|The Board of Directors of State Bank of Bikaner and Jaipur have
pleasure in presenting this Annual Report together with the audited
Balance Sheet and Profit and Loss Account of the Bank for the year
ended 31st March 2014.
NET INTEREST INCOME
The Bank's total interest income increased from Rs. 7498.19 crore
during 2012-13 to Rs.8168.56 crore during 2013-14, recording a growth
of 8.94%. Interest expenditure increased by 8.36% to Rs. 5344.78 crore,
as against Rs. 4932.38 crore in the previous year. The net interest
income recorded a growth of 10.05% to Rs. 2823.78 crore, as against Rs.
2565.81 crore in 2012-13. The net interest margin remained the same at
the last year's level of 3.62%.
The non-interest income of the Bank has increased by 20.66% from Rs.
726.28 crore in 2012-13 to Rs. 876.34 crore during 2013-14. The
increase during the year as compared to the last year is mainly on
account of increase in profit on sale of Investment by Rs. 63.08 crore
and recovery in Written- off accounts by Rs. 38.57 crore.
The operating expenses recorded a growth of 26.99% from Rs. 1579.22
crore in 2012-13 to Rs. 2005.46 crore during 2013-14. Of this, employee
costs increased by 31.20% to Rs. 1295.64 crore, while total other
operating expenditure increased by 19.96% to Rs. 709.82 crore.
During 2013-14, the operating profit decreased to Rs. 1694.66 crore,
(by -1.06%) as against Rs. 1712.87 crore in the previous year. The net
profit recorded a growth of 0.20% from Rs. 730.24 crore in 2012-13 to
Rs. 731.69 crore in 2013-14.
During the year 2013-14, the Bank declared an Interim Dividend of 143%
i.e. Rs. 14.30 per equity share (face value of Rs. 10/- per share).
Record date for ascertainment of entitlement of shareholders for
Interim Dividend was 31st March, 2014. Interim Dividend may be treated
as final dividend.
KEY FINANCIAL INDICATORS
The Return on Assets of the Bank stood at 0.87% during 2013-14 as
against 0.96% in the previous year. The Return on Equity decreased to
13.66% as against 15.33% in the previous year. The Earnings Per Share
increased from Rs. 104.32 in 2012-13 to Rs. 104.53 in 2013-14, while
the book value per share improved from Rs. 678.74 in 2012-13 to Rs.
765.13 in 2013-14. As at end-March 2014, the Capital Adequacy Ratio of
the Bank stood at 11.71% and 11.55% as per Basel II and III norms
respectively, as against 12.16% as per Basel II norms respectively, as
at end-March 2013. This was well above the RBI benchmark of 9%. Due to
rise in NPAs on account of continued stress faced by the industrial
sector coupled with agriculture NPAs, the Bank's Gross NPA ratio and
Net NPA ratio increased from 3.62% and 2.27% respectively as at
end-March 2013 to 4.18% and 2.76% respectively, as at end- March 2014.
The average business per employee increased to Rs. 977 lakh in 2013-14,
as against Rs.900 lakh in the previous year. The net profit per
employee decreased to Rs.5.62 lakh in 2013-14, compared to Rs.5.91 lakh
during 2012-13. The average business per branch increased to Rs. 116.52
crore during 2013-14, as against Rs.112.42 crore in the previous year.
The overall credit demand remained muted during the FY 2013-14, with
GDP growth in sub 5% range due to overall slowdown in the economy
leading to a lower level of investment activity. However, the Bank
continued to focus on qualitative credit growth and faster credit
delivery. Total advances of the Bank grew by 11.72% during 2013-14, as
against growth of 16.98% during 2012-13.
The Bank's Commercial & Institutional (C&I) segment advances (other
than food credit) during the FY 2013-14 grew by 9.40% with an increase
of Rs.3099.00 crore over FY 2012-13, whereas non C&I segment comprising
personal, small & micro enterprises and agricultural advances grew by
Rs.2907.42 crore (11.50%).
Against the backdrop of stress in the various segments of the industry,
the impetus of financing remained mainly towards top rated PSUs and
other sectors such as Real Estate (RH), textiles and NBFCs etc.
In view of the prevailing competitive and stretched market scenario,
closer interaction and regular meetings by the Top Management with high
value customers were held at major centres in the country which
resulted in booking several good advances.
Deposits under Personal Segment grew from Rs. 41,905 Crore as on 31st
March 2013 to Rs. 46,726 Crore as on 31st March 2014, thus recording a
growth of 11.50%.
ACQUISITION OF NEW CUSTOMERS
Acquisition of new customers was the prime focus of the Bank during the
year to augment its retail deposit base. We could open 24.97 lakh new
Savings Bank Accounts during the year, which accounts for 23.46% of the
base level. The resources mobilized in the Savings Bank portfolio was
Rs. 3,617 crores, which helped the Bank to improve its CASA deposits.
55% of the new accounts were opened by either students or youth which
reflects the Bank's penetration amidst the younger age groups of the
Nearly 73% of the total deposit in the newly opened accounts were
contributed by youth and middle aged customers ranging from 20 years to
60 years which shows the Bank's effective linkage to salaried/ income
earning segments of the society.
To encourage the habit of regular monthly savings among customers, we
have made our Recurring Deposit scheme popular through a special
campaign called "Mahalakhpati RD Campaign." The campaign was focused on
the opening of high value recurring deposit with a maturity value of
Rs.10 lakh and above. We could mobilize 27,397 new Millionaire
Recurring Deposit accounts during the campaign. We could open 70,084
Recurring Deposit accounts during the year.
SBBJ VAIBHAV & SBBJ DHANSHAKTI
We could mobilize Rs.1,190 Crore in a specially designed term deposit/
product called SBBJ Vaibhav launched during the year. SBBJ Dhanshakti,
another deposit product for short term deposit, has mobilized Rs.
104.74 Crores during the year.
The Personal finance portfolio has crossed a landmark of Rs.10,000
crore during the financial year 2013-14. The Bank continued to be
active in catering the credit requirements of P segment customers,
mainly by way of Home Loans, Car Loans, Education Loans and Personal
Loans. The advances under the personal segment rose to a level of
Rs.10,295 crore as at March 2014 from Rs.9,131 Crore as at the end of
During the year under review, 7,631 home loans aggregating to Rs.816
crore were granted, taking the outstanding home loan level to Rs. 3,768
crores as on 31.03.2014. Similarly 14,507 Car Loans aggregating Rs.648
crore were granted during the same period taking outstanding car loan
level to Rs. 1,452 crore as on 31.03.2014. We could disburse 37,741
Personal loans aggregating Rs.1,116 crore during the same period.
As in the previous years, the Bank contributed to support the younger
generation to pursue higher studies by extending Education Loan. To
support the efforts of Government of India to boost the sentiments of
retail/consumer durable segments, the Bank has introduced a new Scheme
for financing of Consumer Durables during the year. The other retail
segment products like Max Gain Scheme, Rent Plus and Home Cash have
been revamped during the year to make them more customer/market
PRIORITY SECTOR LENDING(PSL)
Priority Sector Lending is the major thrust area of the Bank's
operations. As at the end of March, 2014, the Bank's Priority Sector
Advances increased to a level of Rs.23641 crore as compared to Rs.
20807 Crore in the previous year i.e. growth of 13.72% over March 2013.
The PSL constituted 40.73% of the Adjusted Net Bank Credit, against the
RBI benchmark of 40%. However, Priority Sector Lending in Rajasthan
stood higher at 66.40% of Rajasthan's ANBC.
Lending to Agriculture remains one of the major thrust areas of the
Bank. The outstanding level of Agriculture advances increased from
Rs.9188 crore as at the end of March 2013 to Rs. 10962 crore as at the
end of March 2014, a growth of 19.31%. Our Bank's total direct
agriculture lending is 99.35% of total Agriculture advances amounting
to Rs.10911 crore, and has registered a growth of Rs.2658.90 crore
during the Financial Year under review. The flow of credit to
agriculture stood at Rs. 7644 crore against the annual target of
Rs.3500 crore during the current financial year. Agriculture advance
constituted 18.90% of the Adjusted Net Bank Credit (ANBC), against RBI
benchmark of 18%. In the State of Rajasthan, it is even higher at 37.2%
of ANBC for Rajasthan State.
