POLICY GUIDELINES 2009-10

With the current fiscal drawing to a close, it is time to briefly recapitulate the events that
influenced the Banks performance in 2008-09 and in the light of the same and
forthcoming challenges, visualize the outlook for 2009-10 and set forth the parameters
for our business growth in the New Year.
1. Current Economic Scenario and Outlook for 2009-10
2008-09 has witnessed considerable turmoil in markets and economies overseas
leading to a global economic slump. It was inevitable that the economic slowdown
would percolate to our economy as well. Indian economy has slowed down in the latter
half of the year, with several industries, notably export-oriented industries (IT & ITES,
Real Estate, Gem & Jewellery, Textiles & Ready Made Garments, Auto & Auto
Components) being affected by the developments abroad. However, the Government
and the RBI, have in response to the situation, initiated a host of measures which are
expected to revive the economy. Inflation has eased considerably. The RBI has also
periodically cut the key interest rates & CRR and also initiated several other measures
including easing of E.C.Bs., which has ensured adequate liquidity into the system. With
commodity prices in decline and oil prices also coming down steadily to around $50 a
barrel at present, the economy is well poised to weather the storm.
Amidst all these developments, India’s banking sector has admirably withstood the
impact of the global crisis and most of the banks have posted good numbers for and
upto the third quarter ending December 2008. ASCB deposits grew by around 21%
YOY while credit growth moderated to 18% YOY during the current year and NPAs,
although they may be a shade higher this year in absolute terms, are likely to be within
manageable proportions. While, for better credit off-take, RBI kept on reducing Reverse
Repo Rate, Repo Rate and CRR after September 2009, a number of measures on
restructuring and rescheduling were also taken towards NPA management.
The Return on Assets (ROA) of most Indian banks is also above 1%, which compares
very well with their global counterparts. This year, however, the Interest Spread is
expected to come under pressure.
For FY 2010, depending upon monsoons and external economic conditions, we can
expect 2.5-3.5% growth in agriculture (including allied activities), about 5.0% growth in
industry, and about 7.5% growth in services sector. Based on these assumptions,
ASCB deposits and non-food advances are expected to grow at around 17% and 18%
respectively. Driven by strong internal demand, the slew of measures initiated by the
Government and the RBI to revive the economy, increased Government spending,
especially in infrastructure, FDI inflows, as also the comfortable situation on the
agriculture front, and the gradual recovery of economies abroad, the Indian economy
according to the Central Statistical Organisation is expected to post a growth in GDP of
around 6% in 2009-10. Although, this is lower than the 9% growth we have been
achieving for the past few years, India will continue to be the second fastest growing
economy in the world after China and the growth story remains largely intact.
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2. SBI’s performance during 2008-09
The first 11 months of the year have witnessed a YTD growth in deposits of 30.03% (as
against 18.58 % in February 2008). Deposit growth has been robust so much so that
the month of December 2008 witnessed an unprecedented growth of Rs.27,826 crores
in deposits against the ASCB’s growth of Rs. 21412 crores i.e. 130% of the ASCB
growth. Even in the month February 2009, as against ASCB growth of Rs.67,063
crores, the Bank has grown by Rs.24,920 crores (37% of the ASCB growth). This is an
indication of people’s tilt towards SBI brand and we have an opportunity to take
advantage of this.
In advances, the growth during the first 11 months of the current fiscal has been to the
tune of 21.57% and we are likely to end the year with a growth of around 23%-25%. In
the month of February 2009, as against ASCB growth of Rs.31,752 crores, the Bank
has grown by Rs.12,275 crores (38% of the ASCB growth). Both in deposits and
advances, SBI has performed better than the industry, thereby gaining significant
market share.
Some of the other highlights so far during 2008-09 are as under:

The Bank’s global ranking went up to 57 from 70 in the previous year and 107 in
the year before. Can we take this ranking even higher in the next twelve
months?

The CBS roll-out across the Bank has been completed. All our branches &
ATMs and those of our Associates, aggregating over 26,000 in all, are on the
Core Banking network, the largest such network in the world.

The Bank has opened as many as 638 new branches during the current year till
February 2009. This is in addition to the 965 new branches opened during 2007-
08 i.e. more than, 1600 new outlets in 24 months which is a record in itself.

The Bank has added over 25,000 new recruits to its cadres during 2008-09 in
one of the largest recruitment exercises ever seen and this recruitment by the
Bank in such large numbers, at a time when the financial services sector the
world over is witnessing retrenchment and lay-offs is perceived as a large
positive by analysts, our customers and the general public.

Savings Bank deposits has gone up by 27% from Rs. 1,46,762 crores in
December 2007 to Rs. 1,85,799 crores in December 2008.

Advances to large Corporates has grown by 47% YOY in 9 months ended
December 2008

Auto loans have grown by 32% and Education loans by 47%. In Auto loans, we
are the largest lender in terms of number of vehicles financed during the financial
year.

During the third quarter of 2008-09, State Bank Group achieved the milestone of
10000 ATMs.

Enlarged covering of Centralised Processing Centres (RACPC, SMECCC,
TFCPC, CAC, LCPC, SARC etc.) and their stabilisation across the country have
made the entire processing of applications efficient thereby improving
productivity and also freed up the staff for focusing on maintaining customer
service and marketing. However, we need to revise productivity norms of all
CPCs in all areas too. We should also try to reduce the Turn Around Time for the
Home Loans sanctions to 5 days.

Scaling up of the national level alliances with India Post, Drishtee Foundation,
Zero Micro Finance And Savings Support Foundation (all BCs) & ITC (BF) has
started benefitting the Bank in Business development.
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During the past twelve months, the Bank has won a number of awards as
under:

≈ Best Executive award to the Chairman by Asia Money.

≈ Awards by “the Banker Magazine” for “Retail Core Banking” and “Overall
Retail Technology Product”. SBI is the only Indian bank to receive these
awards.
≈ Awarded the “Bank of the Year 2008 – India” by The Banker Magazine,
London
≈ Selected to receive the “Most Admired Infrastructure Financier” Award at the
KPMG – Infrastructure Today Awards ’08
≈ Awarded the FIRST NATIONAL award for excellence in lending to MICRO
ENTERPRISES for the year 2007-08. Under National Awards to Banks 2007-
08. SBI has been winning this award for the fourth year in succession, every
since the award was instituted
≈ Awarded SECOND NATIONAL award for excellence in MSE lending for the
year 2007-08 under National Awards to Banks 2007-08
≈ SBI awarded jointly “Best Bank” and “Most Preferred Home Loan” By Outlook
Money Awards, ‘08
≈ SBI has bagged the awards for “Most Preferred Bank” and “Most Preferred
Brand for Home Loan” of CNBC Consumer Awards, Sept ’08 (third year in a
row)
≈ Voted as “The Best Domestic Provider of FX Services” (2nd year in a row) &
“The Best Domestic Provider of Single Bank Electronic Trading Platform” By
Asia Money ’08.
≈ Recently SBI bagged two Prestigious Award from Indian Banks Association
and TFCI namely,
 BEST IT ARCHITECTURE
 RURAL BANKING INITIATIVE
All this is significant. And all this would not have been possible without the involvement
of everyone. And I mean everyone, people at the branches and other offices, leaders
across the organisation, people in the difficult centres, those interfacing with the
customers and those running maintenance services. To all, my warm thanks and
heartiest congratulations.

