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CHAPTER- V

STRUCTURE AND ROLE OF SBI AND ITS ASSOCIATE BANKS IN SOCIO-ECONOMIC DEVELOPMENT

The present chapter highlights the Structure and Role of SBI and its

Associate Banks in Socio-Economic Development. The State Bank of India is

the biggest commercial bank in whole of Asia. It occupies a unique place in

the Indian money market as it commands more than one third of India’s bank

resources.1 Public have enormous faith in State Bank of India because of its

dedicated services. The State Bank of India plays a pivotal role in the sphere

of establishing an egalitarian society. For this purpose, it has amended its

lending policies in such a way as to provide adequate availability of credit to

neglected sectors of the economy and to those who do not have easy access

to credit. The State Bank of India’s contribution to process of economic

development is based upon social justice.

SBI is comparable to world class banks due to strong capital base and

expenses-to-income ratio in liberalized era. The State Bank of India is India’s

largest commercial bank and is ranked one of the top five banks worldwide. It

serves 90 million customers through a network of 9000 branches. A wide and

diversified range of banking services is offered by SBI and its associate. SBI

bank has 52 foreign offices in 34 countries.

As per socio-economic environment of India, SBI is paying more

attention to under-developed and neglected sector of the economy. It

contributes towards removal of large number of socio-economic problems

such as the removal of poverty, creation of more employment opportunities

and removing inequalities in income distribution.

ANALYSIS OF STRUCTURE OF SBI AND ITS ASSOCIATE BANKS

This chapter has analysed the structure of State Bank of India and its

associates under following sub heads: Structure of Balance Sheet Items of SBI and its associates Table 5.1 indicates that the capital base of the entire banking industry

excluding regional rural banks for the year 2009-10 was Rs. 48647.67 Cr. 1 Patnaik U.C. & Patnaik Manoj, "Profitability in Public Sector Banks", Sonali Publications, New

Delhi, 2005, p. 53.

Formatted: Indent: First line: 0.5", SpaceAfter: 0 pt, Line spacing: 1.5 lines, Don'tadjust space between Latin and Asian text

c 119 C

Foreign Banks has 62.81 percent of the capital base of entire banking

industry. It is followed by Public Sector Banks having 27.84 percent of capital

base. SBI has 1.305 percent and SBG has 2.269 percent of capital base. It

can be concluded that foreign banks are leaders in terms of capital base of

the entire banking industry. In terms of reserves & surplus PSBs are leading

with Rs. 227456.18 Cr. which is 59.63 percent of the entire banking Industry

and are followed by PBs and SBG having 30.26 percent and 21.66 percent of

the reserves and surplus of the banking industry. SBI has 17.12 percent and

its associate banks have 4.537 percent of the reserves and surplus. Deposits

form the large financial resource base of the industry. In terms of deposits

PSBs are on the number one position having Rs. 3691801.77 Cr which forms

77.68 percent of total deposits of banks. SBG has 23.32 percent in which

share of SBI is 16.92 percent and that of its associate banks is 6.396 percent.

Borrowings also form the major chunk of liabilities. PSBs have 59.80 percent

of total borrowings followed by PBs and SBG having 28.36 percent and 23.17

percent. FBs have meagre borrowings of 1.184 percent. Table 5.1

Structure of Balance Sheet Items of SBI & its Associates for the year 2009-10.

Bank/Item Capital Reserves &

Surplus Deposits Borrowings Investments Advances

Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent

SBI 634.88 1.305 65314.32 17.12 804116.23 16.92 103011.60 0.196 285790.07 16.62 631914.15 18.07 Associates of SBI 469.00 0.964 17307.41 4.537 303969.38 6.396 18555.71 3.536 91867.77 5.344 22684.06 6.471

SBBJ 50.00 0.103 2367.40 0.621 46058.84 0.969 2975.06 0.567 13600.51 0.791 35222.55 1.007

SBH 20.75 0.0426 4243.75 1.112 72970.72 1.535 4838.42 0.922 24008.52 1.397 53040.07 1.517

SBIN 17.50 0.0359 1824.05 0.478 30624.48 0.644 1796.43 0.342 8575.25 0.499 23677.08 0.677

SBM 36.00 0.074 2629.29 0.689 38880.00 0.818 2274.01 0.433 11494.41 0668 29535.86 0.845

SBP 294.75 0.606 3452.36 0.905 64551.94 1.358 3421.64 0.652 18165.11 1.057 46347.23 1.327

SBS - - - - - - - - - - - -

SBT 50.00 0.103 2790.58 0.732 50883.39 1.071 3250.15 0.619 16023.99 0.932 38461.26 1.099

SBG 1103.88 2.269 82621.73 21.66 1108085.61 23.32 121567.31 23.17 377657.84 21.97 858198.21 24.54

NBs 11714.93 24.08 135396.06 35.49 2416049.09 50.84 144537.23 27.54 754779.29 43.90 1704899.81 48.75

PSBs 13543.67 27.84 227456.18 59.63 3691801.77 77.68 313814.02 59.80 1205782.60 70.14 2701299.88 77.25

PBs 4549.00 9.351 115435 30.26 822801.00 17.31 148803.00 28.36 354117.00 20.59 632494 18.09

FBs 30555.00 62.81 38584 10.11 237853.00 5.004 62146.00 1.184 159286.00 9.265 163260 4.669

All Banks 48647.67 100.00 381475.18 100.00 4752455.7 100.00 524763.02 100.00 1719185.6 100.00 3497053.8 100.00 Source: 1) Performance Highlights of Public Sector Banks, 2009-10, Indian Bank’s

Association, Mumbai. 2) Statistical Tables Relating to Banks in India, 2009-10, RBI, Mumbai.

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SBI has 0.196 percent whereas associate of SBI has 3.536 percent.

Advances and Investments form the supply side of the banking business.

PSBs have 70.14 percent and 77.25 percent of the investments and advances

of the entire banking industry. It is followed by PBs and SBG. SBI has 16.62

percent of investments and 18.07 percent of advances of the banking

industry. The behaviour of investments and advances of the various

categories of banks is almost the same.

Earning structure of SBI and its associates

Table 5.2 indicates that the major items of earnings of banking industry

are interest earned, interest/discount on advances, income on investment,

Commission, Exchange & Brokerage and other income. PSBs have 71.79

percent of the total income followed by PBs having 20.85 percent. SBI has

17.39 percent and associate of SBI has 6.147 percent of total income. Among

the Associates of SBI, State Bank of Indore (SBIN) has the lowest income that

0.629 percent and State Bank of Hyderabad (SBH) has the highest total

income that 1.452 percent. Comparison of interest earned and other income

figures reveals that SBI has more of income from other sources that is 19.06

percent and less of interest earnings that is 17.08 percent. On the other hand

Associates of SBI, NBs, PSBs, PBs and FBs have more of interest earnings

and less of income from other sources. SBI has 16.98 percent of income on

investment and it has 23.45 percent from commission, exchange & brokerage.

Associate of SBI has 6.485 percent of interest earnings and 4.363 of other

income. PSBs have 73.72 percent of interest earnings and 61.63 percent of

other income. Total income of the PSBs is 71.79 percent of the entire banking

industry.

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Table 5.2 Earning Structure of SBI & its Associates in the year 2009-10

Bank/Item

Interest Earned Interest/Discount Income on Investment

Comm. Exch. & Brokerage Other Income Total Income

Amount Percent Amount Percen

t Amount Percent Amount Percen

t Amount Percent Amount Percen

t

SBI 70993.92 17.08 46404.71 16.54 17736.30 16.98 9640.86 23.45 14968.15

19.06 85962.07 17.39

Associates of SBI

26959.74 6.485 19498.41 6.949 5834.22 5.584 2347.92 5.711 3425.50 4.363 30385.24 6.147

SBBJ 3977.22 0.957 2989.43 1.065 849.94 0.814 450.88 1.097 582.68 0.742 4559.90 0.923

SBH 6334.12 1.524 4201.20 1.497 1521.26 1.456 538.92 1.311 841.33 1.071 7175.45 1.452 SBIN 27360.10 0.658 2105.40 0.750 574.77 0.550 230.29 0.560 373.38 0.476 3109.47 0.629 SBM 3558.92 0.856 2528.64 0.901 773.90 0.741 323.85 0.788 425.72 0.542 3984.64 0.806 SBP 5975.27 1.437 4500.35 1.604 1156.45 1.107 472.06 1.148 674.44 0.859 6649.71 1.345 SBS - - - - - - - - - - - - SBT 4378.12 1.053 3173.40 1.131 957.90 0.917 331.92 0.807 527.96 0.672 4906.08 0.993

SBG 97953.66 23.56 65903.13 23.49 23570.51 22.56 11988.78

29.16 18393.66

23.43 116347.31

23.54

NBs 193262.00

46.48 129496.43

46.15 46767.66 44.76 9098.79 22.13 27703.42

35.28 220965.42

44.71

PSBs 306488.29

73.72 204456.63

72.87 74562.32 71.37 22313.01

54.27 48388.03

61.63 354876.32

71.79

PBs 82874.00 19.93 59701.00 21.28 20661.00 19.78 12237.00

29.76 20180.00

25.70 103054.00

20.85

FBs 26390.00 6.348 16416.00 5.851 9254.00 8.857 6563.00 15.96 9951.00 12.67 36341.00 7.352

All Banks 415752.29

100.00 280573.63

100.00 104477.32

100.00 41113.01

100.00 78519.03

100.00 494271.32

100.00

Source: 1) Performance Highlights of Public Sector Banks, Indian Banking Association, Mumbai.

2) Statistical Tables Relating to Banks in India, 2009-10, RBI, Mumbai. Expenditure structure of SBI and its associates

Table 5.3 shows that the major items of expenditure of the banking

industry are interest expended, interest on deposits, establishment expenses,

operating expenses. Total Expenditure including provisions and contingencies

of the entire banking industry is Rs. 409541.38 Cr for the period 2009-10. The

share of PSBs is 77.07 percent and that of PBs and FBs is 18.04 percent and

4.893 percent respectively. SBI has 18.75 percent of total expenditure

whereas Associates of SBI has 6.662 percent of total expenditure. Share of

interest expended by SBI is 17.39 percent and that of Associates of SBI is

6.949 percent. Share of SBI in total expenditure is more than PBs and FBs.

Establishment expenses relates to expenditure on salaries and other

allowances paid to the staff. Operating expenses includes establishment

expenses, rent taxes & Lighting, printing & stationary, Advertisement &

publicity, depreciation, insurance etc. Establishment expenses as percentage

of that of entire banking industry is same for SBI and NBs that is 23.12

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percent PSBs incur major share on establishment expenses that is 74.38

percent. Associate of SBI has 5.101 percent, PBs has 17.07 percent and FBs

has 8.529 percent of total establishment expenses. Operating expenses of

SBI are less than PBs that is 20.37 percent and 22.73 percent respectively.

PSBs incur 66.14 percent of total operating expenses. Among Associates of

SBI, share of SBIN is lowest that 0.509 percent whereas that of SBH is

highest that is 0.986 percent. As far as establishment expenses and operating

expenses are concerned same behaviour is observed as in case of total

expenditure among Associates of SBI.

Table 5.3 Expenditure Structure of SBI & its Associates in the Year 2009-10.

Bank/ Item Interest Expended Interest on Deposits Establishment

Expenses Operating Expenses Total Expenditure

Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent SBI 47322.48 17.39 43334.29 17.89 12754.65 23.12 20318.68 20.37 76796.02 18.75 Associates of SBI

18906.03 6.949 17491.16 7.224 2813.63 5.101 4880.49 4.892 27118.68 6.662

SBBJ 2765.69 1.016 2587.48 1.069 501.82 0.9097 890.47 0.893 4104.73 1.002 SBH 4470.88 1.643 4139.82 1.709 602.56 1.092 983.78 0.986 6352.74 1.551 SBIN 1928.10 0.7086 1758.84 0.726 258.88 0.469 508.14 0.509 2801.70 0.684

SBM 2322.36 0.854 2098.22 0.867 418.26 0.758 724.88 0.727 3538.87 0.864 SBP 4441.05 1.632 4161.63 1.719 500.57 0.9074 900.95 0.903 6098.82 1.489 SBS - - - - - - - - - - SBT 2977.94 1.094 2745.17 1.134 531.54 0.9636 872.27 0.874 4221.81 1.031 SBG 66228.51 24.34 60825.44 25.12 15568.27 28.22 25199.17 25.26 103914.70 25.37 NBs 132706.34 48.77 123132.12 50.85 12754.65 23.12 38960.73 39.05 195172.24 47.66 PSBs 211940.06 77.89 193140.72 79.77 41031.54 74.38 65991.32 66.14 315619.38 77.07

PBs 51206.00 18.82 41766.00 17.25 9427.00 17.07 22676.00 22.73 73882.00 18.04 FBs 8938.00 3.285 7230.00 2.896 4705.00 8.529 11102.00 11.13 20040.00 4.893 All Banks 272084.06 100.00 242136.72 100.00 55163.54 100.00 99769.32 100.00 409541.38 100.00

Source: 1) Performance Highlights of Public Sector Banks, Indian Banking Association, Mumbai.

2) Statistical Tables Relating to Banks in India, 2009-10, RBI, Mumbai.

Structure of main financial results

Table 5.4 shows structure of main financial results and indicate

parameters such as total income, total expenditure, operating profit,

provisions & Contingencies, Net profit. In terms of total income the share of

SBI in the total industry in the year 2009-10 is to the tune of 18.12 percent.

The share of Associates of SBI is 6.147 percent. The share of PSBs, PBs and

FBs is 71.79 percent, 20.85 percent and 7.352 percent respectively. The

behaviour of total expenditure is more or less the same as that of total

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income. The major chunk of profits goes to PSBs that is 68.74 percent of the

entire banking industry. It is followed by PBs having 22.96 percent of share of

profits and share of SBI is 16.05 percent. Share of Associate banks is 5.719

percent and among these share State bank of Hyderabad is highest that is

1.441 percent. Share of Foreign banks in the total net profit of the industry is

8.302 percent. As compared to income and expenditure shares the share of

foreign banks is slightly higher that is indicative of their better efficiency.

Share of other group of banks that SBI, Associates of SBI, PSBs, PBs and

FBs in income and expenditure is higher than share of net profits which is

indicative of inefficiency on part of banking groups. Table 5.4

Structure of Main Financial Results in Year 2009-10.

Bank/ Item Total Income Total Expenditure Operating Profit Provisions &

Contingencies Net Profit

Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent

SBI 85962.07 18.12 67358.00 16.45 18320.91 14.97 9154.86 14.02 9166.05 16.05 Associates of SBI 30385.24 6.147 27118.68 6.622 6598.73 5.390 3332.16 5.102 3266.56 5.719

SBBJ 4559.90 0.9225 4104.73 1.002 903.73 0.738 448.57 0.687 455.16 0.797

SBH 7175.45 1.452 6352.74 1.551 1720.79 1.406 898.08 1.375 822.71 1.441

SBIN 3109.47 0.629 2801.70 0.6841 673.23 0.549 365.46 0.559 307.77 0.538

SBM 3984.64 0.806 3538.87 0.8641 937.40 0.766 491.63 0.753 445.77 0.781

SBP 6649.71 1.345 6098.82 1.489 1307.71 1.068 756.82 1.159 550.89 0.965

SBS - - - - - - - - - -

SBT 4906.08 0.993 4221.81 1.031 1055.87 0.863 371.60 0.568 684.27 1.198

SBG 116347.31 23.54 103914.70 25.37 24919.64 20.36 12487.02 19.12 12432.62 21.77

NBs 220965.42 44.71 195172.24 47.66 49298.84 40.27 23505.66 35.99 25793.18 45.16

PSBs 354876.32 71.79 315619.38 77.07 76945.42 62.85 37688.49 57.71 39256.93 68.74

PBs 103054.00 20.85 73882.00 18.04 29173.00 23.83 16061.00 24.59 13111.00 22.96

FBs 36341.00 7.352 20040.00 4.893 16301.00 13.32 11560.00 17.70 4741.00 8.302

All Banks 494271.32 100.00 409541.38 100.00 122419.42 100.00 65309.49 100.00 57108.93 100.00

Source: 1) Performance Highlights of Public Sector Banks 2009-10, Indian Banking Association, Mumbai.

2) Statistical Tables Relating to Banks in India, 2009-10, RBI, Mumbai.

Employment structure of SBI and its associates

Table 5.5 shows employment structure of SBI & its Associates in year

2009-10. In terms of manpower, 77.77 percent of the total employment of

industry is with PSBs of which 61.46 percent are officers, 93.56 percent are

clerks and 93.50 percent belong to sub-staff category. PBs has 19.29 percent

and foreign banks have only 2.937 percent of the total staff of the industry.

SBI have 21.20 percent of the total staff of industry which is higher than that

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of PBs and FBs. 15.02 percent of the total staff of SBI are officers and 27.38

percent are clerks and 26.91 percent belong to sub-staff category.

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Table 5.5 Employment Structure of SBI & its Associates in Year 2009-10.

Bank/ Item Total Staff Officers Clerks Sub Staff

Number Percent Number Percent Number Percent Number Percent SBI 200299 21.20 70622 15.02 87356 27.38 42321 26.91 Associates of SBI 67033 7.096 23972 5.098 29667 9.297 13394 8.515 SBBJ 12356 1.308 4570 0.972 4830 1.514 2956 1.879 SBH 13597 1.439 5137 1.092 6002 1.881 2458 1.563 SBIN 6368 0.674 2474 0.526 2762 0.866 1132 0.719 SBM 10111 1.070 3158 0.672 4678 1.466 2275 1.446 SBP 12409 1.314 4451 0.947 5611 1.759 2347 1.492 SBS - - - - - - - - SBT 12192 1.291 4182 0.889 5784 1.813 2226 1.415 SBG 267332 28.30 94594 20.12 117023 36.67 55715 35.42 NBs 455049 48.17 184812 39.30 180056 56.43 90181 57.33 PSBs 734594 77.77 289004 61.46 298517 93.56 147073 93.50 PBs 182284 19.29 155394 33.05 19151 6.002 7739 4.920 FBs 27742 2.937 25848 5.497 1410 0.442 2484 1.579 All Banks 944620 100.00 470246 100.00 19078 100.00 157296 100.00 Source: 1) Performance Highlights of Public Sector Banks, 2009-10, Indian Banking

Association, Mumbai. 2) Statistical Tables Relating to Banks in India, 2009-10, RBI, Mumbai.

Population wise distribution of branches of SBI and its associates Structure of market reach is measured by total number of branches of

various groups of banks and is indicated in Table 5.6. PSBs has widespread

network of branches having 85.31 percent of total branches of banking

industry. SBI has 17.96 percent of total branches of industry which is higher

than that of PBs and FBs. PBs has 14.25 percent whereas FBs has very

meagre share that is only 0.435 percent. Table 5.6

Population-wise Distribution of Branches of SBI & its Associates in the Year 2009-10.

Bank/ Item Total Branches Rural Semi-Urban Urban Metropolitan

Number Percent Number Percent Number Percent Number Percent Number Percent SBI 12638 17.96 4745 22.27 3645 20.32 2240 13.81 1866 12.78 Associates of SBI

4841 6.881 1271 5.965 1607 8.958 1064 6.559 899 6.157

SSBJ 861 1.224 297 1.394 242 1.349 157 0.968 165 1.130 SBH 1185 1.684 317 1.488 376 2.096 277 1.708 215 1.473 SBIN 472 0.671 120 0.563 142 0.792 87 0.536 123 0.842 SBM 689 0.979 215 1.009 139 0.775 148 0.912 187 1.281 SBP 886 1.259 273 1.281 240 1.338 235 1.448 138 0.945 SBS - - - - - - - - - - SBT 748 1.063 49 0.229 468 2.609 160 0.986 71 0.486 SBG 17479 2.484 6016 28.24 5252 2.928 3304 20.37 2765 18.94 NBs 41833 59.46 14011 65.76 9500 52.96 9548 58.87 8628 59.09 PSBs 60021 85.31 20100 94.34 14896 83.04 13133 80.97 11603 79.47 PBs 10027 14.25 1201 5.637 3037 16.93 3027 18.66 2762 18.92 FBs 306 0.435 5 0.023 6 0.033 60 0.369 235 1.609 All Banks 70354 100.00 21306 100.00 17939 100.00 16620 100.00 14600 100.00

Source: Performance Highlights of Public Sector Banks, 2099-10. Statistical Tables Relating to Banks in India, 2009-10, RBI, Mumbai.

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Of the 17.96 percent of total branches of SBI, 22.27 percent is in rural

areas, 20.32 percent in semi-urban, 13.81 percent in urban and 12.78 percent

in metropolitan. It means largest proportion of total number of branches of SBI

is located in rural areas. Highest proportion of branches of PSBs in rural,

semi-urban, urban and metropolitan areas is indicative of the fact that PSBs

has spread through the entire length and breadth of the country. Foreign

Banks being new entrants have only total 306 branches. Structure of select financial parameters of SBI and its associates

A table 5.7 show that among various groups of banks, Credit deposit

ratio of SBI is highest that is 78.58 percent. Associate of SBI has 74.44

percent and that of NBs is 71.34 percent. Business per employee of SBI is

Rs. 636.00 lacs and that of Associates of SBI is Rs. 735 lacs and that of NBs

is Rs. 1229.57 lacs. Profit per Employee in case of SBI is Rs. 4.46 lacs and

that of Associates of SBI is 4.71 lacs. In case of NBs profit per employee is

Rs. 6.88 Cr whereas in case of PSBs it is Rs. 6.72 Cr. Table 5.7

Structure of Select Financial Parameters of SBI & its Associates as on March 31, 2010.

(Percent)

Bank/ Item

CRAR Basel-I

Credit Deposit Ratio (CDR)

Deposits per

employee (Amt. In

Rs. Lacs)

Advances per

employee (Amt. In

Rs. Lacs)

Business per

employee (Amt in

Rs. Lacs)

Profit per employee

(Amt in Rs. Lacs)

Net Profit as %

to Assets

Spread as %

to Assets

Return on

Assets (ROA)

Net NPAs/ Net

Advances

Est. Expenses as % to

total expenses

Int. Income as %

to AWF

Non-Int.

Income as %

to AWF

Operating Profit as % to

AWF

SBI 12 78.58 401.46 315.49 636.00 4.46 0.87 2.25 0.88 1.72 16.61 6.80 1.75 1.75

Associates of SBI - 74.44 453.46 337.57 735.00 4.71 0.91 2.24 1.00 0.90 10.38 8.17 1.99 1.99

SBBJ 11.94 76.47 372.77 285.06 627.67 3.96 0.84 2.24 0.93 0.77 12.23 8.10 1.84 1.84

SBH 13.71 72.69 536.67 390.09 755.62 5.58 0.93 2.10 1.03 0.55 9.49 7.93 2.15 2.15

SBIN 12.08 77.31 480.91 371.81 763.51 4.83 0.87 2.28 0.91 1.13 9.24 8.09 1.98 1.98

SBM 12.12 75.97 384.53 292.12 672.00 4.41 0.98 2.72 1.06 1.02 11.82 8.45 2.23 2.23

SBP 12.45 71.80 520.20 373.50 895.21 4.45 0.72 2.02 0.79 1.04 8.21 8.42 1.81 1.81

SBS - - - - - - - - - - - - - -

SBT 11.89 75.89 417.35 315.46 696.00 5.00 1.15 2.36 1.26 0.91 12.59 8.05 1.94 1.94

SBG 12.70 77.45 414.50 321.02 752.89 4.83 0.88 2.25 0.91 1.50 14.98 8.19 1.99 2.02

NBs 12.10 71.34 530.94 374.66 1229.57 6.88 0.92 2.17 1.00 0.91 12.66 7.90 1.92 1.92

PSBs 12.30 73.17 502.20 367.73 1466.63 6.72 0.88 2.13 0.97 1.10 13.00 7.94 1.77 1.77

Source: Performance Highlights of Public Sector Banks, 2009-10, Indian Banking Association, Mumbai.

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ROLE OF SBI & ITS ASSOCIATE BANKS IN SOCIO-ECONOMIC DEVELOPMENT

In modern economy, bankers are not to be considered merely as

dealers in money but more realistically the lenders in development.

Commercial banks have huge investment potentiality. They can make

remarkable contribution in eradication of poverty, unemployment and can

assist in reducing inter-regional, inter-state and inter-sectoral disparities

through rapid expansion of banking services. Banks play a pivotal role in

providing crucial services to the people belonging to the various sectors of the

economy like agriculture, industry and to the tertiary sector. Credit is an

essential ingredient for giving impetus to economic development. Banks

ensure that finance is directed into socially desirable channels.

Prior to nationalisation of commercial banks, these banks were mostly

profit oriented and were least bothered about the developmental needs of the

economy. But after nationalisation, banks have become harbingers of socio-

economic development. They are now paying more attention to sectors

referred as priority sectors. Priority sectors include agriculture, small scale

industries, professional and self-employed persons, education, road & water

transport operators, weaker sections of the society, retail traders and small

business.

