on Equity (ROE) also decreased from11.05 % to 6.84% during the year.

2.6. Capital adequacy ratio

The Capital Adequacy Ratio recast under Basel III guidelines as per RBI directiveseffective from 1st April 2013 stands at 11.08 % as at March 2014, against 11.28 %(recastunder Basel III) as at March 2013. The CRAR of 11.08% consists of CET – I of 8.44%,AT-I of 0.21% both forming TIER-I Capital besides 2.43% of TIER-II Capital. The CRAR underBasel II guidelines as at March 2014 stood at 11.50% as against 11.79% in the previousyear.

The Capital Adequacy Ratio of the Bank has come down on account of increase in creditgrowth of the Bank coupled with reduced profitability on account of higher provisioning.

2.7. Dividend

Keeping in mind the need to strengthen Tier I capital of the Bank in the currenteconomic scenario and the reduced profit level, the Board of Directors has declared adividend of 30% (Rs 3.00 per Equity share of Rs 10/-) for the year 2013-14. This involveda pay-out of Rs 16.85 crs, including the tax component. The pay-out ratio for 2013-14works out to 5.25 %, as against 12.93 % for 2012-13.


3.1. Deposits

3.1.1. Total Deposits of the Bank grew by Rs 4,590 crs, to reach the level of Rs 61,560crs. Aggregate Deposits (total deposits excl. inter Bank deposits) stood at Rs 61,087 crsas at March 2014, recording a growth of Rs  4,375 crs (7.72%) during the year. Theshare of CASA deposits to Aggregate Deposits increased from 31.4% in March 2013 to 33.3%in March 2014.

3.1.2. Personal Segment Deposits

Personal segment deposits grew by Rs 5,351 crs, registering a growth of 19.2% to reacha level of Rs 33,161 crs as on 31st March 2014. Share of Personal segment deposits toaggregate deposits has increased from 49.0% to 54.3% during the year. The number ofdeposit accounts under Personal segment have increased by 10,05,983 during the year.

To further boost deposits growth under Personal segment, a new product viz "MyBank Century", a term deposit for 101 week carrying interest rate of 9.5% wasintroduced in a special campaign lasting one month, culminating with the conclusion of ourBank’s Centenary year celebrations. The Bank mobilized Rs 1,284.61 crs under thisscheme.

3.2. Credit expansion

3.2.1.While the total advances of the Bank increased from Rs 45,981 crs to Rs 50,894crs, thus registering a growth of Rs 4,886 crs ( 13.1%) during the year, Net advances(i.e. net of NPA related/floating Provisions, and outstanding under Staff FestivalAdvance) of the Bank increased from Rs 44,932 crs in March 2013 to Rs 49,481 crs. CreditDeposit Ratio of the Bank increased from 81.1% in March 2013 to 83.3% in March 2014.

3.2.2 Corporate network

Our Bank has formed the Corporate Network consisting of 11 large branches spread overMetro and other big centers of the country, for catering to the needs of large Corporates.

The Corporate Network of the Bank has achieved a business level of Rs 34,886.61crs,comprising Rs 8,475.34 crs of deposits & Rs 26,411.27 crs of advances, as on31.03.2014. The Advances portion of CNW accounts for 51% of the total advance and 83% ofthe C&I advance of our Bank. The current sluggishness in the economy has also impactedCNW’s advances portfolio. In order to improve the quality of assets, the Bank hasbeen consciously moving its portfolio to investment grade and above [BBB or above] and thestrategy has started yielding desired results.

The Network is planning to open one more branch at Mysore and upgrading AhmedabadBranch & IFB Bellary to Corporate Network grade in FY 2014-15, besides consolidatingAdvances from other nearby branches, to lend more strength and quality to its portfolio.Highlights of the performance of Corporate Network in FY 2013-14 are summarized below:

• The advances growth in CNW was by Rs 2,971.27 crs @ 12.67% over FY13. The growthin investment grade & above is to the extent of 88%.

• Total Forex Turnover of CNW was at Rs 24,870 crs, accounting for 81% of thetotal Bank’s Forex Turnover, recording an increase of 60% over FY13.

• The growth in AAA to A grade of advances [ECR] is apprx. 70%.

3.2.3. Credit Committees

Credit Committees were first established in May 2002, in order to facilitate takingdecisions through committee approach to provide more professional touch to creditappraisal, by thread-bare discussion on the risk factors. Two committees have beenconstituted viz. HOCC-I chaired by Managing Director and HOCC-II chaired by Chief GeneralManager (with CGM/ GMs as members of the committee.)