Obviously, what we have achieved is the tip of the iceberg. Just the beginning of
renaissance in a resurgent SBI. What we can do and what is available in the business
environment is far, far, more. There are opportunities galore even in a down turn. We
need eyes to spot it. There is huge opportunity to gain market share, to expand
customer relationship and to prepare for the upturn. So, this year, even if GDP growth
has slowed down, we shall endeavor to do more. We have showed that we can excel
and be market leaders in multiple disciplines. We need to show that we can do much
more, much better. With more than 25,000 fresh new blood in the organization, with
1500 new branches and more to come, with new business processes and technology,
new business models and products, improved productivity and increased
empowerment, the time to go for it is now.
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3. The Budget Exercise for 2009-10
The above developments in SBI augur very well for the immediate future and 2009-10,
to my mind, should be a take-off year for the Bank, a year during which, we should be
able to grow faster than our peers and increase the distance between us and our
nearest competitors. Or simply put, during 2009-10, we must grow faster than the
industry and regain market share lost in earlier years. Given the commitment, zeal and
outstanding efforts of our staff at all levels, the huge additional capacity we have
created in terms of branches, I.T. Infrastructure and human resources, and the present
scenario, when the economy is on the road to recovery and will throw up exciting
opportunities, I am sure that the Bank will be able to far outpace the growth of the
banking industry and we need to accordingly set for ourselves higher than normal
benchmarks under all parameters.

The other area I would like to touch upon in these Policy Guidelines is the need for
each Business Group to set not only business budgets but also activity budgets, which
will spell out the various activities under each head which will help in achieving the
business budget – for example under Home Loans, the number of home loan
campaigns we propose to have, the strategies we propose to adopt for marketing home
loans, the number of tie-ups with builders etc. all, need to be spelt out, quantitatively
and qualitatively.
The Group Heads and the Business Unit Heads will, therefore, need to spell out the
activity budgets for each type of activity with further granularity brought in at each level
by the Circle CGMs, the network GMs, the R.B.O.’s etc. While setting the business
budgets, targets should be set not only in quantum or amount but in terms of number of
accounts, number of tie-ups, number of cards to be issued etc.
We also need to put in place a system for measuring efforts made, as it sometimes
happens that strenuous efforts though made, are not reflected in achievements,
whereas at other times, budgets are achieved fortuitously though much efforts are not
made. I would like all the Group Heads to, therefore, put in place a system for
measurement of efforts which can be recorded and monitored. As the nature of activity
of each business is different, the format will have to be designed by each Business
Group according to its requirements as indicated in annexure-I. This is a new dimension
that I want to include, not only in deference to a large number of good workers who go
unappreciated, but also because it will force us to think, get valuable insight and help in
strategy building.
4. A significant achievement of the financial sector reforms has been the marked
improvement in the financial health of commercial Banks in terms of capital adequacy,
profitability, asset quality and risk management. However, recent downturn of the global
economy has posed a major threat in business growth as well as maintaining asset
quality at the desired level. We have to be more customers centric and service oriented.
While, I spelt out the focus areas in customer service in page 6 below, it may be
mentioned that all available opportunities are required to be grabbed to increase our
business and revenues by diversifying into various other activities. The challenges
before banks are new and varied. Our driving force would continue to be best customer
services, personalized products and efficient marketing. Efficient service delivery
mechanism coupled with speed would matter in grabbing the business. We shall target
a higher growth of business during FY2010 also with the specific target of increasing
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our market share in deposits by 100 bps. For deriving the best results out of the
business growth, we have to focus on the following important areas:

i. Net Interest Income

With the likely softening of interest rates, there will be more pressure on the
margins. For insulating ourselves from the current downswing in the economy, it
is necessary that we bring about a change in the mix of the advances portfolio
keeping in view the growth prospects of different sectors and the yield we are
getting. In any interest rates scenario, our efforts should be to optimize Yield on
Advances and minimize Cost of Deposits for getting maximum margin.
Profitability should always remain the guiding factor in improving business
volumes. Operating Units should monitor NII (post TPM) for both the deposits
and advances try to maximize it by a proper mix of business. However, proper
business mix has to be decided alongwith clear understanding of the underlying
risk of credit.
ii. Fee Income

For becoming an efficient and profitable Bank, we need to improve fee income
and related ratios. Apart from targeting a growth of at least 40% at the whole
Bank level, we should also target Other Income to Operating Income Ratio at
42% (at present it is 32%). Higher growth of income from cross selling of
financial products, technology products and other potential areas like processing
Fee, BG, LC, Govt. commission should be targeted. Leakages and concessions
should be checked. New activities to be explored for garnering more fee income,
Online bills payment, Gold ETF, NEFT at all branches, Demat & Trading
accounts’ Financial Planning & Advisory services, Mobile Banking services are a
few examples. For a better growth, unit level monitoring and strategies have to
be in place. Each activity for increasing fee income is required to be metered and
monitored separately on the lines of a product. CAG, MCG and branches under
Super Circle of Excellence should accept challenging targets of fee income
growth.

iii. Budgeting

Budgeting exercise should be very comprehensive and meaningful at all the

levels right from the branch level. All areas of business, income and expenditure
should be covered with maximum possible granularity. Business budget should
be supplemented with the Activity Budget also based on the activities/strategies
which are to be undertaken for achieving the business targets/sub-targets.

iv. Overheads

Huge growth of overheads, as much as 60% in some of the Circles is an area of

serious concern. It is apparent that the system of analysing/monitoring/control
over branch overheads by the controllers and other higher officials has taken a
back seat. A target of not more than 5% growth in overheads over March 2009
level should be set for all the branches and offices. This is the average for the
Bank and would obviously differ in individual cases. Branches with more than
30% growth in 2008-09 should be given ‘no growth’ budget next year. Moreover,
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unusual growth of overheads at any branch/offices needs to be examined from
all angles. Correct classification of overhead items is also an area which requires
proper attention. Controllers should ensure that branches/offices are correctly
classifying the overheads and no item which can be classified under any sub-
head is unnecessarily classified under “Miscellaneous Expenses”.

v. Cost of Deposits

While the operating units have no control over the rates of interest on different
maturities, they should control the Cost of Deposits by consistent growth of
current & savings bank deposits. Continuous and steep fall of Current Accounts
balances during the current year have adversely impacted CASA ratio of the
Bank and the Cost of Deposits. It is necessary that specific targets separately for
current & savings bank accounts be drawn and weekly growth of these deposits
be tracked by the controllers very meticulously. Loss of business should be
monitored through closure & dormancy of accounts. Existing add-ons to CA &
SB accounts based on average balance should be reviewed and scope
enhanced to increase coverage. Suitable strategies should be devolved for
consistent growth of CASA deposits with a view to reduce Cost of Deposits to
the maximum possible.