The Bank has issued 109933 Kisan Credit Cards (KCCs) with sanctioned
limits of Rs.2302 crore during the financial year 2013-14. The total
number of KCC stood at 600317 as at end of March 2014.
FINANCIAL INCLUSION (FI)
In the first phase, our Bank was allocated 829 villages with population
above 2000. Accordingly 794 USBs (Ultra Small Branches) were
established using PoS technology and BCs/BCAs were engaged covering 823
villages and in the remaining 6 villages, Brick and Mortar branches
were opened. In the second phase of FI (2013-16), our Bank has been
allocated 7588 villages with population below 2000 in 1878 Gram
Panchayats which are to be covered by engaging BCs and / or opening of
branches by 31.03.2016. During the current Financial Year i.e.
2013-14 we have been allocated target to cover 1067 villages and we
have covered 1070 villages by 31.03.2014.
The KIOSK Banking Software developed by M/s TCS Ltd. and provided by
SBI has been rolled out in our Bank. Our Bank has entered into
agreement with M/s CSC E-Governance Services India Limited on
07.01.2013 and with M/s. FIA Technology Services Pvt. Ltd. (a
Corpoprate BC) on 20.11.2013 for providing the BC service. M/s CMS
Computers Ltd., which is a Service Centre Agency (SCA) of M/s. CSC
e-Governance Services India Ltd., has been allotted 19 districts in
Rajasthan for engaging CSCs as BCAs in the Gram Panchayats allocated to
our Bank. Pali and Barmer districts have been allotted to M/s FIA
Technology Services Pvt. Ltd. for engaging their BCAs. In the remaining
12 districts, our existing Corporate BCs namely Lupin Human Welfare &
Research Foundation Samiti / P2P Microfinance and Allied Services or
Individual BCs will continue to provide banking services.
AADHAAR SEEDING AND MAPPING ON NPCI PORTAL:
Our Bank has successfully implemented Aadhaar based payment system
(APBS/NACH) through National Payment Corporation of India (NPCI)
gateway. Seeding of Aadhaar Number in CBS account is under progress. We
have seeded 625759 accounts with Aadhaar, of which 616746 Aadhaars have
been uploaded on NPCI Portal.
DIRECT BENEFIT TRANSFER:
DBT has been rolled out in 121 districts across the country, of which 6
districts are in the State of Rajasthan and SBBJ is the Lead Bank in
two DBT districts i.e. Udaipur and Pali. In both the districts, banks
have opened accounts of all the beneficiaries as per the list received
from District Authorities.
MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES)
The Micro, Small and Medium Enterprises (MSME) sector is crucial to the
Indian Economy. There are 3 crore enterprises in various industries,
employing approx 7 crore persons. Together, these account for 45% of
the industrial output and 40% of the exports. This sector is
contributing approx.11% per annum to India's GDP and is critical for
the overall GDP growth. RBI has also emphasized to adopt suitable
strategies for higher lending to MSMEs. Accordingly, our Bank has also
given high priority to this area.
We have arranged MSME customers meet at Jaipur, Alwar, Bhiwadi,
Udaipur, Chittorgarh & Bikaner centres. We have also sensitized our
operating officials by way of training & seminar etc.
The Bank has assisted 21156 new MSME units during the year 2013-14. In
order to boost MSME advances, the Bank has modified its existing MSE
loan schemes to make them most competitive.
The Bank has continued its thrust to provide collateral free loans to
MSMEs under the Credit Guarantee Scheme of CGTMSE. During the year
(April 13 to March, 14), the Bank provided new collateral free loans
under Credit Guarantee Scheme of CGTMSE to MSE units amounting to Rs
119.11 crore, taking the CGTMSE covered accounts (cumulative) at
Rs405.40 crore as at the end of March 2014.
LOANS TO WOMEN BENEFICIARIES:
The Bank finance as on 31st March, 2014 to women beneficiaries has
increased to Rs 3181.21 Crore in 212925 accounts against Rs 2732.87 crore
in 204680 accounts as on March 2013, registering a growth of Rs 448.34
crore. This constitutes 5.48 % of ANBC against the benchmark of 5%.
ASSISTANCE TO MINORITY COMMUNITIES, WEAKER SECTIONS AND SCHEDULED
CASTES / SCHEDULED TRIBES
As at end March 2014, assistance to minority communities stood at Rs.
2960.73 crore spread over 101591 accounts.
Financing to weaker sections stood at Rs. 10998.90 crore benefiting
1014090 persons as at the end of March, 2014. The assistance to weaker
sections as a percentage of Adjusted Net Bank Credit (ANBC) is 18.93%
as at end March, 2014. This is well above the benchmark of 10%
prescribed by RBI.
The outstanding assistance towards Scheduled Castes (SCs)/ Scheduled
Tribes (STs) stood at Rs 3070.27 crore in 258602 accounts under priority
sector as on 31st March, 2014.
GOVERNMENT SPONSORED SCHEMES
Laying utmost emphasis on Government sponsored schemes has been amongst
the major strategies of the Bank in pursuit of financial inclusion.
The Bank continued to play a pioneering role in financing entrepreneurs
under various Government sponsored schemes. The SGSY scheme was
replaced by National Rural Livelihood Mission (NRLM scheme) w.e f.
01/04/2013. The position under various Government sponsored schemes as
on 31 March, 2014 is as under: -
Scheme Number of Amount
year (Rs. crore)
Swarn Jayanti 1893 10.88
Shahri Rojgar Yojana (SJSRY)
Prime 712 34.77
Ministers Employment Generation
Mukhya Mantri 2564 53.00
Swavlamban Yojana (MMSY)
POP 5612 22.55
LEAD BANK SCHEME
Our Bank has Lead Bank responsibility in nine Districts in the State of
Rajasthan viz. Bikaner, Barmer, Hanumangarh, Jaisalmer, Jalore, Pali,
Sirohi, Rajsamand and Udaipur. The Bank has been implementing and
monitoring the Annual Credit Plan and other developmental and poverty
eradication schemes launched by the Govt. of India, Govt. of Rajasthan
and NABARD. Target allotted for Annual Credit Plan to our Bank for the
year 2013-14 was Rs4011.00 crore, as against which the achievement of
our Bank up to March, 2014, was Rs.4670.00 crore, thereby achieving
116%.of the annual targets.
MICRO CREDIT (SHGs)
At the end of March,2014, the Bank has credit linked a total of 44244
Self Help Groups (SHGs) with outstanding amount of Rs.200.94 crore, out
of which 36363 accounts are of women beneficiaries with outstanding
amount of Rs.169.08 crore. NABARD had, in the past ranked the Bank as
Number One in Rajasthan State for its performance under Micro Credit
continuously from the year 2004-05 to 2008-09.
Ministry of Finance, Govt. of India launched a project for financing to
Women Self Help Groups with the support of Anchor NGO as SHPI in 24
backward Districts of 24 States in the country, which was later
extended to 150 back ward Districts, including 109 Left Wing Extremism
(LWE) districts. In Rajasthan, Barmer (our lead district), Banswara,
Dungarpur and Jhalawar districts have been selected for this purpose.
The progress in this regard is directly reviewed by Department of
Financial Services, Ministry of Finance, Govt. of India. Bank branches
and NGO have been identified and Anchor NGO, CECOEDECON has surveyed
and mapped the area in Barmer District. In Barmer District, NGO has
Linked 931 SHGs by SB Linkage and 521 SHGs by Credit Linkage during the
year against the targets of 1000 up to March, 2014.
RURAL SELF EMPLOYMENT TRAINING INSTITUTES (RSETI)
In order to impart job-oriented skills to rural unemployed youth, the
Bank has set-up eight RSETIs at Bikaner, Hanumangarh, Barmer Jaisalmer,
Jalore, Pali, Sirohi and Nathdwara (Distt. Rajsamand).
By the end of March, 2014, 33702 candidates have been imparted training
for various local demand jobs in these institutions and by imparting
skill trainings, 4270 candidates have been engaged in various jobs and
15340 candidates have started their own ventures. 8935 persons have
been credit linked amounting to Rs.4734.45 lakh. Rating process was
introduced by MoRD, New Delhi through State Project Co-coordinator of
RSETIs in the year ending March 2013. All our RSETIs secured AA /AB
rating. Our Managing Director and Directors of four RSETIs namely
Bikaner, Barmer, Hanumangarh and Jaisalmer were honoured at the
felicitation function organized by MoRD, GoI on RSETI Diwas at Vigyan
Bhawan, MoRD, Delhi on 21/11/2013.