The Bank has held 53 HOCC-I and 36 HOCC-II Meetings, respectively, during 2013-14, tofacilitate growth in advances. Besides the above HOCCs, in order to provide speediercredit and consequent to devolution of wider powers to the Networks, 4 Network CreditCommittees with Network General Managers as Chairmen were constituted and 228 meetingswere held in aggregate.

3.3. Personal Segment advances

Personal segment advances registered a record growth of Rs  1,393 crs (19%) toreach a level of Rs 8,864 crs. Special campaigns were conducted between June 2013 to Sept2013 and Oct 2013 to Jan 2014 to provide a boost to the growth in Housing loans, Carloans, Gold loans and Personal loans. Housing loans recorded a growth of Rs  702 crs(19%) to reach a level of Rs 4,398 crs. Car loans recorded a growth of Rs 137 crs (24%) toreach a level of Rs 708 crs , Gold loans recorded a growth of Rs 136 crs (55%) to reach alevel of Rs  384 crs and Personal loans recorded a growth of Rs 232 crs (26%) toreach a level of Rs 1,130 crs.

3.4. Priority Sector Lending and Social Banking

3.4.1. Total credit provided to the Priority sector as on March, 2014 stood at Rs15,457 crs (34.4% of ANBC), including

Inter Bank Participation certificate of Rs 375 crs invested in Kaveri Grameena Bank, asagainst Rs 13,483 crs in the previous year ended March 2013 (yoy growth 14.6%).Segment-wise status of these advances are as under:

• Agriculture: The direct Agricultural advances increased by 11% from Rs 5,752 crsto Rs 6,377 crs. Total agricultural advances went up from Rs 6,325 crs (including IBP ofRs.573 crs) to Rs 7,463 crs (including IBP of Rs 375 crs), registering a growth of 18%.

• Fresh Agricultural Advances sanctioned during FY14 stood at Rs 4180 crsbenefitting farmers.

• Agricultural Gold loan registered a growth of 48%, from Rs 885 crs to Rs 1314crs. 55,008 Kissan Credit Cards (KCC) were issued on revised RBI guidelines, aggregatingto Rs 820 crs, during FY13-14.

• Micro and Small Enterprises (MSE): The Bank’s Advance to Micro & SmallEnterprises for FY13-14 at Rs 4,524 crs as against Rs 3,756 crs for FY12-13 reflects a yoygrowth of over 20%.

• Personal & Services Banking (P&SB): Housing loans under priority sectorreached a level of Rs 2,855 crs during the year, from a level of Rs 2,808 crs in FY13.

Education loans grew by Rs 21 crs (3.5%) over FY13 from Rs 594 crs to reach a level ofRs 615 crs as at March 14.

3.5. Agriculture finance:

The following initiatives were taken to increase the flow of credit to the AgricultureSegment.

• During 2013-14, GOK declared 125 taluks as drought-hit. All branches of the Bankconsidered rephasement / restructuring of dues from farmers who were in distress.Additional financing in the shape of production and investment credit was also extended tosuch farmers.

• To mark the culmination of the Centenary year, the Bank has financed forconstruction of 1,786 Green toilets covering 270 villages under Nirmal Bharath AbhiyanScheme and also assisted 1,486 beneficiaries in 233 villages under

Solar Home Lighting Scheme to encourage use of Green energy.

• Interest subvention amounting to Rs 18.81 crs has been provided under Agrisegment to farmers for prompt repayment of loan.

In order to provide some succour from the hardship suffered by the farmers from droughtand other natural calamities, Bank launched three different types of OTS schemes to settleold NPA accounts. 6,997 accounts amounting to Rs 78.97 crs were settled during the year.

3.6. Micro and Small enterprises (Manufacturing)

The Bank’s advances to Micro and Small Enterprises (Manufacturing) as on March2014 is Rs 2,628 crs, as against Rs 2,312 crs as on March 2013, registering an increase ofRs 316 crs (yoy 14%) during the year.

3.7. Micro and Small enterprises (Services)

The Bank’s advances to Micro and Small Enterprises (Services) as on March 2014 isRs 1,896 crs, as against Rs 1,444 crs as on March 2013, registering an increase of Rs 452crs (yoy 31%) during the year.

During the year ended March 2014, Bank has taken various initiatives to increase flowof credit to MSE sector. Interest rates on all loan schemes were rationalized to giveequal focus to each scheme under MSE segment. 14 of the existing general Banking brancheswere re-designated as MSE Specialized branches in compliance to the RBI’s guidelinesof having at least one MSE Specialized branch in each district. Uniform loan applicationform for MSEs for loans upto Rs 1.00 cr has been introduced, which is simple anduser-friendly.