CMP, Institutional deposits, Trust accounts, Govt. accounts should be

aggressively canvassed and marketed. Relationship Managers being placed for
the new Financial Institutions Business Unit (FIBU) for targeting large financial
institutions like Mutual Funds, Insurance companies and other NBFCs. Special
emphasis should be given on garnering their Cash management services.
Current and savings accounts of CEOs of companies and their spouses should
be canvassed in a concerted manner. Relationship banking network should be
developed for procuring more CASA deposits. Synergy between different
business groups and roles should be created and exploited.

vi. Risk Management

Everyone should be aware that Bank’s Capital is scarce and for maintaining the
Capital Adequacy Ratio (CAR) at the level as per GOI / RBI / Central Board
stipulations, we will have to take steps for credit risk management so that with
the growth of credit, we could have the minimum possible risk weights and
resultantly maximum possible CAR. Data Quality should be improved by the
operating units, which is very important in conservation of Capital. Need for
prevention of frauds should be emphasized at all levels for reducing the amount
of operating risk due to frauds. Also all out efforts should be made to ensure that
all borrowers enjoying credit limits of more than Rs.5 crores get rated by
designated external credit rating agencies for deriving full benefit of Basel II.

vii. Quality of Assets – existing and fresh

The meltdown of the world economy and the consequent slow down of Indian
economy will have an adverse impact on the business and profit of Indian
companies also. Due to this, some of the companies may be under pressure in
servicing Bank’s loan. We have to be cautious and should very closely monitor
the Special Mention Accounts as soon as these are classified as such. All
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measures should be taken from the beginning to prevent the account turning out
to be NPA.

viii. Customer Service

Customers have come in large numbers to SBI in 2008-09. How do we ensure

that we retain these customers and improve acquisition of new customers? This
is possible only when customers feel a sense of belonging with the Bank. We
must ensure that all our staff display customer centricity and genuine service
orientation in their interactions with customers whether at branches or
administrative offices. There must be ownership of customers at all levels and a
willingness to respond to him positively and courteously when he is seeking
information. Focus should be on customer service at the counters together with
good ambience, upkeep and maintenance. This should be closely monitored by
the controllers and other functionaries visiting the branches. Also customer
service should be a part of performance assessment matrices. Moreover, the
processes at the SMECC need to be streamlined so that the objective for which
these have been set up is met expeditiously.

The grievance resolution mechanism in SBI has been appreciated by the

regulators including the Directorate of Public Grievances and the RBI. We
however need to bring down the average period for redress of grievances from
about 12 days at present to less than 5 days. Customers are most happy when
their grievances are dealt with at the first level of contact i.e. the branches. Our
staff are adequately empowered to respond to most customer grievances. They
should be encouraged to resolve customers’ problems at their level and if
necessary to recommend compensation to customers for lapses in service. If any
new process or empowerment will help, please let me know.

ix. Focus on High Networth Individuals (HNI)

There has to be adequate focus on HNIs. Financial Planning and Advisory

services especially focusing on HNIs is being extended to more branches.
Products designed for HNIs should be aggressively marketed. Relationship
Managers (Personal Banking) and Customer Relationship Executives should
target this business and their performance, in this regard, should be monitored
by the controllers.

x. Migration of transactions to Alternate Channels

Concerted efforts are required to migrate our urban/metro customers (at least) to
alternate banking channels to reduce our transaction costs. This will give us
multifold benefits of reduction in transaction cost, avoiding congestion in branch
premises and improvement in customer service at the branches. Targets should
be given for this and monitored.
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xi. Cost Control & ROE

Under the current scenario, higher deposits growth (particularly TDRs) without
corresponding credit growth and increased, both fixed and variable, costs are
putting pressure on profitability. The only way to ensure profitability is to focus on
efficiency even while targeting growth. In the long term, the leaders will be those
who consistently deliver on 'Return on Equity' (ROE); which is the true driver of
shareholder value. We should make use of the current environment to fine-tune
our strategies and peg ourselves to ROE. Benchmarking and improving on cost-
to-income ratio will help us drive efficiency while targeting growth. 3 per cent
reduction in cost-to-income ratio translates itself in to a 1 per cent increase in
ROE. Hence, we have to target a decline of 3% in Cost to Income Ratio from
March 2009 level. For this, the growth in controllable expenses such as repairs
and maintenance, electricity and gas, travelling and halting allowance as also
medical expenses has to be in focus. There should be strict control on local
purchases of stationery items and in placement of indents. Miscellaneous
expense is an area which requires closer control and monitoring. Each profit/cost
centre should strive to contain the overheads.
5. Let me now set forth my broad expectations from the Business Groups as under.
Other quantitative & qualitative targets and some illustrative strategies & action points
have been given in annexure-II and III respectively:

PARAMETER GROWTH TARGET

Domestic Foreign Whole
Banking Offices Bank
Total Deposits 34% 20% 32%
Current Accounts (excl. Inter-bank) 43%
Savings Bank 43%
Bulk TDRs (DIR) nil
Increase in CA/Total Deposits Ratio > 1%
Increase in SB/Total Deposits Ratio > 2%
Inter-bank Deposits 25%
NRI Deposits 20% 20%
Gross Advances (NF) 28% 10% 25%
Market Share (Deposits) > 100 bps
Market Share (Advances) > 100 bps
Forex Purchases (Turnover Level) 80% 80%
Forex Sales (Turnover Level) 88% 88%
Total Other Income (incl. Treasury) 34% 100% 40%
Overheads 5% 5%
Gross NPA Ratio reduction from Mar-09 30 bps 30 bps
Net NPA Ratio < Mar-09 < Mar-09
Operating Profit (incl. Treasury) 35% 10% 35%
Net Profit 40% 30% 40%
Return on Equity 19%
Return on Assets 1.03% 1.08%
Expenses Ratio 47%
Net Interest Margin (Target) 1% 3%
Capital Adequacy Ratio 13%
Cost of Deposits (Domestic) - 10 bps *
Yield on Advances (Domestic) To be at
Mar-09 level *
* as far as possible.
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PARAMETER GROWTH TARGET

MCG CAG
Total Deposits 30% 40%
Increase in CASA Ratio 3% 3%
Gross Advances (NF) *34% 25%
Trade & Services 33% 31%
Manufacturing 35% 21%
Forex Purchases 75% 100%
Forex Sales 75% **100%
Income on Forex Turnover 85% **105%
Letter of Credit Business 60% 44%
Bank Guarantee Business 38% 66%
Total Other Income 44% 54%
Overheads 5% 5%
Operating Profit 59% 31%
Net Profit 39% 37%
Absolute Gross NPAs 0% 0%
* including MCG Off-site
** Non-oil

PARAMETER GROWTH TARGET

NBG RBG
Total Deposits (excluding Inter-bank & NRI)) 37% 33%
Savings Bank 52% 39/%
Current Account 47% 48%
Increase in CASA Ratio 300 bps 300 bps
NRI Deposits
Gross Advances (NF) 28% 30%
SME 24% 30%
PB 32% 35%
Agri 27%
NRI Deposits 21% 18%
Inter-bank Deposits 25% 25%
Forex Purchases 50%
Forex Sales 50%
Income on Forex Turnover 97%
Letter of Credit Business 50% 10%
Bank Guarantee Business 50% 50%
Total Other Income 44% 23%
Overheads 5% 5%
Absolute Gross NPAs Level 0% 0%

7. With the sole motive of improving employees’ satisfaction within the organization,
we have been recognizing their efforts in exploiting new emerging business
opportunities by various means of reward & recognition schemes. It is the motivation
and enthusiasm of employees that have turned around the declining trend of the Bank’s
market share and given thrust to Bank’s growth momentum. Number of HR initiatives
was taken during the current year and the positive impacts are before us in the form of
better business and increased profits. Improving “Competitiveness” and “Customer
Centricity” at all levels across the Bank are required to be continued for sustaining
Market leadership in the ever dynamic competitive scenario. Transformation exercise
through communication in the form of ‘Parivartan’, ‘Internal Conclaves’ which enable the
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Bank to have the valuable views of the staff at all levels will continue. Circle CMCs
should come forward for brining in the new interactive culture in the Circles.