This chapter has analysed the role of SBI and its associate banks in

socio-economic development under following sub heads. Financing of Agriculture

Agriculture is the key occupation of the country. Development of the

country largely depends on agriculture. Commercial banks plays key role in

financing of agriculture. State Bank of India being premier banking institution

in the country was pioneer in the field of agriculture financing. Distribution of

Outstanding Advances to Agriculture is given in Table 5.8. In case of Public

sector Banks average distribution of outstanding Advance to Agriculture is

Rs.178747.33 Cr of which share of State Bank Group is Rs.56540.11 Cr and

Nationalized Banks is Rs.56540.11 Cr. Contribution of State Bank of India to

agriculture in average terms is Rs.38564.22 Cr. Standard deviation is higher

in case of public sector banks indicating high variability and less in case of

state bank group indicating more uniformity among associates of SBI, it is low

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in case of State Bank of Saurashtra indicating high degree of uniformity and it

is high in case of Hyderabad indicating more variability. Coefficient of variation

indicates a fair level of consistency in distribution of outstanding Advances to

Agriculture. Growth rate Analysis indicates that in case of Public sector banks

comes to be 27.02 per annum during the last decade and in case of

Nationalized Banks is 26.93 and in case of State Bank Group is 27.21. This

indicates that growth rate is higher in case of State Bank of India and comes

to be 28.60. Among Associates of SBI, highest growth rate is observed in

case of State Bank of Mysore and comes to be 30.98. Hence growth rate is

favourable among all groups of banks. Growth rate is most satisfactory in

case of State Bank of Mysore and satisfactory in case of State Bank of India,

State Bank Group, Nationalized Banks and Public sector Banks.

It can be concluded that growth rate in financing of agriculture is

favourable in case of all group of banks. Table 5.8

Distribution of Outstanding Advances to Agriculture (Rs. Cr)

Source: Statistical Tables Relating to Banks in India, RBI, Mumbai, Various issues

Financing of Small Enterprises

Financing of small scale enterprises was the first activity which the

State Bank started after establishment for expanding the scope of its

Year/ Bank SBI Associates

of SBI SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 12561 6145 942 1056 766 502 1435 803 641 18706 39436 58142

2002-03 15871 7912 1181 1521 953 783 1785 850 839 23783 49724 73507

2003-04 16993 9457 1376 1604 1196 866 2278 973 1164 26451 59646 86097

2004-05 20526 12770 2147 1896 1666 1228 2891 1210 1732 33296 79179 112475

2005-06 30516 17117 2889 2973 2157 1658 3515 1502 2423 47633 106881 154314

2006-07 41661 21759 3755 3799 2645 2181 4491 1937 2951 63419 141672 205091

2007-08 56432 26126 4590 5148 3018 2911 4574 2195 3690 82558 166128 248685

2008-09 69279 26511 4828 6648 3343 3839 5040 - 2813 95790 202147 297937

2009-10 83239 33986 6039 8516 4120 4123 8058 - 3130 117225 255253 372478

Mean 38564.22 17975.89 3083.00 3684.56 2207.11 2010.11 3785.22 1352.86 2153.67 56540.11 122229.56 178747.33

SD 25774.74 9692.59 1821.22 2595.76 1160.06 1345.12 2050.01 546.59 1097.17 35314.46 74586.00 109839.25

CV 66.84 53.92 59.07 70.45 52.56 66.92 54.16 40.40 50.94 62.46 61.02 61.45

CAGR 28.60 24.26 27.60 30.13 23.80 30.98 21.84 19.97 23.81 27.21 26.93 27.02

c 129 C

operations to include priority sector. The financing schemes of Banks are so

designed as to help the small units in their working and also to expand their

size. Over the years, the Public sector Banks including Nationalized Banks

and State Bank Group has been providing financial assistance to small scale

industries with growing emphasis on assisting village and cottage industries.

Distribution of Outstanding Advances to Small Enterprises is given in Table

5.9. In case of Public sector Banks average distribution of outstanding

Advances to Small Enterprises is Rs. 115375.33 Cr. of which share of

Nationalized Banks is Rs. 80710.67 Cr and that of State Bank Group is Rs.

34664.67 Cr. Contribution of State Bank of India to small enterprises in

average terms is Rs, 22524.67 Cr and that of Associates of SBI is Rs.

13251.22 Cr. Standard deviation is higher in case of public sector banks

indicating high variability and less in case of State Bank group indicating more

uniformity. Among associates of SBI it is low in case of State Bank of

Saurashtra indicating high degree of uniformity and it is high in case of State

Bank of Patiala indicating more variability. Coefficient of variation in case of

Nationalized Banks and Public sector Banks is 72.98 and 66.97 respectively

indicating more variability and less consistency. In case of State Bank of

India, Coefficient of variation is 46.44 which indicate more consistency and

less variability. Growth rate Analysis shows that growth rate in case of Public

sector Banks is 23.57 and that in case of Nationalized Banks is 26.02 and

State Bank Group is 18.54. This indicates that growth rate is higher in case of

Nationalized Banks as compared to State Bank Group. Growth rate in case of

State Bank of India is 15.99 and in case of Associates of SBI is 19.97. Among

the Associates of SBI, the growth rate is highest in case of State Bank of

Indore (32.06). This shows that growth rate is most satisfactory in case of

State Bank of Indore, more satisfactory in case of Nationalized Banks and

less satisfactory in case of SBI and its Associates and Public sector Banks. It

can be concluded that growth rate in case of all groups of Banks is favourable

in case of financing of small enterprises. Growth rate is most satisfactory in

case of State Bank of Indore, more satisfactory in case of Nationalized Banks

and less satisfactory in case of SBI and its Associates and Public sector

Banks.

c 130 C

Table 5.9 Distribution of Outstanding Advances to Small Enterprises (Rs. Cr.)

Year/Bank SBI Associates

of SBI SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 16129 5448 955 917 586 665 978 777 570 21577 32690 54267

2002-03 12393 5641 1111 969 712 562 881 772 634 18034 34953 52987

2003-04 13033 16246 1207 1091 800 547 1092 785 724 19279 38999 58278

2004-05 14865 7135 1418 1245 959 645 1121 925 822 22000 45634 67634

2005-06 18489 8684 1680 1476 1231 808 1323 1239 927 27173 55319 82492

2006-07 22816 10270 1948 1661 1334 1057 1643 1510 1117 33086 71617 104703

2007-08 28046 16836 2912 2888 2703 1783 3328 1503 1719 44882 103769 148651

2008-09 34777 20281 2875 3279 4791 2213 4643 - 2480 55057 135911 190968

2009-10 42174 28720 4580 5442 4555 2476 7805 - 3862 70894 207504 278398

Mean 22524.67 13251.22 2076.22 2107.56 1963.44 1195.11 2534.89 1073.00 1428.33 34664.67 80710.67 115375.33

SD 10460.58 7877.83 1180.92 1507.87 1658.95 757.94 2354.56 338.25 1100.73 18494.60 58898.99 77264.96

CV 46.44 59.45 56.88 71.55 84.49 63.42 92.89 31.52 77.06 53.35 72.98 66.97

CAGR 15.99 19.97 20.53 24.23 32.06 22.60 30.35 14.44 25.82 18.54 26.02 23.57

Source: Statistical Tables Relating to Banks in India, RBI Mumbai, Various issues

Priority Sector Advances

The objective of providing assured financial support to priority sector

was institutionalised with the nationalization of the leading commercial banks

in 1969 and 1980. The formal definition of ‘Priority Sector’ came into

existence in 1972 when retail trade, small business, professional and self

employed persons and education loans were also declared as priority sector

in addition to Small Scale Industries, agriculture and allied agricultural

activities and transport operators. Now housing has also been brought under

the priority sector. According to the benchmark laid down by the RBI, at least

40 percent of the net bank credit of the bank should be to the priority sector,

18 percent to agriculture and 10 percent to the weaker section of the society

as a part of the priority sector. The bank has been all along making sincere

efforts to achieve the benchmark for priority sector advances. Distribution of

Total Advances to Priority Sector is given in table 5.10. Advances to Priority

sector in case of Public sector Banks in terms of average ratio is

Rs.450616.22 Cr. and in case of Nationalized Banks is Rs.306623.78 Cr and

State Bank Group is Rs.143992.56 Cr. Average figure in case of State Bank

of India is Rs. 97071.11 Cr and Associates of SBI is Rs. 46921.33 Cr.

Standard deviation is higher in case of public sector banks indicating high

variability and less in case of state bank group indicting more uniformity.

c 131 C

Among associates of SBI, it is low in case State Bank of Saurashtra indicating

high degree of uniformity and it is high in case of State Bank of Hyderabad

indicating more variability. Coefficient of variation shows fair level of

consistency among Public sector Banks, Nationalized Banks and State Bank

Group. Growth rate Analysis indicates that growth rate in case of Public

sector Banks is 22.98, in case of Nationalized Banks is 23.10 and that of

State Bank Group is 22.75. Growth rate in case of Nationalized Banks is

higher as compared to Public sector Banks and State Bank Group. Growth

rate in case of State Bank of India comes to be 22.91 and in case of

Associates of SBI is 22.44. Among Associates of SBI the highest growth rate

is in case of State Bank of Mysore (26.12). This indicates that growth rate is

most satisfactory in case of State Bank of Mysore and satisfactory in case of

State Bank Group, Nationalized Banks and Public sector Banks. It can be

concluded that growth rate in case of priority sector advances is favourable

among all groups of banks. It is most satisfactory in case of State Bank of

Mysore and satisfactory in case of State Bank Group, Nationalized Banks and

Public sector Banks. Table 5.10

Distribution of Total Advances to Priority Sector (Rs. Cr.)

Year/Bank SBI Associates of SBI SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 40325 17214 2550 3203 1982 1674 3459 1891 2455 57539 113944 171483

2002-03 51407 26512 4131 4560 3146 2303 5601 2341 4430 77919 167663 245582

2003-04 43709 20839 2913 3942 2459 2018 4127 1992 3388 64548 138549 203097

2004-05 62673 33817 5327 6134 4083 3323 6104 2912 5934 96491 214239 310729

2005-06 82895 45574 6970 8767 5190 4493 8550 3638 7966 128469 281322 409791

2006-07 110373 56397 8421 11295 6153 6063 10310 4523 9632 166770 354411 521180

2007-08 133202 66369 10373 12727 7753 6960 11656 4875 12025 199571 409391 608963

2008-09 160892 71640 11122 14788 10052 8688 13779 - 13211 232532 487235 719767

2009-10 188164 83930 13277 18965 10183 9314 17931 - 14260 272094 592860 864954

Mean 97071.11 46921.33 7231.56 9375.67 5666.78 4981.78 9057.44 3167.43 8144.56 143992.56 306623.78 450616.22

SD 54072.22 23983.19 3821.69 5452.75 3105.89 2904.27 4820.97 1206.51 4388.20 77866.66 166304.00 244086.61

CV 55.70 51.11 52.85 58.16 54.81 58.30 53.23 38.09 53.88 54.08 54.24 54.17

CAGR 22.91 22.44 23.30 25.44 23.65 26.12 21.90 18.53 24.88 22.75 23.10 22.98

Source: Statistical Tables Relating to Banks in India, RBI, Mumbai, Various Issues.

c 132 C

Advances to Weaker Section Weaker section precisely includes Scheduled Castes and Scheduled

Tribes, small and marginal farmers, landless labourers and beneficiaries

under the Swaranjayanti Gram Swarozgar Yojana and DRI scheme. Table

5.11 shows distribution of advances to weaker section. Advances to weaker

section in average terms in case of Public sector Banks is Rs. 93890 Cr and

in case of Nationalized Banks is Rs. 60365.04 Cr and State Bank Group is

Rs. 33524.95 Cr. Average figure in case of State bank of India is Rs.

23638.84 Cr and in case of Associates of SBI is Rs. 13586.10 Cr. Standard

deviation is higher in case of public sector banks indicating high variability and

less in case of State Bank Group indicating more uniformity. Among

associates of SBI, it is low in case of State Bank of Saurashtra indicating high

degree of uniformity and it is high in case of State Bank of Hyderabad

indicating more variability. Coefficient of variation is indicative of fair level of

consistency among State Bank Group, Nationalized Banks and Public sector

Banks. Growth rate Analysis shows that growth rate in case of Public sector

Banks is 29.51, in case of Nationalized Banks is 29.00 and in case of State

Bank Group is 30.52. It indicates that growth rate is slightly higher in case of

State Bank Group. Growth rate in case of State Bank of India is 31.03 and

Associates of SBI is 15.51. Among Associates of SBI, highest growth rate is in

case of State Bank of Hyderabad (36.34). It indicates that growth rate is most

satisfactory in case of State Bank of Hyderabad and satisfactory in case of

State Bank of India, Nationalized Banks and Public sector Banks and low in

case of Associates of SBI. Table 5.11

Distribution of Advances to Weaker Section ( Rs. Cr) Bank/Year SBI Associate

s of SBI SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 7052 3386 440 771 297 461 767 230 421 10438 18537 28975 2002-03 6644 36999 532 616 391 507 929 259 466 10344 21960 32304 2003-04 9572 4027 577 489 417 572 1251 228 493 13598 27990 41589 2004-05 19732 5467 1088 777 497 843 1489 248 525 25199 38293 63492 2005-06 19883 7170 1527 529 710 1057 2220 419 709 27053 51321 78374 2006-07 21717 9456 2114 1954 1540 1540 321 727 1260 31173 63112 94285 2007-08 28467 14742 2388 3410 1879 1772 2917 665 1711 43209 83726 126935 2008-09 43597 17787 2709 4602 2164 2185 3323 - 2804 61384 105459 166843 2009-10 56085 23241 5077 5368 2224 2580 4545 - 3447 79326 132888 212214

Mean 23638.84 13586.10 1827.8

7 2057.4

4 1124.1

9 1279.6

4 1973.5

5 396.4

5 1315.0

8 33524.9

5 60365.0

4 93890.0

0 SD 16842.1

7 11067.77 1480.63

1918.37 815.67 777.03 1388.2

9 215.7

7 1124.1

6 23853.2

9 39824.4

9 63562.8

4 CV 71.25 81.46 81.00 93.24 72.56 60.72 70.34 54.43 85.48 71.15 65.97 67.70 CAGR 31.03 15.51 35.38 36.34 33.50 26.57 20.32 23.30 33.11 30.52 29.00 29.51 Source: Report on Trend & Progress of Banking in India, RBI, Mumbai, various issues

c 133 C

Total Priority Sector Advances of Net Bank Credit of SBI & its Associates

Total Priority Sector Advances of Net Bank Credit of SBI and its

Associates is given in table 5.12. For priority sector advances as percentage

of net bank credit target is fixed at 40 percent. Total priority sector Advances

as percentage of Net Bank Credit in case of Public sector Banks is 43.21

percent, in case of Nationalized Banks is 43.48 percent and State Bank Group

is 40.40 percent. In case of State Bank of India is 39.69 percent and

Associates of SBI is 42.08 percent. Public sector Banks, Nationalized Banks,

State Bank Group has been able to achieve the target whereas the average

figure in case of State Bank of India is slightly less than the target of 40

percent. It comes to be 39.69 percent. Standard deviation is higher in case of

nationalised banks indicating high variability and less in case of State Bank

group indicating more uniformity. Among associates of SBI, it is low in case

of State Bank of Saurashtra indicating high degree of uniformity and it is high

in case of State Bank of Travancore indicating more variability. Coefficient of

variation is high in case of Nationalized Banks indicating more variability and

less consistency. It is low in case of State Bank Group and Public sector

Banks indicating less consistency and more variability. Growth rate Analysis

shows growth rate in case of Public sector Banks is 0.41 and in case of State

Bank Group and Nationalized Banks growth rate is negative. It comes to be -

0.53 and -0.27 respectively. In case of State Bank of India growth rate comes

to be 0.92 and it is negative in case of Associates of SBI it is -2.45.Among

Associates of SBI, growth rate is negative except in case of State Bank of

Indore. This indicates that growth rate is most satisfactory in case of State

Bank of Indore, less satisfactory in case of State Bank of India and low in

case of Public sector Banks and dissatisfactory in case of State Bank Group

and Nationalized Banks.

It can be concluded that Public sector Banks, Nationalized Banks and

State Bank Group has been able to achieve the target of 40 percent except

State Bank of India whose average figure is slightly less than the target.

Growth rate is most satisfactory in case of State Bank of Indore, Less

satisfactory in case of State Bank of India and low in case of Public sector

c 134 C

banks and dissatisfactory in case of State Bank Group and Nationalized

Banks. Table 5.12

Total Priority Sector Advances as percentage of Net Bank Credit of SBI & its Associates (Target 40 percent)

Bank/Year SBI Associates of SBI SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 41.53 45.97 47.13 45.05 44.14 41.17 40.26 43.52 60.55 43.75 42.95 43.12

2002-03 38.01 43.68 43.33 40.46 47.45 43.19 41.76 43.85 45.74 39.56 44.02 42.50

2003-04 38.69 44.49 49.07 40.82 47.97 40.43 45.61 43.04 44.50 40.50 45.74 43.94

2004-05 36.61 43.11 45.06 42.21 44.77 40.28 41.11 45.64 42.69 38.59 45.72 43.23

2005-06 37.00 42.64 43.50 42.30 43.60 40.20 38.60 45.10 45.20 39.80 40.30 40.06

2006-07 38.40 39.90 41.00 40.80 40.00 38.30 36.30 42.20 41.00 38.80 39.90 39.60

2007-08 43.80 45.67 49.90 44.80 50.10 43.40 40.10 43.40 48.00 44.40 27.20 44.60

2008-09 42.50 37.44 43.90 40.20 54.80 39.30 37.50 -- 46.40 39.97 63.35 51.66

2009-10 40.70 35.80 44.10 41.60 46.80 34.50 40.80 -- 42.80 38.25 42.11 40.18

Mean 39.69 42.08 45.22 42.03 46.63 40.09 40.23 43.82 46.32 40.40 43.48 43.21

SD 2.53 3.60 2.91 1.80 4.24 2.67 2.69 1.19 5.75 2.21 9.32 3.65

CV 6.39 8.55 6.43 4.28 9.10 6.66 6.69 2.71 12.40 5.46 21.44 8.44

CAGR 0.92 -2.45 -0.48 -0.31 1.07 -1.49 -1.08 -0.14 -2.04 -0.53 -0.27 0.41 Source: Report on Trend and Progress of Banking in India, RBI, Mumbai, various issues

Total Agricultural Advances as percentage of Net Bank Credit

Total Agricultural Advances as percentage of Net Bank Credit is given

in Table 5.13. Target for total agricultural advances as percentage of net bank

credit is fixed at 18 percent. In case of Public sector Banks total agricultural

advances as percentage of Net bank credit in average terms is 15.99 percent.

And in case of Nationalized banks is 16.31 percent and in case of State Bank

Group it comes to be 15.63 percent. Average figure total agricultural

advances as percentage of net bank credit in case of State Bank of India is

15.27 percent and in case of Associates of SBI is 16.87 percent. Public sector

banks including State Bank group and Nationalized Banks have not been able

to achieve the target fixed at 18 percent. Among Associates of SBI, State

Bank of Bikaner and Jaipur, State Bank of Indore and State Bank of

Saurashtra are able to achieve the target of 18 percent. Standard deviation is

higher in case of State Bank group indicating high variability and less in case

of Public sector banks indicating more uniformity. Among associates of SBI it

is low in case of State Bank of Indore indicating high degree of uniformity and

high in case of State Bank of Hyderabad indicating more variability.

c 135 C

Coefficient of variation in case of Public sector banks is 5.16 and in case of

Nationalized banks is 5.34 indicating less variability and more consistency

whereas in case of State Bank Group is 11.21, State Bank of India is 16.45

indicating more variability and less consistency. Growth rate Analysis shows

that growth rate in case of Public sector Banks is 1.30 and in case of

Nationalized Banks it comes to be 0.65 and in case of State Bank Group is

2.22. Growth rate is higher in case of State Bank Group mainly due to higher

growth rate in case of State Bank of India and it comes to be 3.91 whereas in

case of Associates of SBI is -0.97. Among Associates of SBI growth rate is

higher in case of State Bank of Bikaner and Jaipur that is 2.71. This indicates

that growth rate is satisfactory in case of State Bank of India, low in case of

Associates of SBI and Nationalized Banks.

It can be concluded that Public sector banks including State Bank

Group and Nationalized Banks are unable to achieve the target of 18 percent

in total agricultural advances as percentage of Net Bank Credit. Growth rate is

satisfactory in case of State Bank of India, low in case of Associates of SBI

and Nationalized Banks. Table 5.13

Total Agricultural Advances as percentage of Net Bank Credit (Target 18 percent)

Bank/Year SBI Associates of SBI* SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 15.82 17.48 16.69 18.02 18.03 15.17 17.95 19.98 16.52 16.65 16.56 15.81 2002-03 13.80 19.40 17.57 15.62 18.38 16.76 18.03 18.72 11.32 14.58 15.29 15.34 2003-04 12.79 16.10 16.35 14.36 18.24 15.21 18.97 17.88 11.70 13.78 16.27 15.41 2004-05 11.99 16.39 18.16 13.05 18.27 14.88 18.95 18.96 12.46 13.32 16.41 15.68 2005-06 13.60 16.00 18.00 13.30 18.10 14.80 15.90 18.60 13.30 14.80 15.20 15.00 2006-07 14.50 15.60 18.30 13.70 17.20 13.80 15.80 18.10 12.60 14.80 16.00 15.60 2007-08 18.60 18.18 22.10 18.10 19.10 18.10 15.70 19.50 14.70 18.30 18.20 17.40 2008-09 18.30 16.15 19.10 18.80 18.20 16.80 13.70 -- 10.30 17.23 16.30 16.76 2009-10 18.00 16.50 20.10 18.50 17.80 14.80 18.30 -- 9.50 17.25 16.56 16.91 Mean 15.27 16.87 18.49 15.94 18.15 15.59 17.03 18.82 12.49 15.63 16.31 15.99 SD 2.51 1.24 1.77 2.42 0.50 1.34 1.82 0.74 2.17 1.75 0.87 0.83 CV 16.45 7.36 9.57 15.15 2.77 8.61 10.70 3.93 17.34 11.21 5.34 5.16 CAGR 3.91 -0.97 2.71 1.97 -0.08 0.30 -2.15 -0.36 -3.32 2.22 0.65 1.30 Source: Report on Trend & Progress of Banking in India, RBI, Mumbai, various issues

Total Advances to Weaker Section as percentage of Net Bank Credit

Total Advances to weaker section as percentage of Net bank credit is

given in table 5.14. Average figure of total Advances to weaker section as

percentage of Net Bank credit is in case of Public sector banks is 8.24

percent, in case of Nationalized Banks is 7.51 percent and in case of State

c 136 C

Bank Group is 8.80. In case of State Bank of India is 9.03 and in case of

Associates of SBI is 8.48. This indicates that Public sector Banks,

Nationalized Banks, State Bank Group is unable to achieve the target of 10

percent. Standard deviation is low in case of public sector banks indicating

more uniformity and high in case of state bank groups indicating more

variability. Among associates of SBI, it is low in case of State Bank of Mysore

indicating more uniformity and high in case of State Bank of Hyderabad

indicating more variability. Coefficient of variation indicates fair level of

consistency among Public sector banks, Nationalized Banks and State Bank

Group. Growth rate Analysis shows that growth rate in case of Public sector

Banks is 4.34, in case of Nationalized Banks is 3.51 and in case of State Bank

Group it comes to be 6.07. In case of State Bank of India growth rate is 7.33

and in case of Associates of SBI is 5.00 percent. Among Associates of SBI

growth rate is higher in case of State Bank of Hyderabad (9.06). This shows

that growth rate is more satisfactory in case of State Bank of Hyderabad, less

satisfactory in case of State Bank of India, low in case of Public sector Banks,

Nationalized Banks and Associates of SBI. It can be concluded that Public

sector Banks, Nationalized Banks, State Bank Group is unable to achieve the

target of 10 percent in case of total advances to weaker section as

percentage of net bank credit. Growth rate Analysis shows that growth rate is

more satisfactory in case of State Bank of Hyderabad, less satisfactory in

case of State Bank of India, low in case of Public sector Banks, Nationalized

Banks and Associates of SBI. Table 5.14

Total Advances to Weaker Section as percentage of Net Bank Credit Target 10 percent)