During the year ended March 2014, Bank introduced web-based Credit Proposal TrackingSystem (CPTS) exclusively for MSE segment, for online monitoring of loan applicationsreceived by the Bank at various levels. It has helped in ensuring timely delivery ofcredit to the MSE sector.

3.8. Credit Guarantee Scheme

The Bank continued to extend collateral-free financial assistance to MSE sector byparticipating in Credit Guarantee Scheme of CGTMSE. All loans to eligible MSE units uptoRs 1crore are being sanctioned without any collateral security by obtaining the guaranteecover from CGTMSE. Guarantee fee and Annual service fee on such cases are also borne bythe Bank. As at March 2014, 11,559 accounts amounting to Rs 707 crs were covered under theScheme.

3.9. Assistance to Weaker Sections of the Society

The Bank continued to extend financial assistance to Weaker Sections of the Society,comprising small & marginal farmers with land-holdings upto 5 acres, landlesslabourers, tenant farmers, village & cottage industries with individual limits notexceeding Rs 50,000, besides assistance under schematic lending to SJSRY, SGSY, SLRS, DRI,Self-Help Groups and to SC/ST beneficiaries. The outstanding amount under lending toWeaker Sections stood at Rs 6,360 crs as on March 2014, constituting 14% of ANBC, asagainst the stipulated benchmark of 10%.

3.10. Assistance to Women entrepreneurs

Being fully conscious of the deep positive financial and social impact of extendingcredit to women entrepreneurs, we continued to lay special emphasis on extendingliberalized credit to MSE units being run by women entrepreneurs. The Bank’s totalcredit to women as at March 2014 stood at Rs 3,040 crs covering 1,82,540 beneficiaries,which works out to 6.8% of Adjusted Net Bank Credit, as against the stipulated benchmarkof 5%. The Bank also specially honored outstanding women entrepreneurs of the Bank on theoccasion of Centenary Celebrations which was presided over by Hon’ble Union FinanceMinister, in Oct 2013.

3.11. Measures to Improve the economic Conditions of SCs/Sts

In line with the national objective to extend all-out support for thedevelopment of SCs/STs, we, as a responsible corporate citizen, are ensuring that adequatecredit is available to SCs/STs, in their role of self-employed entrepreneurs. Credit isextended to this section in tie-up with the State-level development corporations dedicatedto SCs/STs. The Bank’s assistance to the SCs/STs under various schemes as at March2014 stood at Rs 593 crs covering 92,271 beneficiaries, which forms 3.8% of PrioritySector Advances.

3.12. Finance to Minority Communities

With the objective of promoting economic activities amongst the notified minorities,Bank has been whole-heartedly participating in this national task for promotingself-employment activities amongst the eligible beneficiaries belonging to the minoritycommunities.

The Bank’s assistance to the notified minorities under various schemes as at March2014 stood at Rs 2,137 crs covering 48,872 beneficiaries, which forms 14.2% of PrioritySector Advances.

3.13. Government Sponsored Schemes

The position of assistance rendered under various Government sponsored schemes by ourBank as at March 2014 is as detailed below:-

3.13.1. Prime Minister’s employment Generation Programme (PMeGP)

The Government of India has launched the new scheme "Prime Minister’sEmployment Generation Programme (PMEGP)" to empower first generation entrepreneurs toset up micro enterprises across the country, by subsuming the earlier PrimeMinister’s Rozgar Yojana (PMRY) and Khadi & Village Industries Commission’sRural Employment Generation Programme (REGP), from the FY 2008-09. The Bank has extendedfinancial assistance of Rs 37 crs to 680 beneficiaries under PMEGP during the year. TheBank’s total credit under PMEGP Scheme as at March 2014 stood at Rs 39.85 crs,covering 1,187 beneficiaries.

3.13.2. Swarna Jayanthi Shahari roj-gar yojana (SJSry) Scheme

The Bank has extended financial assistance of Rs 10 crs under SJSRY during the year to363 beneficiaries.

Total amount outstanding under SJSRY scheme as on March 2014 is Rs 44.7 crs, covering4,640 beneficiaries.

3.13.3. Differential rate of Interest (DrI) Scheme

The Bank’s advances under DRI scheme stood at Rs 15.8 crs as at March 2014covering 13,605 beneficiaries and the share of advances to SC/ST beneficiaries within thisis 51% (Rs 8 crs).