FINANCIAL LITERACY AND CREDIT COUNSELLING CENTRES (FLCCs)
During the year 2010-11, in order to educate farmers and other people
in rural / urban areas with regard to various financial products, Bank
schemes and services available from the formal financial sector, the
Bank had set up 9 Financial Literacy and Credit Counseling Centres
(FLCCs) in all nine Lead Districts in Rajasthan. These FLCCs are
providing awareness service, free of charge. Up to 31/03/2014, 111598
persons have been counselled by these centres out of which 23605
persons have been linked with Banks.
A campaign was launched to arrange five awareness camps per month in
nearby villages by FLCC Counsellors, which is still continuing and is
very beneficial to rural people. In addition to this, a campaign was
also launched by way of wall paintings, brochures and pamphlets. The
FLCC Counsellors also organized awareness camps in minority
concentrated blocks, in their districts.
REGIONAL RURAL BANK
The Marudhara Gramin Bank (MGB) sponsored by SBBJ with its Head office
at Jodhpur has a network of 501 branches spread over 12 districts of
Rajasthan state namely Pali, Jalore, Sirohi, Sriganganagar, Bikaner,
Hanumangarh, Jaisalmer, Barmer, Jodhpur, Nagaur, Jaipur & Dausa. SBBJ
continues to provide managerial support and financial assistance by way
of refinance etc. to MGB. All branches of MGB are on CBS platform and
provide Electronic Fund Transfer facility. MGB had deposits of Rs.
5143.57 Crore and advances of Rs. 3792.89 Crore as on 31.03.2014. MGB
recorded Gross Profit of Rs. 80.60 Crore & Net Profit of Rs. 55.50
The Bank conducts Government Business on behalf of State/Central
Government departments through 494 Authorized Branches. Income Tax,
Central Excise, Service Tax, Value Added Tax etc. are collected through
physical challans and also through the electronic mode. The Bank has
established a Centralized Pension Processing Centre (CPPC) which
calculates as well as credits pension to the accounts of pensioners
across all the branches. We also have an Online Treasury Branch for
online payment of salary of Rajasthan Govt. employees on behalf of the
State Govt. Presently our Online Treasury Branch is processing 9 lakh
State Govt. transactions received through 18000 digitally signed files
in a month. During 2013-14, the commission income from Government
business was Rs. 132 crore.
The Bank provides Foreign Exchange related services to exporters/
importers, other resident and non- resident customers through a network
of 68 Authorized Category "B", 184 Category 'C branches and 4 Trade
Finance Central Processing Centres(TFCPCs).
The Bank's forex dealing room at Mumbai and all the Authorized Category
'B' branches are equipped with infrastructure of latest technology for
real-time communication and are connected through SWIFT network with
more than 750 offices of foreign banks throughout the world. The Bank
maintains 21 NOSTRO accounts in all major currencies and non-account
correspondent banking relationship with all major banking groups in the
world. To facilitate NRI customers for inward remittances, there is
online remittance facility and tie-ups with 5 Gulf based Exchange
The Bank also undertakes proprietary Forex trading to increase profit
by taking advantage of market movements. Our Merchant Forex turnover
stood at Rs. 31678 crore in the FY 2013-14 as against Rs. 26717 crore
of last financial year, representing an increase of Rs.4961 crore
(18.57 %) during the year.
Our NRI deposits stood at Rs. 1384 crore at the end of March 2014
against the base of Rs.1249 crore in March 2013, registering a growth
of Rs. 135 crore (10.80%). Our export credit stood at Rs.2740 crore at
the end of March 2014 as against Rs. 2334 crore of March 2013,
recording a growth of Rs. 406crore (17.39%) during the financial year.
The Bank chairs the local chapter of Foreign Exchange Dealers'
Association of India (FEDAI). The Bank is also an active member of
FEDAI, International Chamber of Commerce (ICC) and Clearing Corporation
of India Limited (CCIL).
Rehabilitation / restructuring of potentially viable industrial unit
remains an important thrust area of the Bank. For this purpose, the
Bank has its own Industrial Rehabilitation Policy containing detailed
guidelines for undertaking rehabilitation / revival package and the
same is updated from time to time. Whenever units are found to be
non-viable or not responding to the rehabilitation / restructuring
package, the focus is shifted to recovery of Bank's dues through legal
recourse such as action under SARFAESI / compromise settlement /
assignment of debt / through courts/ Debt Recovery Tribunals (DRTs).
As at the end of 31st March 2014, the Bank had 23 large sick /weak
units on its books with aggregate outstanding of Rs. 405.39 crores.
There are 41Corporate Debt Restructuring (CDR) cases with aggregate
exposure of Rs. 2069-68 crores and 24 BIFR cases with exposure of Rs.
498.19 crores. The Bank has been acting as BIFR's Operating Agency in 4
cases. During the year under review, 16 accounts with aggregate
exposure of Rs. 954-26 crores have been restructured under CDR
mechanism as warranted basically by the tight economic scenario.
Sustained efforts are undertaken by the Bank in timely restructuring of
the accounts and post sanction close monitoring and follow up have
resulted in retaining most of the restructured assets as Standard
The Bank continues with its multipronged strategy of controlling
Non-Performing Assets (NPAs) through intensive monitoring of large
value accounts, close follow-up with DRT/BIFR, restructuring of viable
accounts and effectively utilizing the remedies available under the
SARFAESI and RODA Acts. GMs, DGMs and AGMs posted at Head Office have
been assigned the role of mentors of Zones / Regions and Branches to
provide support and monitor the NPA level. Due emphasis has been given
to follow-up with the Court and filing of Execution Petitions. During
the year, large numbers of "Recovery Camps", Bank Adalats and Lok
Adalats were organized for NPA recovery, the results of which were
quite encouraging. Recovery camps are being held in every village every
week. The progress in NPA / AUC recovery is being discussed / reviewed
by the Management Committee by conducting Video-conferencing with all
the Zones and DGM headed branches. The "Loan Tracking Centre" monitors
/ tracks the irregular Standard accounts from Head Office level.
Pre-emptive measures such as restructuring etc. are also taken, as per
RBI guidelines. By adopting the above measures and utilizing the
provision of SARFAESI Act effectively, Bank also received a number of
acceptable compromise proposals which resulted in good recovery in NPA.
There has been an addition of Rs. 2123.54 crore in NPA during 2013-14.
However, there has been recovery / upgradation to the tune of Rs.
1110.77 crore. At the end of March 2014, gross NPA ratio of the Bank
Stood at 4.18% and Net NPA ratio stood at 2.76%.
The Bank had set up the Loan Tracking Centre (LTC), a Centralized
Outbound Call Centre at Jaipur in June 2011, for follow-up of Personal
and SME Segment Loan accounts in IRAC4, IRAC3, IRAC2 and IRAC1
categories to avoid slippages of accounts into hardcore NPAs.
Subsequently in July 2012, the LTC started following up AGR segment
accounts also. The Call Executives at the LTC make calls to the
borrowers, where contact details are available in CBS, in a sustained
manner to recover the overdue amount and upgrade accounts in co-
ordination with Branches / CPCs.
IMPROVEMENT DONE DURING THE CURRENT YEAR:
(a) LTC has been set up at all the 8 Zonal Offices of the Bank.
(b) Auto-Dialler system has been installed at the Head Office LTC,
whereby the telephone / mobile numbers of borrowers are dialled by the
Auto-Dialler system and our staff communicates with the borrower using
a Head Phone attached with the PC.
(c) With the setting up of Zonal LTCs, all the NPA borrowers of the
Bank are contacted, at least once during every 2 months.
RISK MANAGEMENT STRUCTURE OF THE BANK
The Bank has an independent Risk Management framework in place.
At the apex level, there is a Risk Management Committee of the Board
(RMCB), which oversees the policies and strategies for Risk Management
in the Bank. The Credit Risk Management Committee (CRMC), Asset
Liability Management Committee (ALCO), Market Risk Management Committee
(MRMC) and Operational Risk Management Committee (ORMC) provide support
to RMCB. These sub-committees are required to place all critical
issues/ development in their respective areas before the RMCB. The Bank
has Credit, Market and Operational Risks Management Policies for
identification, measurement and management of major risks. These
policies are reviewed and updated from time to time, keeping in view
the dynamic business environment. Integrated Risk Management Department
(IRMD) at the Head Office, functions under a Deputy General Manager.
