April - June 2017
Large Corporate advances increased from Rs.2,55,964 Crores as on 30th June 15 to
Rs.3,08,206 Crores as on 30th June 16 (20.41% YOY growth).
Mid-Corporate Advances increased from Rs. 2,00,035 Crores as on 30th June 15 to
Rs. 2,07,137 Crores as on 30th June 16 (3.55% YOY growth).
Retail Personal advances increased from Rs.2,80,114 Crores as on 30th June 15 to
Rs.3,37,087 Crores as on 30th June 16 (20.34% YOY growth). Home loans increased from
Rs.1,63,678 Crores as on 30th June 15 to Rs.1,97,575 Crores as on 30th June 16
(20.71% YOY growth). Auto loans increased from Rs.33,229 Crores as on 30th June 15 to
Rs.39,683 Crores as on 30th June 16 (19.42% YOY growth).
SME Advances increased from Rs.1,74,591 Crores as on 30th June 15 to Rs.1,82,093
Crores as on 30th June 16 (4.30% YOY growth).
Agri advances increased from Rs.1,15,813 Crores as on 30th June 15 to Rs.1,24,594
Crores as on 30th June 16 (7.58% YOY growth).
International advances increased from Rs.2,50,950 Crores as on 30th June 15 to
Rs.2,70,365 Crores as on 30th June 16 (7.74% YOY growth).
2015 - 2016 Financial Year
C. Small & Medium Enterprises
Your Bank has been the pioneer and market leader for SME financing. With over 1 million customers, the SME portfolio of Rs.1,89,534 crore as on 31st March, 2016 accounts for nearly 12% of your Bank’s total advances. The revival of business sentiment and growth in GDP has brought the focus sharply on the growth and viability of SME units.
The Government’s initiatives – Make in India, CGTMSE cover and MUDRA – are providing a significant shot in the arm to the SME segment.
Your Bank’s endeavour in driving SME growth rests on three pillars:
a) Customer Convenience
b) Risk Mitigation
c) Technology based digital offerings
In FY2016, Ecosystem Financing (Project Shikhar) has been started by your Bank to take advantage of growing e–Commerce footprint in the economy.
Your Bank’s focus had been on digital banking platform and launched various facilities for SMEs based on technology like Credit Risk Model to provide automated instant sanction of loans under e–tailer sellers financing, which is a truly disruptive offering, where loan to the seller is given at the click of a button. An in–house ‘Digital Tool’ is being used for instant sanction of loans to taxi operators or owners associated with a taxi aggregator’s platform.
Apart from this, your Bank is leveraging technology for capturing early warning signals and has introduced digital inspection of units. Overall, SBI is leveraging technology in every facet of the value chain, be it sourcing business, designing products, streamlining processes, improving delivery or monitoring and follow–up.
Your Bank has taken several initiatives to build its SME portfolio in a risk mitigated manner and has brought about significant changes in (i) Product Suite, (ii) Processes (iii) Delivery.
(i) Product Suite:
All the products offered to Micro, Small & Medium enterprises have been strengthened and made more hassle free. Scoring Models have been introduced for loans up to Rs.10 Lakh. New products like Asset Backed Loans (ABL) have been reviewed and upgraded suitably. Sector specific products like Construction Equipment Loan, Medical Equipment Loan have been introduced with pricing matrix and scoring models. Cluster specific products have been introduced to capture top quartile customers in an industry. Your Bank has launched a Simplified Cash Credit product on pilot basis at Chennai & Hyderabad Circles.
Your Bank has introduced detailed Standard Operating Procedure (SOP) for various processes involved in the delivery of Credit to provide a ready reference to all operating functionaries. Your Bank has covered key products under Loan Origination & Loan Life Management Software (LOS & LL MS) which focus on capturing of pre–sanction process of credit portfolio, ensuring quality and uniform standards of credit dispensation and have robust record and information retrieval systems. Under this initiative in FY2016 your Bank has introduced digital inspection application through Tab & Mobiles which is a process of digitisation of presanction/ post sanction of SME units & collateral securities capturing location of the property/ place of business.
Your Bank had undertaken Project Vijay starting in FY2015 to revamp the delivery model for SME lending in order to drive growth and improve customer engagement, with following key features.
„. Over 1,000 relationship managers deployed for serving SME customers
„. Leveraging big data and analytics based lead generation for customer acquisition
„. Improving internal processes and documentation needs to reduce customer turn–around time by ~50%
„. Increasing focus on risk mitigated, competitive products; e.g. launch of new Asset backed loan product, promoting fleet finance, e–DFS and e–VFS products
„. Deploying Vijaypath tool for performance monitoring of relationship managers
Customer engagement has improved significantly with reduced turnaround time, simplified documentation and assignment of dedicated relationship managers. Your Bank has been increasingly shifting focus towards risk mitigated lending.
Supply Chain Finance
Leveraging its state of the art technology, your Bank is focusing on further strengthening its relationship with the corporate world for their supply chain partners.
During the last fiscal your Bank has entered into 57 new eDFS & eVFS tie ups taking the overall tie ups with industry majors to 193.
There has been a 40% YoY growth in the eDFS portfolio as a result of the new tie–ups. The diversification in the eDFS portfolio and the sector–wise portfolio is represented below
Credit flow to Micro and Small enterprises under CGTMSE & MUDRA
Your Bank has been a pioneer in supporting MSMEs and for micro and small (MSE) business. Your Bank is extending collateral free lending up to Rs.1.00 crore under guarantee of CGTMSE. The cost of guarantee cover for working capital facilities up to Rs.50 lakh is being borne by your Bank. Your Bank has a portfolio of Rs.11,030 crore under CGTMSE. It was able to achieve Rs.12,281 crore disbursement almost 92% of the target of Rs.13,325 crore disbursement under MUDRA loans set by Govt. of India.