3.13.4. Swarna Jayanthi Gram Swarozgar yojana (SGSy) Scheme

The Bank has extended financial assistance of Rs 2.1 crs under SGSY during the year to67 group beneficiaries. Besides 94 individual beneficiaries were also extended financialassistance to the tune of Rs  0.69 crs. Total amount outstanding under SGSY scheme asat March 2014 is Rs 13.73 crs, covering 1,438 beneficiaries.

3.14. Investments

3.14.1. The total investments of the Bank in Government securities, other approvedsecurities and Non-SLR securities increased from Rs 16,864 crs as at March 2013 to Rs19,300 crs as at March 2014.

3.14.2. Profit on sale of investments increased from Rs 66.53 crs in 2012-13 to Rs69.36 crs in 2013-14. During the year interest and dividend income from investments, netof amortization charges, registered a growth of Rs 151.46 crs (13%) over March 2013 levelof Rs 1,157.57 crs.

3.14.3. While interest yield on investments increased from 7.30% (2012-13) to 7.37%(2013-14) due to the fact that new securities purchased were at higher yield levels, yieldon investments, including profit on sale of securities increased from 7.49% to 7.56%during the same period.

3.14.4. Foreign Exchange Turnover of the Bank in 2013-14 declined to a level of Rs 2.97lac crs (Merchant Turnover Rs 0.30 lac crs and Trading Turnover Rs 2.67 lac crs) againstprevious year’s level of Rs 4.04 lac crs (Merchant Turnover Rs 0.25 laccrs and Trading Turnover Rs 3.79 lac crs.)

3.14.5. The exchange profit generated from Foreign Exchange business during FY 2013-14was, however, higher at Rs 59.60 crs as against Rs 58.25 crs in the previous year.

3.15. International Banking

3.15.1. The level of Export Credit as on 31st March 2014 was Rs 1666.08 crs (Rs 1395.44crs as on 31st March 2013), constituting 3.70% of ANBC. With a view to encouraging exportbusiness, a seminar of exporters/importers in and around Bangalore was conducted.Exporters Gold Cards have also been offered to eligible export units.

3.15.2. NRI Deposits as on March 2014 stood at Rs 1,229 crs as against Rs 972 crs, ason March 2013 comprising of FCNR(B)/ RFC deposits of Rs 226 crs and NRE/NRO deposits of Rs1003 crs. During the FY 2013-14, two specialized NRI branches were opened, one atKoramangala (Bangalore) and another in Mangalore, in addition to a specialised NRI cell atM G Road branch (Bangalore).

3.15.3. As per Bank’s BPR objectives, the Bank had set up five TFCPCs atBangalore, Chennai, Hyderabad, Mumbai and New Delhi. During FY 2013-14, more branches,including CAB branches have been linked to TFCPCs, in order to consolidate the front-lineprocessing and contribute expertise to all such branches, for extending quality service toExporters.

3.15.4. During the year Bank’s Export Credit portfolio, other than exposures toCentral PSU and LC-backed bills business, have been covered under Export Credit Insurancefor Banks (ECIB), Whole Turnover Packing Credit (WTPC) and Whole Turnover Post Shipment(WTPS) Schemes of Export Credit Guarantee Corporation of India.

3.16. Cross Selling

During the year over 24,117 lives were insured through various products of SBI LifeInsurance Company Ltd with a premium collection of Rs 52 crs. The Bank has collected apremium of Rs 16 crs while marketing General Insurance Products. In respect of InvestmentProducts, the Bank is extending Mutual Funds products of SBI MF. Applications for SBICredit Cards are also sourced by the Bank. The Bank has earned an income of Rs 9.18 crsfrom Cross Selling Business during FY 2013-14.

3.17. Government Business

3.17.1. State Government transactions: The Bank has been handling a major share ofGOK transactions since inception (1913). About 88% of our total Government Businessemanates from State Government transactions and the turnover is directly linked to thebudget of the State Government. A turnover of Rs 63,886 crs has been achieved during FY2013-14, as against Rs 55,854 crs in the previous year, fetching a commission income of Rs59.20 crs during the year, which represents 92% of income from Government business.

3.17.2. Central Government transactions:

The Banks business turnover from Central Government undertakings like Postal, Railways,Defence, CBDT, etc., during the year 2013-14 stood at Rs 9,005 crs against a turnover ofRs 9,357 crs registered during 2012-13. We have thus earned a commission of Rs 5.62 crsfrom Central Government business.

3.17.3. Total Income from Government Business: