A STUDY ON to study on customer satisfaction toward Vodafone mobile service A PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF REQUREMENT FOR THE AWARD OF BACHLEOR IN MANAGEMENT STUDIES.TO UNIVERSITY OF MUMBAI SUBMITTED BYMISS.MEHJABEEN CHAND SHAIKH S.Y.BMS ROLL NO.MSY20 UNDER THE GUIDANCE OFPROF.ANJU SONKHALA SUBMITTED TOPROF.SHARA K.DTHE CO-ORDINATORKARNALA SPORTS ACADMY,S BARNS COLLEGE OF ART, SCIENCE, & COMMERCE

Barns college of

Art, Commerce, Science CollegePanvel (w)

CERTIFICATE

This is to certify that Ms .mehjabeen Shaikh, student ofS.Y.B.M.S has undertaken and completed project work onto study on customer satisfaction toward vodafone during theAcademic year 2014-2015.under the guidance ofMs. Anju Sonkala submitted on This college in fulfillment for bachelor of management studies (BMS)University of Mumbai

Project Guide Principal

B.M.S. Co-coordinator

DECLARATION I am mehjabeenShaikh the student of Barns College Of Arts, Commerce And Science College of S.Y.BMS hereby declare that I have completed this project on to study on customer satisfaction of Vodafone mobile service in the academic year 2014-2015 .the information submitted is true and original to the best of my knowledge and belief .The project represent subject matter in simple, compact and convencing language and style.

ACKNOWLEDGEMENT With great pleasure and a deep sense of gratitude .I hereby acknowledge everyone who provided me with their help assistance and sustained support without which even if i have had done this work ,it would not have been as it has turned out to be . Their enlightened feedbacks and directions can be sensed as the project moves on. I am sincerely thankful to my project guide prof .Anju Sonkala who provide me with all the theoretical and practical input for my project without her full support this project would not have been completed.

REFACEIn any organization, the two important financial statements are the Balance Sheet and Profit &Loss Account of the business. Balance Sheet is a statement of financial position of an enterpriseat a particular point of time. Profit & Loss account shows the net profit or net loss of a companyfor a specified period of time. When these statements of the last few year of any organization arestudied and analyzed, significant conclusions may be arrived regarding the changes in thefinancial position, the important policies followed and trends in profit and loss etc. Analysis andinterpretation of financial statement has now become an important technique of credit appraisal.The investors, financial experts, management executives and the bankers all analyze thesestatements. Though the basic technique of appraisal remains the same in all the cases but theapproach and the emphasis in the analysis vary. A banker interprets the financial statement so asto evaluate the financial soundness and stability, the liquidity position and the profitability or theearning capacity of borrowing concern. Analysis of financial statements is necessary because ithelps in depicting the financial position on the basis of past and current records. Analysis offinancial statements helps in making the future decisions and strategies. Therefore it is verynecessary for every organization whether it is a financial or manufacturing, to make financialstatement and to analyze it.

Chapter noparticularsPage no

Acknowledgement

preface

1Introduction of banking

2 Company profile

State bank of India

Bank of Baroda

3 Research methodology

4 Financial analysis

Ratio analysis

5 Financial comparative analysis

6Finding ,suggestion and conclusion

7 References

cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners ofthe country. This is one ofthe main reasons of India's growth process.HISTORY OF BANKING IN INDIABanking in India has its origin as early or Vedic period. It is believed that the transitions frommany lending to banking must have occurred even before Manu, the great Hindu furriest, whohas devoted a section of his work to deposit and advances and laid down rules relating to the rateof interest. During the mogul period, the indigenous banker played a very important role inlending money and financing foreign trade and commerce.During the days of the East India Company it was the turn of agency house to carry on thebankingbusiness.TheGeneralBankofIndia wasthefirst jointstock banktobeestablished inthe year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The Bankof Hindustan is reported to have continued till 1906. While other two failed in the meantime. Inthe first half of the 19th century the East India Company established there banks, The bank ofBengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These threebanksalsoknownasthePresidencybanksweretheindependentunitsandfunctionedwell.These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India wasestablished on 27th January, 1921.With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank ofIndia was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which isthe Central bank was established in April, 1935 by passing Reserve bank of India act 1935. TheCentral office of RBI is in Mumbai and itcontrols all the other banks in thecountry.In the wake of Swadeshi Movement, number of banks with the Indian management wereestablished in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank ofBaroda Ltd., Canara Bank. Ltd. on 19thJuly 1969, 14 major banks of the country werenationalized and on 15thApril 1980, 6 more commercial private sector banks were taken over bythe government.The first bank in India, though conservative, was established in 1786. From 1786 till today,thejourneyofIndianBankingSystemcanbesegregatedintothreedistinctphases.Theyareasmentioned below:Early phase from 1786 to 1969of Indian BanksNationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

NewphaseofIndianBankingSystemwiththeadventofIndianFinancial&BankingSector Reforms after 1991.Phase IThe General Bank of India was set up in the year 1786. Next came Bank of Hindustan andBengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay(1840) and Bank of Madras (1843)as independent units and calledit Presidency Banks.These three banks were amalgamated in 1920 and Imperial Bank of India was established whichstarted as private shareholders banks, mostly Europeans shareholders.In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab NationalBank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank ofIndia, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysorewere set up. Reserve Bank of India came in 1935.During the first phase the growth was very slow and banks also experienced periodic failuresbetween 1913and 1948.There wereapproximately 1100banks, mostly small.To streamline thefunctioning and activities of commercial banks, the Government of India came up with TheBanking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as peramending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensivepowers for the supervision of banking in India as the Central Banking Authority.During those days public has lesser confidence in the banks. As an aftermath depositmobilization was slow. Abreast of it the savings bank facility provided by the Postal departmentwas comparatively safer. Moreover, funds were largely given to traders.Phase IIGovernment took major steps in this Indian Banking Sector Reform after independence. In1955,it nationalized Imperial Bank of India with extensivebanking facilities on a large scale especiallyin rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBIand to handle banking transactions of the Union and State Governments all over the country.Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19thJuly,1969, major process of nationalization was carried out. It was the effort of the then PrimeMinister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country wasnationalized.Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 withseven more banks. This step brought 80% of the banking segment in India under Governmentownership.

The following are the steps taken by the Government of India to Regulate BankingInstitutions in the Country: 1949: Enactment of Banking Regulation Act.1955: Nationalization of State Bank ofIndia.1959: Nationalization of SBI subsidiaries.1961: Insurance cover extended to deposits.1969: Nationalization of 14 major banks.1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.1980: Nationalization of seven banks with deposits over 200 crore.After the nationalization of banks, the branches of the public sector bank India rose toapproximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the sunshine of Government ownership gave the public implicit faith and immenseconfidence about the sustainability of these institutions.Phase IIIThis phase has introduced many more products and facilities in the banking sector in its reformsmeasure. In 1991, under the chairmanship of M Narasimhama, a committee was set up by hisname which worked for the liberalization of banking practices. The country is flooded withforeign banks and their ATM stations. Efforts are being put to give a satisfactory service tocustomers. Phone banking and net banking is introduced. The entire system became moreconvenient and swift. Time is given more importance than money. The financial system of Indiahas shown a great deal of resilience. It is sheltered from any crisis triggered by any externalmacroeconomics shock as other East Asian Countries suffered. This is all due to a flexibleexchange rate regime, the foreign reserves are high, the capital account is not yet fullyconvertible, and banks and their customers have limited foreign exchange exposure.BANKS IN INDIAIn India the banks are being segregated in different groups. Each group has their own benefitsand limitations in operating in India. Each has their own dedicated target market. Few of themonly work in rural sector while others in both rural as well as urban. Many even are only cateringin cities. Some are of Indian origin andsome are foreign players.All these details and many more is discussed over here. The banks and its relation with thecustomers, their mode of operation, the names of banks under different groups and other suchuseful informations are talked about

one more section has been taken note of is the upcoming foreign banks in India. The RBI hasshown certain interest to involve more of foreign banks than the existing one recently. This stephas paved a way for few more foreign banks to start business in India. BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA (1) Scheduled Commercial BanksPublic sector BanksPrivate sector BanksForeign Banks in IndiaRegional rural Banks