Bank/Year SBI Associates of SBI SBBJ SBH SBIN SBM SBP SBS SBT SBG NBs PSBs

2001-02 7.22 8.87 7.79 10.01 6.96 10.90 10.02 5.73 10.74 8.05 6.86 7.30 2002-03 5.78 7.72 7.91 6.33 7.55 10.85 9.40 5.70 6.29 6.34 6.98 6.76 2003-04 7.20 6.68 6.86 4.38 6.35 10.04 10.03 4.18 4.95 7.06 7.64 7.44 2004-05 11.53 6.84 9.20 5.35 5.44 10.22 10.03 3.88 3.78 10.08 5.20 8.85 2005-06 8.90 6.68 9.50 2.60 6.00 9.50 10.00 5.20 4.00 7.79 7.70 7.74 2006-07 7.60 7.20 10.30 7.10 10.00 9.70 1.10 6.80 5.40 7.30 7.10 7.20 2007-08 9.40 9.90 11.50 12.00 12.10 11.00 10.00 5.90 6.80 9.60 9.20 9.30 2008-09 11.50 10.75 10.70 12.80 11.80 10.30 9.10 - 9.80 11.13 8.56 9.46 2009-10 12.10 11.67 16.90 12.20 10.20 10.00 10.30 - 10.40 11.88 8.32 10.10 Mean 9.03 8.48 10.07 8.09 8.49 10.28 8.89 5.34 6.91 8.80 7.51 8.24 SD 2.27 1.90 2.97 3.77 2.56 0.54 2.94 1.02 2.74 1.94 1.17 1.20 CV 25.13 22.41 29.45 46.59 30.18 5.23 33.12 19.07 39.65 22.04 15.53 14.55 CAGR 7.33 5.00 8.96 9.06 8.27 -0.62 -3.61 2.38 3.72 6.07 3.51 4.34 Source: Report on Trend & Progress of Banking in India, RBI, Mumbai, various issues

c 137 C

Distribution of Outstanding Credit of SBI & its Associates According to Occupation

Distribution of Outstanding Credit of SBI & its Associates According to

Occupation is given in Table 5.15. A look at the table indicates that average

distribution to Agriculture is Rs. 42958.86 Cr, in case of Industry it comes to

be 150908.05 Cr, transport Operators is Rs. 4721.82 Cr in case of

Professional and other services is 15261.52, personal loans is 79640.47,trade

is 38878.83, Finance is 16901.32, all others is 11238.27. Distribution of

outstanding credit to Artisans, Village and Tiny Industries is 3337.00 and other

small scale Industries is 11972.67. This indicates that distribution of

outstanding credit by SBI & its Associates is greater in case of Industry as

compared to Agriculture. Standard deviation is higher in case of industry

indicating more variability and low in case of transport operators indicating

more homogenity. Coefficient of variation is high in case of Transport

Operators and Professional and other services indicating more variability and

less consistency. In case of Trade it is 39.04 indicating more consistency and

less variability.

Table 5.15 Distribution of Outstanding Credit of SBI &

its Associates According to Occupation (Amt. in Rs. Cr)

Occupation/ year Agriculture Industry Transport

Operators Professional

& other Services

Personal Loans Trade Finance All others Total Bank

Credit

Of which Artisans, Village &

Tiny Industries

Of which Other Small Scale

Industries 2001-02 19532 63685 1510 2982 22456 26668 6397 20457 163687 3520 8025

2002-03 20420 69775 1640 3340 31425 25745 11973 18183 182501 2821 8710

2003-04 25287 80252 1813 4795 43098 24048 10591 18584 208468 2346 9265

2004-05 31066 108960 2180 7218 65016 29537 15095 6951 266023 3252 12162

2005-06 42654 141779 4158 12896 84706 37407 16451 9892 349943 3879 15515

2006-07 56060 196284 2948 17392 98789 47113 24045 5732 448362 4204 18159

2007-08 73328 234031 12216 39799 148710 59918 32297 7534 721951 - -

2008-09 75324 312498 11310 33670 142924 60595 18362 2573 657255 - -

Mean 42958.86 150908.05 4721.82 15261.52 79640.47 38878.83 16901.32 11238.27 374773.76 3337.00 11972.67

SD 22841.26 89526.96 4436.23 14234.04 48272.62 15179.94 8177.55 6829.47 216257.21 683.30 4108.90

CV 53.17 59.33 93.95 93.27 60.61 39.04 48.38 60.77 57.70 20.48 34.32

CAGR 24.71 27.08 36.67 49.54 32.25 15.66 19.39 -23.13 25.65 6.40 19.00

Source: Statistical Tables Relating to Banks in India, RBI, Mumbai, Various issues

c 138 C

Growth rate Analysis shows highest growth rate in case of Professional

and other services and it comes to be 49.54. In case of transport operators is

36.67 and in case of Agriculture is 24.71 and in case of Industry is 27.08. This

highlights that growth rate is most satisfactory in case of Professional and

other services, satisfactory in case of transport operators and personal loans,

low in case of Agriculture and Industry. It can be concluded that that

distribution of outstanding credit is more in case of Industry as compared to

Agriculture. Growth rate is most satisfactory in case of Professional and other

services, satisfactory in case of transport operators and personal loans and

low in case of Agriculture and Industry. Percentage Distribution of Outstanding Credit of SBI & its Associates According to Occupation

Table 5.16 shows percentage distribution of outstanding credit of SBI

and its Associates according to Occupation. The share of Agriculture in total

bank credit is 11.65 percent and in case of Industry is 40.11 percent in

average terms. Lowest share is of transport operators and it comes to be 1.10

percent. This indicates that higher percentage distribution of outstanding

credit is in case of Industry as compared to Agriculture and lowest in case of

transport operators. Standard deviation is higher in case of all others

indicating more variability and low in case of transport operators indicating

more uniformity. Coefficient of variation is lowest in case of Agriculture and

comes to be 6.33 indicating less variability and more consistency. On the

other hand it is higher in case of all others indicating more variability and less

consistency. Growth rate Analysis shows that growth rate is negative in case

of Agriculture and comes to be -0.75. It is also negative in case of trade

(-7.95), Finance (-4.98), All Others (-38.82). Growth rate is higher in case in

case of Professional and other services and comes to be 19.02 and in case of

Industry is 1.14. This indicates that growth rate is satisfactory in case of

Professional and other services and low in case of Industry and satisfactory in

case of Agriculture, trade, Finance and all others. It can be concluded that

percentage distribution of outstanding credit of SBI & its Associates is higher

in case of Industry as compared to Agriculture. Growth rate Analysis shows

satisfactory growth rate in case of Professional and other services and low in

c 139 C

case of Industry and satisfactory in case of Agriculture, trade, Finance and all

others. Table 5.16

Percentage Distribution of Outstanding Credit of SBI & its Associates According to Occupation

Occupation/ year

Agriculture

Industry

Transport Operator

s

Professional & other Services

Personal Loans

Trade

Finance

All other

s

Total Bank Credit

Of which Artisans, Village &

Tiny Industrie

s

Of which Other Small Scale

Industries

2001-02 11.93 38.91 0.92 1.82 13.72 16.29 3.91 12.50 100.00 2.15 4.90

2002-03 11.19 38.23 0.90 1.83 17.22 14.11 6.56 9.96 100.00 1.55 4.77

2003-04 12.13 38.50 0.87 2.30 20.67 11.54 5.08 8.91 100.00 1.13 4.44

2004-05 11.68 40.96 0.82 2.71 24.44 11.10 5.67 2.61 100.00 1.22 4.57

2005-06 12.19 40.51 1.19 3.69 24.21 10.69 4.70 2.83 100.00 1.11 4.43

2006-07 12.50 43.78 0.66 3.88 22.03 10.51 5.36 1.28 100.00 0.94 4.05

2007-08 10.16 32.42 1.69 5.51 20.60 8.30 4.47 1.04 100.00 - -

2008-09 11.46 47.55 1.72 5.12 21.75 9.22 2.79 0.39 100.00 - -

Mean 11.65 40.11 1.10 3.36 20.58 11.47 4.82 4.94 100.00 1.35 4.53

SD 0.74 4.41 0.40 1.43 3.58 2.59 1.15 4.74 0.00 0.44 0.30

CV 6.33 11.01 36.87 42.66 17.41 22.59 23.78 95.94 0.00 32.74 6.60

CAGR -0.75 1.14 8.77 19.02 5.25 -7.95 -4.98 -38.82 0.00 -13.47 -3.23

Source: Calculated Values

Population-wise and Occupation-wise Outstanding Credit of SBI & its Associates (Rural)

Table 5.17 shows population-wise and occupation-wise outstanding

credit of SBI & its Associates in case of Rural areas. Average figure in case of

agriculture is Rs. 14628.46 Cr. in case of Industry is Rs. 11690.40 Cr. It

indicates that distribution of outstanding credit is more in case of Agriculture

as compared to Industry. It is lowest in case of transport operators in terms of

average. Standard deviation is high in case of agriculture indicating more

variability and low in case of transport operators indicating more homogeneity.

Coefficient of variation is highest in case of finance (102.28) indicating more

variability and less consistency. It is low in case of Industry (33.90) which

shows less variability and more consistency. Growth rate Analysis shows that

growth rate in case of Professional and other services is 44.34, in case of

Personal loans it is 28.61, in case of Agriculture it is 24.44 and Industry 10.45

whereas it is negative in case of Finance (-4.67) and All others (-28.76). This

highlights that growth rate is most satisfactory in case of Professional and

c 140 C

other services, less satisfactory in case of Agriculture, low in case of Industry

and dissatisfactory in case of Finance and all others.

It can be concluded that distribution of outstanding credit is more in

case of Agriculture as compared to Industry. It is low in case of Transport

operators in average terms. Growth rate Analysis shows that growth rate is

most satisfactory in case of Professional and other services, less satisfactory

in case of Agriculture, low in case of Industry and dissatisfactory in case of

Finance and all others. Table 5.17

Population-wise and Occupation-wise Outstanding Credit of SBI & its Associates (Rural)

(Amt. in Rs. Cr)

Occupation/ Year Agriculture Industry Transport

Operators Professional

& other Services

Personal Loans Trade Finance All others Total Bank

Credit

Of which Artisans, Village &

Tiny Industries

Of which Other

Small-Scale Industries

2001-02 6574.57 8745.58 320.83 229.29 3138.67 2080.75 1326.47 2563.53 24979.69 521.32 731.38

2002-03 7496.15 10922.57 359.44 395.19 4830.56 2524.42 3252.16 3728.62 33509.10 590.43 896.05

2003-04 8119.19 6188.38 331.48 505.89 6818.07 1813.18 167.34 3626.74 27569.99 615.15 792.12

2004-05 11185.90 9684.37 436.60 797.78 10608.73 3565.98 276.96 1222.67 37778.99 784.46 1283.68

2005-06 14315.02 14971.35 472.06 1551.24 15318.24 5116.92 323.16 976.66 53044.66 954.73 1942.60

2006-07 18759.08 9560.23 370.67 1194.06 13907.87 5035.23 103.07 901.29 49831.50 1040.88 1263.37

2007-08 23816.94 17174.40 452.26 3290.87 17038.77 5865.30 1328.68 639.99 69607.19 - -

2008-09 26760.84 16276.31 786.98 2597.10 18268.18 6961.37 1705.07 289.41 73645.26 - -

Mean 14628.46 11690.40 441.29 1320.18 11241.14 4120.39 1060.36 1743.61 46245.80 751.16 1151.53

SD 7734.34 3963.49 150.64 1106.16 5774.76 1900.52 1084.54 1365.94 18479.76 211.49 453.15

CV 52.87 33.90 34.14 83.79 51.37 46.12 102.28 78.34 39.96 28.16 39.35

CAGR 24.44 10.45 9.79 44.34 28.61 21.12 -4.67 -28.76 17.21 15.83 17.14

Source: Calculated Values

Percentage Distribution of Occupation-wise Outstanding Credit of SBI & its Associates (Rural)

Table 5.18 shows percentage distribution of occupation-wise

Outstanding Credit of SBI & its Associates in Rural Area. Percentage

Distribution of Occupation-wise Outstanding credit in case of Agriculture is

30.37 percent and in case of Industry is 26.23 percent and it is lowest in case

of Transport operators that is 1.01 percent. This indicates that Percentage

Distribution of Outstanding credit is more in case of Agriculture as compared

to Industry. Standard deviation is high in case of personal loans indicating

more variability and low in case of transport operators indicating more

c 141 C

uniformity. Coefficient of variation is highest in case of Finance (122.79)

indicating more variability and less consistency. It is lowest in case of

Agriculture (17.45) which indicates more consistency and less variability.

Growth rate Analysis shows that growth rate in case of Agriculture is 6.17 and

it comes to be negative in case of Industry (-5.76). It is highest in case of

Professional and other services (23.15). This indicates that growth rate is

most satisfactory in case of Professional and other services, low in case of

Agriculture and dissatisfactory in case of Industry. It can be concluded that

percentage distribution of outstanding credit is more in case of Agriculture as

compared to Industry. Growth rate Analysis shows that growth rate is most

satisfactory in case of Professional and other services, low in case of

Agriculture and dissatisfactory in case of Industry. Table 5.18

Percentage Distribution of Occupation-wise Outstanding Credit of SBI & its Associates (Rural)

Occupation/ Year

Agriculture

Industry

Transport Operator

s

Professional & other Services

Personal Loans

Trade

Finance

All other

s

Total Bank Credit

Of which Artisans, Village &

Tiny Industrie

s

Of which Other Small-Scale

Industries

2001-02 26.32 35.01 1.28 0.92 12.56 8.33 5.31 10.26 100.00 2.09 2.93

2002-03 22.37 32.60 1.07 1.18 14.42 7.53 9.71 11.13 100.00 1.76 2.67

2003-04 29.45 22.45 1.20 1.83 24.73 6.58 0.61 13.15 100.00 2.23 2.87

2004-05 29.61 25.63 1.16 2.11 28.08 9.44 0.73 3.24 100.00 2.08 3.40

2005-06 26.99 28.22 0.89 2.92 28.88 9.65 0.61 1.84 100.00 1.80 3.66

2006-07 37.65 19.19 0.74 2.40 27.91 10.10 0.21 1.81 100.00 2.09 2.54

2007-08 34.22 24.67 0.65 4.73 24.48 8.43 1.91 0.92 100.00 - -

2008-09 36.34 22.10 1.07 3.53 24.81 9.45 2.32 0.39 100.00 - -

Mean 30.37 26.23 1.01 2.45 23.23 8.69 2.67 5.34 100.00 2.01 3.01

SD 5.30 5.42 0.23 1.26 6.27 1.20 3.28 5.24 0.00 0.18 0.43

CV 17.45 20.65 22.36 51.19 26.98 13.80 122.79 98.01 0.00 9.22 14.39

CAGR 6.17 -5.76 -6.33 23.15 9.73 3.33 -18.67 -39.22 0.00 -0.01 1.12

Source: Calculated Values

Population Group-wise and Occupation-wise Outstanding Credit of SBI & its Associates (Semi-Urban)

Table 5.19 shows Population Group-wise and Occupation-wise

Outstanding Credit of SBI & its Associates in Semi-Urban area. Average

figure of outstanding credit in semi-urban areas in case of Agriculture is Rs.

17804.26 Cr and in case of Industry is Rs. 11556.02 Cr. This indicates that

c 142 C

outstanding credit is more in case of Agriculture as compared to Industry. The

average figure in case of Professional and other services is Rs. 23496.80 Cr

and in case of Personal loans is Rs. 22519.95 Cr. Standard deviation is

higher in case of professional and other services indicating more variability

and low in case of finance indicating more uniformity. Coefficient of variation

is highest in case of Professional and other services (264.52) indicating high

degree of variability and less consistency. It is low in case of transport

operators (38.09) indicating less variability and more consistency. Growth rate

Analysis shows that growth rate is highest in case of Professional and other

services that is 48.15. In case of Agriculture it comes to be 26.57 and in case

of Industry it is 17.91. Growth rate is negative in case of All others (-16.39).

This highlights that growth rate is most satisfactory in case of Professional

and other services, satisfactory in case of Agriculture and Industry and

dissatisfactory in case of All others.

It can be concluded in semi-urban areas distribution of outstanding

credit is more in case of Agriculture as compared to Industry. Growth rate

Analysis shows that growth rate is most satisfactory in case of Professional

and other services, satisfactory in case of Agriculture and Industry and

dissatisfactory in case of all others. Table 5.19

Population Group-wise and Occupation-wise Outstanding Credit of SBI & its Associates (Semi-Urban)

(Amt. in Rs. Cr)

Occupation/Year Agriculture Industry Transport operators

Professional & other services

Personal Loans Trade Finance All

others Total Bank

Credit

of which Artisans, Villages &

Tiny Industries

of which Other Small Scale

Industries 2001-02 7674.59 7050.29 454.24 655.19 6887.96 3413.63 100.50 3693.96 29930.36 1127.43 1627.49 2002-03 8339.09 6539.90 403.04 783.95 9524.85 3559.16 103.18 4262.20 33515.38 1464.95 1425.28 2003-04 9415.58 7280.88 331.52 832.75 13429.64 3600.88 69.62 4482.44 39443.32 1628.63 1312.72 2004-05 12419.88 10010.87 421.68 1204.28 18994.74 4702.17 105.81 1702.02 49561.46 2249.13 1611.29 2005-06 17343.46 12330.51 479.34 1611.63 24573.84 6482.60 101.68 3486.59 66409.65 2759.32 2314.04 2006-07 23681.61 12778.57 552.43 177302.00 27914.51 7636.43 230.95 2016.67 76584.18 3040.29 2232.00 2007-08 30752.58 15218.49 687.40 2511.75 35089.20 10091.26 201.40 1670.75 96222.84 - - 2008-09 32807.25 21238.64 969.07 3072.84 43744.88 11252.51 198.01 1069.59 114352.78 - - Mean 17804.26 11556.02 537.34 23496.80 22519.95 6342.33 138.89 2798.03 63252.50 2044.96 1753.80 SD 10135.27 5005.55 204.65 62152.74 12817.93 3079.60 60.83 1327.07 30787.21 760.83 419.83 CV 56.93 43.32 38.09 264.52 56.92 48.56 43.80 47.43 48.67 37.20 23.94 CAGR 26.57 17.91 12.15 48.15 29.81 21.18 14.88 -16.39 22.34 22.78 9.69 Source: Basic Statistical Returns, RBI, Mumbai, Various Issues

c 143 C

Percentage Distribution of Occupation-wise Outstanding Credit of SBI & its Associates (Semi-Urban)

Table 5.20 shows percentage distribution of Occupation-wise

Outstanding Credit of SBI & its Associates in Semi-urban area. Percentage

Distribution of Occupation-wise Outstanding credit of SBI & its Associates in

average terms in semi-urban areas in case of Agriculture is 27.14 percent and

in case of Industry is 18.92 percent. It shows that percentage distribution of

outstanding credit is more in Agriculture as compared to Industry. In case of

personal loans it is 34 percent and in case of Professional and other services

it is 31.04. It is only 0.23 percent in case of Finance. This indicates that

highest percentage distribution of outstanding credit is more in case of

personal loans and lowest in case of Finance. Standard deviation is higher in

case of professional and other services indicating more variability and low in

case of finance indicating more homogeneity. Coefficient of variation is

highest in case of Professional and other services (260.98) indicating more

variability and less consistency. It is lowest in case of Trade indicating more

consistency and less variability. Growth rate Analysis shows that growth rate

in case of Agriculture is 3.46 and in case of Industry it is negative that is -3.62.

Growth rate in case of Professional and other services is highest and comes

to be 21.09.Growth rate is negative in case of transport operators (-8.33),

Trade (-0.95), Finance (-6.10) and All others (-31.66). This shows that growth

rate is satisfactory in case of Professional and other services, low in case of

Agriculture and dissatisfactory in case of Industry, transport operators, trade,

finance and all others. It can be concluded that percentage distribution of outstanding credit in

semi-urban areas is more in case of Agriculture as compared to Industry. It is

highest in case of personal loans and lowest in case of Finance. Growth rate

Analysis shows that growth rate is satisfactory in case of Professional and

other services, low in case of Agriculture and dissatisfactory in case of

Industry, transport operators, trade, finance and all others.

c 144 C

Table 5.20 Percentage Distribution of Occupation-wise

Outstanding Credit of SBI & its Associates (Semi-Urban)

Occupation/Year Agriculture Industry Transport operators

Professional & other services

Personal Loans Trade Finance All

others Total Bank Credit

of which Artisans, Villages &

Tiny Industries

of which Other Small

Scale Industries

2001-02 25.64 23.56 1.52 2.19 23.01 11.41 0.34 12.34 100.00 3.77 5.44 2002-03 24.88 19.51 1.20 2.34 28.42 10.62 0.31 12.72 100.00 4.37 4.25 2003-04 23.87 18.46 0.84 2.11 34.05 9.13 0.18 11.36 100.00 4.13 3.33 2004-05 25.06 20.20 0.85 2.43 38.33 9.49 0.21 3.43 100.00 4.54 3.25 2005-06 26.12 18.57 0.72 2.43 37.00 9.76 0.15 5.25 100.00 4.15 3.48 2006-07 30.92 16.69 0.72 231.51 36.45 9.97 0.30 2.63 100.00 3.97 2.91 2007-08 31.96 15.82 0.71 2.61 36.47 10.49 0.21 1.74 100.00 - - 2008-09 28.69 18.57 0.85 2.69 38.25 9.84 0.17 0.94 100.00 - - Mean 27.14 18.92 0.93 31.04 34.00 10.09 0.23 6.30 100.00 4.15 3.78 SD 3.01 2.35 0.29 81.00 5.47 0.72 0.07 5.01 0.00 0.28 0.93 CV 11.08 12.40 30.89 260.98 16.10 7.15 30.22 79.50 0.00 6.63 24.52 CAGR 3.46 -3.62 -8.33 21.09 6.10 -0.95 -6.10 -31.66 0.00 0.59 -10.13 Source: Calculated Values

Population Group-wise and Occupation-wise Outstanding Credit of SBI & its Associates (Urban)

Population Group-wise and Occupation-wise Outstanding Credit of SBI

& its Associates in case of urban area is shown in table 5.21 Average figure of

outstanding credit in case of Agriculture is Rs. 5680.32 Cr and in case of

Industry it comes to be Rs. 25960.71 Cr. This shows that distribution of

outstanding credit is more in case of Industry as compared to Agriculture.

Average figure of outstanding credit in case of personal loans is Rs. 23728.58

Cr. In case of transport operators it is Rs. 456.43 Cr. Standard deviation is

higher in case of industry indicating more variability and low in case of

transport operators indicating more uniformity. Coefficient of variation is fairly

consistent among various occupations except in case of trade. Growth rate

Analysis shows that growth rate in case of Agriculture is 31.29 and in case of

Industry it comes to be 54.44. In case of trade it is 11.80 whereas in case of

all others (-24.97) and in case of Artisans Village and Tiny Industries it is

(-40.33). This shows that growth rate is satisfactory in case of Industry as

compared to Agriculture, low in case of trade and dissatisfactory in case of all

others and in case of Artisans, village and tiny industries.

It can be concluded that distribution of outstanding credit in case of

urban areas is more in case of Industry as compared to Agriculture. Growth

rate Analysis shows that growth rate is satisfactory in case of Industry as

c 145 C

compared to Agriculture, low in case of trade and dissatisfactory in case of all

others and in case of Artisans, village and tiny industries. Table 5.21

Population Group-wise and Occupation-wise Outstanding Credit of SBI & its Associates (Urban)

(Rs. Cr)

Occupation/Year Agriculture Industry Transport Operators

Professional & other services

Personal Loans Trade Finance All

others Total Bank

Credit

of which Artisans, Village &

Tiny Industries

of which Other Small Scale

Industries 2001-02 2249.53 1148.84 250.22 857.22 7381.45 8920.64 324.17 5145.23 36277.80 1055.30 2153.44 2002-03 1922.71 11471.62 238.64 899.11 9866.65 8427.55 333.40 4489.50 37649.18 486.67 2798.07 2003-04 3092.62 14154.25 257.65 1274.79 13767.11 7253.42 754.05 4894.53 45448.41 64.91 3284.75 2004-05 3311.03 20678.16 332.51 1956.03 20252.23 7550.56 1079.34 1605.77 56765.63 23.37 4634.12 2005-06 5493.60 26686.75 421.39 2623.04 26214.06 9791.22 1473.83 2094.01 74797.90 120.86 5879.36 2006-07 7470.83 38163.05 475.44 3689.05 32023.49 12950.04 2215.31 1512.16 98499.37 80.39 7061.48 2007-08 11276.06 45728.52 685.48 7107.18 36283.21 14188.51 2042.02 1283.44 118594.41 - - 2008-09 10626.18 49654.49 990.14 5626.22 44040.40 17616.16 1480.93 638.46 130672.98 - - Mean 5680.32 25960.71 456.43 3004.08 23728.58 10837.26 1212.88 2707.89 74838.21 305.25 4301.87 SD 3726.63 17297.59 262.88 2313.14 13179.36 3700.75 719.52 1821.66 37133.52 404.29 1904.00 CV 65.61 66.63 57.59 77.00 55.54 34.15 59.32 67.27 49.62 132.45 44.26 CAGR 31.29 54.44 22.40 37.89 29.64 11.80 31.87 -24.97 22.87 -40.33 27.52 Source: Basic Statistical Returns, RBI, Mumbai, various issues.

Percentage Distribution of Occupation-wise Outstanding Credit of SBI & its Associates (Urban)

Table 5.22 shows percentage distribution of Occupation-wise

Outstanding Credit of SBI & its Associates in urban area. Percentage

Distribution of outstanding credit in average terms in case of Agriculture

comes to be 7.06 and in case of Industry it is 31.52 percent. This shows that

percentage distribution of outstanding credit is more in case of Industry as

compared to Agriculture. It is lowest in case of Transport operators that is

0.61 percent. Standard deviation is higher in case of industry indicating more

variability and low in case of transport operators indicating more homogeneity.

Coefficient of variation of Artisans, village and tiny Industries comes to be

149.12 indicating high degree of variability and less consistency. In case of

Industry Coefficient of variation is 37.73 percent indicating more variability and

less consistency and in case of Agriculture it comes to be 19.75 indicating

more consistency and less variability. Growth rate Analysis shows that growth

rate in case of Agriculture comes to be 6.84 and in case of industry it is 25.69.

Growth rate is negative in case of transport operators (-0.39), Trade (-9.02)

and all others (-38.93), Artisans, village and Tiny Industries (-51.53). This

shows that growth rate is satisfactory in case of Industry, low in case of

c 146 C

Agriculture and dissatisfactory in case of Transport operators, trade, all

others, artisans, village and tiny industries.

It can be concluded that percentage distribution of outstanding credit is

more in case of Industry as compared to Agriculture. It is lowest in case of

transport operators. Growth rate Analysis shows that growth rate is

satisfactory in case of Industry, low in case of Agriculture and dissatisfactory

in case of transport operators, trade, all others, artisans, village and tiny

industries. Table 5.22

Percentage Distribution of Occupation-wise Outstanding Credit of SBI & its Associates (Urban)

Occupation/Year

Agriculture

Industry

Transport

Operators

Professional & other services

Personal Loans

Trade

Finance

All other

s

Total Bank Credit

of which Artisans, Village &

Tiny Industrie

s

of which Other Small Scale

Industries

2001-02 6.20 3.17 0.69 2.36 20.35 24.59 0.89 14.18 100.00 2.91 5.94

2002-03 5.11 30.47 0.63 2.39 26.21 22.38 0.89 11.92 100.00 1.29 7.43

2003-04 6.80 31.14 0.57 2.80 30.29 15.96 1.66 10.77 100.00 0.14 7.23

2004-05 5.83 36.43 0.59 3.45 35.68 13.30 1.90 2.83 100.00 0.04 8.16

2005-06 7.34 35.68 0.56 3.51 35.05 13.09 1.97 2.80 100.00 0.16 7.86

2006-07 7.58 38.74 0.48 3.75 32.51 13.15 2.25 1.54 100.00 0.08 7.17

2007-08 9.51 38.56 0.58 5.99 30.59 11.96 1.72 1.08 100.00 - -

2008-09 8.13 38.00 0.76 4.31 33.70 13.48 1.13 0.49 100.00 - -

Mean 7.06 31.52 0.61 3.57 30.55 15.99 1.55 5.70 100.00 0.77 7.30

SD 1.39 11.89 0.08 1.19 5.12 4.80 0.52 5.59 0.00 1.15 0.77 CV 19.75 37.73 13.99 33.32 16.75 30.00 33.36 98.08 0.00 149.12 10.54 CAGR 6.84 25.69 -0.39 12.22 5.50 -9.02 7.32 -38.93 0.00 -51.53 3.59 Source: Calculated Values Population Group-wise and Occupation-wise Outstanding Credit of SBI & its Associates (Metropolitan)

Table 5.23 shows Population Group-wise and Occupation-wise

Outstanding Credit of SBI & its Associates in case of Metropolitan. Average

figure of outstanding credit in case of Agriculture is Rs.4845.80 Cr and in case

of Industry is Rs.100450.15 Cr. This shows that distribution of outstanding

credit is more in case of Industry as compared to Agriculture. Average figure

in case of personal loans is Rs.18052.23 Cr. In case of trade is Rs.16113.94

Cr. and in case of Finance is Rs.13878.34 Cr. Standard deviation is higher in

case of industry indicating more variability and low in case of agriculture

c 147 C

indicating more homogeneity. Coefficient of Variation in case of transport

operators is more than 100 percent that is 109.79 and in case of Artisans,

Village and Tiny Industries is 134.75 percent and it is low in case of Trade and

comes to be 30.97 percent and in case of Agriculture is 32.84 percent and in

case of other small scale industries it is 32.76 percent. Growth rate Analysis

shows that growth rate in case of Agriculture is 12.58 and in case of Industry it

comes to be 30.69. In case of Trade it is 11.79 whereas in case of all others

and of Artisans, Village and Tiny Industries it is -27.86 and -41.96

respectively. This shows that growth rate is satisfactory in case of Industry as

compared to Agriculture, low in case of Trade and dissatisfactory in case of all

others and in case of Artisans, Village and Tiny Industries.

It can be concluded that growth rate is satisfactory in case of Industry

as compared to Agriculture, low in case of Trade and dissatisfactory in case of

all others and in case of Artisans, Village and Tiny Industries. Table 5.23

Population Group-wise and Occupation-wise Outstanding Credit of SBI & its Associates (Metropolitan)

Rs. Cr

Occupation/ Year Agriculture Industry Transport

Operators Professional

& other services

Personal Loans Trade Finance All

others Total Bank

Credit

of which Artisans, Village &

Tiny Industries

of which other Small

Scale Industries

2001-02 3034.07 36739.01 485.10 1240.20 5047.46 12253.65 4646.20 9054.35 72500.03 816.31 3513.04 2002-03 2662.27 40838.40 639.03 1261.31 7203.92 11233.77 8284.20 5703.02 77825.94 279.12 3590.39 2003-04 4659.00 52626.21 892.05 2181.45 9082.75 11380.67 9600.39 5580.79 96003.31 37.13 3875.66 2004-05 4148.69 68586.46 989.25 3259.62 15160.60 13718.65 13632.95 2420.66 121916.89 134.58 4632.64 2005-06 5502.24 87790.16 2784.79 7109.68 18599.70 16016.36 14552.52 3335.14 155690.58 44.25 5378.68 2006-07 6148.06 135782.09 1549.87 10735.72 24942.66 21491.20 21495.40 1302.02 223447.02 42.27 7602.43 2007-08 7482.50 155909.89 6917.27 15643.96 27510.51 18052.65 23837.56 2512.84 257867.17 - - 2008-09 5129.57 225328.98 8563.39 22373.98 36870.26 24764.58 14977.53 575.73 338584.01 - - Mean 4845.80 100450.15 2852.59 7975.74 18052.23 16113.94 13878.34 3810.57 167979.37 225.61 4765.47 SD 1591.52 66541.31 3131.80 7752.83 11128.97 4991.07 6478.05 2798.25 96332.52 304.01 1560.97 CV 32.84 66.24 109.79 97.21 61.65 30.97 46.68 73.43 57.35 134.75 32.76 CAGR 12.58 30.69 51.14 57.95 32.84 11.79 20.93 -27.86 26.22 -41.96 16.19 Source: Basic Statistical Returns, RBI, Mumbai, various issues

Percentage Distribution of Occupation-wise Outstanding Credit of SBI & its Associates (Metropolitan)

Table 5.24 shows Percentage Distribution of Occupation-wise

Outstanding Credit of SBI & its Associates. Percentage distribution of

outstanding credit in average terms in case of Agriculture comes to be 3.32

and in case of Industry it is 57.30. This shows that percentage distribution of

outstanding credit is more in case of Industry as compared to Agriculture. It is

c 148 C

lowest in case of Transport operators i.e. 1.37. Standard deviation is higher in

case of industry indicating more variability and low in case of transport

operators indicating more homogeneity. Coefficient of variation in case of

Artisans, Village and tiny Industries comes to be 154.78 and in case of all

others is 109.25. In case of Industry C.V. is 8.92 and in case of Agriculture is

29.94. Growth rate Analysis shows that growth rate in case of Agriculture

comes to be -10.80 and in case of Industry it is 3.55. In case of Professional

and other services growth rate is 25.15. Growth rate is negative in case of

trade (-11.43), finance (-4.19) and all others (-42.84), Artisans, Village and

Tiny Industries (-53.75), other small scale Industries (-7.41). This shows that

growth rate is satisfactory in case of Professional and other services, low in

case of Industry and dissatisfactory in case of trade, finance, all others,

Artisans, Village and Tiny Industries and other small scale industries.

Table 5.24

Percentage Distribution of Occupation-wise Outstanding Credit of SBI & its Associates (Metropolitan)

Occupation/ Year

Agriculture

Industry

Transport Operator

s

Professional & other services

Personal Loans

Trade

Finance

All other

s

Total Bank Credit

of which Artisans, Village &

Tiny Industrie

s

of which other Small Scale

Industries

2001-02 4.18 50.67 0.67 1.71 6.96 16.90 6.41 12.49 100.00 1.13 4.85

2002-03 3.42 52.47 0.82 1.62 9.26 14.43 10.64 7.33 100.00 0.36 4.61

2003-04 4.85 54.82 0.93 2.27 9.46 11.85 10.00 5.81 100.00 0.04 4.04

2004-05 3.40 56.26 0.81 2.67 12.44 11.25 11.18 1.99 100.00 0.11 3.80

2005-06 3.53 56.39 1.79 4.57 11.95 10.29 9.35 2.14 100.00 0.03 3.45

2006-07 2.75 60.77 0.69 4.80 11.16 9.62 9.62 0.58 100.00 0.02 3.40

2007-08 2.90 60.46 2.68 6.07 10.67 7.00 9.24 0.97 100.00 - -

2008-09 1.52 66.55 2.53 6.61 10.89 7.31 4.42 0.17 100.00 - -

Mean 3.32 57.30 1.37 3.79 10.35 11.08 8.86 3.94 100.00 0.28 4.03

SD 0.99 5.11 0.84 1.98 1.75 3.37 2.28 4.30 0.00 0.43 0.60

CV 29.94 8.92 61.88 52.14 16.90 30.38 25.79 109.25 0.00 154.78 14.84

CAGR -10.80 3.55 19.75 25.15 5.25 -11.43 -4.19 -42.84 0.00 -53.75 -7.41

Source: Calculated Values

Population Group-wise and Occupation-wise Outstanding Credit of SBI & its Associates (All India)

c 149 C

Table 5.25 shows Population Group-wise & Occupation-wise

Outstanding Credit of SBI & its Associates in case of All India. Average figure

of Outstanding Credit in case of Agriculture is Rs.42958.84 Cr & in case of

Industry it is Rs.150907.28 Cr. This shows that distribution of outstanding

credit is more in case of Industry as compared to Agriculture. Average figure

of outstanding credit in case of personal loans is Rs.75541.89 Cr. In case of

transport operators it is Rs.4287.66 Cr. Standard deviation is higher in case

of industry indicating more variability and low in case of transport operators

indicating more homogeneity. Coefficient of variation is fairly consistent

among various occupations over period of time. Growth rate Analysis shows

that growth rate in case of Agriculture is 24.70 and in case of Industry is

27.08. In case of professional and other services it is 46.62 and in case of all

others it is -24.08 and in case of Artisans, Village and Tiny Industries it is

6.39. This shows that growth rate is most satisfactory in case of Professional

and other services, satisfactory in case of Industry as compared to Agriculture

and dissatisfactory in case of all others being negative and low in case of

Artisans, Village and Tiny Industries.

Table 5.25 Population Group-wise and Occupation-wise

Outstanding Credit of SBI & its Associates: (All India) Rs Cr.

0ccupation/ Year Agriculture Industry Transport

Operators Professional

& other services

Personal Loans Trade Finance All others Total Bank

Credit

of which Artisans, Village &

Tiny Industries

of which Other Small Scale

Industries 2001-02 19532.75 63683.73 1510.38 2982.40 22455.53 26668.67 6397.34 20457.07 163687.87 3520.36 8025.34 2002-03 20420.22 69772.50 1640.15 3339.56 31425.98 25744.91 11972.94 18183.34 182499.60 2821.17 8709.79 2003-04 25286.38 80249.72 1812.70 4794.89 43097.57 24048.15 10591.39 18584.23 208465.04 2345.81 9265.25 2004-05 31065.50 108959.86 2180.04 7217.71 65016.29 29537.37 15095.07 6951.13 266022.97 3251.55 12161.73 2005-06 42654.32 141778.77 4157.59 12895.59 84705.84 37407.10 16451.19 9892.39 349942.78 3879.16 15514.68 2006-07 56059.58 196283.94 2948.41 17391.85 98788.53 47112.91 24044.73 5732.14 448362.08 4203.83 18159.27 2007-08 73328.08 234031.30 8742.40 28553.75 115921.68 48197.72 27409.65 6107.02 542291.61 - - 2008-09 75323.85 312498.41 11309.57 33670.13 142923.72 60594.61 18361.55 2573.18 657255.04 - - Mean 42958.84 150907.28 4287.66 13855.74 75541.89 37413.93 16290.48 11060.06 352315.87 3336.98 11972.68 SD 22841.21 89527.76 3708.15 11814.33 42633.02 13309.58 6953.97 6957.54 181606.64 683.34 4108.86 CV 53.17 59.33 86.48 85.27 56.44 35.57 42.69 62.91 51.55 20.48 34.32 CAGR 24.70 27.08 33.97 46.62 30.30 14.17 18.23 -24.08 23.53 6.39 19.00

Percentage Distribution of Occupation-wise Outstanding Credit of SBI & its Associates (All India)

Table 5.26 indicates Percentage Distribution of Occupation-wise

Outstanding Credit of SBI & its Associates in case of All India. Percentage

c 150 C

distribution of outstanding credit in average terms in case of agriculture comes

to be 12.08 and in case of Industry it is 41.45. This shows that percentage

distribution of outstanding credit is more in case of Industry as compared to

Agriculture. It is lowest in case of transport operators that is 1.09. Standard

deviation is higher in case of personal loans indicating more variability and

low in case of transport operators indicating more homogeneity. Coefficient of

variance is highest in case of all others indicating more variability and lowest

in case of agriculture indicating more consistency and less variability. Growth

rate Analysis shows that growth rate in case of Agriculture comes to be 0.95

and in case of Industry it is 2.88. Growth rate is negative in case of trade (-

7.57), finance (-4.29), All others (-38.54), Artisans, Village and Tiny Industries

(-13.48) and in case of other small scale Industries (-3.23). This shows that

growth rate is satisfactory in case of Professional and other services, low in

case of Agriculture and Industry and dissatisfactory in case of trade, finance,

All others, Artisans Village and Tiny Industries and other Small scale

Industries.

Table 5.26 Percentage Distribution of Occupation-wise

Outstanding Credit of SBI & its Associates: (All India)

0ccupation/ Year

Agriculture

Industry

Transport Operator

s

Professional & other services

Personal Loans

Trade

Finance

All other

s

Total Bank Credit

of which Artisans, Village &

Tiny Industrie

s

of which Other Small Scale

Industries

2001-02 11.93 38.91 0.92 1.82 13.72 16.29 3.91 12.50 100.00 2.15 4.90

2002-03 11.19 38.23 0.90 1.83 17.22 14.11 6.56 9.96 100.00 1.55 4.77

2003-04 12.13 38.50 0.87 2.30 20.67 11.54 5.08 8.91 100.00 1.13 4.44

2004-05 11.68 40.96 0.82 2.71 24.44 11.10 5.67 2.61 100.00 1.22 4.57

2005-06 12.19 40.51 1.19 3.69 24.21 10.69 4.70 2.83 100.00 1.11 4.43

2006-07 12.50 43.78 0.66 3.88 22.03 10.51 5.36 1.28 100.00 0.94 4.05

2007-08 13.52 43.16 1.61 5.27 21.38 8.89 5.05 1.13 100.00 - -

2008-09 11.46 47.55 1.72 5.12 21.75 9.22 2.79 0.39 100.00 - -

Mean 12.08 41.45 1.09 3.33 20.68 11.54 4.89 4.95 100.00 1.35 4.53

SD 0.72 3.21 0.39 1.38 3.59 2.49 1.14 4.73 0.00 0.44 0.30 CV 5.97 7.75 35.71 41.51 17.39 21.61 23.29 95.55 0.00 32.74 6.60 CAGR 0.95 2.88 8.45 18.69 5.49 -7.57 -4.29 -38.54 0.00 -13.48 -3.23 Source: Calculated Values ROLE OF SBI IN SOCIO-ECONOMIC DEVELOPMENT OF INDIA

c 151 C

Community Service Banking2

Currently the focus of SBI under Community Service Banking are:

• Health

• Education

• Adoption of Girl Child

• Women’s empowerment

• Child development

• Welfare and rehabilitation of poor and handicapped

• Assistance to poor and underprivileged

• Entrepreneur development programmes

• Vocational guidance

• Thrust for assistance to IT education in Rural/Tribal/unreached areas

• Environment Protection

• Assistance during natural calamities

Projects during FY 2009-10

• 114 projects were assisted with Rs. 6.93 crore covering the areas of

Health, Education, Assistance for Handicapped, Sports, Environment

and Assistance to tribal & other under-privileged members of the

society.

• 6 projects amounting to Rs. 5.22 crore were undertaken for providing

relief and rehabilitation to victims of Natural Calamities. Of this Rs. 5.15

crore was donated to the Chief Minister’s Relief Funds of 4 states.

• Adoption of Girl Child

As a part of its commitment to the welfare of our society, the

Bank decided to adopt Girl Children in the age group 6 to 14 who were

orphans, destitute, physically handicapped, belonging to poor families.

This initiative was started in 2008 with 8,338 children. There are

presently 19534 girl children covered under the scheme. These belong

to 6658 schools spread all over the country and have adopted by 5726

branches. An assistance of Rs. 4.84 crore was extended during

financial year 2009-10.

• SBI Children’s welfare Fund 2 Annual Report, State Bank of India, 2009-10

c 152 C

This fund was set up with donations from employees of SBI with

matching contributions from the Bank to assist underprivileged and

poor children in their educational and economic development,

undertook 6 projects during FY 2009-10 and distributed grants of Rs.

4.58 lacs for child welfare projects.

• Credit Assistance provided to Scheduled Castes and Scheduled Tribes The credit assistance provided by the Bank to Scheduled

Castes and Scheduled Tribes stands at Rs. 11872.80 crore and forms

6.31% of total Priority sector advances of the Bank as on 31.03.2010.

• Rural Self-Employment Training Institutes (RSETIs)

RSETIs offer free, unique and intensive short-term residential

self-employment training programmes with free food and

accommodation, designed specifically for rural youth. Under the

guidance of Ministry of Rural Development (MoRD), GoI, the Bank has

established 67 RSETIs as on 31.03.2010 in the lead districts across

the country; conducted 1748 training programmes; trained 46,626

candidates and arranged credit linkage to 18019 beneficiaries. • Prime Minister’s New 15 Point Programme for the Welfare of

Minorities and Implementation of Sachar Committee Recommendations

The Bank has implemented Prime Minister’s New 15 Point

Programme for the welfare of Minorities whose important objective is to

ensure that an appropriate percentage of the Priority Sector Lending is

targeted for the minority communities and that the benefits of various

Government sponsored schemes reach the underprivileged,

particularly the disadvantaged section of Minority Communities. Rural Credit

Rural Business Group deals with the business of the bank at all rural

and semi-urban centres. It handles deposit portfolio of Rs. 2,54,210 crore and

credit portfolio of Rs. 1,43,380 crore, which is 35% and 26% of the Bank’s

total domestic and credit portfolio respectively as on 31.03.2010. Advances to Weaker Section The Bank has extended advances to the tune of Rs. 56,085 crore as

on 31.03.2010 to the weaker sections which is 12.14 percent of Adjusted Net

c 153 C

Bank Credit (ANBC) against the benchmark of 10 percent of the ANBC set by

Reserve Bank of India. Micro Finance and Financial Inclusion

• The Bank is the market leader (market share around 31%) in SHG-

Bank Credit Linkage programme having credit linked so far 17.13 lacs

SHGs (3.40 lacs SHGs credit linked during FY 2009-10) and disbursed

loans to the extent of Rs. 11,562 crore (cumulative). The Bank has

rolled out several unique products like SHG Credit Card, SHG Sahayog

Niwas and SHG Gold Card.

• A new scheme for financing NGOs/MFIs for on-lending to SHGs

introduced.

• Coverage of Micro Insurance product-Grameen Shakti has been

extended. One million lives have been covered so far.

• SBI has been rated as the Best Public Sector Bank for Rural Reach by

Dun and Bradstreet Banking Award 2009.

• SBI has been awarded with Best Microfinance Award for the year 2009

by the Asian Banker from the financial institutions across the Asia,

Pacific, Gulf and Central Asia regions.

• Coverage of unbanked village increased from 53,000 in March 2009 to

1,03,938 in March 2010.

• Considering the fact that a majority of 6.38 lacs habitations in India are

not served by a Commercial Bank or Regional Rural Bank, the Bank

took upon itself the task of reaching out to these unbanked villages and

making available the basis banking facilities at affordable cost.

• Bank undertook multi-pronged approached of engaging Business

Facilitators (BFs), Business Correspondents (BC) and technological

innovations to cover the unbanked villages besides expanding through

new branches. Corporate Social Responsibility Corporate Social Responsibility has been a part of the State Bank of

India since 1973 under the name of the community service banking covering

various social, environmental and welfare activities. The stated Corporate

Philosophy is as follows :

c 154 C

• The Bank is a corporate citizen with resource at its command and

benefits which it derives from operating in the society in general. It

therefore, owes a solemn duty to the less fortunate and underprivileged

members of the same society.

• Staff members are expected to make their contribution by

understanding the aspiration of the public around them and by

endeavouring to evolve measures to remove the politically indisputable

social and developmental lacunae.

• During the financial year 2009-10, the Bank implemented 136 projects

with donations aggregating Rs. 19.72 crore. Numerous welfare and

social activities were implemented both in Banking and Non-Banking

areas with basic aim of raising the quality of life in the community,

especially in and around the area of operation of the branches.

Particular attention was given to ameliorating the condition of the

downtrodden and underprivileged common man. Green Banking Initiatives of the Bank Being a responsible Corporate Citizen of the country, the Bank has

adopted a Green Banking policy with an objective of contributing towards the

fight against the adverse climatic changes. The policy envisages two pronged

approach to address the issue that:

(i) To reduce the Bank's own carbon footprint.

(ii) To sensitise the Bank's clients to adopt low carbon emission practices.

As part of the Bank's operations, the Bank has initiated several

measures, which include switching over to energy efficient lighting systems,

installation of energy savers, efficient water management system, waste

disposal and tree plantations etc. Education Partnership with the Municipal Corporation of Greater Mumbai The Municipal Corporation of Greater Mumbai has launched a project

to transform and upgrade the outcome of education in schools run by the

Municipal Corporation. The Bank has agreed to support this project as a

partner for a period of 2 years as this project may evolve as a model for

replication across the country. The project has the following objectives:

• Improvement in student attendance from 50-60 percent to 90 percent.

c 155 C

• Reduction in drop-out rates especially at upper primary level.

• Enabling at least 30-50 percent of the children to speak English

comfortably.

• At least 20 percent of secondary school children getting strong

vocational training.

• At least 20 percent of parents being highly involved in the child's

learning.

• Creating infrastructure of the right quality in each school.

c 156 C

Home Loans SBI Home Loans is India's No.1 Home Loan Brand. It has maintained

its position as India's "Most Preferred Home Loan" Brand in CNBC - Awaaz

Consumer Awards continuously for 4 years since 2006. SBI home loans has

been rated as "The Best Home Loan" in India by the panel of the eminent jury

in NDTV - Outlook Money Awards continuously since 2008. Home loans play

a pivotal role in the Bank's retail business strategy. Education Loans With an increase in the number of students opting for higher studies in

India and abroad. Education loans have grown at 34.62 percent YOY (as on

March 2010). SBI has extended 4,33,789 Educational Loans with a total

exposure of Rs. 8.907 crore (as on March 2010). Currently SBI is the market

leader in Education Loans with a market share close to 25 percent. SBI

believes in contributing towards the future of India and the youth that will be

the face of India in coming years.

It can be concluded that SBI and its associates has strong and wide

spread network of branches even in rural and semi-urban areas. SBI and its

associates are actively engaged in the socio-economic development of the

country. SBI serves as a pioneer in many areas of social welfare. Growth rate

in financing of agriculture, small enterprises and priority sector advances is

favourable.

SBI has also contributed remarkably to poverty alleviation and

employment programmes. It is also engaged in providing assistance for

health, education etc. It is also involved in environment protection and green

banking.

*********