Transcript Slide 1

June 2010
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State Bank Group - A Truly Universal Bank
State Bank Group
SBI and Associate Banks*
SBI Life Insurance Co. Ltd.
SBI Funds Management Ltd.
SBI Cards & Payment Services P Ltd.
SBI Capital Markets Ltd.
SBI Factors & Commercial Services P Ltd.
SBI Caps Securities Ltd.
SBI Caps Ventures Ltd.
SBI DFHI Ltd.
Foreign Subsidiaries & Joint Ventures
As on 31st March 2010, SBI & the 6 associate banks together have 18,331 branches and 21,485
ATMs with SBI alone having 12,638 branches and 16,294 ATMs sharing a common
technology platform
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State Bank Group – A Glimpse
• India’s largest Commercial Banking Group, consisting of
SBI and 21 Subsidiaries, 6 Joint Ventures and 6
Associates
• Over 200 years of profitable banking
• Rated AAA by Crisil (a Standard and Poor company)
indicating highest safety
• Maintaining a CAR of ~12% consistently
• Complying with BASEL II guidelines
• Independent Risk Governance structure & integrated risk
management of credit, market and operational risks
• High levels of corporate governance – Board driven
decision making
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State Bank Group – A Glimpse
• Strong internal and external audit systems – Audit
committee of the Board consists of highly qualified and
independent directors
• New initiatives in Pension Fund, Infrastructure Fund, Point
of Sale and General Insurance in partnership with large
international players
• Strong record of corporate social responsibility (CSR)
activities
• Rights issue of ~US$ 4bn in March 2008 fully subscribed
• Exposure to international CDOs is ~0.01% of assets, thus
allowing it to avoid the fallout of sub-prime crisis
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Awards & Recognition to SBI
Chairman Mr O.P.Bhatt
Best Executive – 2008 (Asia Money)
Indian of the Year –Business-2007 –CNN-IBN
25 Most Valuable Indians – 2009 – The Week
Bank of the Year 2009, INDIA by the
Banker Magazine (Second Year in succession)
The only Indian Bank in the Fortune Global 500
list Ranked 363 in 2009
(380 in 2008)
57th Rank in the world by The Banker
in July2008 (up from 70th a year ago)
Best Bank 2009 (Business India)
Economic Times Brand Equity Rank:
Most Trusted Brand in 2009
# 1 in financing M&A outside
India in Asia Pasific (excl. Japan) region
31 deals for US$22.56 bn in 2007-08
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SBI - GROWING FROM STRENGTH TO STRENGTH
FY’ 03
FY’ 08*
Change
129
Deposits
(US$ bn)
62
CAGR of 16%
99
Advances
(US$ bn)
CAGR of 28%
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19.9%
26.8%
Net profit
margin
Increase of 35%
0.86%
1.00%
Increase of 16%
RoA
4.50%
Net NPA
ratio
1.44%
Decrease of 68%
* Provisional
* Data upto December’07
Source: SBI financals; Bloomberg
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The India Advantage
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Robust economy supported by strong
democratic political system
Average 8.8% GDP growth
53 mn in High and Rich Income group
Largest source of skilled and semi
skilled and English speaking work
force
Strong and independent legal system
with distinct separation of executive
and judiciary as per the Constitution
Well endowed with mineral wealth,
fertile land base and diversified
ecology
GDP Growth – converging to Trend
10.0
9.4
9.0
9.6
8.7
8.5
8.0
7.5
7.0
6.0
5.8
5.0
3.8
4.0
3.0
2.0
1.0
0.0
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08P
• USD 492 bn Investment in Infrastructure in next 5 yrs (US$ 145 bn from
Private Sector)
• Addl Power generation capacity: 70,000MW (26% participation by private sector)
• Sea Ports: Capacity addition of 830 mn tonnes (67% by private sector)
•Airports: redevelopment of 4 metro and 35 non metro airports and constructing
7 Greenfield and 3 in North East (67% by private sector)
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India Growth Continues – Key Drivers
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THE INDIAN BANKING SYSTEM IS ROBUST WITH HIGH OVERALL ASSET
QUALITY & PROFITABILITY
2006
Asset quality
Profitability
Net NPL/GDP
Net NPL/Net loans
Pretax ROA
Pretax ROE
Weak
Malaysia
8.7
Malaysia
China
6.0
China
Hong Kong
5.8
Philippines
8.5
7.1
5.9
0.2
Taiwan
9.1
Hong Kong
1.1
Thailand
11.5
Thailand
1.1
Singapore
12.4
China
1.2
Philippines
13.4
Taiwan
3.1
Thailand
Singapore
3.1
Singapore
3.3
India
1.2
Malaysia
Thailand
3.0
Hong Kong
2.9
Singapore
1.3
Korea
18.8
Malaysia
1.3
India
18.9
1.4
China
21.2
Hong Kong
22.5
Philippines
1.9
Taiwan
4.3
Taiwan
2.1
Korea
0.9
India
1.0
Korea
India
0.4
Korea
0.8
Philippines
Strong
Source: CMIE, Bankscope
1.6
16.3
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Prudence of the Home Regulator
The Indian banking system has been largely insulated from international crises
due to prudent regulatory guidelines prescribed by Reserve Bank of India
Illustrative regulations
• BASEL II: All Indian banks with international presence required to be BASEL II
compliant by March 31, 2008
• Capital adequacy (CRAR): Prescribed capital adequacy ratio
of 9%, 4.5% each on tier-I and tier-II capital (higher than BASEL II norms of 8%)
– Conservative weightage guidelines: Housing loans have a risk-weight of 50-150%,
as compared to BASEL II prescriptions of 35%
– Constant monitoring of weights: Commercial real estate loans have risk weights
ranging from 125% to 150% in response to market real estate conditions
– ICAAP guidelines put in place in 2008 for banks to assess capital adequacy in
relation to their risk profiles
• High levels of Provisioning even for standard assets: ranging from 0.4% to 2%
depending on type of loan asset
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State Bank of India : Market Share
100%
33%
80%
60%
75%
65%
Others
SBI
40%
67%
20%
25%
35%
0%
Total
Business
Foreign
Exchange
Government
Business
• Over 80% of Top Corporates in India have relationships with SBI
• Largest customer base
• Leading Provider of financial services
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International Network
142 Branches/Offices in 32 Countries
Americas: branches (New York, LA and Chicago) and One wholly owned subsidiary (SBI
California) with branches in USA; One wholly owned subsidiary with branches in Canada;
and one OBU in Bahamas
Europe: 6 branches in UK; one each in Frankfurt, Antwerp & Paris
Middle East: Branches covering Bahrain, UAE, Oman & Israel
Africa: Branches in Johannesburg, Durban and Cape Town
South Asia: Branches in Bangla Desh, Sri Lanka and Maldives
East Asia and Australia: Branches in Hong Kong, Sydney, TOKYO, OSAKA Shanghai and
Singapore; Expanding the branch net work in Singapore after recent QFB licence.
Representative Offices in Washington, Milan, Istanbul, Luanda, Cairo, Manila and Tehran.
Jt. Venture banks in Russia, Bhutan, Nigeria, Nepal Subsidiaries in Mauritius and
Indonesia
Exchange companies managed by SBI in Dubai, Oman and Qatar
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Gist of Services offered in Japan
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Trade Finance
Deposits
Remittances
Commercial Lending
Bank Guarantees
Treasury Services
Advisory Services for India related business
• BRANCHES IN TOKYO AND OSAKA
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Trade Finance
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Negotiation/Discounting of documents under LCs
Collection of documents
Adding confirmation to LCs
Supplier’s Credits
Buyer’s Credits
Forfaiting on risk participation basis
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Deposits
•Short-term & long term
•JPY & US Dollar
•MOST ATTRACTIVE
RATES
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Remittances
•Remittances to India and other countries
in JPY, USD or Indian Rupees
•INSTANT REMITTANCE TO OVER 18000
BRANCHES
•Advisory Services to individuals and
companies
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Commercial Lending
•Project related Loans for Corporates both Indian as
well as from other countries
•Arrangement with JBIC – providing long-term loans
to Indian companies for their imports from Japan
(JBIC Export Credit)
•Investments in Bonds and fixed income securities
•Loans to Corporates for imports into India
•Syndication through other banks & bilateral loans
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Bank Guarantees
•Project related Bank Guarantees on behalf of
corporates
•Performance bonds, bid bonds, advance
payment guarantees
•Bank Guarantees on behalf of customers of
major banks in India
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Treasury Services
•Arrangement of Forward Contracts
•Derivatives
•Rupee quotes for remittances
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Contact Persons - Tokyo
•Mr Arijit Basu, Regional Head & Chief Executive
Officer Japan Phone 03-3284-0098
•Mr. T. Kikuchi , Senior Vice President & Resident
Manager Phone 03-3284-0086
•Mr Nixon Joseph,Vice President (Credit &
Investments) Phone 03-3284-0097
•Mr Jawahar Koul,Vice President (Trade Finance
&Operations ) Phone 03-3284-0010
Website www.sbijapan.com E-mail: [email protected]
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Contact Persons - Osaka
•Mr Vinay Tonse, Chief Operating Officer Osaka
Phone 06-6271-3696
•Mr. H. Ohsumi , Senior Vice President Phone 066271-3237
•Mr Abraham George,Vice President (Credit &
Operations) Phone 06-6271-3695
•Mr P. Jamneshwar,Vice President ( Credit &
Operations ) Phone 03-3284-0010
Website www.sbijapan.com E-mail: [email protected]
THANK YOU
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