The IRMD acts as the nodal centre for coordination with other
departments/ operating units engaged in managing risk in their
respective business areas.
BASEL II : Under Pillar-I of the New Capital Adequacy Framework (NCAF)
guidelines issued by Reserve Bank of India, the Bank is computing
Capital to Risk Weighted Assets Ratio (CRAR) using Standardised
Approach for Credit Risk, Standardised Duration Approach for Market
Risk and Basic Indicator Approach for Operational Risk. Under Pillar-II
of NCAF, the Bank has assessed capital requirement for 2013-14 for
other risks in its Internal Capital Adequacy Assessment Process (ICAAP)
document, a copy of which has been submitted to RBI. Basel-II
Disclosures have been made by the Bank in the Annual Report as also on
Bank's website as part of the Pillar-III guidelines of NCAF.
BASEL III : In order to improve the quality of capital and address the
liquidity risk issues, Basel III Capital Regulation has been
implemented in phases in India w.e.f. 01.04.2013. Accordingly, the
Bank is computing Capital to Risk Weighted Assets Ratio (CRAR) as per
Pillar-I of Basel III framework. With a view to improve market
discipline under Pillar 3 of Basel III framework and to improve
transparency of capital base, Basel-III Disclosures have been made by
the Bank in the Annual Report as also on the Bank's website.
Credit Risk management remains a major task for Bank and receives prime
attention. Control and monitoring of Credit Risk is dealt with as per
the Loan Policy and Credit Risk Management, Credit Risk Mitigation &
Collateral Management Policy of the Bank approved by the Board. These
policies cover methodologies for measuring, monitoring and control of
credit risk. In order to control the magnitude of credit risk,
prudential norms on benchmark, financing ratios, single borrower or
borrower- group exposure, industry specific and sector-specific
exposure, exposure to sensitive sectors, hurdle rate for taking a fresh
exposure etc. have been set up. Credit appraisal systems and a clearly
defined Delegation of Powers form an integral part of the Bank's Loan
To monitor market risks and treasury operations, mid-offices (domestic
& forex) are functional at IRMD. Scenario Analysis on market risk
covering events such as decline in stock markets, rise in bond yields
and foreign exchange rate movements are conducted regularly as per the
Stress Testing Policy of the Bank to assess resilience of Investment
One of the major tools for managing operational risk is to put in place
a well established internal control system, which includes segregation
of duties, clear management reporting lines and adequate operating
Most of the operational risk events are associated with weak links in
internal control systems or laxity in complying with the existing
internal control procedures. The Bank has suitable systems and
procedures for managing and control of operational risks.
PREPARATION FOR ADVANCED APPROACHES OF BASEL-II
Bank plans to move over to Advanced Approaches of Basel-II guidelines
for Credit, Market & Operational Risks in a phased manner. Letter of
Intents (LOIs) for all the three Risks have been submitted to Reserve
Bank of India for this purpose. On receipt of approval from Reserve
Bank of India, Internal Rating Based (IRB) Approach for Credit Risk,
Internal Models Approach (IMA) for Market Risk and Advanced Measurement
Approach (AMA) for Operational Risk will be followed under Advanced
Approaches. This will not only help the Bank to maintain Economic
Capital, but will also strengthen the risk monitoring framework and
Augmentation of capital is not only costly but its availability is also
scarce. Hence, efforts are being made for optimum utilisation of the
existing capital. Bank aims at conservation of capital by improving
data quality. Cleansing of data will lead to accurate computation of
the Risk Weighted Assets of the Bank and is likely to reduce
requirement of additional capital.
ASSET LIABILITY MANAGEMENT
A comprehensive Asset Liability Management (ALM) System is in place for
effective management of Liquidity Risk and Interest Rate Risk. These
Risks are assessed and monitored through Structural Liquidity Reports
and Traditional Gap Analysis respectively. The structural liquidity
report is being prepared and reviewed on a daily basis as per RBI
Both these risks on Foreign Assets & Liabilities are being monitored
through Maturity & Positions (MAP) and Sensitivity to Interest Rate
(SIR) statements. The monitoring of liquidity on a dynamic basis, over
a time horizon spanning 1-90 days, is in place. Duration Gap Analysis
is also used to manage interest rate risk for the entire Balance Sheet.
The Asset Liability Management Policy, coupled with Investment Policy
of the Bank specifies various prudential limits for management of
Liquidity and Interest Rate Risks. The Bank is regularly monitoring
these limits. A comprehensive Contingency Funding Plan and a system of
daily monitoring of inflows & outflows of deposits are in place for
managing liquidity on a day-to-day basis. Calculation of Value at Risk
(VaR) on Foreign Exchange Forward Positions and Stress Testing on
Liquidity, Interest rate and Foreign Exchange Open & Forwards Positions
is also undertaken regularly.
INTERNAL CONTROL, INSPECTION AND AUDIT
The Bank has in place a well established independent audit system and
structure to ensure adequate internal control for safe and sound
operations. Internal Audit is carried out under Risk Focused Internal
Audit (RFIA) as envisaged under Risk Based Supervision of RBI with
focus on assessment of risk and internal control mechanism.
The branches have been categorised into three groups as per risk
perception and are subject to varying degrees of audit. During FY
2013-14, 738 Branches and 50 Centres/Processing Centres (under Business
Process Re- engineering (BPR) initiatives) have been subjected to
Internal Audit. No branch of the Bank remained overdue for audit as on
As at the end of March, 2014, 99.90% of the Bank's branches were rated
"Well Controlled" and "Adequately Controlled ".
106 branches and 35 Centres/ Processing Centres (under BPR initiatives)
covering 66.31% of advances and 40.70% of deposits as on 31.03.2013,
alongwith 13 Head Office Departments have been placed under Concurrent
INFORMATION SYSTEM (IS) AUDIT
Information System Audit Cell is in place to conduct IS audit of major
IT establishments including Core Banking Project, Zonal Computer
Centres, etc. in accordance with RBI directives and Bank's IT Security
RECONCILIATION OF INTER- OFFICE TRANSACTIONS
As per the RBI guidelines, all the entries need to be reconciled within
a period of six months from the date of their origin. By the end of
March 2014, the bank has reconciled inter- branch debit transactions
originated up to 28.02.2014 i.e. well before the time limit prescribed.
The Bank shall aim at reconciling all entries within two months of
1. CORE BANKING SOLUTION (CBS)
All our branches are running successfully on Core Banking Solution
(CBS). We were able to provide better customer satisfaction and
services by providing many Value Added Services like multi functional
ATMs, Internet Banking, Mobile Banking, Flexi Deposit Scheme, Multi
City Cheque Facility, instant credit of local and outstation cheques,
etc. For all type of Debit/ Credit transactions in CBS, SMS alert is
sent to customers, where mobile number is registered with the Bank.
2. ELECTRONIC PAYMENT SYSTEMS: RTGS, NEFT & SBGRPT
Real Time Gross Settlement (RTGS) is an instant payment and settlement
system and National Electronic Fund Transfer (NEFT) is a scheme for
inter- bank funds transfer operated by the RBI. All branches of our
bank are RTGS & NEFT enabled. Our customers can make their inter-bank
remittances in a faster and secured manner at very nominal cost. SB
Group Payment (SBGRPT) functionality for electronic funds transfer
within State Bank Group is also available for customer.
3. AUTOMATED TELLER MACHINES (ATMS)
The Bank has installed 467 new networked ATMs and replaced 123 ATMs
during the year to take the tally of ATMs to 1554. All the ATMs are
connected to the network of State Bank Group ATMs, thereby enabling
more than 62.50 lakh card holders of the Bank to have free of cost
access to over 45000 ATMs of the State Bank Group all over the country.
4. INTERNET BANKING
All our branches are enabled to offer Internet Banking facility to our
Retail as well as Corporate customers. Looking to the rapid increase
in the usage of Internet banking worldwide, the Bank has introduced
several new features during the year. Apart from own account and third
party transfer within bank, our customers can transfer funds to other
banks in online mode. TDS enquiry for Term Deposits from the comfort of
their homes or offices, opening / closing of e - TDR / e - STDR / e -
Recurring Deposit (RD) account, facility to view the details of Income
- Tax Statement (26 -AS) and viewing of Pension Slip is available.
Retail Internet Banking facility for visually challenged persons has
also been made available. For Corporate customers, a new facility 'SB -
Collect', for on line collection of funds has been provided.
Online payment of direct and indirect taxes e.g. Income Tax, Service
Tax, Excise Duty, Customs Duty of Central Government, VAT/CST of
Rajasthan State Government and Maharashtra State Government, EGRAS
facility for online collection of all Tax and non Tax revenue of
Rajasthan Government, facility of online payment of Professional Tax of
Maharashtra State Govt. has also been provided. Facility of online
application for IPOs using ASBA (Application Supported with Blocked
Amount) facility where investor customer continues to earn interest
during the application process is available to internet banking users.
Facility of online booking of Railway / Air Tickets has been widely
accepted. Electronic payment of railway freight (E-Freight) is gaining
popularity. We have integrated number of Aggregators to our online
system to provide the payment facility of wide range of merchants,
e-commerce services and utility bills to our Internet Banking users.
Bank has taken steps to increase awareness about Internet banking among
staff as well as customers through seminars and awareness meets. To
popularize online payment of taxes, a facility of "Zero Balance
Internet Current Account" has been introduced.
5. MOBILE BANKING & IMMEDIATE PAYMENT SERVICES (IMPS)
Mobile Banking facility was introduced in 2009, for our customers
having a Savings / Current Account. The product is named "State Bank
Freedom. Presently, there is upper ceiling of Rs. 50000/- for fund
transfer and for purchase of goods / services per day within overall
calendar month limit of Rs.2,50,000/-. In order to make the
registration process more robust and to eliminate the threat of frauds/
phishing attempts, our Bank enabled registrations over ATM/CBS, only if
the mobile number entered matches with the mobile number already
available in the customer's CIF in CBS.
"Immediate Payment Service" (IMPS) P2P (Person-to-Person), was launched
in our Bank in 2012 for enabling our customers to use mobile
instruments as a channel for remitting funds 24 x7 using MMID (Mobile
Money Identifier) & Mobile Number. During 2013-14, two more services
P2A (Person-to-Account) & P2M (Person-to-Merchant) has been enabled in
our Bank to make fund transfer using Account No. & IFS code and to make
various utility payments at shops and commercial establishments, ticket
booking though IRCTC website etc., The upper ceiling for remittance or
payment of bills is same as in Mobile Banking facility.
6. GREEN CHANNEL COUNTER
Bank has implemented "Green Channel Counter" facility at various
branches viz. all district headquarters in Rajasthan, branches situated
at Delhi NCR, Mumbai, Bangalore and Ahmedabad and other identified
urban, semi-urban and rural branches.
It is a paperless, eco-friendly and easy facility for the customers to
be carried out through ATM cum Debit Card using a Transaction
Processing Device (TPD) placed at the Single Window Operator's (SWO)
terminal connected to CBS terminal of the SWO. Presently this facility
is available at 506 branches with 2 such counters minimum at each
7. PREPAID CARDS
The Rupee Pre-paid Card (eZPay Card) has been launched, particularly
for salaried persons and students for pocket money and scholarship
payments, who undertake only one or two transactions in a month and
maintain account for the purpose. The Rupee Pre-paid Card (eZPay Card)
is equally useful for the Corporate, who have to make various payments
to their staff and vendors. The cards can be reloaded and can be used
in any ATM or with any POS merchant, any number of times during their
8. BUNCH NOTE ACCEPTOR (BNAs)
BNA machines are installed at the Bank's 2 branches. It is a
full-functional freestanding lobby machine installed in the branch's
Banking Hall. The BNA machine is capable of accepting Rs. 49,900/- cash
in bundles and receipt is given to the customer and cash is immediately
credited to the customer on real time basis.
9. CASH DEPOSIT MACHINE (CDM)
The Bank has planned to install CDM at various High Cash Receipt
branches providing 24x7 availability with round the clock security in
onsite ATM kiosk. The CDM machine is operable through ATM-cum-Debit
card and is capable of accepting cash up-to Rs.49,900/-. Receipt of
the deposit transaction is given to the customer and cash is
immediately credited to customer's account on real time basis.
10. SELF SERVICE KIOSKS (SSKs)
75 Self Service Kiosks (SSKs) have been installed at various branches
of our Bank. Customers can perform financial and non-financial
transactions such as passbook printing, fund transfer etc. using State
Bank ATM- cum-Debit Cards at these SSKs. The SSK solution has user
friendly touch screen based customer interface.
11. ADOPTION OF ADVANCED IT INFRASTRUCTURE PRODUCTS FOR INTERNAL
HOUSEKEEPING AT THE BRANCHES/OFFICES:
I. BIOMETRIC AUTHENTICATION OF CBS USERS
For improved security in Core Banking Solutions, the Bank has rolled
out Biometric Authentication Solution (BAS) at branches/offices for the
front end tellers using CBS. The solution is used as a second factor
for authentication of CBS tellers, the primary mode being the CBS
II. ACTIVE DIRECTORY SERVICES (ADS )
For enhanced security, Bank has implemented Active Directory Services
(ADS) within State Bank Connect Network in all the branches/ offices.
Active Directory (AD) provides centralized administration of network
and security. It authenticates and authorizes all users and computers
in a Windows domain, assigning and enforcing security policies for all
computers and facilitates installing or updating software centrally.
At present all 1100 branches/offices are connected through State Bank
Connect. A technology shift from 'Point to Point' to MPLS has been
initiated by Bank to ensure seamless best path connectivity at all the
branches with availability of redundant circuits at all times. Wifi /
Wimax / 3G and 4G modes of connectivity is also under consideration at
the Group level, after ensuring information security clearance of these
products in our Bank.
IV. ONLINE VOUCHER VIEWING AND VERIFICATION MODULE(OVVVM)
OVVVM has been implemented in the Bank at all branches/offices (other
than single officer branches). Same day transactions can be verified by
the supervisors after posting of the transactions in CBS. With the
viewing / verifying of transactions online on the same day, any fraud /
malpractices can come to notice on near real-time basis and adverse
position can be avoided to the extent possible.
12. MGNREGA E-PAYMENT
Government of Rajasthan has designated our Bank as the Nodal Bank for
MGNREGA e-Payments in the State of Rajasthan. MGNREGA e-Payment system
has been implemented for centralized payment of NREGA wages and other
expenditures directly to the beneficiaries' accounts. The project has
been smoothly handling about 2 to 2.5 lakh transactions per month.
13. SMS UNHAPPY
The "Project SMS Unhappy" was launched by the Bank with the objective
to provide a simple and economical way to the customers to represent
their grievances. This has reduced complaint resolution time
drastically, to below 48 hours, thereby enhancing the customer
satisfaction level and creating a loyal customer pool.
14. INSTANT LOAN SANCTION
Bank is providing the facility of online instant sanction of Housing
Loan and Car loan to the customers under the head "Home Loan in 20
minutes" and "Car Loan in 10 minutes" respectively on Bank's website
The customer gets a sanction letter instantly on submitting completely
filled application form on Bank's website, if he fulfills the
15. ONLINE LOAN APPLICATION TRACKING SOFTWARE
Bank has introduced a web based application for Online Tracking of Loan
application for customer and status of their application can be viewed
by customer on internet through our Bank's website.
16. INFORMATION SYSTEM (IS) SECURITY
With the efforts of the Bank to popularize IT enabled services, the
threats and risks to our IT assets have increased manifold. To control
these threats and risks our Bank has formulated a comprehensive IT and
Information Systems (IS) Security Policy that addresses all these
concerns, including maintenance of customers' confidentiality, security
and integrity of data. State Bank's Data Centre, where our CBS data
base resides (both at the Primary and Disaster Recovery Site), has
already acquired the accreditation from the International Standard for
Information Security Management Systems ISO/IEC: 27001: 2005. All the
Banking applications have built-in security features like access
control, data encryption and transmission through secured channels, as
per requirement of the application. The threat of 'virus' and 'worms'
is minimized by having a centralized anti-virus solution.
Adequate Firewalls and Intrusion Detection Systems are in place, so as
to prevent unauthorized access to the network. The Disaster Recovery
Plan (DRP) and Business Continuity Plan (BCP) for all branches are in
KNOW YOUR CUSTOMER (KYC)/ ANTI MONEY LAUNDERING (AML)/ COMBATING OF
FINANCING OF TERRORISM MEASURES
The Bank follows Reserve Bank of India/ Government of India guidelines
on Know Your Customer/ Anti Money Laundering / Combating Financing of
Terrorism. Prescribed documents relating to the identity and address
are obtained from customers while opening their accounts.
With the objective of Universal Financial Inclusion, Bank facilitates
opening of 'Small Account' by migrant labourers, street hawkers and
other poorer sections of the society, with limited KYC documents.
To facilitate inclusion of lower strata of society to mainstream
banking, Basic Saving Bank Deposit Account (BSBA) for the customer
having prescribed KYC documents has been introduced. BSBA shall not
have the requirement of minimum balance. At the same time, the entire
range of services available to a normal saving bank account is extended
to this product.
In order to identify and examine suspicious transactions, the Bank has
installed the AMLOCK software besides setting up an Anti Money
Laundering Cell at the Head Office. The customers' accounts have been
allocated different risk categories and alerts are generated once any
transaction exceeds a predefined threshold limit.
These alerts help in identification of suspicious transactions, which
are further reported to the Financial Intelligence Unit, Government of
India, in appropriate cases.
Our Bank is providing Depository Participant Services with National
Securities Depository Limited (NSDL) to our customers, wherein they can
hold their securities as electronic book entries and transfer
securities, without actually handling physical scripts. Customers can
also obtain loans against Demat shares. SBBJ is registered with NSDL as
a Depository Participant.
Customer Service is a top priority for the Bank. We are in a service
industry and our success to a very large extent depends on the
satisfaction level of our customers. The environment we operate in is
increasingly becoming intensely competitive.
The meetings of the Customer Service Committee of the Board and
Standing Committee on Customer Service were convened at regular
intervals to review the position of customer service rendered. Similar
committees are also functioning at branches, Zonal Offices and Head
Office, which helps in continuous improvement in service standards.
The Bank is a member of the Banking Codes and Standards Board of India
(BCSBI) and has voluntarily adopted a 'Code of Bank's Commitment to
Customers,' which sets a framework for setting a minimum standard of
banking services to be provided by the banks. An awareness camp for
BCSBI code was organised at Jaipur on 19 November 2013 in coordination
CUSTOMER GRIEVANCES REDRESSAL MECHANISM:
The Bank has put in place a multi pronged grievances redressal
mechanism to suit varied customer requirements. An aggrieved customer
can either make a written complaint at branch / Regional / Zonal / Head
Office of the Bank or make an online submission in the form provided on
the Bank's website / through e-mail against acknowledgement.
DISCLOSURE OF COMPLAINTS/ UNIMPLEMENTED AWARD OF BANKING OMBUDSMENT :-
In terms of RBI circular DBOD.No.Leg BC.60/09.07.005/2006-07 dated
22.02.2007, the information in respect of customer complaints and
awards passed by the Banking Ombudsman is given in the Table below :-
A. Customer Complaints
(a) No. of Complaints 71
pending at the beginning of the year
(b) No. of Complaints 6470
received during the year(*)
(c) No. of Complaints 6434
redressed during the year(*)
(d) No. of Complaints 107
pending at the end of the year
(*) Excluding 1499 Complaints found non maintainable.
B. Awards passed by the Banking Ombudsman (BO)
(a) No. of unimplemented 01
Awards at the beginning of the year
(b) No. of Awards passed by 17**
the Banking Ombudsman during the year
(c) No. of Awards 12
implemented during the year
(d) No. of unimplemented 03
Awards at the end of
the year(in 2 cases Appeal has been made
before Appellate Authority and in 1 case
matter in under process)
** Out of the remaining 3 cases, under 1st case BO Delhi has
re-examined the case and cancelled the award against the Bank. In 2nd
case, the complainant not accepted the award and in another one, the
appeal allowed and award passed by BO is set aside by the Appellate
To monitor the ATM failed transactions related customer complaints
received at the branches, ATM Complaints Reconciliation Cell has been
established at Head Office. Reserve Bank of India has prescribed that
all ATM related complaints be resolved within 7 working days. For
faster resolution /redressal of complaints, an online ATM Complaint
Management System (ATMCMS) has been developed and implemented. During
the year 2013-14, the Bank has received 20567 ATM failed transactions
related complaints, out of which 20477 complaints were resolved. No
home bank complaint (where customer and ATM both belong to our bank) is
pending for more than 7 working days. Number of complaints pending for
more than 7 days, where claim is pending with other banks, is 3.
THE RIGHT TO INFORMATION (RTI)
The Right to Information (RTI) Department was constituted at the Bank's
Head Office in December, 2010 for better coordination and effective
implementation of the Right to Information Act, 2005 . The Department
has since then been instrumental in ensuring that information sought
for under the various RTI applications received by them is dispensed
with efficiently and effectively in a time bound manner as per the
provisions of the RTI Act, 2005 and that the appeals too, if received,
are redressed timely, while also complying with the directives of the
Hon'ble Central Information Commission (CIC) in this regard.
During financial year 2013-14, the RTI Department received 1553
applications under the RTI Act, 2005, out of which 1532 applications
were disposed off. 21 applications were awaiting disposal as on 31st
March, 2014, and these were all pending for less than 30 days.
Besides, the Department also received 73 appeals under the RTI Act,
2005 during financial 2013-14, out of which 71 appeals were disposed
off. 2 appeals were awaiting disposal as on 31st March, 2014, and
these also were pending for less than 30 days.
BUSINESS PROCESS RE-ENGINEERING
Business Process Re-engineering (BPR) Initiatives stabilized further
during 2013-14 and their coverage was extended to more branches. Bank
operates 12 city-centric loan CPCs, viz. Retail Assets Central
Processing Centre (RACPC)/ Small & Medium Enterprises City Credit
Centre (SMECCC)/ Retail Assets and Small & Medium Enterprises City
Credit Cell (RASMECCC) having end- state at 11 centres with 275
branches linked to them. Coverage of Rural Central Processing Centre
(RCPC) was increased to 374 branches at 19 centres. 22 Relationship
Managers- Medium Enterprises (Hub Model) and 1 Relationship
Manager-Small Enterprises are working at 14 major business centres.
Non loan CPCs/ initiatives, viz. Liability Central Processing Centre
(LCPC), Trade Finance Central Processing Centre (TFCPC), Currency
Administration Cell (CAC), Central Pension Processing Cell (CPPC),
Clearing CPC (CCPC), Multi Product Sales Team (MPST), Relationship
Manager-Personal Banking (RMPB) have helped in further improvement in
customer service. The coverage of various non loan CPCs / initiatives
as on 31.03.2014 vis-?-vis 31.03.2013 was as under:
CPC / Branches Covered
Initiative 31.03.2013 31.03.2014
LCPC 996 1097
TFCPC 122 124
CAC / 155 180
Clg. CPC 224 250
CPPC 844 909
Branch Re- 185 196
During the Financial Year 2013-14, the following developments took
place to make CPCs / initiatives more effective and to optimize gains:
- In Branch Cash Handling (IBCH) has been rolled out w.e.f.
- RASMECCC at Bhiwadi centre started functioning w.e.f. 31.01.2014.
- CAC at Delhi centre started functioning w.e.f. 26.02.2014. Shifting
of back office activities to loan CPCs, implementation of revised roles
for branch functionaries and better ambience in branches has not only
improved the Bank's image but also helped the linked branches to focus
more on customer service and marketing for business.
CURRENCY MANAGEMENT DEPARTMENT
Owing to our Bank having the highest market share in Rajasthan, RBI has
designated our Bank's 199 branches as Currency Chest branches in the
state and 15 Currency Chest branches in other parts of the country.
All our Currency Chest branches are undertaking the following
activities in an efficient manner:-
1. Circulation of New Currency Notes among Public.
2. Distribution of Coins to the Public.
3. Exchange of torn/damaged/ soiled/mutilated notes.
4. Providing of linkage facilities to branches of other banks which
are linked to them.
5. Our 9 branches are providing facilities of Note Exchange and coin
distribution on 3rd Sunday of every month and 6 branches are providing
facilities of Note Exchange and coin distribution on 3rd Sunday of
The Bank continues to market life and non-life insurance, mutual fund
and credit card products in order to augment its non interest income.
For the purpose, the Bank has in place tie up arrangements with SBI
Life Insurance Co. Ltd., SBI General Insurance Co. Ltd., SBI Fund
Management Pvt. Ltd. and SBI Cards and Payments Services Pvt. Ltd.
Various campaigns were launched for marketing of these products, and
the bank earned a total income of Rs. 20.03 crore from cross selling
COMMUNITY SERVICES BANKING
As a responsible Corporate Citizen, the Bank undertakes community based
social activities such as tree plantation, free health check up & blood
donation camps, establishing of water huts and water coolers,
sponsoring prizes / kit for sports competitions, honouring meritorious
students etc. During the year 2013- 14, the Bank donated Rs. 1.00 crore
for Uttarakhand Chief Minister's Relief Fund and Rs.25 lakh for Odisha
Chief Minister's Relief Fund as assistance in relief measures to people
affected by natural calamity. The Bank also provided 5 ambulances, one
each to Maheshwari Hospital & Research Centre Trust, Jaisalmer, Ram
Niwas Dham Trust, Shahpura, Bhilwara, Sant Sukhdev Shah Memorial
Religious & Charitable Trust, Alwar, L.K.C. Shri Jagdamba Andh
Vidhyalaya Samiti, Sriganganagar and People Welfare Society, Sikar as
also one Antim Darshanika Vahini (Mortuary Van) to Jagriti, Jaipur.
Other activities or financial assistance by our Bank are listed as
- Providing of Water purifiers and ceiling fans by every branch of the
Bank to its nearby School which had scarcity of funds.
- Provided medical equipments to Manav Sewa Sangh, Jaipur, which has
been providing free treatment of Bone Marrow Transplantation to
Thalassemia affected children of poor families.
- Financial assistance to Society for Rational Development, Jodhpur for
free education to poor children in rural areas.
- Providing of Computer, Projector, Laptop, Printer and T.T. Table to
'Udayan Care' Jaipur, an NGO which shelters, educates and
rehabilitates, orphaned/ abandoned children.
- Providing of Computer & Projecter to 'I Create' Jaipur, an NGO which
organizes training programmes and vocational training for youth and
- Provided furniture to 'Vimukti Sansthan' engaged in providing free
education and vocational training to girls in slum areas.
- Donated Generator to RamaKrishana Mission, Khetri for running various
welfare activities like health support programmes (free eye surgery)
and providing nutritious food for poor children and their mothers.
- Branches of the Bank Continues to adopt one girl child each from a
poor family with an objective of providing financial assistance for
pursuing their studies in Government /Municipal Schools.
- Distributed 200 folding sticks to poor blinds at Blind & Humanity
Welfare Centre, Mumbai.
- Provided Roti Making Machine to Manav Sewa Samiti Udaipur, serving
poor people by way of providing free meals to attendants of patients at
- Provided Vela Ventilator (Life Saving Equipment) to Sheth D.C.Shroff
Ashaktashram Hospital, Surat which is charity based hospital.
Bank shall remain dedicated to respond to the needs of the less
fortunate and under- privileged members of the society and will also do
its bit for a clean environment.
During 2013-14, the Bank opened 113 new fully computerized branches
which includes 34 branches in unbanked rural centres in Tier V and VI.
25 branches were inaugurated online from the Head Office on 27.02.2014.
As on 31.03.2014, the total number of branches of the Bank stood at
1148, the category wise distribution thereof being as under:
Rural Semi Urban Metro Total
416 308 214 210 1148
The Bank continued to maintain its dominant presence amongst all other
banks in the State of Rajasthan with a network of 932 branches as on
31.03.2014, with 699 branches being located in rural and semi urban
The Bank continues to play a pivotal role in the socio-economic
development, alleviation of poverty and resultant overall uplift of the
masses in the State .
HUMAN RESOURCES DEVELOPMENT
The Bank's staff strength as on 31.03.2014 was 13359 employees, with
the following break up: -
AS ON 31.03.2014 OUT OF WHICH
STAFF CADRE SC ST GENERAL TOTAL WOMEN MINORITY
OFFICERS 1058 489 3837 5384 695 368
CLERKS 936 584 3744 5264 918 317
SUB-STAFF 318 219 1418 1955 125 67
SAFAI 591 19 146 756 234 6
TOTAL 2903 1311 9145 13359 1972 758
Out of the Bank's total staff strength as on 31.03.2014, 2903 (21.73%)
belong to SC and 1311 ( 9.81%) to ST categories which is well above
required percentage. SC/ST cell to safeguard interests of SC/ST
employees is also well in place. Reservation policy is implemented in
our Bank as per Government guidelines.
Necessary complement of staff has been made available for working in
new frontiers like Core Banking Solution, Tele-banking, Internet
Banking, ATMs, Credit / Debit cards, marketing, Cross Selling, Business
Process Re-engineering etc. The Bank has been according high priority
to training and sensitization of staff members to respond to the
customers' expectations and deliver modern banking facilities in the
technology- driven environment.
Human Resource is the most important constituent and quintessence of an
organization and its progressive development has now become a major
corporate concern. An organization should be able to bring in proper
integration of human resources management strategies with the business
strategies. Qualitative training for human resources has become
necessary for improvement of their efficiency. As most of the senior
functionaries / operational staff are going to retire in next 2-4
years, the Bank, has to develop a second line of expertise and enable
them to cater to the needs of its esteemed customers and the
Organization . Looking to these facts, a total no of 8981 employees of
all categories, including 787 employees of the sponsored RRBs, were
provided training opportunities on various subjects related to banking
and technology at all the three Staff Training Centres (STCs) of the
Bank during the year.
The Bank also provided pre-promotion training to 27 SC/ST Clerical
candidates, eligible for promotion to Officer Cadre Group A / B & 167
SC /ST Sub-Staff candidates eligible for promotion to Clerical Cadre
during the year. In addition to this, 37 seminars / workshops were
conducted on various burning issues to update skills of employees. More
thrust has been accorded to Mobile Banking, Internet banking, ATM
services, Soft skills, System & Procedures, Marketing, quality services
to the customers, in view of the ever changing customer needs. In this
direction we have also conducted 39 one day Motivational Programmes for
Clerks encompassing 1518 clerks.
Two HR Conclaves were conducted by us - The first one for the Top
Executives was held at Jaipur from 26.07.13 to 28.07.13, which was an
open discussion for continuous growth of our Bank, NPA management etc.
The second conclave was held at Udaipur from 29.11.13 to 30.11.13
wherein the target group was Controllers and was meant for team
building and leadership development / BPR initiatives / NPA management.
Apart from in-house training, the Bank has provided facility of
training to its officers in specialized areas at Apex Training
Institutes like State Bank Academy, Gurgaon, State Bank Staff College,
Hyderabad, SBIICM Hyderabad and SBIRD Hyderabad. During the said
period, 1308 officers have been trained at these external agencies in
different areas of Banking. For various other programmes, we have also
deputed our officers for training to IDBRT, NIBM-Pune, CAB- Pune and
During the financial year 2013-14, we deputed 10 officers for
specialized training programmes abroad viz : - 24th Annual Forex
Assembly of Forex Association of India at Dubai, Deutsche' Bank
International Banking Seminar at New York, Seminar & Annual Meeting of
the IMF & World Bank Group at Washington,DC (USA), 12th Advanced
Management Programme towards Next Orbit :Indian Banking Sector at
Delhi, Paris, Milan and Berlin, Programme on Leadership Development for
Corporate Excellence in Collaboration with Kellogg School of Management
- North Western University, USA, 13th Advanced Management Programme
"Building Global Competitive Edge in the Banking Sector" held at Delhi,
Paris, Milan and Berlin.
Our "Gyanodaya" e-learning (anywhere, anytime learning) portal is in
full swing. Due to our efforts for increasing the number of
registrations by providing incentive of recognition and reward , a link
to access the portal from the intranet site and by making it mandatory
for newly promoted clerks/officers to pass at least 10/15 tests, the
number of registrations has increased to 3297 (27.03.2014) and is
increasing every day.
In the scheme of deputing top executives (GMs and DGMs) of the bank to
one training programme of their choice, at reputed external training
institutions, we deputed DGMs to IIM Ahmedabad and IIM Banglore. We
also conducted 05 training programmes in the specialized area of Credit
Management / SME Business / Analysis of Financial Statements /
Corporate Credit with the support of outside faculty.
For faster credit dispensation by bringing credit decision nearer to
business centres and customers as also to meet competition from other
banks, the Delegation of Powers of various Credit Committees were
revised and new credit committees (NWCC & RCC) were constituted to ease
pressure on the HOCC- II & ZOCC. The financing powers for allied &
general matters and advance related matters were also steamlined to
impart more effectiveness. The Delegation of Financial Powers up to
Scale -V was consolidated for ready reference to the staff. ATM Cell
Mumbai was rechristened as ATM Nodal Office, Mumbai and reallocated
under DGM (IT), in line with the other Associate Banks for sake of
uniformity. The Calendar of Reviews submitted to the Board/ ACB/ M.Com
was streamlined to impart more efficiency in the decision making
The Bank believes in keeping the morale and motivation of the employees
high, considers employees as its most important assets and accords high
priority to their welfare.
The Bank undertook following staff welfare activities
1. Granting of Scholarship to the meritorious wards of the employees.
2. Providing free medical consultancy services at various hospitals.
3. Insurance cover for employees to the extent of Rs.8.00 lakh f 16.00
lakh for accidental death) under Group Insurance Scheme of SBI Life.
4. A total amount of Rs.3.00 lakh outstanding in various loan a/ cs
viz. Housing Loan, Overdraft limit (Personal loan), PF Loan, Conveyance
Loan is allowed to be waived for employees who die in harness .
5. A one-time award of Rs. 10,000/- for education to one ward of the
deceased employee is also given.
6. Reimbursement of funeral expenditure is being made to the extent of
Rs. 10,000/- from staff welfare fund for both serving and retired
7. Annual Health Check up scheme is extended to the spouse of the
employees who are within the age group of 41 to 49 years.
8. For employees who are on leave for debilitating sickness and are on
loss of pay, an amount of Rs. 15000/- per month (upto 24 months during
the entire service period) is paid.
9. The Bank has set up Holiday Homes at Jaisalmer, Chandigarh,
Mussoorie, Jaipur, Manali, Mumbai, Goa, Delhi, Haridwar, Katra,
Bengaluru, Mt. Abu, Vrindavan and Udaipur. This facility is also
available for retired employees.
10. Various cultural and sports activities were organized during the
The Bank has a long history of harmonious and cordial relations with
both supervising as well as workmen employees enlisting their total
commitment, support and cooperation. The Employee's Union and
Officers' Association have extended their wholehearted cooperation for
the all-round growth of the Bank. A well established and on going
consultative machinery is functioning at various tiers of the
administration for resolving issues through joint consultations and
Vigilance Administration is an integral part of the management.
Vigilance activities are accorded high priority in the Bank. Keeping in
view the paramount importance of the preventive vigilance, greater
emphasis is laid on the preventive measures. Preventive Vigilance
training programs have been conducted to improve skills of the staff.
In other training programs conducted at Bank's Training Centres also,
areas with focus on "How to be a Vigilant Employee" and "Areas of
Concern from Vigilance Angle" are dealt with. The training platform of
the Bank has been effectively used to create awareness amongst all
officials about Vigilance function, areas of concern where officials
need to pay more attentions, nature of fraud/ serious irregularities
taking place, determination of vigilance angle and how bonafide actions
of the officials can be protected. The interaction and feedback from
the participants has been used to identify operational risk areas and
to suggest systematic improvement if any. Sensitization of officials on
Vigilance related issues was also done at various Zones. Preventive
Vigilance Committee set up has been revamped. Accordingly, branches
having staff of 10 or more, processing centers irrespective of staff
strength, unsatisfactory rated branches and fraud detected branches
have been included for formation of Preventive Vigilance Committee.
Meeting of Preventive Vigilance Committees are held regularly where
staff is sensitized towards preventive vigilance measures. Complaints
received in the Vigilance Department are dealt expeditiously and
investigations were conducted wherever needed. An independent Internal
Advisory Committee is functioning to examine all cases to decide
whether there is a Vigilance Angle. Significant emphasis is laid on the
transparency in the tendering process (procurement of goods and
services, auctions, etc.) by the Bank. The tenders issued by the Bank
are uploaded on the Bank's website as well as Government of India
An In-house magazine titled as "Vigilance Bulletin" is published every
quarter with an objective to create vigilance awareness amongst staff.
Many new initiatives have been taken as preventive measures like
Biometric login system, Electronic Voucher Verification, On line
Tracking of status of loan application by the applicant, better
pre-sanction due diligence process etc. Scheme of Recognition &
Alertness Award for staff in respect of detection / foiling of frauds
has been revamped and amount of incentive has been increased. Whistle
Blower Policy has been implemented in the Bank whereby any staff member
can provide information on any malpractices or instances of misuse of
official powers where the identity of informer will be protected
The department disposed of 440 complaints, 104 Investigations and 32
preventive vigilance inspections were conducted. 90 disciplinary cases
having vigilance angle have been concluded during the year 2013-14.
USE OF HINDI
The implementation of Official Language Policy in the Bank is not only
a statutory requirement but also a business need. The Bank made all
possible efforts to comply with the statutory provisions relating to
the Official Language Policy of the Govt. of India during the year and
took several initiatives to provide benefit of Bank's different schemes
to the masses through Hindi Language.
During the year 2013-14, the Bank made significant progress in
promoting and propagating the use of Official Language and ensured
compliance of various other statutory requirements framed under the
Official Language Act /Official Language Rules. The Bank made all
possible efforts to achieve the targets set by Official Language Deptt.
Ministry of Home affairs, Govt. of India.
Bank continued its efforts to promote use of Hindi in the field of
information Technology. A portal of Rajbhasha Vibhag was made available
on Bank's Infonet site. Various useful materials like Hindi typing
tool, format of Quarterly Progress Report, Annual Programme etc. were
made available on the portal. Officers/employees were imparted desk
training to work on computer in Hindi with the help of Unicode.
Hindi Day and Hindi-fortnight were celebrated in Offices/Branches of
the Bank in the month of September 2013 and various competitions were
conducted for the staff members. An All India Hindi Essay competition
was also conducted by the Head Office. To increase progressive use of
Hindi Head Office Rajbhasha Trophy competition (Head office and Zonal
level) was organized during the year. A Seminar was organised on 4th
March, 2014 for all Hindi officers/nominated Hindi officers of our
Bank's quarterly in House Rajbhasha magazine "Upwan" is being published
regularly. Since last two years this magazine had been awarded
consolation prize by Reserve Bank of India. During the year State Bank
of Bikaner and Jaipur has been awarded consolation Prize by RBI for the
progressive use of Hindi among Region "A".
Representative of Govt. of India also visited our Zonal Office Delhi ,
Kota , Regional Office Chandigarh, Sonipat, Amritsar, Ghaziabad and
Saket branches and appreciated our efforts. Bank TOLIC Jaipur and
Kolkata and TOLIC of Jodhpur and Kota also awarded our Bank for
Official Language implementation.
State Bank of India, with the concurrence of the Reserve Bank of India,
approved the appointment of 5 firms of Chartered Accountants viz. M/s.
Agarwal Anil & Co. of Delhi, M/s. M K Aggarwal & Co. of Delhi, M/s.
Chaturvedi & Co. of Kolkata, M/s. Uberoi, Sood & Kapoor of Delhi and
M/s. P S D & Associates of Jaipur as the Statutory Central Auditors of
the Bank for the year 2013-14. During the period under review, the
scope of audit covered 664 branches / centralized processing units as
against 587 branches/centralized processing units covered in 2012- 13.
The Board of Directors hereby states:
1. That in the preparation of the annual accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures;
2. That they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent, so as to give a true and fair view of the state of affairs of
the Bank as on the 31st March 2014, and of the profit or loss of the
Bank for the year ended on that date;
3. That they have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Banking Regulation Act, 1949, and State Bank of India (Subsidiary
Banks) Act, 1959 for safeguarding the assets of the Bank and preventing
and detecting frauds and other irregularities; and
4. That they have prepared the annual accounts on a going concern
The details on Corporate Governance are annexed.
The Board of Directors is grateful to its valued customers, esteemed
shareholders and the public at large for their patronage and confidence
reposed in the Bank and places on record its deep appreciation. The
Board of Directors thanks the Government of India, State Bank of India,
Reserve Bank of India and other regulatory agencies for their valuable
support and guidance throughout the year.
The Board of Directors places on record its deep appreciation of the
commitment, sense of involvement and dedication exhibited by each staff
member and constructive role played by the Employees' Union and
Officers Association in the overall development, growth and prosperity
of the Bank.
For and on behalf of the Board of Directors
Place : Mumbai
Date : 23rd April, 2014