(26) (25) (29) (95)

Nationalize BanksOther Public Sector Bank (IDBI)SBI And Its AssociatesOld Private BanksNew Private Banks

(2) Schedule Cooperative Banks

Schedule urban Cooperative BanksSchedule state Cooperative Banks

Public Sector Banks

Public sector banks are those banks which are owned by the Government. The Govt. runs theseBanks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were alsonationalized. Therefore in 1980 the number of nationalized bank 20. At present there are total 26Public Sector Banks in India (As on 26-09-2009). Of these 19 are nationalised banks, 6(STATEBANK OF INDORE ALSO MERGED RECENTLY) belong to SBI & associates group and 1bank (IDBI Bank) is classified as other public sector bank. Welfare is their primary objective.Nationalized banksAllahabad BankAndhra BankBank Of BarodaBank Of IndiaBank Of MaharastraCanara BankCentral Bank Of IndiaCorporation BankDena BankIndian BankIndian Overseas BankOriental Bank OfCommercePunjab & Sind BankPunjab National BankSyndicate BankUCO BankUnion Bank Of IndiaUnited Bank Of IndiaVijay BankOther Public Sector Banks

IDBI(Industrial Development Bank)Ltd.

SBI & its Associates

State Bank of India

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

State Bank of Bikaner And Jaipur

(State Bank of Saurastra merged withSBI in the year 2008 and State Bank ofIndore In 2010)

Private Sectors Banks

These banks are owned and run by the private sector. Various banks in the country such as ICICIBank, HDFC Bank etc. An individual has control over there banks in preparation to the share ofthe banks held by him.Private banking in India was practiced sincethe beginning of banking system in India. The firstprivate bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one ofthe fastest growing Bank Private Sector Banks inIndia. IDBI ranks the tenth largest developmentbank in the world as Private Banks in India and has promoted world class institutions in India.The first Private Bank in India to receivean in principle approval from theReserve Bank ofIndia was Housing Development Finance Corporation Limited, to set up a bankin the privatesector banks in India as part of theRBI's liberalization of the Indian BankingIndustry. It wasincorporated in August 1994 as HDFCBank Limited with registered office in Mumbai andcommenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet anotherPrivate Bank of India was incorporated in the year 1930.

Private sector banks have beensubdivided into following 2 categories. Old Private Sector BanksNew Private Sector Banks

Bank of Rajasthan Ltd.Catholic Syrian Bank Ltd.City Union Bank Ltd.Dhanalakshmi Bank Ltd.Federal Bank Ltd.ING Vysya Bank Ltd.Jammu and Kashmir Bank Ltd.Karnataka Bank Ltd.Karur Vysya Bank Ltd.Lakshmi Vilas Bank Ltd.Nainital Bank Ltd.Ratnakar Bank Ltd.SBI Commercial and InternationalBank Ltd.South Indian Bank Ltd.Tamilnad Mercantile Bank Ltd.United Western Bank Ltd.Bank of Punjab Ltd. (since mergedwith Centurian Bank)Centurian Bank of Punjab (sincemerged with HDFC Bank)Development Credit Bank Ltd.HDFC Bank Ltd.ICICI Bank Ltd.IndusInd Bank Ltd.Kotak Mahindra Bank Ltd.Axis Bank (earlier UTI Bank)Yes Bank Ltd.

The Cooperative bank is animportant constituent of the Indian Financial System, judging by therole assigned to co operative, theexpectations the co operative is supposed tofulfil, theirnumber, and the number of offices the cooperative bank operate. Though the co operativemovement originated in the West, but theimportance of such banks haveassumed in India israrely paralleled anywhere else in the world. The cooperative banks in Indiaplays an importantrole even today in rural financing. The businesses of cooperative bank in the urban areas also hasincreased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks.Co operative Banks in India are registered under the Co-operative Societies Act. The cooperativebank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 andBanking Laws (Co-operative Societies) Act, 1965.Rural banks in IndiaRural banking in Indiastarted since the establishment of banking sector in India. RuralBanksin those days mainly focussed uponthe agro sector. Regional rural banks inIndia penetratedevery corner of the country and extended a helping hand in the growth process of the country.SBI has 30 Regional Rural Banks inIndia known as RRBs. The rural banks of SBI is spread in13 states extending from Kashmir to Karnataka andHimachal Pradesh to North East. The totalnumber of SBIs Regional Rural Banks inIndia branches is 2349 (16%). Till date inrural bankingin India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remoterural areas.Apart from SBI, there are other few banks whichfunctions for the development of therural areasin India.Few of them are as follows.Haryana State Cooperative Apex Bank LimitedThe Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays avital role in rural banking in the economy of Haryana State and has been providing aids andfinancing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the state and givingservice to its depositors.NABARDNational Bank for Agriculture and Rural Development (NABARD) is a development bank in the

sector of Regional Rural Banks in India.It provides and regulates credit and gives service for thepromotion and development of rural sectors mainly agriculture, small scale industries, cottageand village industries, handicrafts. It also finance rural crafts and other alliedrural economicactivities to promote integrated rural development. It helps in securingrural prosperity and itsconnected matters.

Sindhanur Urban Souharda Co-operative BankSindhanur Urban Souharda Co-operative Bank, popularly known as SUCOBANK is the first ofits kind in rural banks of India. The impressive story ofits inception is interesting and inspiringfor all the youth of this country.

United Bank of IndiaUnited Bank of India (UBI) also plays animportant role in regional rural banks. It has expandedits branch network in a big way to actively participate in the developmentalof the rural andsemi-urban areas in conformity with the objectives of nationalisation.

Syndicate BankSyndicate Bank was firmly rooted in rural India asrural banking and have aclear vision of futureIndia by understanding the grassroot realities. Its progress has beenabreast of the phase ofprogressive banking in India especially in rural banks.Fact Files of Banks in India

ThefirstBankinIndiatobegivenanISOcertification

CanaraBank

The first Bank in Northern India to getISO 9002 certificationfor their selected branches.

Punjab and SindBank

ThefirstIndianBanktohavebeenstartedsolelywithIndiancapital.

PunjabNationalBank

The first among the Private Sector Banks in Kerala to become ScheduledBank in 1946 under the RBIAct.

South Indian Bank

Indias oldest,largest and the most successful commercial bank offering thewidest possible rang of domestic,international and NRI products andservices,through its vast network in India and overseas.

State Bank of India

Indias second largest Private Sector Bank and is now the largest scheduledcommercial bank in India.

The Federal BankLimited

Bank which started as Private Shareholders Banks,mostly Europeanshareholders.

Imperial Bank ofIndia

The first Indian Bank to open a branch outside India in London in 1946 andthe first to open a branchin continental Europe at Paris in 1974Bank of India,founded in 1906 inMumbai

The oldest Public Sector Bank in India having branches all over India andserving the customers for the last 132 years.The oldest Public Sector Bank in India having branches all over India andserving the customers for the last 132 years

The first Indian Commercial Bank which was wholly owned and managed byIndians.Central Bank ofIndia

NDIAN BANKING INDUSTRYThe Indian banking market is growing at an astonishing rate, with Assets expected to reachUS$1 trillion by 2010. An expanding economy, middleclass, and technological innovations areall contributing to this growth.The countrys middle class accounts for over 320 million People. In correlation with the growthof the economy, rising income levels, increased standard of living, and affordability of bankingproducts are promising factors for continued expansion.The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion ofretail and rural banking. Players are becoming increasingly customer -centric in their approach,which has resulted in innovative methods of offering new banking products and services. Banksare now realizing the importance of being a big playerand are beginning to focus their attentionon mergers and acquisitions to take advantage of economies of scale and/or comply with Basel IIregulation.Indian banking industry assets are expected to reach US$1 trillion by 2010 and arepoisedtoreceive agreater infusionof foreigncapital,saysPrathima Rajan, analyst in Celent'sbankinggroupandauthorofthereport.Thebankingindustryshouldfocusonhavingasmallnumber of large players that can compete globally rather than having a large number offragmented players.