Project Shikhar was rolled out to gain first mover advantage in the e–Commerce space. The exponential growth in e–Commerce has thrown open a world of opportunities for MSMEs. New players have entered the market space and B2B & B2C space is growing in demand. Under this project, your Bank is working on various initiatives to pioneer an ecosystem for lending through partnerships with new business models.
Three SME ecosystems have been identified as focus areas e–Commerce, taxi aggregators and franchise finance.
Your Bank has developed a specialised offering for startups active in the e–commerce space. A pioneering innovative product “e–Smart SME” for financing merchants selling through e–commerce platforms has been designed. Tie–ups with leading e–Commerce companies, Snapdeal and Flipkart, have been established this year. This innovative product moves away from traditional balance sheet based lending to a cash flow based lending program. It uses an in–house developed proprietary credit model based on platform and surrogate data to assess eligibility. The entire process has been automated – ‘at the click of a button’ – from online application, uploading of documents, processing and sanction, all in less than a minute
– first time ever in the history of banks in India. The product was launched by your Bank’s Chairman & CEO of Snapdeal on 15th January 2016.
The seller no longer needs to submit traditional financial statements like Balance Sheet, P&L or Income tax returns to avail this financing facility. Your Bank has also developed a digital tool to identify any early signs of stress through the e–commerce platform data of the borrower
(ii) Taxi Aggregators
Taxi aggregators have been revolutionizing the way Indians commute – and your Bank has tied up with these aggregators to help individual drivers buy a car and become mini–entrepreneurs. Under this, your Bank has tied up with both Ola and Uber India to extend vehicle loans to drivers and operators associated with these platforms. A digital credit tool has been developed in–house by your Bank to automate the process and enable instant sanction. The tool was launched in partnership with Uber on 15th March, 2016 by your Bank’s Chairman & Uber President Asia Pacific.
Documentation needs have been significantly simplified for enabling faster loan disbursal process. Under the OLA cabs tie–up launched in FY2015, over 1,000 loans have been disbursed across 5 centres.
(iii) Franchise Finance
A comprehensive product suite has been designed to cater to the franchising model that is fast growing in India’s retail consumer segment. Franchise finance along with electronic dealer finance will provide a comprehensive, competitive solution for large industry majors.
The product suite now offers financing solutions for the franchisee’s initial capex investment, working capital and transaction related needs. Your Bank is tying up with large, reputed franchisors to extend this proposition to their new and existing franchisees. These loans will be risk mitigated through franchisor affiliation, comfort and repayment facilitation. Continuous sharing of data by franchisor will enable economic assessment of business model and identification of early warning signals for stressed franchisees.
Five tie–ups have been launched during the year – Philips, Medplus Pharmacy, Anytime Fitness, Lakme salon and Raymond.
(iv) Debit Cards & Acceptance Infrastructure (Merchant Acquiring Businesses) Your Bank realised early the need for doing banking the Smart way, in its pursuit towards becoming the ‘Banker to digital India. Your Bank has been putting significant efforts to upgrade its technology to the best in class, on an on–going basis and the capability to offer near JIT (Just in Time) service delivery environment across its delivery channels.
With over 23 crore State Bank Group Debit Cards as on 31st March, 2016, your Bank continues to lead in Debit Card issuance in the country. You will be glad to know that 20% of the Banked population in India have their accounts with your Bank, with ~37% of total Debit Card penetration in the country. A concerted effort by your Bank to empower the customers to enjoy
“Anytime Anywhere Banking” through Debit Card has propelled this sheer dominance of your Bank in Debit card space. You would be happy to note that your Bank has also improved its market share in Debit Cards spends from 25.07% (March 15) to 26.29% (March
16) which is highest amongst the banks as per RBI data. In sync with the focus of Government of India to create a digital economy, your Bank has strengthened its Debit Card acceptance infrastructure by giving a vigorous thrust on installation of Point of Sale (PoS) terminals, thereby taking the numbers to over 3.02 lakh, up by 50% over last year with a market share of 21.70% of PoS terminals. During the FY2016, your Bank has registered a growth of 56% in terms of number of transactions and 60% in value of transactions. With a view to move the larger base of Debit Cardholders to PoS terminals as also to e–Commerce websites, awareness campaigns are being run on a regular basis. These measures zoomed the
Debit Card spends over “Point of Sale” and “e–Commerce” for the State Bank Group to ~Rs.41,500 crore for the FY2016, an increase of 36% from the previous year and taking the market share to over 26%.
Various innovations like introduction of sbiin Touch contactless Debit Cards, Mumbai Metro Debit Card, among others, aggressive marketing campaigns and Debit Card awareness programme, have placed your Bank in the top slot in terms Debit Card spends. In order to go “green” your Bank is now focussing on “paperless” mobile PoS terminals with 30000+ mPoS terminals.
During FY2016, Bank has also launched the Contactless (NFC) PoS terminals with over 30,000 such terminals already deployed in the field. Acceptance of Amex Card has also been enabled on SBI PoS terminals during FY2016. In addition to offering basic acquiring services on its terminals, your Bank is also providing Value Added Services such as:
„. Cash@POS facility for cash dispensation to debit card holders
„. DCC – Dynamic Currency Conversion
„. EMI facility
Your Bank has also partnered with various Government initiatives for providing payment acceptance infrastructure at the Customer Service Centres (CSCs) across all geographies