During the year the “Parivartan” - which was rolled out to over 130,000 officers and
clerks last year - was modified, specially re-designed, and rolled out across the Bank as
“Parivartan II” to over 44,000 subordinate staff including drivers, guards, liftmen,
messengers, etc spreading the message of change, inclusiveness and empowerment.
The design of an ambitious new ‘Parivartan’ programme titled “Citizen SBI”, envisaging
deep rooted, multilevel attitudinal change and transformation in the Organization,
consisting of waves of HR interventions is being finalized and is to be rolled out over the
next two years.
From the Research & Development Fund, the Bank approved setting of a special cell
named “SBI Cell for Public Leadership” in the prestigious Indian School of Business,
Hyderabad – which is currently ranked 15 among Global B Schools. The Cell proposes
to undertake research in the area of Leadership in Public Sector with a special

reference to PSUs functioning in India. The proposed project will not only add to the
prestige of the bank but also set the standards for holistic leadership and effective
change for public sector organizations.

8. I have set out my objectives, targets and expectations for all-round growth of the
Bank. What is needed now is a synergy among all the business groups as well as units
inside the groups to transform our plan into action. All the Operating Units should
ensure that all the measures/initiatives/guidelines mentioned by me are rolled out as
soon as possible and the performance is in line with the year end targets of all the
business and profitability targets. I want all functionaries, CGMs and above to decide for
themselves, what they would like to achieve, quantitatively and qualitatively, in the first
100 days of the new financial year, and to communicate the same to me. The strengths
and capabilities of the groups such as excellent skills in specialised areas, large
resource base, vast network, high level of technology should be fully exploited to
achieve the goals we have set for ourselves. I expect all the staff members of the Bank
to rise to the occasion to fulfil our vision for the year 2009-10. I am confident that
together we can make the difference and make greater strides in order to realise our
cherished dream of achieving excellence in all the areas of banking.
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ANNEXURE-I

ACTIVITY BUDGET (SOME EXAMPLES)

PBBU

If it has been proposed that there will be an increase in the housing loan budget by
25%, now this housing loan budget is required to be split up into the following
categories:

(i)(a) In terms of the broad ticket size of the housing loans say '5 lacs and below 10
lacs', '10 lacs and below 15 lacs', '15 lacs and below 20 lacs', '20 lacs and below
30 lacs' and 'above 30 lacs'. The proportion that this will comprise in the housing
loan budgetary target should be indicated.

(b) In terms of the geographic distribution – the proportion of the housing loan
budget that will be contributed by metro centres, urban centres, semi-urban
centres and rural centres.

(c) The extent that the housing loan budget will be in the form of different products
under housing loans like plain vanilla housing loan, max gain housing loan,
freedom housing loan etc.

(ii)(a) The number of area centre specific campaigns as also door to door campaigns
that will be required to be conducted at stipulated intervals for achieving the
granular budgetary targets.

(b) The specific socio-economic features of the centre that can be exploited so that
the granular budgetary targets can be achieved should also be commented upon.

(iii) In respect of CASA, the Top Management has indicated that there should be
specific budget for savings bank and current account and suitable strategies
should be drawn up to ensure that the objectives are achieved.

(iv) In this connection, it may be reiterated that the activity budgets are to be
monitored monthly and all the products are to be tracked. This sort of granular
activity budget is to be drawn up for all the products relating to your business
group. This exercise will enable a more comprehensive bottom up budgetary
analysis to be drawn up.
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RURAL BUSINESS

If it has been proposed that there will be an increase in the crop loan/KCC loan budget
by 25%, now this crop loan/KCC loan budget is required to be split up into the following
categories:
(i)(a) In terms of the broad ticket size of the crop loan/kcc loan say '25000/- and below
50000/-', '50000/- and below 100000/-', '100000/- and below 200000/-', and
'above 200000/-'. The proportion that this will comprise in the crop loan/KCC loan
budgetary target should be indicated.
(b) In terms of the geographic distribution – the proportion of the crop loan/KCC loan
budget that will be contributed by semi-urban centres and rural centres.
(ii)(a) The number of area centre specific campaigns as also door to door campaigns
that will be required to be conducted at stipulated intervals for achieving the
granular budgetary targets.
(b) The specific socio-economic features of the centre that can be exploited so that
the granular budgetary targets can be achieved should also be commented upon.
(iii) In respect of CASA, the Top Management has indicated that there should be
specific budget for savings bank and current account and suitable strategies
should be drawn up to ensure that the objectives are achieved.
(iv) In this connection, it may be reiterated that the activity budgets are to be
monitored monthly and all the products are to be tracked. This sort of granular
activity budget is to be drawn up for all the products relating to your business
group. This exercise will enable a more comprehensive bottom up budgetary
analysis to be drawn up.

MCG, CAG & SME

(i) While allocating budgeted growth in advances between various industries/sectors,

the focus should be on those industries/sectors where the risk-assessment is
comparatively lower as well as where there is more potential for growth. Therefore, an
industry/sector –wise budget is to be prepared.

(ii) The budget should also be distributed facility-wise, i.e. by cash-credit or term-loan
and should correspond to the risk perceptions.

(iii) The areas where the yield on advances are relatively higher as well as the areas
where the scope for increase in other income should also be indicated while drawing up
the budget.

(iv) In respect of CASA, there should be specific budget for savings bank and current
account and suitable strategies should be drawn up to ensure that the objectives are
achieved.
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SAMG

If it has been proposed that there will be an increase in the recovery budget, this
budget is required to be split up into the following categories:

(i)(a) In terms of the categories of NPA, i.e. sub-standard, doubtful, and loss – how
much would be the target in each category.

(b) In terms of the geographic distribution – the proportion of the budget that will be
contributed by recoveries in respect of units located in metro centres, urban
centres, semi-urban centres and rural centres.

(ii)(a) The number of area/centre specific strategies e.g. recovery through lok adalats
and bank adalats as also schemes of recovery drives that will be required to be
conducted at stipulated intervals for achieving the granular budgetary targets.

(b) The specific socio-economic features of the centre that can be exploited so that
the granular budgetary targets can be achieved should also be commented upon.
 14

ANNEXURE-II
OTHER QUALITATIVE & QUANTATIVE TARGETS

(A) Corporate Accounts Group

• Thrust on marketing for Institutional Deposits.

• Corporate Salary Package (CSP) as a product to be given major thrust
throughout the next year with a view to increase average CASA levels and
reduce cost of funds.
• Focus on increasing CA balances, fee and float income through;

a) More B2B and B2C accounts, collection accounts and accounts under
“Direct Debit” and “Direct credit”.
b) Increase in ITRO coverage.
c) Increase in Dividend Warrant Business and Government Department
payment business.
d) Introduction of outstation collection.
e) CMP fee income of Rs 100 Crores should be targeted for the next
financial year.
f) Income from Cross-selling business to improve by 300%.
g) 54% growth in Other Income over the level of March 2009
h) Other income from Loan processing and Bills to grow at 40%.
i) Other income from Non-fund based business to grow at 30%.
j) Other income from Treasury/FOREX to grow at 100% over March
2009 levels.
k) Other miscellaneous income (comprising Syndication income, CMP
income, Derivatives income and all other unclassified items) and loan
processing charges between them to grow at 200% over March 2009
base.

(B) Mid-Corporate Group

• To target addition of 2000 new units to MCG portfolio through intensive

marketing.
• Targeted levels for Metal Loans, Wholesale, Retail and Gold Deposits should
be 12 MTs, 100 MTs, 2 MTs and 10 MTs respectively.
• Earning from these products should be targeted at Rs.25 crores, Rs.8
crores, Rs.7 crores and Rs.20 crores respectively. Focus should be on major
big centre for wholesale and metal loans and taking over of 10 major
accounts at each centre should be targeted.
• Expansion of retail sale of gold coins to 1000 branches and cross selling gold
coins to 30 Corporates should be targeted.
• Target of mobilization of 10 MTs of gold from temples, trusts and retail
depositors under Gold Deposits Schemes.
 15

(C) Project Finance SBU

• Targets for Project sanctions and fee based income for 2009-10 should be as
under:

Sanctions (Rs. In crores)

Hold Syndication Total
Infra 13800 38700 52500
Non-Infra 8000 20000 28000
Fee based Income
Upfront Fee 190 (including Underwriting fee income of Rs.150 crs)
Syndication Fee 40

(D) Stressed Assets Management Group

• Gross NPA Ratio should come down by 30 bps from March 2009 level.
• Net NPA Ratio not to exceed March 2009 level.
• Cash recovery in NPAs should be targeted at Rs.3200 crores.
• Target for Upgradation of NPAs to be Rs.2600 crores.
• Rs.1800 crores should be targeted for Write off.

(E) Small & Medium Enterprises

• A growth of Rs.8820 crores should be targeted for credit to Trade & Services
with the following sub-targets:
 Traders’ Easy Loan/Retail Trade : Rs.2370 cores
 Transport & SRTO Loans : Rs.1205 crores
 Health Care : Rs.555 crores
 Dealer Finance : Rs.520 crores
 Rent Plus : Rs.435 crores
 Paryatan Plus : Rs.280 crores
 School Plus : Rs.445 crores
 Builders/Real Estate : Rs.1020 crores
 Commodity Financing to Traders : Rs.570 crores
• Under Manufacturing sector, a growth of Rs.9200 should be targeted in 2009-
10 with the following sub-targets:
 Pharma & Chemicals : Rs.820 crores
 Textiles : Rs.820 crores
 Auto Ancillary : Rs.840 crores
 Engineering & Fabrication : Rs.1230 crores
 Food Processing : Rs.1205 crores

• SME advances under NBG to grow by 24% and priority sector advances
under SME to grow by 30%.
• New alliance with at least 5 industry majors and their vendors to be roped in
to finance under Supply Chain Finance.
• Each Circle to generate business of above Rs.50 crores from new local
clusters.
 16
• Average 1 new proposal per month above Rs.25 lacs and 4 new proposals
upto Rs.25 lacs (excluding Govt. sponsored Schemes) by the branches
linked to SECC.
• Average 4 new proposal per month above Rs.25 lacs by Commercial
branches/Intensive SSI/SME branches.
• Other urban and semi-urban branches to bring at least 2 new SME advance
accounts every month.
• To take at least 1 new industry cluster for coverage under Project Uptech by
the Circles not having ongoing projects under the scheme.
• Growth targets for ‘Food Processing’, ‘Engineering’ and Pharmaceuticals &
Chemicals’ is to be 30%.
• Focus for increased growth in the sectors like Traders, Healthcare, Tourism,
Education, Transport & Logistics, IT & Technology related services etc.
• Gross NPA level in March 2010 not to exceed March 2009 level.
• Gross NPA ratio to come down by at least 25 bps from March 2009 level.
• Fresh slippages in FY 2010 should not be more than 1% of asset base of
March 2009.
• At least 10 eligible viable accounts per RBO should be restructured per
quarter to help the units tide over the down turn in economy.

(F) Personal Banking

• A growth of 43% in Personal Banking deposits (NBG) should be targeted.
• Target for growth in P-Segment advances (NBG) should be 32% with the
following sub-targets:
 Home loans : Rs.13471 crores (33% growth)
 Auto loans : Rs.1860 crores (29% growth)
 Education loans : Rs.1511 crores (35% growth)
• For achieving the targeted growth under all the sub-heads, activity budget
should be prepared by the Circles covering area-wise/sector-wise targets in
numbers and volumes alongwith proposed actions for achieving the targets,
marketing efforts, campaigns etc.
• SBI Scholar Loans should be extensively promoted.
• Aggressive marketing of Schemes like, Xpress Credit, Loan to Pensioners
and other loans backed by securities.
• Branches to take ownership of pensioners’ accounts and resolve their
complaints directly. Number of complaints from pensioners should be
reduced to the minimum.

(G) Alternate Channels

• Targets relating to Alternate Channels will be as under:

Sr. No. Parameter (ATM) Expected Level as Target for

on March 2009 March 2010
1 No. of ATMs 15000 25000
2 Av daily hits 365 370
3 Total Txn amt (p.m.) 20.00 crores 30.00 crores
4 Card base(mn) 51.00 66.00
5 Availability 95.00% 99.00 %
6 PoS Txn (p.m.) 15.00 lacs 18.00 lacs
 17

Sr. Expected level Target for

No. Parameter (Internet-Banking) as on 31.03.09 2009-10
1 Retail INB Transactions 6,500,000 19,500,000
2 Retail Users added (gross figure) 3,000,000 9,000,000
3 Number of bills paid 3,000,000 9,000,000
st
• No. of users of Mobile Banking should be targeted at 1 lac by 31 March
2010 as more branches are to be included in the roll out.
• By March 2010, a figure of 2,00,000 transactions per month in Mobile
Banking should be targeted.

(H) Government Business

• Target for income from Govt. Commission should be targeted at Rs.1789

crores (19.95%). The strategies as given in the annexure should be followed
up by all the Circles.
(I) Cross Selling
Cross selling income should have the following targets and for achieving the
targets, the strategies as given in the annexure should be followed up by all the
Circles/Business Units.
(Rs. In crores)

Sr. Product Estimated Level Target for % Growth

No. as on March 2009 2009-10
1 Life Insurance 135 300 122%
2 SBI MF 24 34 42%
3 3rd Party MFs 5 8 60%
4 General Insurance 18 25 39%
5 Credit Cards 2 9 350%
6 Total 187 376 201%

(J) (i) Rural Business (Non-Farm)

• Growth of P-Segment advances should be 35% with the following sub-

targets:
 Home Loans : Rs.5300 crores
 Auto Loans : Rs.750 crores
 Education Loans : Rs.900 crores
 Personal Loans & Other Products : Rs.6550 crores
 18

• Growth under SME should be 29% with the following sub-targets:

 Traders’ Easy Loan/Retail Tra : Rs.1590 cores
 Transport & SRTO Loans : Rs.171 crores
 Health Care : Rs.154 crores
 Dealer Finance : Rs.115 crores
 Rent Plus : Rs.103 crores
 Paryatan Plus : Rs.70 crores
 School Plus : Rs.150 crores
 Builders/Real Estate : Rs.250 crores
 Commodity Financing to Traders : Rs.840 crores
 Engineering & Fabrication : Rs.100 crores
 Food Processing : Rs.200 crores

• RBG market share in deposits and advances should grow by a minimum of

150 bps during 2009-10.
• Gross / Net NPA level to be reduced by 50 bps.
• Rural and semi urban branch network to reach 10,000 by March 2010.
• 2 lacs new SHGs to be credit linked during 2009-10. Circles to provide
hassle-free credit to mature SHGs through Credit Card/Gold Card schemes
for income generating activities, and through Sahayog Nivas schemes for
constructing/repairing dwelling units.
• Circles should also explore financing of micro finance institutions
(MFIs)/NGOs for onward lending to SHGs.
• SBI Tiny cards to reach 1 crore by March 2010.
• Target of covering 50,000 additional unbanked villages should be fixed for
2009-10.
• The “Kiosk Banking” should be popularized through 2500 outlets by Mar
2010.
• Total strength of BC/BF CSPs should reach 20,000 by March 2010 with
additional categories of individuals and entities being made eligible to be
appointed as BC/BF.
• RBG should set up 200 RRTs during 2009-10.
• The total no. of RCPCs should be taken to 300 by March 2010.
 19

(ii) Rural Business (Agri)

• A growth of 27% in Agri advances should be targeted with the following sub-
targets:

Crop Loans/KCC Rs.7350 cr (Min 50% of growth Bud.)

Gold Loans Rs. 740 cr (Min 5% of growth Bud.)
Produce Marketing loans (against Rs. 740 cr (Min 5% of growth Bud.)
Warehouse /Cold Storage Receipts)
Horticulture Rs. 740 cr (Min 5% of growth Bud.)
Irrigation Rs. 740 cr (Min 5% of growth Bud.)
Dairy Loans Rs.1470 cr ( 10% of growth Bud.)
Others (including Tractors/Power Tillers/ Rs.2320 cr
Farm Mech)
Indirect Finance Rs. 600 cr

• ADBs and agri-intensive DBDs to be revitalized – challenging budgets are

given and achievement thereof is closely monitored.
• Diversification of portfolio.
• Revisiting scale of finance for KCC as per delegation vested with Circle
functionaries.
• Thrust on promoting lending to Products with low delinquencies.
• Commercialization of agriculture is taking place and this will provide
tremendous business opportunities for value chain financing and repayment
tie-up loans to improve loan quality.
• Stipulated benchmarks / targets for Agri Priority Sector, lending to Weaker
Section, minority community, etc. to be achieved. Also 1% benchmark under
DRI lending should be achieved in 2009-10.
• Gross NPAs to be brought down.
• Yield on agri advances to improve by 100 basis points.
• RRBs must record 50% growth over FY’09 profit besides recording good
improvement in performance on all fronts. MoUs with the Chairmen of RBBs
must set challenging goals, so that Incentive Scheme for RRB Chairmen
promoted by GoI from FY’10 is leveraged.
• Bonding with Farmers’ is our sustainable business strategy. Under this,
each agri lending branch must hold minimum 5 Farmers’ Meets (Credit and
Recovery Camps) per quarter. Each agri lending branch will also form two new
Farmers’ Clubs (one per half year). Similarly, one more village will be adopted
for integrated development (taking number of villages to three per Region) under
“SBI Ka Apna Gaon”. AGM (Region) will have to take ownership of above
initiatives under “Bonding with Farmers”. Goals set for Rural Self
Employment Training Institute (RSETIs) and Financial Literacy credit
Counselling Centre (FLCC) to be achieved.
 20

(K) Super Circle of Excellence

• For Retail Deposits budget, the branches under SCE should have an overall
target of 55% growth over the level in March 2009 with the following sub-
targets:

Current Account Growth %

NBG 251 60
RBG 26 35
Total NBG+RBG 277 56
Savings Bank
NBG 5124 40
RBG 682 39

• For Retail Assets budget (Per+SBF), the branches under SCE should have
an overall target of 37% growth over the level in March 2009 with the
following sub-targets:
Auto Loan Growth %
• NBG
I 436 35
RBG
n 50 36
c Home Loan
o
NBG 3414 37
m
RBG 281 35
e Education Loan
NBG 331 40
f
RBG 52 42
r
• Income from cross selling should grow by 200% from the level of March
2009.
• Branches under SCE should be no-complaint branches.

(L) International Banking Group

Given the growth constraints, FOs, apart from achieving the quantitative goals, need to
focus on qualitative improvements, broadening of clientele base and building up of
servicing capabilities to sustain long term growth. The following key areas should be in
focus for the year 2009-10:

• Proportion of customer deposits to increase to at least 45% by March 2010.

• A minimum of 50% increase in number of deposit customers.
• Proportion of local customer deposits (other than brokered and corporate
deposits) to total deposits to increase by at least 5%.
• Income from LC/ BG business to increase to 40% of total non-interest income
• Share of Forex earnings to increase upto 16% of total non-interest income.
• 100% growth in NRI remittances through foreign offices in 2009-10.
• 50% increase in issuance of ATM cards and Internet Banking accounts.
• A growth Of Rs.9,750 crores should be targeted for NRI deposits (Rs.8,024
crores for NBG branches and Rs.1,726 crores for RBG branches)
 21

(M) Associate & Subsidiaries Group

• Growth in Net Profit should not be less than 30% over March 2009 level for
banking subsidiaries and not less than 40% for non-banking subsidiaries.
• Dividend should increase by a minimum of 20%.
• Gross NPAs of Associate Banks should come down by 10% in absolute level
and Gross NPA ratio should targeted at less than 1.40%.
• Net NPAs of Associate Banks should come down by 10% in absolute level
and Net NPA ratio should targeted at less than 0.60%.
• 20% reduction in AUCA balances by recovery, of which at least 7.5% should
be in the first half of 2009-10.

(N) Global Markets Group

(Rs. In crores)
Targets
FY 2009-10
Interest Income 20,000
Other Income (Trading Profits ) 2,200
Other Income - Forex (booked at FD) 900
Other Income (Structured Product) 100
Dividend JV/Sub 400
Total Income 23,100
Interest Expense 1000

(O) Corporate Strategy & New Businesses

Custodial Services
SBI Custodial Services Pvt. Ltd will shortly be converted into a Joint Venture
Company with Societe Generale. The Joint Venture partner with its global
exposure is expected to bring in FII customers currently availing services
elsewhere, into the fold of the Company. The Business plan envisages a 10-15
% market share in domestic and global custody in 3 years and about 10 billion
dollars of asset under custody by the 2nd year.

Payment Solutions Business Group

Mobile Banking Services
For popularizing the services amongst our customers, staff at all levels should be
equipped to guide the customers properly.
RTGS & NEFT
To achieve a market share of at least 20% in these remittances.
Pre-paid cards
The branches as well as the Relationship Managers should aggressively market
eZ-pay cards, Gift cards and Vishwa Yatra Foreign Travel card (FTC) to their
customers to enhance profitability and capture market share.
 22
FINANCIAL PLANNING & ADVISORY SERVICES (FPAS)
BUSINESS DATA
(Rs. in crores)
ITEMS 31.03.09 TARGET FOR 2009-10
Estimated Level Number Amount
AUA 20000 - 40000
FEE INCOME 300 - 400
CLIENTS COVERED 500000 1000000 -
MARKET 3 3.75 -
SHARE (%)

FPAS BRANCHES 500 1000 -

Demat services & Online Trading 230000 750000 37.50

Demat Services

• Focus on increasing reach of Demat services to 5000 branches.

• Aggressive advertisement of the Demat Services (mass media & Online).
• Demat product should be extended to associate banks also.
• Enhancement of the product features (loan against shares, online trading
products for NRI) should be undertaken.

(P) Global Information Technology

• With the completion and stabilization of CBS project, the focus should now be
on qualitative areas like, improving usability, reliability, scalability, adding new
functionalities, capacity expansion etc.
th
• The Government Business Software Solution should be implemented by 30
June 2009.
• Number of State Bank Group ATMs to be scaled up to 25,000.
• Circles to install Biometric ATMs at Rural /Semi urban centres and Cash
Dispensers with Barcode readers at Urban/ Metro centres.
• All District Head Quarters to have at least one Bank of ATMs.
• ATM Availability should be not less than 99%.
• Branches should encourage customers to use Debit cards at POS terminals.
• Branches/Local Head Offices should actively promote and market non-cash
Services available on ATM Network like fund transfer and Bill payments for
Optimum utilization of ATM channel as also to improve the migration of
Transactions to ATMs .
• Number of registered users of Retail Internet Banking to be scaled to 50 lacs
and number of transactions to be scaled upto 150 lacs.
• Number of registered users of Corporate Internet Banking to be scaled to 5
lacs and number of transactions to be scaled upto 300 lacs.
 23

(Q) Others

• Bank’s Loan Policy should be reviewed keeping in view RBI’s annual Credit
Policy guidelines/directions and the feedback from the Corporate Centre
Departments/Business Units.
• Extant policies on lending to sectors like real Estate, NBFCs,IT, Gems &
Jewellery etc. should be reviewed.
• Policy on concessions extended under fee income to borrowers should be
reviewed. Also review competitiveness of fee based products.
• Branches which have given negative growth in deposits/advances during the
current year should be closely monitored from the beginning of the year to
ensure that they achieve the budget in next year. Other branches who may
do so this year, should also be closely monitored.
 24

ANNEXURE-III

Illustrative Strategies & Action Points

Corporate Accounts Group

• Thrust on marketing for Institutional Deposits.

• Custodial JV Account opened with CAG, Mumbai
• Other Income from FIIs business.
• Corporate Salary Package (CSP) as a product to be given major thrust.
• RMs and the operating staff to continuously make efforts for
increasing/improving CASA levels.
• To increase current account balances as well as fee and float income.
• Special emphasis to be given to ramp up CMP operations by upgrading
technology, increasing number of CMP enabled branches, introducing new
products and providing direct connectivity/integration with customers’ ERP
along with improved and customized MIS.
• Synergy meets at all the CAG centers to market cross-selling products.
• Support by CAG to NBG branches by routing Personal Banking products of
the Bank mobilized from the employees of all corporate clients.

Mid-Corporate Group

• Focus on select growth sectors like IT and ITeS, Hospitality, Education,

Shipping, Cement, Pharma, Builders, Healthcare, etc. MCG Regional Offices
have to focus more on the industries in their area of operation.
• Relationship Managers to cover all their accounts under planning tool of
Account Plan’.
• Extensively assessment of the business and revenue potential of units vis-a-
vis the existing wallet share of our Bank for garnering a larger share of the
wallet.
• Vigorous efforts by the newly transferred branches of NBG towards
exploitation of Mid Corporate businesses potentials in newly added area of
operations.
• Setting up Client Servicing Teams of Relationship Managers and Product
Specialists for taking a holistic view of requirements of customers and
capturing all revenue streams.
• Investment banking products to be marketed through the Wholesale Banking
model, especially to high-end Mid-Corporate customers.
• Syndication and Underwriting business to be given focused approach.
• Takeover of high value, quality advances from other Banks.
• Enhancing our share in consortia and multiple banking arrangements in
respect of eligible customers.
• Foreign acquisitions by MC Units – tapping potential.
• Identification of new offsite centres with potential for MC advances and
inclusion of such centres under MCG.
• Promoting derivatives and other structured products through Regional
Treasury Marketing Units (RTMUs.)
 25
• Marketing Foreign Currency Loans (FCLs) in association with IBG.
(PCFC/EBR/FCNRB LOANS)
• Contacts with Industries & Trade Associations / Councils / Chambers of
Commerce - Leads from existing clients.
• Strategic relationship pricing.
• Conscious efforts to reduce concessions.
• Marketing gold-related products, both wholesale and retail, for increasing fee
income.
• Corporates, Societies & Trusts etc., enjoying credit facilities with the Bank to
be encouraged to hold Current Accounts for miscellaneous expenditure.
• Cross-selling and para banking to be given due importance for fee income
etc.

Project Finance SBU

• Regular interaction with the Promoters, Govt. Functionaries, SBI Caps, CAG
and MCG for tracking the upcoming projects in various sectors.

Stressed Assets Management Group

• Effective review and monitoring of SMAs for preventing their slippages into
NPA category.
• Restructuring of assets under CDR mechanism as well as under Bank’s own
schemes.
• Aggressive marketing for acceptable compromise proposals and prompt
examination of the same.
• A more effective utilization of the provisions of the SARFAESI Act 2002.
• Continuous and effective recovery efforts for increased recovery in AUCA
and other written off accounts not parked in AUCA.
• Sale of assets to ARCIL/Private Banks/NBFCs.
• More recovery camps at all major centres.
• Utilisation of Lok Adalats and Bank Adalats for marketing compromise
proposals from willing borrowers.

Small & Medium Enterprises

• Focus on B2B business for SME deposits.

• Special deposit campaigns to be organized.
• To target Clubs, Associations, Trusts and Society accounts.
• New alliance with industry majors and their vendors for financing under
Supply Chain Finance.
• Cluster based approach for financing SMEs.
• New industry cluster for coverage under Project Uptech.
• Focus for increased growth in the sectors like Traders, Healthcare, Tourism,
Education, Transport & Logistics, IT & Technology related services etc.
• Construction Equipment Loan, Open Term Loan and Traders Easy Loan to
be marketed aggressively.
• Rejection rate at SMECC to be reduced to bare minimum.
• Focused attention in maintenance of accounts, especially at SMECCs.
 26
• Products like Multicity cheques, RTGS, NEFT and Inter-core should be
aggressively marketed.
• All the new current accounts under SIB and C & I segments to be covered by
MCC and CINB facility.
• 100% wallet share in tax collection from SME advances customers.
• SME customers to be targeted for ATM or Internet Banking facility.

Personal Banking

• Salary accounts of Govt. officials to be targeted.

• PPF account holders to be brought into focus for our business activities.
• Focus on volume driven growth as against value driven growth.
• Innovative products and pricing strategies to engineered.
• Loan sourcing channels to be strengthen.
• Relationships with pan-Indian builders to be moulded and driven for home
loans.
• Online channels of business to integrate e-Car Loan system and decrease
cost of originating loan and eliminate process inefficiencies.
• The SBI website online application form uploaded to be expeditiously
monitored and leads converted to actual loans.
• The 1300 branches identified to be the fulcrum of auto financing. All dealers
to be mapped to these branches/offices/sales force.
• The Inventory and Retail lending product undergoing software development
to be rolled out for increasing car loans.
i. For salaried account holders the pre-approved car loan limits process to be
streamlined with fine tuning the process flow.
• Special campaigns tobe launched with auto manufacturers & dealers

Alternate Channels

• To add more billers on ATMs and provide cash / cheque deposit facility also.
• Staff members to guide the customers to make proper use of ATM cum debit
cards and take customers to the technology driven alternate Channels.
• Circles to be allocated targets for INB to cover maximum number of
customers with special focus on metro and urban areas.
• The concept of INB Dost/CRE will be emphasized in branches.
• A campaign similar to “Operation Chaitanya” to be initiated with a view to
increase the number of RINB transactions and reduce the number of idle
users.
• Campaign “Link the Billers” to be organized so that customers get a bouquet
of billers on our INB portal.
• Cash Back campaign to be launched to drive our customers to start
transacting on INB.
• Special campaign in RBG for popularizing Mobile Banking through the BFs
and BCs.
 27
Government Business

• Door step banking to be extended to customers who give bulk business.

• Cyber Treasury to be extended to all states.
• E-Freight facility to cover all the Corporates who wish to avail the facility.
• Efforts to be made to to take over the business presently handled by RBI.
• To organize campaigns on regular basis for popularizing SBI e-tax among
HNIs.
• Special campaigns for opening CINB and INB accounts to popularize
payment of tax online.

Cross Selling

• To target all uncovered new and existing Housing and Personal Loans.
• Focus on CIFs in SCE, P-Segment and NRI intensive branches.
• To cover all Circles under Micro Insurance Scheme.
• To leverage the potential of CAG/MCG for insurance business.
• Focus on Tier 2 & 3 areas for Mutual Fund business.
• Focus on HNIs and Institutional segment in the metros for Mutual Fund
business.
• To tap Corporates/Mid-corporates/SMEs for liquid funds and FMPs.
• Coverage of Bank financed assets and own assets for General Insurance
business.
• Sourcing of data for Credit Card business from Branches/RACPCs.

Rural Business (Non-Farm)

• To provide hassle-free credit to mature SHGs through Credit Card/Gold Card

schemes for income generating activities and through Sahayog Nivas
schemes for constructing/repairing dwelling units.
• To explore financing of micro finance institutions (MFIs)/NGOs for on lending
to SHGs.
• SBI Tiny cards to reach 1 crore by March 2010.
• Coverage of unbanked villages to be taken to 1,00,000 by March 2010.
• The “Kiosk Banking” is to be popularized through 2500 outlets by Mar 2010.
• The total strength of BC/BF CSPs to reach 20,000 by March 2010.
• To recruit Channel Management Advisors (CMAs).
• Requirement of additional Officer Marketing & Recovery (OMRs0 in Rural
Recovery Teams (RRTs) during 2009-10.
 28

Rural Business (Agri)

• Unbanked areas have become banked or are in the process of becoming

banked. More innovations are being offered to customers.
• Thrust areas for financing would be KCCs, Seed Growers & Processors,
Warehouse Receipts, Gold Loans, Pulses, Oilseeds & Spices.
• Emerging agri business sectors identified for medium financing are Dairy,
Fisheries, Horticulture, Food Processing and Biotechnology.
• Focus on investment credit to farmers for development of Micro Irrigation.
• To promote repayment tie-up loans – Contract Farming.
• Marketing and focus on loans against the pledge of Gold ornaments and
Warehouse receipts.
• Special efforts to be directed for securing deposits of:
 State Forest Corporations
 Agricultural Universities
 Krishi Vigyan Kendras
 Departments of Agriculture, Animal Husbandry, Fisheries and
Horticulture at State and District levels
 Milk Unions/Federations and Cooperatives
 National Rural Employment Guarantee Programme (NREGP) –
District and Panchayat levels
 Prime Minister Grameen Sadak Yojna – State level
• Special focus on NPAs outside the purview of Agriculture Debt Waiver & Debt
Relief Scheme 2008.
• Every agri business lending branch to organize at bleast five “Credit cum
Recovery Camps” per quarter.
• SBI ka Apna Gaon initiative ot taken forward in FY 2010.

Super Circle of Excellence

• More Retail Deposits and Assets budget.

• Focus on income from cross selling.
• Branches under SCE to be no-complaint branches.

Global Markets Group

• Focus on increasing the proportion of high yielding investments in the total
investments to improve portfolio yield.
• Increase trading and longer- term investments in equities to capitalize on the
anticipated long-term appreciation in equity markets.
• Derivatives markets to be used to hedge risks wherever considered
necessary.
• Structured Products to be developed accompanied by aggressive marketing
efforts;
• Adopting world class technological platform ‘Murex’ for derivative products
with risk management tools.
• Leased Hot Tele line to be established between Central Treasury Marketing
Unit (CTMU) and Corporate Customers.
 29
Corporate Strategy & New Businesses

• Core advisory team to guide Relationship Managers in strategic asset

allocation, risk mitigation etc.
• Investor AWARENESS Programmes alongwith CSDL.
• To increase number of Mutual Funds products for selling/distributing.
• Campaigns in respect of sale of MF, Demat accounts, CASA deposits.
• Online sale of MF products.
• To increase reach of FPAS to 1000 branches by March 2010.

International Banking Group (Foreign Offices)

• Launch of retail banking at select centers- UK, Bahrain, SAARC area, South
Africa, Canada, California and Mauritius.
• Focus on deposit growth- increased reliance on customer / brokered deposits
as source of funding.
• Increased tie –up with exchange Companies/Banks for remittances in UK,
US, Canada, Hong Kong, Singapore and Saudi Arabia.
• To maintain our #1 position in Syndications League table.
• Installation of ATMs / entry into local ATM networks in all key markets.
• Opening new branches in key markets such as UK, Singapore, Mauritius,
Nepal, etc.
• Introduction of mobile banking, insurance, credit and debit cards and mutual
fund business in markets with large customer base / retail potential.
• Focused publicity / advertising campaigns to generate adequate value
addition.
• Nepal, Maldives & Mauritius to continue initiatives to emerge as Best
International Bank in the respective countries.