STATE BANK OF INDIA

It is the largestIndianbanking andfinancial servicescompany (by turnover and total assets) withits headquarters inMumbai, India.It isstate-owned.The bank traces its ancestry toBritish India,through theImperial Bank of India,to the founding in 1806 of theBank of Calcutta,making itthe oldest commercial bank in theIndian Subcontinent.Bank of Madras merged into the othertwo presidency banks, Bank of Calcuttaand Bank of Bombay to form Imperial Bank of India,which in turn became State Bank of India. Thegovernment of Indianationalized the ImperialBank of India in 1955, with theReserve Bank of Indiataking a 60% stake, and renamed it theState Bank of India. In 2008, the government took over the stake held by the Reserve Bank ofIndia.SBI provides a range of banking products through its vast network of branches inIndia andoverseas, including products aimed atnon-resident Indians(NRIs). The State Bank Group, withover 16,000 branches, has the largest banking branch network in India. SBI has 14 Local HeadOffices and 57 Zonal Offices that are locatedat important cities throughout the country. It alsohas around 130 branches overseas.With an asset base of $352billion and $285 billion in deposits, SBI is a regional bankingbehemoth and is one of the largest financial institutions in the world. Ithas a market share amongIndian commercial banks of about 20% in deposits and loans. T The State Bank of India is the29th most reputed company in the world according toForbes.Also SBI is the only bankfeaturedin the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance andThe Economic Timesin 2010. The State Bank of India is the largest of theBig Fourbanks ofIndia, along withICICI Bank,Punjab National BankandHDFC Bankits main competitors.History of state bank of India:State Bank of India is thelargest state-owned banking and financial services company in India.The Bank provides banking services tothe customer. In addition to the banking services, theBank through their subsidiaries, provides a range offinancial services, which include lifeinsurance, merchant banking, mutual funds, credit card, factoring, security trading, pension fundmanagement and primary dealership in the money market.The Bank operates in fourbusiness segments, namely Treasury, Corporate/ Wholesale Banking,Retail Banking and Other BankingBusiness. The Treasury segment includes the investmentportfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, MidCorporate Accounts Group and Stressed Assets Management Group.The Retail Bankingsegment consists of branches in National Banking Group,which primarily includes personalbanking activities, including lending activities to corporate customers having banking relationswith branches in the National Banking Group.SBI provides a range of banking products through their vast network of branchesin India andoverseas, including products aimed at NRIs. TheState Bank Group, with over 16,000branches,has the largest banking branch networkin India. The State bankof India is the 10th most reputedcompany in the world according to Forbes. The bank has 156 overseas offices spread over 32countries. They have branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong,

Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York,Osaka, Sydney, and Tokyo. They have offshore banking units in the Bahamas, Bahrain, andSingapore, and representative offices in Bhutan and Cape Town.State Bank of India was incorporated inthe year 1955. TheBank traces their ancestry to BritishIndia, through the Imperial Bank of India, tothe founding in 1806 ofthe Bank of Calcutta,making them the oldest commercial bank in the Indian Sub-continent. The Government of Indianationalized the Imperial Bank of India inthe year 1955, with theReserve Bank of India taking a60% stake, and name was changed to State Bank of India.In the year 2001, the SBI Life Insurance Company was started by the Bank. They are the onlyBank that have been permitted 74% stake in the insurance business. The Bank's insurancesubsidiary 'SBI Life Insurance Company' is a joint venture withCardif S.A in which Cardif holds26% of the stake.During the year 2005-06, the bank introduced 'SBI e-tax' an online tax payments facility fordirect and indirect tax payment. They also launched the centralized pension processing. TheBank made a partnership with Tata Consultancy Services for setup C-Edg Technologies andconsulting services to the banking, financial services andinsurance industry. The bank was notedas 'The most preferred bank' in asurvey by TV 18 inassociation with AC Nielsen-ORG Marg.Also, the Bank was votedas 'The most preferred housing loan provider' inAWAAZ consumerawards for the year 2006.In the customer loyalty survey 2006-07 conducted by 'Business World', the Bank was rankednumber one in all parameters of customer satisfaction, service orientation,customer care/ callcenter, customer loyalty and home loans. SBI Funds was judged 'Mutual fund of the year' byCNBC/TV-18/CRISL. The Bank introduced new products and services such as web-basedremittance, instant fund transfer, online-trading and comprehensive cashmanagement.During the year 2007-08, the Bank launched 965 branches all over the country. Theyinaugurated a new state-of-the art Dealing Roomwith online connectivity to all active forexintensive Branches at Corporate Centre in Mumbai. They launched a new product, ConstructionEquipment Loan to cater to construction Companies. Also, they introduced new products suchasSBI Reverse Mortgage Loan and SBI Home Plus in the areas of Home Loans.During the year, the RBI transferred their entire shareholding inthe Bank representing 59.73%of the issued capital of the Bank to the Government of India. The Bank acquired 92.03% ofequity of Global Trade Finance Ltd. Consequently, GTFL became a subsidiary of the Bank.They signed an MoU withthe Indian railways for installing ATMs at 682 railway stations. InMarch 2008, the Bank opened their 10,000th branch and became only the second bank in theworld tohave morethan 10,000 branchesafter China'sICBC.During theyear 2008-09, thecompany launched Import factoring, a new product in association with SBI Factors &Commercial Services Ltd. They increased the number of branches for retail sale of gold coinsfrom 250 to 518. Also, they re-launched Gold Deposit Scheme at 50 branches to mobilize goldfrom domestic market for deployment as metal loans to jewellers.During the year, the Bankopened their 11,111th Branchat Sonapur (Kamrup District) in Assam.They introduced three new products viz., SBI Special Home Loan, SBI Happy Home Loan andSBI Lifestyle in response to the stimulus packageannounced by the Governmentof India. Also,they entered into an exclusivearrangement with TATA Motors for handling the bookingprocessof TATA 'Nano' cars.During the year, the Bank launched ontheir web-site an on-lineapplication form for registering Auto Loan enquiries and expeditiously monitoring and

converting these leads into Auto Loans. Also, they launched 'e-invest' for the ASBA(applications supported by blocked accounts) toaid investors for their equity subscriptions, IPOand Rights applications.During the year, the Bankset up a custodial services company namely SBI Custodial ServicesPvt. Ltd., in joint venture with Societe Generale, France. They signed letterof intent for settingup of joint venture company for undertaking General Insurance Business. Also, they divested10% equity stake in its wholly owned subsidiary SBI Pension Fund Pvt. Ltd atcost in favour ofits subsidiaries. In October 2008, the Bank signed anMoU with State General Reserve Fund(SGRF) of Oman, for a general purpose privateequity fund.During the year, State Bank of Saurashtra (SBS), a wholly owned subsidiary of theBank,amalgamated with the Bank with effect from August 13, 2008. They signeda joint ventureagreement with Insurance Australia Group for undertaking General Insurance business. Also,they signed a joint venture agreement with Macquarie Capital Group, Australia and IFC,Washington for setting up an Infrastructure fund of USD 3billion for investing in variousinfrastructure projects in India.During the year 2009-10, the Bank opened 1,049 branches, out of which branches were openedin metro and urban areas with a view to increase the Bank's reach and be more accessible tocustomers. In July 2009, SBI introduced'SBI Loan to Affluent Pensioners' enabling thegovernment pensioners to avail personal loans upto Rs 3 lakh.During the year, the Bank designed a special package, the Defence Salary Package, forpersonnel of the three Armed Forces i.e. the Army, Navy and Air Force who maintain theirSalary accounts with them. As of March 2010, the Bank had 12,496 branches and 21,485 GroupATMs. In June 2009, the company increased their shareholding in Nepal SBI Bank Ltd to55.02% and thus Nepal SBI Bank Ltd became a subsidiary of the Bank with effect from June 14,2009.In May2010, the Bank selectedconsortium of Elavon Incorporation, USA and VisaInternational, USAas their joint venture (JV) partner for Merchant Acquiring Business. They set upa wholly ownedsubsidiary, namely SBI Payment Services Pvt Ltd for conducting Merchant Acquiring Business.In August 2010, State Bank of Indore was amalgamated with the Bank as per the scheme ofamalgamation approved by the Central Board.During the year 2010-11, the Bank introduced 2 new products, namely 'Pushpa Ullas' and'Arthias Plus' on pilot basis. They made substantial progress in establishing itself as a leading PEfund player of the country. Also, they also signed a Joint Venture agreementwith State GeneralReserve Fund (SGRF) of Sultanate of Oman,a sovereign entity, to set upa general purposeprivate equity fund with an initial corpus of USD 100 mn, expandable further to USD 1.5 bn.During the year, the Bank opened 576 new branches besides merger of 470 branches oferstwhile State Bank of Indore. Also, they opened 14 foreign offices during theyear, taking thetotal to 156. In July 1, 2010, the Bank launched their 'Green Channel Counter' at select branchesacross the country.In General Insurance business, the Bank launched limited operations in April 2010 for theCorporate and Mid Corporate customers based at Mumbai, and it was expanded to six othermajor locations in July 2010. In theRetail segment, the Bank launched their Long Term HomeInsurance business at Mumbai in October 2010, which was gradually extended to cover 56

24RACPCs and RASMECCs. General Insurance SME business was launched on a pilot basis inMumbai and Chennai in February 2011.During the firstquarter of the financial year2011-12,the Government of India issued the 'Acquisition of State Bank of India Commercial &International Bank Ltd. vide notification dated July 29,2011. Consequent to thesaid notification,the undertaking of State Bank ofIndia Commercial & International stands transferred to and vestin State Bank of India witheffect from July 29, 2011.MILESTONE OF STATE BANK OF INDIA1955 -On 1st July State Bank ofIndia was constituted under the State BankOfIndia Act 1955, for the purpose of taking over the undertaking andbusiness of the Imperial Bank of India.The Imperial Bank of Indiawas founded in 1921 under the Imperial Bank of India Act 1920.The Banktransacts general banking business of every description including,foreign exchange, merchant banking and mutual funds1959 -On September State Bank of India (Subsidiary Bank) Act was passed.On October State Bank of Hyderabad become the first subsidiary of SBI.1960 -During this period, State Bank of Jaipur, StateBank of Bikaner,State Bank of Indore, State Bank of Travancore, State Bank of Mysore,State Bank Patiala and StateBank of Saurashtra became subsidiaries of thebank.1962 -The Bhor State Bank Ltd was Amalgamated with the Bank bring theTotal number of minor Stateassociated banks so amalgamated to five.A scheme for amalgamation oftheBank of Aundh Ltd., was also approved.On 20th August, the Unit Bank Ltd. Chennai was taken over by the Bank.1963 -In october Branch in London become bankers to the Indian High Commission, therebytaking over a function tillthen performed by the office ofRBI.Of the other businesstransacted by the Branch, animportant aspect was medium term loans mostly toIndianshipping companies.1969 -On November 8th the Bank of Behar Ltd was amalgamated.1972 -A merchant banking division was set upin the central office to cater to promotional needsof the corporate sector.1977During the year bank introduced the Perennial Pension Plan SchemeUnder which if the depositors make aregular monthly payment of a fixed

25amount for a period of 84 to 132 months, they become eligible fromthe 86th and 134thmonths respectively for getting a monthly pension of predeterminedamount forever.In order to meet all the developmental needs of the villagesIncluding their social and cultural needs, the bank launched an integratedRural developmentprogramme, aimed atnot only covering thecredit needsofagriculture and agriculturalactivities and village industries,butalso housing and social activities.1980 -Bank introduced the cash Certificate Scheme under which depositcertificate are issuedfor a fixed period on payment ofthe issuepricespecified for the respective maturity period and theface valuecorresponding to the issue price plus interest compounded atquarterly intervals ispaid on maturity.The certificates are issued for theface value of Rs 100, Rs 1000, Rs 10,000 and Rs 50,000 maturingafter 29,65,84 and 120 months.1982 -The Non-Resident Investment Cell was set up, whichhad streamlinedThe working operations of the non-resident investment sections atImportant centers.1983 -SBI launched self employment scheme, for providing self-employmentTo educated unemployed youth.Educated unemployed youthsareEncouraged to undertake self-employment ventures in industry, services andbusiness.1984 -The bank provide need-basedrehabitation assistance to large andmedium sick industrial units.1985 -During the year, company set up a data bank of sick units availablefor taken over by healthy units.With effect from 26thAugust, the Bank of CochinLtdwith 108 branches was also amalgamatedwith the Bank.(i) All shares in the Capital of the Imperial Bankof India wasvested in the RBI.The SBI was registered with an Authorised capital ofRs.20 crores, and an issued and paid up capital of Rs.562,50,000 dividedinto 562,500 shares of Rs.100 each.(ii) Every person who on the30th June, 1955,was registered as aholder of shares in the Imperial Bank ofIndia was paid by theReserve Bank of India.44,37,500 No. of shares issued ata premium of Rs 160 pershare.1986 -At the end of theyear 324 sick units with an outstanding of Rs 1069crores were assisted.Of these, 107units were consideredviable and60 from them were placed under regular nursing programme.On 1st August a new subsidiary namedSBI Capital Market wasfunctioning independently, took up leasing business and certain other new

26services.100,00,00 No. of shares issued ata prem. of Rs 160 pershare.1987 -Up to the end of the year the bank had sponsored 30 Regional RuralBanks covering 66 backward and underbanked districts in the country.In terms of deployment, the advances portfolio of overseas officesrose to Rs 5,767 crores.Investments in inter-bank moneymarkets andalso in prime securities amounted to Rs 2,670crores by the end of theyear.1988 -During the year bank initiated UPTECH an Industrial Technology Groupto direct and guide programmes aimedat facilitating technologyupgradation.Also a scheme to develop enterpreneurship among woman under the nameStree Shakti waslaunched.Several concessions inrespect ofmarginand and rate ofinterest have beenbuilt into thepackage.Threepilot programmes were launched at Chennai, Calcutta, and Hyderabad.On 20th September, the bank inaugurated `SBINET,' an integratedcommunication project aimed at improving customer service,operational efficiency andadministrative convenience.The network has beendesigned to handle voice, fax data and manages through the trunkroutesand exchangesin importantcentres.The bank sponsored 30RRB's covering 66 divisions in the country.branches were opened raising the branch network to 2,306.1989 -SBICAP, in their capacity as Trustee and Manager of Mutual Fund,launched two scheme viz., Mangnum Monthly Income Scheme 1989 andMagnum Tax Service Scheme 1990.During the same period SBI in association with MorganStanley AssetManagement Inc. of USA, launched the India Magnum Fund.1990 -New products launched during the year included a Regular IncomeScheme, offering an assured return in excess of 12% and the first PureGrowth Scheme aimedat capital appreciation.A Second offshorefund of US$ 12 million called Asian Convertible and Indian Fund was launched inassociation with Asian Development Bank, Manila.During Kharif 1990, the bankintroduced an agricultural credit card,known as SBI Green Cardto give greater liquidity and flexibility tofarmers inprocuring agricultural inputs.The scheme wasintroducedon a pilot basis in 125 intensive centre branches.As at on 31st March, SBIMF had over 3,40,000 Indian investors andabout Rs 475 crores byway of investible domestic funds.50,00,000 No. of shares issued ata prem. of Rs 160 pershare.1991 -During February the bank set up a new subsidiary called the SBIFactors and Commercial Serviced Pvt.Ltd. for rendering factoring services

27to the industrial and commercial units in Western India.1992 -The bank sponsored 30 RRBs with a network of 3189 offices covering102backward and underbanked districtsof thecountry.A sumof Rs15.25 crores was contributed towards the share capital of the RRBs.During theperiod bankintoduced `Stockinvest'scheme.Alsointroduced a `Gyan Jyoti' that replaced earlier education loan schemes andoffers substantial augmented assistance to students pursuing higherstudies.Moreover dedicated NRI branches equippedwith State-of-the-arttechnology was set up at Mumbai and Delhi to cater to thespecialneeds of NRI residents.1993 -During the year as a part of its overseas expansion the bankestablished representative office in Tashkent.During December, the bank issued 124,000,000 equity shares of Rs.10each for cash at a premium of 90 per share of which 245,00,000shareseach were reserved for allotment on apreferential basis to IndianFinancial Institutionsand Indian MutualFunds.Balance issued tothepublic.Simultaneously it came out with another issue of 50,00,000 12%unsecured redeemable floating rate bonds in thenature of promisorynotes of theface value of 1000each.Oversubscription upon afurtheramount of Rs 500 crores (in all Rs 1000crores) was to be allowed.Theface value of each bond would be redeemed at par at the expiry of 10years from the date of allotment.In the event that the State Bankdecides to exercise its option to call up the bonds they would beredeemed at the rate of 5% at the end of 5th year, at 3% at the endof7th year and 1% at the end of 9th year.It was proposed to issue 1200,00,000 right equity shares of Rs.10eachat a premium of Rs.50 pershare in the proportion of 3:5.Alsoanother120,00,000 equity shares of Rs.10 each were to be issued at apremiumof Rs.50 per share to employees on an equitable basis.250 sick units with the bankwere referred to the BIFR including 31public sector units.Approved rehabilitation packages beingimplemented in 85 units and 41 have been recommended to be wound up.The bank continued to be appointed as the operating agency andrehabilitation packages were submitted to BIFR in48 cases.Equity shares subdivided.1418,50,000 No. of EquityShares of Rs.10each issued at a prem. of Rs90 per share to the public.Another1319,78,726 shares of Rs 10 each offered at a prem. of Rs 90 pershareon Rights basis and to employees.1994 -358 sick units with the bankwere referred to the BIFR including 55public sector units.Approved rehabilitation packages implementedin87 units.

281,80,463 No. of Shares kept in abeyance were issued.1995 -351 sick units with the bankwere referred to the BIFR including 66public sector units.Approved rehabilitation packages implementedin112 units.683 No. of shares kept in abeyance were allotted.1996 -On 3rd October the Bank Issued 261,45,000 GDRs amounting to5,22,90,000equity shares.1 GDRis issuedto 2 equity shares.The issuepriceofGDR was US $ 14.15 per GDR.1997 -Shares issued to employees of the bankbearing distinctive numbers46,26,00,001 to 47,46,00,000 will notbe good delivery.The rightsissue was for 12 crore equity shares at apremium of Rs.50aggregatingRs.720 crore in addition to a further issue of 1.2 crore equitysharesof Rs.10 at a premium of Rs.50 aggregating Rs.72 crore for StateBankemployees.The price ofthe rightshad been Rs.60 per share.After SBI Capital Markets, Manila-based Asian Development bank willpick up 15 per cent equity stake in the new stock broking subsidiaryofState Bank of India to be madeoperational by mid-1997.The balance85per cent will be subscribed to by SBI.SBI Securities Ltd the 100 per cent stockbroking subsidiary of SBI,hasrecently received the much-awaited letter of incorporation from theRegistrar of Companies.Following this, both SBI and ADB will pickup their respective shares inthe new stockbroking firm.SSL will haveanequity base of Rs.50 crore.The State Bank of Indiahas tied up with GE Capital to float aventurein Mumbai.State Bank signedthe memorandum ofunderstanding withGE Caps in March.State Bank will tie up with either VISA or Mastercard or even bothforthe franchise network.GE Caps through thisjoint venture will beimparting technology, credit card expertise and payment cardmechanism.The Reserve bank of India has directed the SBI to set up a 0million stand-by facility for the Indian oil corporation.State Bank of India (SBI) signed anagreement with the NationalSecurities Depository Ltd (NSDL) for dematerialisation of itsshares.Besides, SBI has also become an equity stake holder in NSDL to theextent of 4.76%.SBI Commercial and International Bank, has become the country'sfirstpublic sector bank to introduce optical disk (OD) facilities fordatastorage.1998 -State Bank of India will kick-start its credit card business onJuly1by floating twojoint ventures with GE Capital.The largest

29financial intermediary in the country will sign the jointventure agreementwithGE Caps in the last week of January.The State Bank of Indiaon Jan 27 kickedoff its foray into thepayment cards business with a joint venture agreement with US-basedFinancial services giant, General Electric Capital Corporation (GE Capital).State Bank of India (SBI) on June 24 signed an exclusive agreementwith the world's largest payment system - Visa International - forPayment cards in India.The agreement wassigned in Mumbai between the SBImanaging director, Mr. O P Sethia, and the general manager andexecutivevice president (South East Asia) of Visa, Mr James GMurray.1999 -State Bank of India (SBI) has bagged the mandate to syndicate the $120million loan for the National Thermal PowerCorporation (NTPC).The State Bank of India(SBI) proposes to take up the life insuranceand general insurance business once the sector is opened up.State Bank of India has tiedup with its associate banks to markettheSBI Card.The SBI has tied up withState Bank of Patiala inChandigarhand State Bank ofMysore in Bangalore to help market its creditcard.SBI proposes to introduce a value-addedservice for cardholderswherebythe credit card can also be used as an ATM card.The State Bank of Indiawill tie up with international investmentbanker Credit SuisseFirst Boston and three domestic public sectorbanksto form a gold assaying venture.The State Bank of India (SBI) has decided to take over SBI HomeFinance(SBIHF), with its assets and liabilities.Having the largest stake,SBI has been weighing various optionsfor bailing out the jointventurecompany which has slipped into huge losses.The State Bank of India(SBI) has signed up with Central DepositoryServices (I) (CDSIL) for thedematerialisation of its shares.SBI shares have already beenadmitted as security with NationalSecurities Depository (NSDL).Besides, SBI also hasa stake (Rs 10cr)in the equity of CSDL.According to an agreement entered into with the development bank,StateBank of India (SBI) was to reduce its stakein its investmentbankingsubsidiary to below 50 per cent by March 31.The State Bank of India(SBI) has entered into an agreement withMoody's Investor Service and Icra, under whichSBI will pick upMoody's11 per cent stake inIcra in case the global rating firm wants togetout of its investment in India.State Bank of India (SBI) has taken the lead in `conveniencebanking'by becoming the first public sector bank to offer its `savings bank'account holders the benefits of fixed deposits (higher interestrates)and current accounts (overdraftfacility).2000 -The Bank has embarked upon the expansion of its ATM network in the

twincities of Hyderabad and Secunderfabad.The Bank has becomethe first government owned financial institutiontojoin the rank of companies declaring interim dividend.The Bank has proposed to come out with an issue under privateplacementof unsecured, non-convertible, subordinated bonds in the nature ofpromissory notes of Rs 1 lakh each aggregating Rs 600 crores with anoption to retain oversubscription of up to Rs 40 crores.The Bank launched the Metal (Gold) LoanScheme in Coimbatore.Thisis the third scheme to be introduced by SBI.SBI is also forming a subsidiary - SBI Gold andPrecious Metals Pvt.Ltd. with 50 per cent equity participation.Mr. Vepa Kamesam, Deputy Managing Director, has been appointed asManaging Director with effect from 1st June.SBI board cleared the setting up of a separate subsidiary forinformation technology.KC Raut has recently taken charge as general manager at State BankofIndia, Chennai.The Bank has becomethe first public sector bank to offer fixed-ratehome loans.The State Bank of Indiahas tied up with State Bankof Mysore tolaunchco-branded credit cards as part its strategy to collaborate withassociate banks to expand its cardholder base.Central Depository Services (India) Ltd has signed an agreement withState Bank of India as its Depository participant.State Bank of India and the Exim Bank of the US have signedamemorandumof understanding, involving 0 million, to supportthe small andmedium-sized ndian companies to purchase US goods and services.Mr. Suresh Kumar Mehra, Workmen Directors, ceased to be a member oftheCentral Board of the bank effect from October1, due to hisretirementat the close of the business on September 30.The Bank has launchedan international credit cards for doctors, the frist of its kind inthe country, offeringfacilities including specialdiscounts on medical equipment and personalloans from GE countrywide.The State Bank of India has introduced a new scheme to boostexports.The CRISIL has assigned a triple-A (AAA) rating to theState Bank ofIndia's Rs 3,000 crore bonds programme.The Bank have decided to close down its fully-owned foreignsubsidiary- SBI European Bank Ltd., in London.Mr. S. Mukerji, Managing Director, of the bank retired from the bankon 30thof November.State Bank of India Mutual Fund has launched the Magnum Gilt Fund,dedicated toinvesting in government securities.2001 -The Bank has signed anMoU with Cardif S.A. for the bank's lifeinsurance business.The Bank has introducedVoluntary Retirement Scheme for eligibleemployees, open from the 15th January 2001 to the 31st January 2001.The Bank has incorporated asubsidiary `SBI Life Insurance CompanyLtd.,' for doing life insurancebusiness. The Bank will install 10 more Automated Teller Machines in thenorth-eastern region in addition to the onealready commissioned at Guwahati.State Bank of India launched three more ATMs i n Bangalore.

31Mr Y Radhakrishnan has been promoted to the post of managingdirectorof State Bank of India. SBI Cards has set up a special insurance cell inAhmedabad forfacilitating the claims of SBI cardholders affected by the tragic earthquake in Gujarat.SBI has assigned the Delhi-based HCL ComNet to provide it ATMtellerinter-connectivity which could involve investments running intoseveral hundred crores.SBI chief general manager Madhav M Mehta, who is currently theoperational headinGujarat, has been transferred to its corporate office in Mumbaias chief general manager(CGM).July 3- Announces the launch of the SBI International card and theSBIGlobal Card for global travelers in India. SBI International cards andSBI Gold Cards would be acceptedat over 20 million Visa outletsworldwide and one lakhoutlets in India. State Bank of India has embarked upon an ambitious Rs 800-croretechnology upgradation programme.The bank has appointedKPMG, aconsultant incomputer technology, to provide inter connectivitynetworking to the computerised branchesand also to the ATMs acrossthecountry enablingits customers to transact any kind ofbusiness from anywhere.State Bank of India was presented theaward for JD Power AsiaPacifics2001 India Sales Satisfaction Index(SSI) and Consumer FinancingSatisfaction (CFS)State Bank of India has added three more ATMs to its network. ThenewATMs wereinstalled at SBI's Andheri (west),Goregaon (east),and Borivili (east) branches on September22. State Bank Of India (SBI) has informedBSE that Shri K.J.Udeshi, ED,RBI has beennominated on the Central Board of the Bank as nomineeofRBI in placeof Dr.Y.V.Reddy,w.e.f. September 22, 2001 under Sec.19(f)of SBI Act.State Bank of India has slashed theinterest rate on home loans by 0.5per cent to 12 percent, effective fromSeptember 15.IN A significant move, the State Bank ofIndia has decided todistance itself from itssubsidiaries - SBI Capital Markets, SBI Gilts, SBIAMCand State Bank of Credit andCommerce International.They will havethe autonomy, independent chairmen and externalexecutives at thesenimanagement level atmarket-related salaries.At present, theSBI chairman is the ex-officio chairperson of all thesubsidiaries,including the associatebanks.The new scheme will beaimed only at the award staff, a categorythatwas included withofficers in the January 2001 voluntary retirementscheme.SBI Cards on July 3, announced the launch of the SBI Internationalcardand the SBI GlobalCard for global travelers in India.- VRS implemented in which around21,000 employees, includingofficers, were permittedto retire- The Bank has crossed another milestone by making a successfulforayinto insurance. SBI is the only Bank to have been permitted a 74%stakein the insurance business. The Bank's insurancesubsidiary, SBI LifeInsurance Company, a joint venture with the Bank holding 74% andCardif S.A., theJoint venture partner,the balance 26%, wasincorporatedtoundertake life insurance and pension business. Cardif S.A. is awholly-owned subsidiary of BNP-Paribas, which is the largest bankin

32France and one of the top ten banks in the world. Cardif S.A. is thelargest bancassurance company in France.- The bank's efforts to establish a world -class credit informationbureau in India culminated in the successful setting up of theCreditInformation Bureau (India) Ltd., a joint venture of theBank withHDFCLtd., Dun and Bradstreet Information Services India Pvt.Ltd. andTrans Union International Inc.2002- In order to reduce risk and develop a transparent and active debtmarket in general and government securities market in particular,the Clearing Corporation of India Ltd. has been set up in Mumbai with theBank as the chief promoter.-E K Thakur resigns from Directorship of SBI.-TCS bags order of Rs 500crore from SBI.-SBI has informed that the following change inDirectors. 1. Shri A C Kalita, Director on the Bank'sCentral Board ceased to be a Director on the Board wef May 13, 2002 on expiry of his term on May 12,2002.2. Shri Y Radhakrishnan Managing Director & GE (CB) has relinquished office of the ManagingDirector as on June 30, 2002 andceased to be Director on the Board wef July 01, 2002.-State Bank of India has informed BSE thatMr D C Gupta IAS Secretary(Financial Sector), Ministry of Finance, Department of EconomicAffairs, New Delhi has been nominated as Director onthe Board ofState Bank of India with effect from July 17, 2002 vice Mr S K Purkayastha.-State Bank of India has informed BSE thatMr S Govindarajan,Managing Director & GE (NB) has relinquished office of theManagingDirector as on July 31, 2002 and ceased to be Director on the Board we f August 01, 2002.Further Mr P R Khanna, Director on the Bank'sCentral Board ceased to be a Director on the Board w e f August 20, 2002 consequent upon his resignation.-State Bank of India has informed BSE thatthe Bank has decidedtoclose SBI Securities Ltd (SBISL), a subsidiary of the Bank,followinga Directive in this regard from the RBI.-State Bank ofIndia has informedthat the CentralGovernmentappointed Mr A K Batra, Deputy Managing Director, State Bank of Indiaas Managing Director, State Bank ofIndia for the period from the dateof his taking charge and upto August 31, 2003. Also, Mr P NVenkatachalam, Deputy Managing Director, State Bank of India, hasbeen appointed as Managing Director, State Bank of India for theperiod from the date of his taking charge and upto March 31, 2004.

State Bank Of India has informed that Shri Prithvi Raj Khanna andShri Kumar Bery have been duly elected as Directors under Section19(c) of SBI Act at the GeneralMeeting of the -State Bank ofIndiahas informed that it has appointed Mr AnantaChandra Kalita, as aDirector on the Central Board of theBank from amongst the employeesof the Bank, who are workmen, for a period not exceeding six monthscommencing from October 03, 2002 or until his successor is appointedor till he ceases to be workmen employee of State Bank of India, oruntil further orders, whichever event occurs earlier.shareholders ofthe bank held on September 09, 2002.-State Bank of India has informed BSE thatShri Janki Ballabh,Chairman has relinquished office of Chairman at theclose of businesshours on his attaining superannuation on October 31, 2002.-State Bank of India has informed that SmtVineeta Rai, Secretary(Banking & Insurance), Ministry of Finance and Company Affairs,Department of Economic Affairs (Banking Division), New Delhi has beennominated as Director of the Board with effect from October 30, 2002.-State Bank of India hasinformedthat the Central Government, afterconsultation with the Reserve Bank ofIndia, appointed Shri A KPurwar, Deputy Managing Director, State Bank as Chairman, State Bankof India from the date of his taking charge of the post and upto May31, 2003 i.e. dateof his superannuation or until further orderswhichever is earlier. Shri A K Purwar assumed the charge of Chairman,State Bank of India, on November 13, 2002.2003- State Bank of India (SBI) and Maruti Udyog Ltd have announced ajoint initiative aimed at making car finance affordable to middle andlower middle class customers. Customers will now have transparent carfinance involving no hidden charges and pre-closure penalties, andalso get the dealers' margins, Mr S.K. Bhattacharya, Chief GeneralManager, SBI, told newspersons. It will help both thebank and Marutito aggressively tap the Andhra Pradesh market, hesaid. SBI offersfinance facility even for lifetime tax, insurance andaccessories ofthe vehicle.- State Bank of India has informed thatthe Bank has appointed ShriAnanta Chandra Kalita, Head Assistant, State Bank of India as aDirector on the Central Board of theBank amongst the employees ofthe Bank, who are workmen for a period of 3 years commencing fromJuly 15, 2003 or until he ceases to be a workmen employee of the Bankor until further orders, whichever is earlier provided that he shallnot hold the office continously for a period exceeding six year.

34- SBI group's total profit identified at Rs 3,354 crin '02- Mr. D C Gupta nominated as Director on the Board of SBI- SBI introduces IT upgradation plan with KPMGhelp- SBI Cards and Payment Services Private Ltd, the credit cardsubsidiary of the State Bank of India, introduces two new schemesrecently- SBI Advantage Card to thebank's fixed deposit customersand SBI International Card for its home loanborrowers- Launches a new creditappraisal system targeting the small andmedium enterprises (SME) for loans up to Rs 25 lakh- SBI selects TCS to execute trade financesolution- SBI and ICICI Bank among the top 100 banks in Asia in 2001 as perthe study by Asian Banker Journal- Introduces SBI Cash Plus, its Maestro Debit Card that allowscustomers to access their deposit accounts from ATMs and merchantestablishments2003- Promotes three Chief General Managers (CGM) to the posts ofDeputyManaging Directors (DMDs). They are: A D Kalmankar, CGM incharge ofStaff College of Hyderabad, A K Das, CGM, Hyderabad; and R K Sinha,CGM, Chandigarh- SBI appoints Mr. S K Bhattacharya as the new Chief General Managerfor Hyderabad circle- Increases its equity stake in Discount and FinanceHouse of IndiaLtd(DFHIL)to51%- Ties up with Maruti Udyog Ltd. (MUL) for carfinance- Receives permission from Insurance Regulatory and DevelopmentAuthority (IRDA) to sell healthcare products to individuals- Increases its Equity Stake in DFHIL to 55.30%- Starts new 'Plus schemes' loans such as Justice Plus intended forthe judges and court employees, Police Plus for the police personnel,

35Teacher Plus for the teaching communityand Doctor Plus for themedical practitioners- Receives RBI licence to set upoffshore banking units (OBUs) in special economic zones (SEZs)- Launches SBI Bangalore card meant for a broad-based target audiencein the 25 plus agegroup ranging from upwardly mobile professionalsand middle class segments- SBI unveils Hyderabad card, anexclusive initiative for thecitizens of Hyderabad- Ananta Chandra Kalita ceases to be a Director of SBI- Christens the tieup with Maruti Udyog Ltd. as SBI-Maruti Finance- Orders For 1,500 ATMs With NCR Corporation- Orange, the cellular service operator of the Hutch group for theMumbai circle, ties up with State Bank of India for prepaid cardrefill options- Ropes in US-based consultant McKinsey & Coto undertake BusinessProcess Re-engineering (BPR) exercise for the bank- Launches charter for Small ScaleIndustries (SSIs)-NPA (Non Performing Assets) slashed to4.5 pc, writes off Rs4,000crore worth of assets- Forays into stock market- Stock price crosses the Rs 400mark for the first time sincelisting on BSE- Mr. A K Batra, Managing Director & Group Executive (CorporateBanking) of the Bank ceases to be a Director on theBoard with effectfrom July 8, 2003- Plans a new scheme toattract Resurgent India Bonds (RIB)- N S Sisodia, Secretary (Banking &Insurance), Ministry of Financeand Company Affairs, Department of EconomicAffairs (BankingDivision), has been nominated as aDirector on the Board of StateBank of India w.e.f. July 11, 2003

Mr. Ananta Chandra Kalita, Head Assistant, State Bankof India,appointed as a Director on the Central Board of the Bank amongst theemployees of the Bank-Inks two importantagreements with itsemployees' unions andofficers' associations.According to the contract SBI'sstaff willbe having no rights to interfere in bank's computerisation plans- SBI, AirTel launch mobility service at Rs 299- Central government nominates Mr. Arun Singh asa director on theboard of the bank wef July 25, 2003 for a period of three years.- State Bank of India along with ANZ Investment Bank have consummated5 year syndicate loan facility of 0 million toIndianPetrochemicals Corporation (IPCL)- Opens cheque clearing cente at Kolkata- Inks pact with Mahindra & Mahindra (M&M) for co-brandedtractorscheme SBI-Mahindra Tractor Plus- Joins hands with Tractors and Farm EquipmentLtd (TAFE) for tractorloans- Launches insurance scheme in Kerala- Unveils new retail bank loan product Credit Khazana, which targetsthe bank's housing loan account holders- Unveils online ticket reservation system 'e-Rail'- Reserve Bank of India nominates Dr RakeshMohan, Deputy Governor,RBI, on the Central Board of thebank- AppointsMr C. Narasimhan asthe Chief General Manager ofthe SBI's Kerala Circle-Unveils Credit Khazana, retail bank loan product, to target the bank's housing loan account holders- MRO-TEK Ltd hassecured State Bank of India's orderofRs 15-croreto provide networking solutions of 2Mbps and 64 Kbps high-end leasedline modems for SBI to connect more than 800 branches across the country.-SBI joins hands with LIC to dentify long-term investment proposalsfor LIC

37-Tied with bajaj Auto to finance its two wheelers.-SBI grantedRs 125-crloanto NethajiApparel parkto setup unitsand buy machinery for thefirst batch of 54 garment plants in the65-acre special apparel park.-The bank has tied up with TVS motor company to finance two wheelerloans-Tied up with apollo hospital enterprise to financefor the hospitaltreatement.-The company launched mobile pre-paid cards recharge facility at itsATM's-Tied up with ICICI Bank and HDFCfor sharing ATM networks2003-Bank has entered into MOU with both ICICI Bank and HDFC Bank forsharing Bank's ATM Network with them on bilateral terms.-The Central Government after consultation with the Reserve BankofIndia, appointed Shri Chandan Bhattacharya, Deputy Managing DirectorState Bank Of India as ManagingDirector State Bank Of India for theperiod from December 17, 2003 to January 31, 2005.-The State Bank of India has announced a special package to BSNLemployees by allowing concessional interest rates for different typesof loans to be availed by the BSNL staff.2004-Former KCCI President nominated to SBI Bangalore LocalBoard-State Bank Of India has informed that ReserveBank of India hasnominated Shri A V Sardesai, Executive Director, Reserve Bank ofIndia on the Central Board of State Bankof India vice Dr. RakeshMohan.-SBI sets up ATM counter in Ernakulam-Bahrain Monetary Agency (BMA) grants in-principle licence to StatteBank of India (SBI)-SBI sets up India's first drive-in ATM in Hyderabad

38-State Bank of India has entered intoan alliance with HDFC Bank forsharing ATM networks to be operationalised from February 3,thisyear.2004-SBI unveils new branch in Manjeri-Bank awarded special prize for lending to self help group run bywomen-SBI unveils floating ATM-State Bank of India appointedsix new Deputy Managing Directors onFebruary 11, 2004. The new DMDs are: Mr T.S. Bhattacharya, CGM,Product Development and Marketing, Mr M.M.Lateef, Managing Director,SBI Gilts, Mr Yogesh Agarwal, CGM, Chandigarh, Mr Krishnamurthy, CGM,Madras LHO and Mr R.Ramanathan, CGM, Technology and Mr Vijay Anand,CGM, Corporate Account group. These top level appointments follow theappointment of the new Managing Director for the bank, Mr ChandanBhattacharya, in December.-GAIL ties up SBI for e-banking system-SBI join hands with Visa for travel card-SBI enters into ATM sharing agreements with UTI Bank & HDFCBank-Signs a Memorandum of Understanding (MoU) under whichthe bank willprovide term loans to farmers for purchasing capital inputs from JainIrrigation Systems Ltd (JISL)-Join hands with Siemens for financing the medical equipments sold bySiemens-Joins hands with VST Tillers to launch SBI-VST Shakti,a new loanscheme for farm mechanisation programme-Unveils VishwaYatra foreigntravel card,a prepaid cardwhichoffers the traveller a convenient and secure way to carry cash-Ties up with Same Deutz-Fahr India for tractor financing-In ally with Sikkim govt to beef up SMEs

