Batch 2018-20 Semester III Section IFA

Subject: - Banking

Topic: - STATE BANK OF INDIA

Submitted To: - Arun Kumar Shetty

Student Name USN Number

KOMAL JHUNJHUNWALA 18MBAR0102

LALITHA DEVI 18MBAR0397

STATE BANK OF INDIA
State bank of India is the oldest commercial bank in India. With the legacy
of over 200 years State Bank of India traces its ancestry to the Bank of
Calcutta founded in 1806.
SBI is an Indian multinational, public sector banking and financial
services statutory body, fostering the nation’s 2.6 trillion-dollar economy
and serving the hopes of its vast population. It is headquartered in
Mumbai. The bank’s workforce participation, out of the total workforce
24.34% are women.
VISION
Be the bank of choice for a transforming India.
MISSION
Committed to providing simple, responsive, and innovative financial
solutions.
PCA(PROMPT CORRECTIVE ACTION)
The PCA is triggered when banks breach certain regulatory requirements
like minimum capital, return on asset and quantum of non-performing
assets. RBI has put in place some trigger points to assess, monitor, control
and take corrective actions on banks which are weak and troubled. The
process or mechanism under which such actions are taken is known as
Prompt Corrective Action, or PCA. RBI has set trigger points on the basis
of CRAR (a metric to measure balance sheet strength), NPA and ROA.
Based on each trigger point, the banks have to follow a mandatory action
plan. if PCA is triggered Banks are not allowed to re new or access costly
deposits or take steps to increase their fee-based income. Banks will also
have to launch a special drive to reduce the stock of NPAs and contain
generation of fresh NPAs. They will also not be allowed to enter into new
lines of business. RBI will also impose restrictions on the bank on
borrowings from interbank market.
ANALYSIS OF FINANCIAL PERFORMANCE OF SBI
Over the last few years, they have witnessed a significant rise in the Gross
Non-Performing Assets (GNPA) within the Banking Industry at large.
However, in the financial year under review, the GNPA of the SBIs
declined due to robust economic growth of the Indian economy and the
strengthening of due diligence, credit appraisals, and loan monitoring
systems, among others.
The FY2019 has been a year of reversal of the negative trend and has
brought about significant improvement on asset quality front, provision
coverage, NIM Net Interest Margin and yield on advances.
 Total assets of the Bank have increased by 6.55% from
Rs.34,54,752crore at the end of March 2018 to Rs.36,80,914.25
crores as at the end of March 2019. During the period, the loan
portfolio increased by 12.97% from Rs.19,34,880.19 crores, to
Rs.21,85,876.92 crores.
 Bank’s aggregate liabilities (excluding capital and reserves) rose by
6.93% from Rs.32,35,623.44 crores as on 31st March 2018 to
Rs.34,60,000.42 crores as on 31st March 2019.
 Aggregate deposits grew by 7.58% in 2018-19% and stood at
Rs.29,11,386.01 crores as on 31st March 2019 against
Rs.27,06,343.28 crores as on 31st March 2018., compared to 6.2%
growth in 2017-18.
 The borrowings also increased by 11.29% from Rs.3,62,142.07
crores at the end of March 2018 to Rs.4,03,017.12 crores as at the
end of March 2019.
 The loan portfolio has increased by 12.97% in the current year when
compared to the previous year which indicates that bank has huge
 deposits and therefore has resulted in increased lending and also the
reason being RBI’s repo rate cut several times which has also
resulted in increased lending.
 The investment has decreased by 8.86% from previous year
2018.The major portion of bank investment was in domestic market
and government securities. This indicates that the bank needed the
money to lend more therefore the investment has decreased.
 The Net Interest Income of the bank stood at Rs. 88,349 crore
registering a healthy growth of 18.03% in FY2019 registering a
growth of 10.14%. The growth is owing to focused efforts in retail
credit, corporate credit as well as control in slippages, thereby
resulting in good growth under interest income and a simultaneous
control on interest expenses by CASA oriented deposit accretion.
The Operating Profit of the Bank stood at Rs. 55,436 crores.
 The Interest expenses on deposits during FY2019 recorded an
increase of 3.35%, compared to the previous year.
 The gross NPA ratio of the bank fell to 7.53% in March 2019 from
10.91% the previous year, the net NPA ratio of the Bank also
declined to 3.01% in March 2019.This was due to the all-round
effort of the banks in managing the stressed accounts in FY 2019.
 The capital adequacy of the bank improved during the financial year
on the back of better capital planning including raising of additional
Tier 1 and Tier 2 capital, some amount of internal resource
generation. The capital adequacy position of the Bank improving
from 12.60% in March last year to 12.72% in March 2019. The Tier
I capital ratios increased by 29 bps to 10.65%.
 The credit risk weighted assets on advances to gross advances ratio
of the bank declined to 56.60% in march 2019 from 60.6% in the
previous year. The total risk weighted assets to total asset declined
by 2.34% to 52.37% in march 2019.
  The Bank has reported a Net Profit of Rs.862.23 crore for FY2019,
as compared to Net Loss of Rs. 6,547.45 crores in FY2018.

RECENT REFORMS
DIGITAL BANKING
YONOLITE
 It is an integrated digital banking platform offered by SBI to enable
user’s access variety of financial and other services. Intra and Inter
Bank funds transfer (NEFT/RTGS/), opening of fixed deposits, etc.
SBI ANYWHERE CORPORATE
 It is a mobile Banking App for proprietorship firms allows
businesses to transfer funds across Banks, open and operate fixed
deposit accounts, payment, view account statements, schedule
transactions, and Recharge/bill payment amongst others.
SWAYAM: Barcode based Passbook Printing
 The bank has installed SWAYAM’s during FY2019, making the
total number of SWAYAM’s deployed cross 17,400 units. Using
this customer can print their passbook using barcode technology.

CONCLUSION
Financial conditions tightened moderately in 2018 with monetary
normalization in the advanced economies. The bank considers FY20, in
all respects, to be a turning point for the Bank. Not only will the financials
improve going forward, efforts will also be directed to achieve a more
sustainable mix of business, both domestically and in overseas operations.