The government has chosen StateBank of India (SBI) for channelisinggovernment credit to other countries which runs into billions ofdollar-SBI opens MICR cheque processing center-Signs MoU with HMT Ltd. for financing their tractors-State Bank of India deploys Flexcube as core banking solution atFrankfurt-Mr Ashok K. Kini appointed as new Managing Director of State Bank ofIndia with effect from April 1, 2004 to December31, 2005-SBI unveils Foreign Travel card in Orissa-ICICI Bank, SBI, LIC in pact for Rs 20,000-cr projects-Reliance Info in ATM pact with SBI-State Bank of India, Bangalore Circle, hasannounced its tie-up withNew India Assurance Company Ltd (NIAC), for distribution of NIAC'sgeneral insurance products in Karnataka- SBI unveils new credit card in Ahmedabad-State Bank of India joined thebillion dollar club-THE State Bank of India opened its 236th branch in the State atTripunithura on June 16-SBI inaugurates first Internet shoppe in Kochi-State Bank of India has opened a fully computerised branch atKarunagappally in Kollam district-L&T-John Deere Private Ltd has signed a memorandum of understanding(MoU) with State Bank of India for tractor finance-Buys 10% stake in Multi Commodity Exchangeof India Ltd. (MCDEX)for Rs 2.1 crore-SBI join hands with Hero Honda to unveil co-branded credit card-State Bank of India launched its first mobile ATM for increasing thebanking convenience of its customers

40-State Bank of India has signed a Memorandum Of Understanding (MOU)with the Societe Generale Asset Management ofFrance (SGAM) forinducting Societe Generale Asset Management as a stake holdingpartner for SBI's mutual fund arm, SBI Fund Management Private Ltd(SBIFMPL)-State Bank of India, (SBI) with a view toexpand the ambit ofitseducational loan schemes, has unveiled a unique educational loanscheme, christened Nursing Plus, for the nursing students of thecountry-SBI forges alliance with Hero Honda-SBI offers newscheme`School Plus'for schools-SBI Card has launched 'Instant Card' offering customers in need ofinstant credit opportunity. With this, the customers will get anopportunity to getready to use credit card within a few hours offiling in their application form-SBI selects Finacle for international ops-SBI entersATM tie upwithAndhra Bank-SBI join hands with LIC for funding infrastructure projects-Tata Motors on December 7, 2004,signs an MoU with State Bank ofIndia (SBI)-SBI partners with Eicher Motors on December 27, 20042005-Raj Travels joins hands with SBI for travel loans-SBI opens branch at Vadakara-SBI join hands with Apollo Health to offer loans-SBI rolls out new loan scheme-SBI opens first branch in Lakshadweep island ofKavaratti-SBI enters into agreement for bilateral sharing of ATMs with PNB onMay 10, 2005

SBI signs MOU with Corporation Bank for ATM sharing-State Bank of India and 8 associate banks have entered into anagreement with Bharat Petroleum Corporation Ltd (BPCL) for enhancingcard usage at fuel stations-SBI launches new mortgage loan schemefor traders-SBI launches SBI card in Madurai-SBI inaugurates RBO in Thrissur-SBI signed a memorandum of understanding with Small IndustriesDevelopment Bank of India for co-financing smalland mediumenterprises in Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Jammu &Kashmir, Jharkhand, Delhi and Bihar-State Bank of India and Crisil have signed a memorandum ofunderstanding under which latter will assign ratings to small-scaleindustries that are borrowers of SBI-NSIC join hands with SBI to offer credit to SSI2006-SBI teams up with Nihilent to unveil feedbacksystem-Bhatt to become SBI's new MD-State Bank of India (SBI) has informed that Shri. Yogesh Agarwal hasbeen appointed as Managing Director on the Board of the Bank witheffect from October 10, 2006 to the June 30, 20102007-State Bank of India (SBI) has appointed Shri. S K Bhattacharya asManaging Director on the Board of theBank with effect from October08, 2007 to the October 31, 2010, as per the Notification datedOctober 08, 2007, by the Government of India.- The State Bank ofIndia (SBI) has become the first foreign bank toset up a branch inthe Israel's diamond exchange. Besides diamonds,they also see huge potential in telecommunications, hi-tech,chemicals, textiles, agriculture and water management, foodprocessing, pharma and health care.

422008-State Bank of India (SBI) has informed that theGovernment of Indiain pursuance of clause (e) of Section19 of the State Bankof IndiaAct, 1955 (23 of 1955) has nominated Shri. Arun Ramanathan,Secretary, Ministry of Finance, Department of Financial Services, NewDelhi as a Director on the Central Boardof State Bank of India witheffect from January 18, 2008, vice Shri. Vinod Rai.-State Bank of India (SBI) has informed that theCentral Government,in consultation with the Reserve Bank of India and in pursuance ofclause (d) of Section 19 of the State Bank of India Act, 1955 (23 of1955), has nominated Dr. (Mrs.) Vasantha Bharuchaas a part-timenon-official Director on the Central Board of State Bankof India fora period of three years with effect from February 25, 2008, vice ShriPiyush Goel.- State Bank of India (SBI) has informed that theCentral Government,in consultation with the Reserve Bank of India and in pursuance ofclause (d) of Section 19 of the State Bank of India Act, 1955 (23 of1955), has nominated Dr. Rajiv Kumaras part-time non-officialdirector on the Central Board of Directors of State Bankof India fora period of three years with effect from September 08, 2008 or untilfurther orders, whichever is earlier.- State Bank of India (SBI) has signed aJoint Venture Agreement withInsurance Australia Group to form a Joint Venture Company whichwillbe engaged in General Insurance business in India.- State Bank of India has rolledout a micro insurance scheme'Grameen Shakti', for its Self Help Group (SHG) members. The productwas launched on Nov 26 at the Tamil Nadu Agricultural University. Thebank is hopeful to cover at least five lakh SHG members by December31.-The company has issued rights in theratio of 1:5 at a premium ofRs.1580/- Per Share.2009- State Bank of Indiayesterday slashed its benchmark lending rate byhalf a percentage point to 11.75 per cent. The Benchmark Prime LendingRate (BPLR) was revised down by 50basis points with effect from June29, SBI informed the Bombay Stock Exchange. This move would benefithome, car and corporate loan customers

43- State Bank of India on June 30 launched two new home loan productscalled as SBI Easy Home Loan and SBI Advantage Home Loan, with zeroprocessing fees for both waived off till September 30. While SBI EasyHome is for loans amount up to Rs 30-lakh while the SBI Advantage Homeis for loans above Rs 30-lakh,a press release issued here said.- State Bank of India, entered into an agreement with the governmentof Gujarat to create a fund of Rs 5,000 crore for investing in equityof infrastructure projects.2010- State Bank of India, with adebit card base of over 70million,comprising SBI Cash Plus, SBI Gold Debit Card andSBI Yuva Card, hasadded chip and PIN-based Platinum Debit Card to its bouquet on March 26.- Mr Arun Kumar Agarwal has taken over charge as General Manager atState Bank of India, Kerala Circle. Until now, he has been GeneralManager at the Lucknow Circle of thebank. Mr Agarwal is CertifiedAssociate of Indian Institute of Bankers and joined State BankofIndia as a Probationary Officer in 1977.An expert in credit andforeign exchange, he hasheld several assignments ranging from BranchManager to Regional Manager in thePatna and Delhi circles. He alsoserved in the bank's foreign department atKolkata handlinginvestment of the FCNB portfolio, derivatives and correspondentrelations. He has headed the Pune Module of the bank and has alsoserved as the Deputy General Manager and Business Head for Network-1of the Mumbai Circle.- State Bank of India (SBI) has signed apact with UniqueIdentification Authority of India (UIDAI) to workas a registrar forthe UID registration of residents. It has become the first bank totake up registration work for the UIDAI project. As aregistrar, SBIwill capture through empanelled enrolment agencies, thebiometriccharacters such as finger prints, iris and so onand send theinformation to UIDAI.

BALANCE SHEET FOR THE YEAR ENDING ON MARCH 2007-20120072008200920102011

CAPITAL AND LIABILITIES

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INDIAFOR THE ENDING ON

MARCH 2007-2011

20072008200920102011I

ncome:Interestearned39491.0348950.3163788.4370993.9281394.36Otherincome7446.769398.4312691.3514968.1514935.09Totalincome46937.7958348.7476479.7885962.0796329.45Expenditure: