Executive Summary: Credit Risk Management in State Bank of India

Credit Risk Management in State Bank Of India
EXECUTIVE SUMMARY
BABASAB PATIL 1

TITLE OF THE PROJECT

BACKRO!"# OF PROJECT TOPIC$
Credit risk is defined as the potentia that a !ank !orro"er or #o$nterpart% "i
fai to meet its o!igations in a##ordan#e "ith agreed terms& or in other "ords it is defined
as the risk that a firm's #$stomer and the parties to "hi#h it has ent mone% "i fai to
make promised pa%ments is kno"n as #redit risk
The e(pos$re to the #redit risks arge in #ase of finan#ia instit$tions& s$#h
#ommer#ia !anks "hen firms !orro" mone% the% in t$rn e(pose enders to #redit risk&
the risk that the firm "i defa$t on its promised pa%ments) As a #onse*$en#e& !orro"ing
e(poses the firm o"ners to the risk that firm "i !e $na!e to pa% its de!t and th$s !e
for#ed to !ankr$pt#%)
IMPORTA"CE OF THE PROJECT
The pro+e#t heps in $nderstanding the #ear meaning of #redit Risk Management In State
Bank Of India) It e(pains a!o$t the #redit risk s#oring and Rating of the Bank) And aso
St$d% of #omparati,e st$d% of Credit -oi#% "ith that of its #ompetitor heps in
$nderstanding the fair #redit poi#% of the Bank and Credit Re#o,er% management of the
Banks and aso its ke% #ompetitors)
BABASAB PATIL .

OBJECTI%ES OF PROJECT
1) To St$d% the #ompete str$#t$re and histor% of State Bank Of India)
.) To kno" the different methods a,aia!e for #redit Rating and $nderstanding the
#redit rating pro#ed$re $sed in State Bank Of India)
/) To gain insights into the #redit risk management a#ti,ities of the State Bank Of
India)
0) To kno" the RBI 1$ideines regarding #redit rating and risk ana%sis)
2) St$d%ing the #redit poi#% adopted Comparati,e ana%ses of -$!i# se#tor and
pri,ate se#tor)
METHO#OLO&$
#ATA COLLECTIO" METHO#
To f$fi the o!+e#ti,es of m% st$d%& I ha,e taken !oth into #onsiderations ,i3 primar% 4
se#ondar% data)
Primar' data$ -rimar% data has !een #oe#ted thro$gh persona inter,ie" !% dire#t
#onta#t method) The method "hi#h "as adopted to #oe#t the information is 5-ersona
Inter,ie" method)
-ersona inter,ie" and dis#$ssion "as made "ith manager and other personne in
the organi3ation for this p$rpose)
Se()ndar' data$ The data is #oe#ted from the Maga3ines& Ann$a reports& Internet&
Te(t !ooks)
BABASAB PATIL /

The ,ario$s so$r#es that "ere $sed for the #oe#tion of se#ondar% data are
o Interna fies 4 materias
o 6e!sites 7 Vario$s sites ike """) sharekhan)#om
""")indiainfoine)#om
""")s!i)#o)in
""")in,estopedia)#om
"""))"ikepedia)#om and other site
Findings$
-ro+e#t findings re,ea that SBI is san#tioning ess Credit to agri#$t$re& as
#ompared "ith its ke% #ompetitor's ,i3)& Canara Bank& Corporation Bank&
S%ndi#ate Bank
Re()*er' )f Credit$ SBI re#o,er% of Credit d$ring the %ear .889 is 9.)0:
Compared to other Banks SBI 5s re#o,er% poi#% is ,er% good& hen#e this red$#es
;-A
T)ta+ Ad*an(es$ As #ompared tota ad,an#es of SBI is in#reased %ear !% %ear)
State Bank Of India is granting #redit in a se#tors in an E*$ated Month%
Instaments so that an% !od% #an !orro" mone% easi%
-ro+e#t findings re,ea that State Bank Of India is ending more #redit or
san#tioning more oans as #ompared to other Banks)
State !ank Of India is e(panding its Credit in the foo"ing fo#$s areas<
1) SBI Term =eposits
.) SBI Re#$rring =eposits
/) SBI >o$sing ?oan
0) SBI Car ?oan
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2) SBI Ed$#ationa ?oan
9) SBI -ersona ?oan @et#
In #ase of indire#t agri#$t$re ad,an#es& SBI is granting /)1: of ;et Banks
Credit& "hi#h is ess as #ompared to Canara Bank& S%ndi#ate Bank and
Corporation Bank) SBI has to entertain indire#t se#tors of agri#$t$re so that it
#an ha,e more n$m!er of !orro"ers for the Bank)
SBI's dire#t agri#$t$re ad,an#es as #ompared to other !anks is 18)2: of the ;et
Bank's Credit& "hi#h sho"s that Bank has not ent eno$gh #redit to dire#t
agri#$t$re se#tor)
Credit risk management pro#ess of SBI $sed is ,er% effe#ti,e as #ompared "ith
other !anks)
RECOMME"#ATIO"S$
The Bank sho$d keep on re,ising its Credit -oi#% "hi#h "i hep Bank's effort to
#orre#t the #o$rse of the poi#ies
The Chairman and Managing =ire#torAE(e#$ti,e =ire#tor sho$d make
modifi#ations to the pro#ed$ra g$ideines re*$ired for impementation of the
Credit -oi#% as the% ma% !e#ome ne#essar% from time to time on a##o$nt of
organi3ationa needs)
Banks has to grant the oans for the esta!ishment of !$siness at a moderate rate of
interest) Be#a$se of this& the peope #an repa% the oan amo$nt to !ank reg$ar%
and prompt%)
Bank sho$d not iss$e entire amo$nt of oan to agri#$t$re se#tor at a time& it
sho$d reease the oan in instaments) If the #imati# #onditions are good then
the% ha,e to reease remaining amo$nt)
SBI has to red$#e the Interest Rate)
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SBI has to entertain indire#t se#tors of agri#$t$re so that it #an ha,e more n$m!er
of !orro"ers for the Bank)
CO"CL!SIO"$
The pro+e#t $ndertaken has heped a ot in gaining kno"edge of the BCredit -oi#% and
Credit Risk ManagementC in ;ationai3ed Bank "ith spe#ia referen#e to State Bank Of
India) Credit -oi#% and Credit Risk -oi#% of the Bank has !e#ome ,er% ,ita in the
smooth operation of the !anking a#ti,ities) Credit -oi#% of the Bank pro,ides the
frame"ork to determine DaE "hether or not to e(tend #redit to a #$stomer and D!E ho"
m$#h #redit to e(tend) The -ro+e#t "ork has #ertain% enri#hed the kno"edge a!o$t the
effe#ti,e management of BCredit -oi#%C and BCredit Risk ManagementC in !anking
se#tor)
BCredit -oi#%C and BCredit Risk ManagementC is a ,ast s$!+e#t and it is ,er%
diffi#$t to #o,er a the aspe#ts "ithin a short period) >o"e,er& e,er% effort has
!een made to #o,er most of the important aspe#ts& "hi#h ha,e a dire#t !earing
on impro,ing the finan#ia performan#e of Banking Ind$str%
To s$m $p& it "o$d not !e o$t of "a% to mention here that the State Bank Of
India has gi,en spe#ia inp$ts on BCredit -oi#%C and BCredit Risk
ManagementC) In p$rs$an#e of the instr$#tions and g$ideines iss$ed !% the
Reser,e Bank of India& the State !ank Of India is granting and e(panding #redit
to a se#tors)
The #on#erted efforts p$t in !% the Management and Staff of State Bank Of
India has heped the Bank in a#hie,ing remarka!e progress in amost a the
important parameters) The Bank is mar#hing ahead in the dire#tion of a#hie,ing
the ;$m!erF1 position in the Banking Ind$s
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BA;GI;1 I;=USTRY
OVERVIE6
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I"#!STR& O%ER%IE,
Hist)r'$
Banking in India has its origin as #arr% as the Vedi# period) It is !eie,ed that the
transition from mone% ending to !anking m$st ha,e o##$rred e,en !efore Man$& the
great >ind$ +$rist& "ho has de,oted a se#tion of his "ork to deposits and ad,an#es and
aid do"n r$es reating to the interest) =$ring the moga period& the indigeno$s !ankers
pa%ed a ,er% important roe in ending mone% and finan#ing foreign trade and
#ommer#e) =$ring the da%s of East India Compan%& it "as to t$rn of the agen#% ho$ses
top #arr% on the !anking !$siness) The genera !ank of India "as the first +oint sto#k
!ank to !e esta!ished in the %ear 1HI9)The others "hi#h foo"ed "ere the Bank of
>ind$stan and the Benga Bank) The Bank of >ind$stan is reported to ha,e #ontin$ed ti
1J89& "hie the other t"o faied in the meantime) In the first haf of the 1J
th
Cent$r% the
East India Compan% esta!ished three !anksK The Bank of Benga in 1I8J& The Bank of
Bom!a% in 1I08 and The Bank of Madras in 1I0/)These three !anks aso kno"n as
presiden#% !anks and "ere independent $nits and f$n#tioned "e) These three !anks
"ere amagamated in 1J.8 and The Imperia Bank of India "as esta!ished on the .H
th
Lan 1J.1& "ith the passing of the SBI A#t in 1J22& the $ndertaking of The Imperia Bank
of India "as taken o,er !% the ne"% #onstit$ted SBI) The Reser,e Bank "hi#h is the
Centra Bank "as #reated in 1J/2 !% passing of RBI A#t 1J/0& in the "ake of s"adeshi
mo,ement& a n$m!er of !anks "ith Indian Management "ere esta!ished in the #o$ntr%
name% -$n+a! ;ationa Bank ?td& Bank of India ?td& Canara Bank ?td& Indian Bank ?td&
The Bank of Baroda ?td& The Centra Bank of India ?td )On L$% 1J
th
1J9J& 10 Ma+or
Banks of the #o$ntr% "ere nationai3ed and in 12
th
Apri 1JI8 si( more #ommer#ia
pri,ate se#tor !anks "ere aso taken o,er !% the go,ernment) The Indian Banking
ind$str%& "hi#h is go,erned !% the Banking Reg$ation A#t of India 1J0J& #an !e !road%
BABASAB PATIL I

#assified into t"o ma+or #ategories& nonFs#hed$ed !anks and s#hed$ed !anks)
S#hed$ed Banks #omprise #ommer#ia !anks and the #oFoperati,e !anks)
The first phase of finan#ia reforms res$ted in the nationai3ation of 10 ma+or !anks in
1J9J and res$ted in a shift from #ass !anking to mass !anking) This in t$rn res$ted in
the signifi#ant gro"th in the geographi#a #o,erage of !anks) E,er% !ank had to earmark
a min per#entage of their oan portfoio to se#tors identified as Bpriorit% se#torsC the
man$fa#t$ring se#tor aso gre" d$ring the 1JH8's in prote#ted en,ironments and the
!anking se#tor "as a #riti#a so$r#e) The ne(t "a,e of reforms sa" the nationai3ation of
9 more #ommer#ia !anks in 1JI8 sin#e then the n$m!er of s#hed$ed #ommer#ia !anks
in#reased fo$rF fod and the n$m!er of !ank !ran#hes in#reased to eight fod)
After the se#ond phase of finan#ia se#tor reforms and i!erai3ation of the se#tor in the
ear% nineties) The -SB's fo$nd it e(treme% diffi#$t to #ompete "ith the ne" pri,ate
se#tor !anks and the foreign !anks) The ne" pri,ate se#tor first made their appearan#e
after the g$ideines permitting them "ere iss$ed in Lan$ar% 1JJ/)
T-e Indian Banking S'stem$
Banking in o$r #o$ntr% is aread% "itnessing the sea #hanges as the !anking se#tor seeks
ne" te#hnoog% and its appi#ations) The !est port is that the !enefits are !eginning to
rea#h the masses) Earier this domain "as the preser,e of ,er% fe" organi3ations) Moreign
!anks "ith hea,% in,estments in te#hnoog% started gi,ing some BO$t of the "ordC
#$stomer ser,i#es) B$t& s$#h ser,i#es "ere a,aia!e on% to see#ted fe"F the ,er% arge
a##o$nt hoders) Then #ame the i!erai3ation and "ith it a m$tit$de of pri,ate !anks& a
arge segment of the $r!an pop$ation no" re*$ires minima time and spa#e for its
!anking needs)
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A$tomated teer ma#hines or pop$ar% kno"n as ATM are the three apha!ets that ha,e
#hanged the #on#ept of !anking ike nothing !efore) Instead of teers handing %o$r o"n
#ash& toda% there are effi#ient ma#hines that don't tak !$t +$st dispense #ash) Under the
Reser,e Bank of India A#t 1J/0& !anks are #assified as s#hed$ed !anks and nonF
s#hed$ed !anks) The s#hed$ed !anks are those& "hi#h are entered in the Se#ond
S#hed$e of RBI A#t& 1J/0) S$#h !anks are those& "hi#h ha,e paidF $p #apita and
reser,es of an aggregate ,a$e of not ess then Rs)2 a#s and "hi#h satisf% RBI that their
affairs are #arried o$t in the interest of their depositors) A #ommer#ia !anks Indian and
Moreign& regiona r$ra !anks and state #oFoperati,e !anks are S#hed$ed !anks) ;on
S#hed$ed !anks are those& "hi#h ha,e not !een in#$ded in the Se#ond S#hed$e of the
RBI A#t& 1J/0)
The organi3ed !anking s%stem in India #an !e !road% #assified into three #ategories< DiE
Commer#ia Banks DiiE Regiona R$ra Banks and DiiiE CoFoperati,e !anks) The Reser,e
Bank of India is the s$preme monetar% and !anking a$thorit% in the #o$ntr% and has the
responsi!iit% to #ontro the !anking s%stem in the #o$ntr%) It keeps the reser,es of a
#ommer#ia !anks and hen#e is kno"n as the BReser*e BankC)
C.rrent s(enari)$/
C$rrent% D.88HE& the o,era !anking in India is #onsidered as fair% mat$re in terms of
s$pp%& prod$#t range and rea#h F e,en tho$gh rea#h in r$ra India sti remains a
#haenge for the pri,ate se#tor and foreign !anks) E,en in terms of *$ait% of assets and
Capita ade*$a#%& Indian !anks are #onsidered to ha,e #ean& strong and transparent
!aan#e sheets F as #ompared to other !anks in #ompara!e e#onomies in its region) The
BABASAB PATIL 18

Reser,e Bank of India is an a$tonomo$s !od%& "ith minima press$re from the
1o,ernment
6ith the gro"th in the Indian e#onom% e(pe#ted to !e strong for *$ite some time
espe#ia% in its ser,i#es se#tor& the demand for !anking ser,i#es espe#ia% retai
!anking& mortgages and in,estment ser,i#es are e(pe#ted to !e strong) Mergers 4
A#*$isitions)& takeo,ers& are m$#h more in a#tion in India)
One of the #assi#a e#onomi# f$n#tions of the !anking ind$str% that has remained
,irt$a% $n#hanged o,er the #ent$ries is ending) On the one hand& #ompetition has had
#onsidera!e ad,erse impa#t on the margins& "hi#h enders ha,e en+o%ed& !$t on the other
hand te#hnoog% has to some e(tent red$#ed the #ost of dei,er% of ,ario$s prod$#ts and
ser,i#es)
Bank is a finan#ia instit$tion that !orro"s mone% from the p$!i# and ends mone% to the
p$!i# for prod$#ti,e p$rposes) The Indian Banking Reg$ation A#t of 1J0J defines the
term Banking Compan% as NAn% #ompan% "hi#h transa#ts !anking !$siness in IndiaN and
the term !anking as NA((e0ting f)r t-e 0.r0)se )f +ending a++ in*estment )f de0)sits1
)f m)ne' fr)m t-e 0.2+i(1 re0a'a2+e )n demand )r )t-er3ise and 3it-dra3a+ 2'
(-e4.e1 draft )r )t-er3ise56
Banks pa% important roe in e#onomi# de,eopment of a #o$ntr%& ike<

Banks mo!iise the sma sa,ings of the peope and make them a,aia!e for
prod$#ti,e p$rposes)
-romotes the ha!it of sa,ings among the peope there!% offering attra#ti,e rates of
interests on their deposits)
BABASAB PATIL 11

-ro,ides safet% and se#$rit% to the s$rp$s mone% of the depositors and as "e
pro,ides a #on,enient and e#onomi#a method of pa%ment)

Banks pro,ide #on,enient means of transfer of f$nd from one pa#e to another)
>eps the mo,ement of #apita from regions "here it is not ,er% $sef$ to regions
"here it #an !e more $sef$)
Banks ad,an#es e(pos$re in trade and #ommer#e& ind$str% and agri#$t$re !%
kno"ing their finan#ia re*$irements and prospe#ts)
Bank a#ts as an intermediar% !et"een the depositors and the in,estors) Bank aso a#ts
as mediator !et"een e(porter and importer "ho does foreign trades)
Th$s Indian !anking has #ome from a ong "a% from !eing a seep% !$siness instit$tion
to a high% proFa#ti,e and d%nami# entit%) This transformation has !een arge% !ro$ght
a!o$t !% the arge dose of i!erai3ation and e#onomi# reforms that ao"ed !anks to
e(pore ne" !$siness opport$nities rather than generating re,en$es from #on,entiona
streams Di)e) !orro"ing and endingE) The !anking in India is high% fragmented "ith /8
!anking $nits #ontri!$ting to amost 28: of deposits and 98: of ad,an#es)
BABASAB PATIL 1.

T-e Str.(t.re )f Indian Banking$
The Indian !anking ind$str% has Reser,e Bank of India as its Reg$ator% A$thorit%) This
is a mi( of the -$!i# se#tor& -ri,ate se#tor& CoFoperati,e !anks and foreign !anks) The
pri,ate se#tor !anks are again spit into od !anks and ne" !anks)
BABASAB PATIL 1/
Reser*e Bank )f India
7Centra+ Bank8
S(-ed.+ed Banks
S#hed$ed CoFoperati,e Banks
S#hed$ed
Commer#ia Banks
-$!i# Se#tor
Banks
;ationai3ed
Banks
SBI 4 its
Asso#iates
-ri,ate Se#tor
Banks
Od -ri,ate
Se#tor Banks
Moreign
Banks
Regiona
R$ra Banks
S#hed$ed Ur!an
CoFOperati,e
Banks
S#hed$ed State
CoFOperati,e Banks
;e" -ri,ate
Se#tor Banks

Chart Sho"ing Three =ifferent Se#tors of Banks
iE -$!i# Se#tor Banks
iiE -ri,ate Se#tor Banks
-$!i# Se#tor Banks
SBI and ;ationai3ed Regiona R$ra
SUBSI=IARIES Banks Banks
SBI and s.2sidiaries
This gro$p #omprises of the State Bank of India and its se,en s$!sidiaries ,i3)&
State Bank of -atiaa& State Bank of >%dera!ad& State Bank of Tra,an#ore& State Bank of
Bikaner and Laip$r& State Bank of M%sore& State Bank of Sa$rashtra& State Bank of India
State Bank )f India DSBIE is the argest !ank in India) If one meas$res !% the
n$m!er of !ran#h offi#es and empo%ees& SBI is the argest !ank in the "ord)
Esta!ished in 1I89as Bank of Benga it is the odest #ommer#ia !ank in the Indian
s$!#ontinent) SBI pro,ides ,ario$s domesti#& internationa and ;RI prod$#ts and
ser,i#es& thro$gh its ,ast net"ork in India and o,erseas) 6ith an asset !ase of O1.9
!iion and its rea#h& it is a regiona !anking !ehemoth) The go,ernment nationai3ed the
BABASAB PATIL 10

!ank in1J22& "ith the Reser,e !ank of India taking a 98: o"nership stake) In re#ent
%ears the !ank has fo#$sed on t"o priorities& 1E& red$#ing its h$ge staff thro$gh 1oden
handshakes#hemes kno"n as the Vo$ntar% Retirement S#heme& "hi#h sa" man% of its
!est and !rightest defe#t to the pri,ate se#tor& and .E& #omp$teri3ing its operations)
The State Bank of India tra#es its roots to the first de#ade of1Jth #ent$r%& "hen the Bank
of #$#$tta& ater renamed theBank of !enga& "as esta!ished on . +$n 1I89) The
go,ernment amagamatted Bank of Benga and t"o other -residen#% !anks& name%& the
Bank of Bom!a% and the !ank of Madras& and named the reorgani3ed !anking entit% the
Imperia Bank of India) A these -residen#% !anks "ere in#orporated as#ompanies& and
"ere the res$t of thero%a #harters) The Imperia Bank of India #ontin$ed to remain a
+oint sto#k #ompan%) Unti the esta!ishment of a #entra !ank in India the Imperia Bank
and its ear% prede#essors ser,ed as the nationPs #entra !ank printing #$rren#%)
The State Bank of India A#t 1J22& ena#ted !% the pariament of India& a$thori3ed the
Reser,e Bank of India& "hi#h is the #entra Banking Organisationof India& to a#*$ire a
#ontroing interest in the Imperia Bank of India& "hi#h "as renamed the State Bank of
India on/8th Apri 1J22)
In re#ent %ears& the !ank has so$ght to e(pand its o,erseas operations !% !$%ing foreign
!anks) It is the on% Indian !ank to feat$re in the top 188 "ord !anks in the Mort$ne
1o!a 288 rating and ,ario$s other rankings) A##ording to the Mor!es .888 isting it tops
a Indian #ompanies)
;ationai3ed !anks
This gro$p #onsists of pri,ate se#tor !anks that "ere nationai3ed) The 1o,ernment of
India nationai3ed 10 pri,ate !anks in 1J9J and another 9 in the %ear 1JI8) In ear% 1JJ/&
there "ere .I nationai3ed !anks i)e)& SBI and its H s$!sidiaries p$s .8 nationai3ed
BABASAB PATIL 12

!anks) In 1JJ/& the oss making ne" !ank of India "as merged "ith profit making
-$n+a! ;ationa Bank) >en#e& no" on% .H nationai3ed !anks e(ist in India)
Regiona R$ra !anks
These "ere esta!ished !% the RBI in the %ear 1JH2 of !anking #ommission) It "as
esta!ished to operate e(#$si,e% in r$ra areas to pro,ide #redit and other fa#iities to
sma and margina farmers& agri#$t$ra a!orers& artisans and sma entreprene$rs)
Pri*ate Se(t)r Banks
Pri*ate Se(t)r Banks
Od pri,ate ne" pri,ate
Se#tor Banks Se#tor Banks
Od -ri,ate Se#tor Banks
This gro$p #onsists of the !anks that "ere esta!ishes !% the pri,% se#tors& #ommittee
organi3ations or !% gro$p of professionas for the #a$se of e#onomi# !etterment in their
operations) Initia%& their operations "ere #on#entrated in a fe" regiona areas) >o"e,er&
their !ran#hes so"% spread thro$gho$t the nation as the% gro")
;e" pri,ate Se#tor Banks
These !anks "ere started as profit orient #ompanies after the RBI opened the !anking
se#tor to the pri,ate se#tor) These !anks are most% te#hnoog% dri,en and !etter
managed than other !anks)
BABASAB PATIL 19

Moreign !anks
These are the !anks that "ere registered o$tside India and had originated in a foreign
#o$ntr%) The ma+or parti#ipants of the Indian finan#ia s%stem are the #ommer#ia !anks&
the finan#ia instit$tions DMIsE& en#ompassing termFending instit$tions& in,estment
instit$tions& spe#iai3ed finan#ia instit$tions and the stateFe,e de,eopment !anks& ;onF
Bank Minan#ia Companies D;BMCsE and other market intermediaries s$#h as the sto#k
!rokers and mone%Fenders) The #ommer#ia !anks and #ertain ,ariants of ;BMCs are
among the odest of the market parti#ipants) The MIs& on the other hand& are reati,e%
ne" entities in the finan#ia market pa#e)
IMPORTA"CE OF BA"KI" SECTOR I" A RO,I" ECO"OM&
In the re#ent times "hen the ser,i#e ind$str% is attaining greater importan#e #ompared to
man$fa#t$ring ind$str%& !anking has e,o,ed as a prime se#tor pro,iding finan#ia
ser,i#es to gro"ing needs of the e#onom%)
Banking ind$str% has $ndergone a paradigm shift from pro,iding ordinar% !anking
ser,i#es in the past to pro,iding s$#h #ompi#ated and #r$#ia ser,i#es ike& mer#hant
!anking& ho$sing finan#e& !i dis#o$nting et#) This se#tor has !e#ome more a#ti,e "ith
the entr% of ne" pa%ers ike pri,ate and foreign !anks) It has aso e,o,ed as a prime
!$ider of the e#onom% !% $nderstanding the needs of the same and en#o$raging the
de,eopment !% "a% of gi,ing oans& pro,iding infrastr$#t$re fa#iities and finan#ing
a#ti,ities for the promotion of entreprene$rs and other !$siness esta!ishments)
Mor a fast de,eoping e#onom% ike o$rs& presen#e of a so$nd finan#ia s%stem to
mo!ii3e and ao#ate sa,ings of the p$!i# to"ards prod$#ti,e a#ti,ities is ne#essar%)
Commer#ia !anks pa% a #r$#ia roe in this regard)
BABASAB PATIL 1H

The Banking se#tor in re#ent %ears has in#orporated ne" prod$#ts in their !$sinesses&
"hi#h are hepf$ for gro"th) The !anks ha,e started to pro,ide feeF!ased ser,i#es ike&
treas$r% operations& managing deri,ati,es& options and f$t$res& a#ting as !ankers to the
ind$str% d$ring the p$!i# offering& pro,iding #ons$tan#% ser,i#es& a#ting as an
intermediar% !et"een t"oF!$siness entities et#)At the same time& the !anks are rea#hing
o$t to other end of #$stomer re*$irements ike& ins$ran#e premi$m pa%ment& ta( pa%ment
et#) It has #hanged itsef from transa#tion t%pe of !anking into reationship !anking&
"here %o$ find friend% and *$i#k ser,i#e s$ited to %o$r needs) This is possi!e "ith
$nderstanding the #$stomer needs their ,a$e to the !ank& et#) This is possi!e "ith the
hep of "e organi3ed staff& #omp$ter !ased net"ork for speed% transa#tions& prod$#ts
ike #redit #ard& de!it #ard& heath #ard& ATM et#) These are the present trend of ser,i#es)
The #$stomers at present ask for #on,enien#e of !anking transa#tions& ike .0 ho$rs
!anking& "here the% "ant to $tii3e the ser,i#es "hene,er there is a need) The
reationship !anking pa%s a ma+or and important roe in gro"th& !e#a$se the #$stomers
no" ha,e eno$gh n$m!er of opport$nities& and the% #hoose a##ording to their
satisfa#tion of responses and re#ognition the% get) So the !anks ha,e to pa% #a$tio$s%&
ese the% ma% ose o$t the pa#e in the market d$e to #ompetition& "here sightest of
opport$nities are #apt$red fast)
Another ma+or roe pa%ed !% !anks is in transnationa !$siness& transa#tions and
net"orking) Man% eading Indian !anks ha,e spread o$t their net"ork to other #o$ntries&
"hi#h hep in #$rren#% transfer and earn e(#hange o,er it)
These !anks pa% a ma+or roe in #ommer#ia import and e(port !$siness& !et"een parties
of t"o #o$ntries) This foreign presen#e aso heps in !ringing in the internationa
standards of operations and ideas) The i!erai3ation poi#% of 1JJ1 has ao"ed man%
foreign !anks to enter the Indian market and esta!ish their !$siness) This has heped
arge amo$nt of foreign #apita info" 4 in#rease o$r Moreign e(#hange reser,e)
BABASAB PATIL 1I

Another emerging #hange happening a o,er the !anking ind$str% is #onsoidation
thro$gh mergers and a#*$isitions) This heps the !anks in strengthening their empire and
e(panding their net"ork of !$siness in terms of ,o$me and effe#ti,eness)
EMERI" SCE"ARIO I" THE BA"KI" SECTOR
The Indian !anking s%stem has passed thro$gh three distin#t phases from the time of
in#eption) The first "as !eing the era of #hara#ter !anking& "here %o$ "ere re#ogni3ed as
a #redi!e depositor or !orro"er of the s%stem) This era #ome to an end in the si(ties) The
se#ond phase "as the so#ia !anking) ;o"here in the demo#rati# de,eoped "ord& "as
!anking or the ser,i#e ind$str% nationai3ed) B$t this "as pra#ti#ed in India) Those "ere
the da%s "hen !ankers has no #$e "hatsoe,er as to ho" to determine the s#ae of finan#e
to ind$str%) The third era of !anking "hi#h is in e(isten#e toda% is #aed the era of
-r$dentia Banking) The main fo#$s of this phase is on pr$dentia norms a##epted
internationa%)
SBI r).0/
The Bank of Benga& "hi#h ater !e#ame the State Bank of India) State Bank of India
"ith its se,en asso#iate !anks #ommands the argest !anking reso$r#es in India)
BABASAB PATIL 1J

"ati)na+isati)n/
The ne(t signifi#ant miestone in Indian Banking happened in ate 1J98s "hen the then
Indira 1andhi go,ernment nationai3ed on 1J
th
L$% 1J0J& 10 ma+or #ommer#ia Indian
!anks foo"ed !% nationaisation of 9 more #ommer#ia Indian !anks in 1JI8)
The stated reason for the nationaisation "as more #ontro of #redit dei,er%) After this&
$nti 1JJ8s& the nationaised !anks gre" at a eis$re% pa#e of aro$nd 0: aso #aed as
the >ind$ gro"th of the Indian e#onom%)After the amagamation of ;e" Bank of India
"ith -$n+a! ;ationa Bank& #$rrent% there are 1J nationaised !anks in India)
Li2era+i9ati)n/
In the ear% 1JJ8's the then ;arasimha rao go,ernment em!arked a poi#% of
i!erai3ation and ga,e i#en#es to a sma n$m!er of pri,ate !anks& "hi#h #ame to !e
kno"n as ;e" generation te#hFsa,,% !anks& "hi#h in#$ded !anks ike ICICI and >=MC)
This mo,e aong "ith the rapid gro"th of the e#onom% of India& ki#k started the !anking
se#tor in India& "hi#h has seen rapid gro"th "ith strong #ontri!$tion from a the se#tors
of !anks& name% 1o,ernment !anks& -ri,ate Banks and Moreign !anks) >o"e,er there
had !een a fe" hi##$ps for these ne" !anks "ith man% either !eing taken o,er ike
1o!a Tr$st Bank "hie others ike Cent$rion Bank ha,e fo$nd the going to$gh)
The ne(t stage for the Indian Banking has !een set $p "ith the proposed rea(ation in the
norms for Moreign =ire#t In,estment& "here a Moreign In,estors in Banks ma% !e gi,en
,oting rights "hi#h #o$d e(#eed the present #ap of 18:& at pesent it has gone $p to 0J:
"ith some restri#tions)
BABASAB PATIL .8

The ne" poi#% shook the Banking se#tor in India #ompete%) Bankers& ti this time&
"ere $sed to the 0F9F0 method DBorro" at 0:K?end at 9:K1o home at 0E of f$n#tioning)
The ne" "a,e $shered in a modern o$took and te#hFsa,,% methods of "orking for
traditiona !anks)A this ed to the retai !oom in India) -eope not +$st demanded more
from their !anks !$t aso re#ei,ed more)
C!RRE"T SCE"ARIO/
C$rrent% D.88HE& o,era& !anking in India is #onsidered as fair% mat$re in terms of
s$pp%& prod$#t range and rea#hFe,en tho$gh rea#h in r$ra India sti remains a #haenge
for the pri,ate se#tor and foreign !anks) E,en in terms of *$ait% of assets and #apita
ade*$a#%& Indian !anks are #onsidered to ha,e #ean& strong and transparent !aan#e
sheetsFas #ompared to other !anks in #ompara!e e#onomies in its region) The Reser,e
Bank of India is an a$tonomo$s !od%& "ith minima press$re from the go,ernment) The
stated poi#% of the Bank on the Indian R$pee is to manage ,oatiit%F"itho$t an% stated
e(#hange rateFand this has most% !een tr$e)
BABASAB PATIL .1

6ith the gro"th in the Indian e#onom% e(pe#ted to !e strong for *$ite some timeF
espe#ia% in its ser,i#es se#tor& the demand for !anking ser,i#esFespe#ia% retai
!anking& mortgages and in,estment ser,i#es are e(pe#ted to !e strong) M4As& takeo,ers&
asset saes and m$#h more a#tion Das it is $nra,eing in ChinaE "i happen on this front
in India)
In Mar#h .889& the Reser,e Bank of India ao"ed 6ar!$rg -in#$s to in#rease its stake
in Gotak Mahindra Bank Da pri,ate se#tor !ankE to 18:) This is the first time an in,estor
has !een ao"ed to hod more than 2: in a pri,ate se#tor !ank sin#e the RBI anno$n#ed
norms in .882 that an% stake e(#eeding 2: in the pri,ate se#tor !anks "o$d need to !e
,etted !% them) C$rrent%& India has II s#hed$ed #ommer#ia !anks DSCBsE F .I p$!i#
se#tor !anks Dthat is "ith the 1o,ernment of India hoding a stakeE& .J pri,ate !anks
Dthese do not ha,e go,ernment stakeK the% ma% !e p$!i#% isted and traded on sto#k
e(#hangesE and /1 foreign !anks) The% ha,e a #om!ined net"ork of o,er 2/&888
!ran#hes and 1H&888 ATMs) A##ording to a report !% ICRA ?imited& a rating agen#%& the
p$!i# se#tor !anks hod o,er H2 per#ent of tota assets of the !anking ind$str%& "ith the
pri,ate and foreign !anks hoding 1I).: and 9)2: respe#ti,e%)
Banking in India
1 Centra Bank Reser,e Bank of India
.
;ationaised Banks
State Bank of India& Aaha!ad Bank& Andhra Bank&
Bank of Baroda& Bank of India& Bank of
Maharastra&Canara Bank& Centra Bank of India&
Corporation Bank& =ena Bank& Indian Bank& Indian
o,erseas Bank&Orienta Bank of Commer#e& -$n+a! and
Sind Bank& -$n+a! ;ationa Bank& S%ndi#ate Bank&
Union Bank of India& United Bank of India& UCO
Bank&and Vi+a%a Bank)
Bank of Ra+astan& Bharath o,erseas Bank& Cathoi#
BABASAB PATIL ..

/ -ri,ate Banks
S%rian Bank& Cent$rion Bank of -$n+a!& Cit% Union
Bank& =e,eopment Credit Bank& =hanaa(mi Bank&
Medera Bank& 1anesh Bank of G$r$nd"ad& >=MC
Bank& ICICI Bank& I=BI& Ind$sInd Bank& I;1 V%s%a
Bank& Lamm$ and Gashmir Bank& Garnataka Bank
?imited& Gar$r V%s%a Bank& Gotek Mahindra Bank&
?akshmi,ias Bank& ?ord Grishna Bank& ;ainitak Bank&
Ratnakar Bank&Sangi Bank& SBI Commer#ia and
Internationa Bank& So$th Indian Bank& Tami ;ad$
Mer#hantie Bank ?td)& United 6estern Bank& UTI
Bank& YES Bank)
BABASAB PATIL ./

COM-A;Y -ROMI?E
STATE BA"K OF I"#IA
;ot on% man% finan#ia instit$tion in the "ord toda% #an #aim the anti*$it% and
ma+est% of the State Bank Of India fo$nded near% t"o #ent$ries ago "ith primari% intent
of imparting sta!iit% to the mone% market& the !ank from its in#eption mo!ii3ed f$nds
for s$pporting !oth the p$!i# #redit of the #ompanies go,ernments in the three
presiden#ies of British India and the pri,ate #redit of the E$ropean and India mer#hants
from a!o$t 1I98s "hen the Indian e#onom% !ook a signifi#ant eap for"ard $nder the
imp$se of *$i#kened "ord #omm$ni#ations and ingenio$s method of ind$stria and
BABASAB PATIL .0

agri#$t$ra prod$#tion the Bank !e#ame intimate% in ,a$ed in the finan#ing of
pra#ti#a% and mining a#ti,it% of the S$!F Continent Atho$gh arge E$ropean and Indian
mer#hants and man$fa#t$rers "ere $ndo$!ted% thee prin#ipa !enefi#iaries& the sma
man ne,er ignored oans as o" as Rs)188 "ere dis!$rsed in agri#$t$ra distri#ts against
gad ornaments) Added to these the !ank ti the #reation of the Reser,e Bank in 1J/2
#arried o$t n$mero$s Centra 7 Banking f$n#tions)
Adaptation "ord and the needs of the ho$r has !een one of the strengths of the Bank& In
the post depression e(e) Mor instan#e 7 "hen !$siness opport$nities !e#ome e(treme%
restri#ted& r$es aid do"n in the !ook of instr$#tions "ere reined to ens$re that good
!$siness did not go post) Yet sedom did the !ank #ontra,enes its ,a$e as depart from
so$nd !anking prin#ipes to retain as e(pand its !$siness) An inno,ati,e arra% of offi#e&
$nkno"n to the "ord then& "as de,ised in the form of !ran#hes& s$! !ran#hes& treas$r%
pa% offi#e& pa% offi#e& s$! pa% offi#e and o$t st$dents to e(poit the opport$nities of an
e(panding e#onom%) ;e" !$siness strateg% "as aso e,aded "a% !a#k in 1J/H to render
the !est !anking ser,i#e thro$gh prompt and #o$rteo$s attention to #$stomers)
A high% effi#ient and e(perien#ed management f$n#tioning in a "e defined
organi3ationa str$#t$re did not take ong to pa#e the !ank an e(e#$ted pedesta in the
areas of !$siness& profita!iit%& interna dis#ipine and a!o,e a #redi!iit% A impe##a!e
finan#ia stat$s #onsistent maintenan#e of the oft% traditions if !anking an o!ser,ation of
a high standard of integrit% in its operations heped the !ank gain a preF eminent stat$s)
;o "onders the administration for the !ank "as $ni,ersa as ke% f$n#tionaries of India
s$##essi,e finan#e minister of independent India Reso$r#e Bank of go,ernors and
representati,es of #ham!er of #ommer#ia sho"ered e#onomi#s on it)
Modern da% management te#hni*$es "ere aso ,er% m$#h e,ident in the good od da%s
%ears !efore #orporate go,ernan#e had !e#ome a p$33ed the !anks !o$nd f$n#tioned
"ith a high degree of responsi!iit% and #on#erns for the sharehoders) An $n!roken
BABASAB PATIL .2

re#ords of profits and a fair% high rate of profit and fair% high rate of di,idend a
thro$gh ens$red satisfa#tion& pr$dentia management and asset ia!iit% management not
on% prote#ted the interests of the Bank !$t aso ens$red that the o!igations to #$stomers
"ere not met) The traditions of the past #ontin$ed to !e $phed e,en to this da% as the
State Bank %ears itsef to meet the emerging #haenges of the mienni$m)

ABO!T LOO

BABASAB PATIL .9

THE PLACE TO SHARE THE "E,S 666::
SHARE THE %IE,S ::
Togetherness is the theme of this #orporate oge of SBI "here the "ord of !anking
ser,i#es meet the e,er #hanging #$stomers needs and esta!ishes a ink that is ike a
#ir#e& it indi#ates #ompete ser,i#es to"ards #$stomers) The ogo aso denotes a !ank
that it has prepared to do an%thing to go to an% engths& for #$stomers)
The !$e pointer represent the phiosoph% of the !ank that is a"a%s ooking for the
gro"th and ne"er& more #haenging& more promising dire#tion) The ke% hoe indi#ates
safet% and se#$rit%)
MISSIO"1 %ISIO" A"# %AL!ES
MISSIO" STATEME"T$

To retain the Bank's position as premiere Indian Minan#ia Ser,i#e 1ro$p& "ith "ord
#ass standards and signifi#ant go!a #ommitted to e(#een#e in #$stomer& sharehoder
and empo%ee satisfa#tion and to pa% a eading roe in e(panding and di,ersif%ing
finan#ia ser,i#e se#tors "hie #ontaining emphasis on its de,eopment !anking r$e)
%ISIO" STATEME"T$
-remier Indian Minan#ia Ser,i#e 1ro$p "ith prospe#ti,e "ordF#ass
Standards of effi#ien#% and professionaism and instit$tiona ,a$es)
BABASAB PATIL .H

Retain its position in the #o$ntr% as pioneers in =e,eopment !anking)
Ma(imi3e the sharehoders ,a$e thro$gh highFs$stained earnings per
Share)
An instit$tion "ith #$t$ra m$t$a #are and #ommitment& satisf%ing and
1ood "ork en,ironment and #ontin$es earning opport$nities)
%AL!ES$
E(#een#e in #$stomer ser,i#e
-rofit orientation
Beonging #ommitment to Bank
Mairness in a deaings and reations
Risk taking and inno,ati,e
Team pa%ing
?earning and rene"a
Integrit%
Transparen#% and =is#ipine in poi#ies and s%stems)
BABASAB PATIL .I

ORA"ISATIO" STR!CT!RE
MA"AI" #IRECTOR
BABASAB PATIL .J
CHIEF E"ERAL MA"AER


6 M 6M 6 M 6M 6M
;O0erati)ns< ;C=B< ;F=S< ;I< = C%O ;P=#<

9)na+ )ffi(ers
Functional Heads

Regiona offi#ers
-RO=UCTS A;= SERVICES
BABASAB PATIL /8

PRO#!CTS$
State Bank Of India renders ,arieties of ser,i#es to #$stomers thro$gh the
foo"ing prod$#ts<
-ersona ?oan -rod$#t<

SBI Term =eposits
SBI Re#$rring =eposits
SBI >o$sing ?oan
SBI Car ?oan
SBI Ed$#ationa ?oan
BABASAB PATIL /1

SBI -ersona ?oan
SBI ?oan Mor -ensioners
?oan Against Mortgage Of -ropert%
?oan Against Shares 4 =e!ent$res
Rent -$s S#heme
MediF-$s S#heme
Rates Of Interest
SBI H).sing +)an
SBI >o$sing oan or Mortgage ?oan s#hemes are designed to make it simpe for %o$ to
make a #hoi#e at east as far as finan#ing goesQ
>SBI/H)me L)ans>
feat.res$
;o #ap on ma(im$m oan amo$nt for p$r#haseA #onstr$#tion of ho$seA fat
Option to #$! in#ome of %o$r spo$se and #hidren to #omp$te eigi!e oan
amo$nt
-ro,ision to #$! e(pe#ted rent a##r$as from propert% proposed to #omp$te
eigi!e oan amo$nt
BABASAB PATIL /.

-ro,ision to finan#e #ost of f$rnishing and #ons$mer d$ra!es as part of pro+e#t
#ost
Repa%ment permitted $pto H8 %ears of age
Mree persona a##ident ins$ran#e #o,er
Optiona 1ro$p Ins$ran#e from SBI ?ife at #on#essiona premi$m DUpfront
premi$m finan#ed as part of pro+e#t #ostE
Interest appied on dai% diminishing !aan#e !asis
P-$sP s#hemes "hi#h offer attra#ti,e pa#kages "ith #on#essiona interest rates to
1o,t) Empo%ees& Tea#hers& Empo%ees in -$!i# Se#tor Oi Companies)
Spe#ia s#heme to grant oans to finan#e Earnest Mone% =eposits to !e paid to
Ur!an =e,eopment A$thorit%A >o$sing Board& et#) in respe#t of aotment of
sitesA ho$seA fat
;o Administrati,e Charges or appi#ation fee
-repa%ment penat% is re#o,ered on% if the oan is preF#osed !efore haf of the
origina ten$re Dnot re#o,ered for !$k pa%ments pro,ided the oan is not #osedE
-ro,ision for do"n"ard refi(ation of EMI in respe#t of foating rate !orro"ers
"ho a,ai >o$sing ?oans of Rs)2 a#s and a!o,e& to a,ai the !enefit of
do"n"ard re,ision of interest rate !% 1: or more
InFprin#ipe appro,a iss$ed to gi,e %o$ fe(i!iit% "hie negotiating p$r#hase of a
propert%
ROption to a,ai oan at the pa#e of empo%ment or at the pa#e of #onstr$#tion
Attra#ti,e pa#kages in respe#t of oans granted $nder tieF$p "ith CentraA State
1o,ernmentsA -SUsA rep$ted #orporates and tieF$p "ith rep$ted !$iders D-ease
#onta#t %o$r nearest !ran#h for detaisE
SER%ICES$
=OMESTIC TREASURY
SBI VIS>6A YATRA MOREI1; TRAVE? CAR=
BABASAB PATIL //

BROGI;1 SERVICES
REVISE= SERVICE C>AR1ES
ATM SERVICES
I;TER;ET BA;GI;1
EF-AY
EFRAI?
RBIEMT
SAME =E-OSIT ?OCGER
1IMT C>ESUES
MICR CO=ES
MOREI1; I;6AR= REMITTA;CES
ATM SER%ICES

STATE BA"K "ET,ORKE# ATM SER%ICES
State Bank offers %o$ the #on,enien#e of o,er I888 ATMs in India& the argest net"ork
in the #o$ntr% and #ontin$ing to e(pand fastQ This means that %o$ #an transa#t free of
#ost at the ATMs of State Bank 1ro$p DThis in#$des the ATMs of State Bank of India as
"e as the Asso#iate Banks 7 name%& State Bank of Bikaner 4 Laip$r& State Bank of
BABASAB PATIL /0

>%dera!ad& State Bank of Indore& State Bank of M%sore& State Bank of -atiaa& State
Bank of Sa$rashtra& and State Bank of Tra,an#oreE and "ho% o"ned s$!sidiar% ,i3) SBI
Commer#ia and Internationa Bank ?td)& $sing the State Bank ATMF#$mF=e!it DCash
-$sE #ard)
KI"#S OF CAR#S ACCEPTE# AT STATE BA"K ATMs
Besides State Bank ATMFC$mF=e!it Card and State Bank Internationa ATMFC$mF
=e!it Cards foo"ing #ards are aso a##epted at State Bank ATMs< F
1E State Bank Credit Card
.E ATM Cards iss$ed !% Banks $nder !iatera sharing ,i3) Andhra Bank&A(is
Bank& Bank of India& The Bank of Ra+asthan ?td)& Canara Bank& Corporation Bank& =ena
Bank& >=MC Bank& Indian Bank& Ind$s Ind Bank& -$n+a! ;ationa Bank& UCO Bank
and Union Bank of India)
/E Cards iss$ed !% !anks Dother than !anks $nder !iatera sharingE dispa%ing Maestro&
Master Card& Cirr$s& VISA and VISA Ee#tron ogos
0E A =e!itA Credit Cards iss$ed !% an% !ank o$tside India dispa%ing Maestro& Master
Card& Cirr$s& VISA and VISA Ee#tron ogos
;ote< If %o$ are a #ardhoder of !ank other than State Bank 1ro$p& kind% #onta#t %o$r
Bank for the #harges re#o,era!e for $sage of State Bank ATMs)
BABASAB PATIL /2

STATE BA"K I"TER"ATIO"AL ATM/C!M/#EBIT CAR#
E+igi2i+it'$
A Sa,ing Bank and C$rrent A##o$nt hoders ha,ing a##o$nts "ith net"orked !ran#hes
and are<
1I %ears of age 4 a!o,e
A##o$nt t%pe< Soe or Loint "ith BEither or S$r,i,orC A BAn%one or S$r,i,orC
;RE a##o$nt hoders are aso eigi!e !$t ;RO a##o$nt hoders are not)
Benefits$
TCon,enien#e to the #$stomers tra,eing o,erseas
TCan !e $sed as =omesti# ATMF#$mF=e!it Card
UA,aia!e at a nomina +oining fee of Rs) .88AF
T=ai% imit of US O 1888 or e*$i,aent at the ATM and US O 1888 or e*$i,aent
at -oint of Sae D-OSE termina for de!it transa#tion
-$r#hase -rote#tionV$p to Rs) 2888AF and -ersona A##ident #o,erV$p to Rs)
.&88&888AF
TCharges for $sage a!road< Rs) 128W Ser,i#e Ta( per #ash "ithdra"a Rs) 12 W
Ser,i#e Ta( per en*$ir%)
BABASAB PATIL /9

State Bank ATM/(.m/#e2it ;State Bank Cas- 0+.s< Card<
India's argest !ank is pro$d to offer %o$ $nparaeed #on,enien#e ,i3) State Bank ATMF
#$mF=e!itDCash -$sE #ard) 6ith this #ard& there is no need to #arr% #ash in %o$r "aet)
Yo$ #an no" "ithdra" #ash and make p$r#hases an%time %o$ "ish to "ith %o$r ATMF
#$mF=e!it Card)
1et an ATMF#$mF=e!it #ard "ith "hi#h %o$ #an transa#t for MREE at an% of o,er I888
ATMs of State Bank 1ro$p "ithin o$r #o$ntr%)
SBI OL# I"TER"ATIO"AL #EBIT CAR#S

E/PA&
Bi -a%ment at Onine SBI DeF-a%E "i et %o$ to pa% %o$r Teephone& Mo!ie&
Ee#tri#it%& Ins$ran#e and Credit Card !is ee#troni#a% o,er o$r Onine SBI "e!site
BABASAB PATIL /H

E/RAIL
B))k ').r Rai+3a's Ti(ket On+ine6
The fa#iit% has !een a$n#hed "ef Ist Septem!er .88/ in asso#iation "ith IRCTC)
The s#heme fa#iitates Booking of Rai"a%s Ti#ket Onine)
T-e sa+ient feat.res )f t-e s(-eme are as .nder$
A Internet !anking #$stomers #an $se the fa#iit%)

On gi,ing pa%ment option as SBI& the $ser "i !e redire#ted to onines!i)#om)
After ogging on to the site %o$ "i !e dispa%ed pa%ment amo$nt& TI= ;o) and
Rai"a% referen#e no)

) The ti#ket #an !e dei,ered or #oe#ted !% the #$stomer)

The $ser #an #oe#t the ti#ket persona% at ;e" =ehi reser,ation #o$nter )
The -a%ment amo$nt "i in#$de ti#ket fare in#$ding reser,ation #harges&
#o$rier #harges and Bank Ser,i#e fee of Rs 18A) The Bank ser,i#e fee has !een
"ai,ed $nto /1st L$% .889)
SAFE #EPOSIT LOCKER
Mor the safet% of %o$r ,a$a!es "e offer o$r #$stomers safe deposit ,a$t or o#ker
BABASAB PATIL /I

fa#iities at a arge n$m!er of o$r !ran#hes) There is a nomina ann$a #harge& "hi#h
depends on the si3e of the o#ker and the #entre in "hi#h the !ran#h is o#ated)
"RI HOME LOA"
SALIE"T FEAT!RES
P.r0)se )f L)an
?oans to ;RIs 4 -IOs #an !e e(tended for the foo"ing p$rposes)
To p$r#haseA#onstr$#t a ne" ho$se A fat
To repair& reno,ate or e(tend an e(isting ho$seAfat
To p$r#hase an e(isting ho$seAfat
To p$r#hase a pot for #onstr$#tion of a d"eing $nit)
To p$r#hase f$rnishings and #ons$mer d$ra!es& as a part of the pro+e#t #ost
ARIC!LT!RE ? R!RAL
State Bank )f India Caters to the needs of agri#$t$rists and andess agri#$t$ra
a!o$rers thro$gh a net"ork of 9988 r$ra and semiF$r!an !ran#hes) here are JH.
spe#iai3ed !ran#hes "hi#h ha,e !een set $p in different parts of the #o$ntr% e(#$si,e%
for the de,eopment of agri#$t$re thro$gh #redit depo%ment) These !ran#hes in#$de
0.H Agri#$t$ra =e,eopment Bran#hes DA=BsE and 20H !ran#hes "ith =e,eopment
Banking =epartment D=B=sE "hi#h #ater to agri#$t$rists and . Agri#$t$ra B$siness
Bran#hes at Chennai and >%dera!ad #atering to the needs of hite#h #ommer#ia
agri#$t$ra pro+e#ts)
T>EORETICA? BACG1ROU;= OM CRE=IT RISG MA;A1EME;T
BABASAB PATIL /J

CRE#IT$
The "ord 5#redit' #omes from the ?atin "ord 5#redere'& meaning 5tr$st') 6hen
seers transfer his "eath to a !$%er "ho has agreed to pa% ater& there is a #ear
impi#ation of tr$st that the pa%ment "i !e made at the agreed date) The #redit period
and the amo$nt of #redit depend $pon the degree of tr$st)
Credit is an essentia marketing too) It !ears a #ost& the #ost of the seer ha,ing to
!orro" $nti the #$stomers pa%ment arri,es) Idea%& that #ost is the pri#e !$t& as most
#$stomers pa% ater than agreed& the e(tra $npanned #ost erodes the panned net profit)
RISK $
Risk is defined as $n#ertain res$ting in ad,erse o$t #ome& ad,erse in reation to
panned o!+e#ti,e or e(pe#tation) It is ,er% diffi#$t o find a risk free in,estment) An
important inp$t to risk management is risk assessment) Man% p$!i# !odies s$#h as
ad,isor% #ommittees #on#erned "ith risk management) There are main% three t%pes
of risk the% are foo"s
Market risk
Credit Risk
sOperationa risk
Risk ana%sis and ao#ation is #entra to the design of an% pro+e#t finan#e& risk
management is of paramo$nt #on#ern) Th$s *$antif%ing risk aong "ith profit
pro+e#tions is $s$a% the first step in ga$ging the feasi!iit% of the pro+e#t) on#e
risk ha,e !een identified the% #an !e ao#ated to parti#ipants and appropriate
me#hanisms p$t in pa#e)
BABASAB PATIL 08

MARKET RISK$
Market risk is the risk of ad,erse de,iation of the mark to market ,a$e of the trading
portfoio& d$e to market mo,ement& d$ring the period re*$ired to i*$idate the
transa#tions)
OPERTIO"AL RISK$
Operationa risk is one area of risk that is fa#ed !% a organi3ation s) More #ompe( the
organi3ation more e(posed it "o$d !e operationa risk) This risk arises d$e to de,iation
from norma and panned f$n#tioning of the s%stem pro#ed$res& te#hnoog% and h$man
fai$re of omission and #ommission) Res$t of de,iation from norma f$n#tioning is
refe#ted in the re,en$e of the organi3ation& either !% the "a% of additiona e(penses or
!% "a% of oss of opport$nit%)
CRE#IT RISK$
Credit risk is defined as the potentia that a !ank !orro"er or #o$nterpart% "i fai to
meet its o!igations in a##ordan#e "ith agreed terms& or in other "ords it is defined as the
risk that a firm's #$stomer and the parties to "hi#h it has ent mone% "i fai to make
promised pa%ments is kno"n as #redit risk
BABASAB PATIL 01
Financial
Risks
Operational Risk
Market Risk
Credit Risk

T%pes of Minan#ia Risks

The e(pos$re to the #redit risks arge in #ase of finan#ia instit$tions& s$#h #ommer#ia
!anks "hen firms !orro" mone% the% in t$rn e(pose enders to #redit risk& the risk that
the firm "i defa$t on its promised pa%ments) As a #onse*$en#e& !orro"ing e(poses the
firm o"ners to the risk that firm "i !e $na!e to pa% its de!t and th$s !e for#ed to
!ankr$pt#%)
CO;TRIBUTORS OM CRE=IT RISG<
Corporate assets
Retai assets
;onFS?R portfoio
Ma% res$t from trading and !anking !ook
Inter !ank transa#tions
=eri,ati,es
Settement& et#
GEY E?EME;TS OM CRE=IT RISG MA;A1EME;T<
Esta!ishing appropriate #redit risk en,ironment
Operating $nder so$nd #redit granting pro#ess
Maintaining an appropriate #redit administration& meas$rement 4 Monitoring
Ens$ring ade*$ate #ontro o,er #redit risk
Banks sho$d ha,e a #redit risk strateg% "hi#h in o$r #ase is #omm$ni#ated
thro$gho$t the organi3ation thro$gh #redit poi#%)
BABASAB PATIL 0.

T"o f$ndamenta approa#hes to #redit risk management<F
F The interna% oriented approa#h #enters on estimating !oth the e(pe#ted #ost and
,oatiit% of f$t$re #redit osses !ased on the firm's !est assessment)
F M$t$re #redit osses on a gi,en oan are the prod$#t of the pro!a!iit% that the
!orro"er "i defa$t and the portion of the amo$nt ent "hi#h "i !e ost in the
e,ent of defa$t) The portion "hi#h "i !e ost in the e,ent of defa$t is
dependent not +$st on the !orro"er !$t on the t%pe of oan Deg)& some !onds ha,e
greater rights of seniorit% than others in the e,ent of defa$t and "i re#ei,e
pa%ment !efore the more +$nior !ondsE)
F To the e(tent that osses are predi#ta!e& e(pe#ted osses sho$d !e fa#tored into
prod$#t pri#es and #o,ered as a norma and re#$rring #ost of doing !$siness) i)e)&
the% sho$d !e dire#t #harges to the oan ,a$ation) Voatiit% of oss rates aro$nd
e(pe#ted e,es m$st !e #o,ered thro$gh riskFad+$sted ret$rns)
F So tota #harge for #redit osses on a singe oan #an !e represented !% DXe(pe#ted
pro!a!iit% of defa$tY V Xe(pe#ted per#entage oss in e,ent of defa$tYE W risk
ad+$stment V the ,oatiit% of DXpro!a!iit% of defa$t V per#entage oss in the
e,ent of defa$tYE)
Minan#ia instit$tions are +$st !eginning to reai3e the !enefits of #redit risk
management modes) These modes are designed to hep the risk manager to pro+e#t
risk& ens$re profita!iit%& and re,ea ne" !$siness opport$nities) The mode s$r,e%s
the #$rrent state of the art in #redit risk management) It pro,ides the toos to
$nderstand and e,a$ate aternati,e approa#hes to modeing) This aso des#ri!es "hat
a #redit risk management mode sho$d do& and it ana%ses some of the pop$ar
modes)
BABASAB PATIL 0/

The s$##ess of #redit risk management modes depends on so$nd design&
inteigent impementation& and responsi!e appi#ation of the mode) 6hie there
has !een signifi#ant progress in #redit risk management modes& the ind$str% m$st
#ontin$e to ad,an#e the state of the art) So far the most s$##essf$ modes ha,e
!een #$stom designed to so,e the spe#ifi# pro!ems of parti#$ar instit$tions)
A #redit risk management mode tes the #redit risk manager ho" to ao#ate s#ar#e
#redit risk #apita to ,ario$s !$sinesses so as to optimi3e the risk and ret$rn
#hara#teristi#s of the firm) It is important or $nderstand that optimi3e does not mean
minimi3e risk other"ise e,er% firm "o$d simp% in,est its #apita in risk ess
assets) A #redit risk management mode "orks !% #omparing the risk and ret$rn
#hara#teristi#s !et"een indi,id$a assets or !$sinesses) One f$n#tion is to *$antif%
the di,ersifi#ation of risks) Being "eFdi,ersified means that the firms has no
#on#entrations of risk to sa%& one geographi#a o#ation or one #o$nterpart%)
BABASAB PATIL 00
Standardized Standardized
Internal Ratings Internal Ratings
Credit Risk Models Credit Risk Models
Credit Mitigation Credit Mitigation
Market Risk Market Risk
Credit Risk Credit Risk
Other Risks Other Risks
Risks Risks
Trading Book Trading Book
Banking Book Banking Book
Operational Operational
Other Other
Ste0s t) f)++)3 t) minimi9e different t'0e )f risks$/

CRE#IT RATI"
#efiniti)n$/
Credit rating is the pro#ess of assigning a etter rating to !orro"er indi#ating
that #redit"orthiness of the !orro"er)
Rating is assigned !ased on the a!iit% of the !orro"er D#ompan%E) To repa% the de!t and
his "iingness to do so) The higher rating of #ompan% the o"er the pro!a!iit% of its
defa$t)
!se in de(isi)n making$/
Credit rating heps the !ank in making se,era ke% de#isions regarding #redit in#$ding
1) "hether to end to a parti#$ar !orro"er or notK "hat pri#e to #hargeZ
.) "hat are the prod$#t to !e offered to the !orro"er and for "hat ten$reZ
/) at "hat e,e sho$d san#tioning !e done& it sho$d ho"e,er !e noted that #redit
rating is one of inp$ts $sed in #redit de#isions)
There are ,ario$s fa#tors Dade*$a#% of !orro"ers& #ash fo"& #oatera pro,ided& and
reationship "ith the !orro"erE
-ro!a!iit% of the !orro"ers defa$t !ased on past data)
Main feat$res of the rating too<F
#omprehensi,e #o,erage of parameters
e(tensi,e data re*$irement
mi( of s$!+e#ti,e and o!+e#ti,e parameters
in#$des trend ana%sis
1/ parameters are !en#hmarked against other pa%ers in the segment
#aptions of ind$str% o$took
I grade ratings !road% mapped "ith e(terna rating agen#ies pre,aiing data)
BABASAB PATIL 02

Rating t))+ f)r SME$/
Interna #redit ratings are the s$mmar% indi#ators of risk for the !ank's indi,id$a #redit
e(pos$res) It pa%s a #r$#ia roe in #redit risk management ar#hite#t$re of an% !ank and
forms the #ornerstone of appro,a pro#ess)
Based on the g$ideines pro,ided !% Boston Cons$tan#% 1ro$p DBC1E& SBI adopted
#redit rating too)
The rating too for SME !orro"er assigns the foo"ing 6eight ages to ea#h one of the
fo$r main #ategories i)e)&
DiE s#enario DIE "itho$t monitoring too
S ;o -arameters 6eightages D:E
1 finan#ia performan#e XXXX
. operating performan#e XXXX
/ *$ait% of management XXXX
0 ind$str% o$took XXXX
DiiE) S#enario DIIE "ith monitoring too X#ond$#t of a##o$ntY<F the "eight age "o$d !e
#on,e%ed separate% on ro o$t of the too)In the a!o,e parameters first three parameters
$sed to kno" the !orro"er #hara#teristi#s) In fo$rth en#aps$ates the risk emanating from
the en,ironment in "hi#h the !orro"er operates and depends on the past performan#e of
the ind$str% its f$t$re o$took and ma#ro e#onomi# fa#tors)
BABASAB PATIL 09

Finan(ia+ 0erf)rman(e$/
S ;o S$! parameters 6eightages
Din :E
1 ;et saes gro"th rateD:E X(((
.) -B=IT 1ro"th rate D:E X(((
/) -B=IT ASaes D:E X(((
0) TO?AT;6 X(((
2) C$rrent ratio X(((
9) Operating #ash fo" X(((
H) =SCR X(((
I) Moreign e(#hange ratio X(((
J) E(pe#ted ,a$es of =AE of 28: of ;MB #redit de,o,es X(((
18) Reaisa!iit% of =e!tors X(((
11) State of e(port #o$ntr% e#onom% X(((
1.) M$nd dep$tation risk X(((
Tota X(((((
O0erating 0erf)rman(e
S ;o S$! parameters 6eightage
D:E
1) #redit period ao"ed X(((
.) #redit period a,aied X(((
/) "orking #apita #%#e X(((
0) Ta( in#enti,es X(((
2) prod$#tion reated risk X(((
9) prod$#t reated risk X(((
H) pri#e reated risk X(((
I) #ient risk X(((
J) fi(ed asset t$rno,er X(((
Tota X(((((
BABASAB PATIL 0H

@.a+it' )f management
S ;o s$! parameters 6eightages D:E
1) >R -oi#% A Tra#k re#ord of ind$stria $nrest X(((
. market report of management rep$tation X(((
/ histor% of MERA ,ioation A E= en*$ir% X(((
0 Too optimisti# pro+e#tions of saes and other finan#ias X(((
2 te#hni#a and manageria e(pertise X(((
9 #apa!iit% to raise mone% X(((
Tota X(((((
I; STATE BA;G OM I;=IA =MMERE;T -ARAMETERS
USE=TO 1IVE RATI;1S ARE AS MO?O6S<F
MI;A;CIA? -ARAMETERS
S);O Indi#atorAratio S#ore
M1DaE A$dited net saes in ast %ear X(((
M.D!E A$dited net saes in %ear !efore ast X(((
BABASAB PATIL 0I

M1D#E A$dited net saes in . %ear !efore ast X(((
M1DdE A$dited net saes in / %ear !efore ast X(((
M1DeE Estimated or pro+e#ted net saes in ne(t %ear X(((
M. ;ET SA?ES 1RO6T> RATED:E X(((
M/ -B=IT gro"th rateD:E X(
M0 ;et saesD:E X(
M2 ROCED:E X(
M9 TO?AT;6 X((
MH C$rrent ratio X((
MI =SCR X((
MJ Interest #o,erage ratio X(
M18 Moreign e(#hange risk X(
M11 Reia!iit% of de!tors X(
M1. Operating #ash fo" X(
M1/ Trend in #ash a##r$as (
BUSI;ESS -ARAMETERS
S);O Indi#atorAratio S#ore
B1 Credit period ao"edDda%sE X(
B. Credit period a,aiedDda%sE X(
B/ 6orking #apita #%#eDtimesE X(
B0 -rod$#tion reated risks X(
B2 -rod$#t reated risks X
B9 -ri#e reated risks X
BH Mi(ed assets t$rno,er X
BI ;o) of %eas in !$siness X
BJ ;at$re of #ientee !ase X
MA;A1EME;T -ARAMETERS
SR) ;O I;=ICATORARATIO SCORE
M1 >R poi#% X
BABASAB PATIL 0J

M. Tra#k re#ord in pa%ment of stat$tor% and other d$es X
M/ Market report of management rep$tation X
M0 Too optimisti# pro+e#tions of saes and other finan#ias X
M2 Capa!iit% to raise reso$r#es X
M9 Te#hni#a and manageria e(pertise X
MH Repa%ment tra#k re#ord X
CO;=UCT -ARAMETERS
A1 Creation of #harges on primar% se#$rit% X
A. Creation of #harges on #oatera and e(e#$tion of persona
or #orporate g$arantee
X
A/ -roper e(e#$tion of do#$ments X
A0 A,aia!iit% of sear#h report X
A2 Other terms and #onditions not #ompied "ith X
A9 Re#eipt of periodi#a data X
AH Re#eipt of !aan#e sheet X
B1 ;egati,e de,iation in haf %ear% net saes ,isF[F,is
proportionate estimates
X
B. ;egati,e de,iation in ann$a net saes ,isF[F,is estimates X
B/ ;egati,e de,iation in haf %ear% net profit ,isF[F,is
proportionate estimates
X
B0 Ad,erse de,iation in in,entor% e,e in months ,isF[F,is
estimate e,e
X
B2 Ad,erse de,iation in re#ei,a!es e,e in months ,isF[F,is
estimated e,e
X
B9 S$ait% of re#ei,a!e assess from profie of de!tors X
BH Ad,erse de,iation in #reditors e,e in months ,isF[F,is X
BABASAB PATIL 28

estimated e,e
BI Compian#e of finan#ia #o,nants X
BJ ;egati,e de,iation in ann$a net profit ,isF[F,is estimates X
Unit inspe#tion report o!ser,ations X
C. A$dit report internaAstat$tor%A#on#$rrentARBI X
C/ Cond$#t of a##o$nt "ith other !anksAenders and information
on #onsorti$m
X
BABASAB PATIL 21
=1 Ro$ting of proportionate t$rno,erA!$siness X
=. Utii3ation of fa#iitiesDnot appi#a!e for term oanE X
=/ O,er d$e dis#o$nted !is d$ring the period $nder re,ie" "ithin the
san#tioned terms then not appi#a!e
X
=0 =e,o,ed !i $nder ?A# o$tstanding d$ring the period $nder re,ie" X
=2 In,oked B1s iss$ed o$tstanding d$ring the period $nder re,ie" X
=9 Intergro$p transfers not !a#ked !% trade transa#tions d$ring the
period $nder re,ie"
X
=H Mre*$en#% of ret$rn of #he*$es per *$arter deposited !% !orro"er X
=I Mre*$en#% of iss$ing #he*$es per *$arter "itho$t s$ffi#ient !aan#e
and ret$rned
X
=J -a%ment of interest or instaments X
=18 Mre*$en#% of re*$est for A= >OC I;CREASE OM ?IMIS d$ring
the ast one %ear
X
=11 Mre*$en#% of o,er dra"ings CC a##o$nt X

#iffi(.+t' )f meas.ring (redit risk$/
Meas$ring #redit risk on a portfoio !asis is diffi#$t) Banks and finan#ia instit$tions
traditiona% meas$re #redit e(pos$res !% o!igor and ind$str%) The% ha,e on% re#ent%
attempted to define risk *$antitati,e% in a portfoio #onte(t e)g)& a ,a$eFatFrisk DVaRE
frame"ork) Atho$gh !anks and finan#ia instit$tions ha,e !eg$n to de,eop interna%&
or p$r#hase& s%stems that meas$re VaR for #redit& !ank managements do not %et ha,e
#onfiden#e in the risk meas$res the s%stems prod$#e) In parti#$ar& meas$red risk e,es
depend hea,i% on $nder%ing ass$mptions and risk managers often do not ha,e great
#onfiden#e in those parameters) Sin#e #redit deri,ati,es e(ist prin#ipa% to ao" for the
effe#ti,e transfer of #redit risk& the diffi#$t% in meas$ring #redit risk and the a!sen#e of
#onfiden#e in the res$t of risk meas$rement ha,e appropriate% made !anks #a$tio$s
BABASAB PATIL 2.
E1 Stat$s of deterioration in ,a$e of primar% se#$rit% or sto#k
depetion
X
E. Stat$s of deterioration in ,a$e of #oatera se#$rit% X
E/ Stat$s of deterioration in persona net "orth and T;6 X
E0 Ade*$a#% of ins$ran#e for the primar% A#oatera se#$rit% X
M1 ?a!or sit$ationAind$stria reations X
M. =ea% or defa$t in pa%ments of saaries and stat$tor% d$es X
M/ ;on #oFoperation !% the !orro"er X
M0 Intended endF$se of finan#ing X
M2 An% other ad,erse feat$reAsnon finan#ia in#$ding #orporate
go,ernan#e iss$es s$#hasad,erse p$!i#it%& stri#t$res from
reg$ators& piti#a risk and ad,erse trade en,ironment not #o,ered
X

a!o$t the $se of !anks and finan#ia instit$tions interna #redit risk modes for reg$ator%
#apita p$rposes)
Meas$rement diffi#$ties e(pain "h% !anks and finan#ia instit$tions ha,e not& $nti
,er% re#ent%& tried to impement meas$res to #a#$ate Va$eFatFRisk DVaRE for #redit)
The VaR #on#ept& $sed e(tensi,e% for market risk& has !e#ome so "e a##epted that
!anks and finan#ia instit$tions s$per,isors ao" s$#h meas$res to determine #apita
re*$irements for trading portfoios) The modes #reated to meas$re #redit risk are ne"&
and ha,e %et to fa#e the test of an e#onomi# do"nt$rn) Res$ts of different #redit risk
modes& $sing the same data& #an "ide%) Unti !anks ha,e greater #onfiden#e in
parameter inp$ts $sed to meas$re the #redit risk in their portfoios) The% "i& and sho$d&
e(er#ise #a$tion in $sing #redit deri,ati,es to manage risk on a portfoio !asis) S$#h
modes #an on% #ompement& !$t not repa#e& the so$nd +$dgment of seasoned #redit risk
managers)
Credit Risk$/
The most o!,io$s risk deri,ati,es parti#ipants' fa#e is #redit risk) Credit risk is the risk
to earnings or #apita of an o!igor's fai$re to meet the terms of an% #ontra#t the !ank or
other"ise to perform as agreed) Mor !oth p$r#hasers and seers of prote#tion& #redit
deri,ati,es sho$d !e f$% in#orporated "ithin #redit risk management pro#ess) Bank
management sho$d integrate #redit deri,ati,es a#ti,it% in their #redit $nder"riting and
administration poi#ies& and their e(pos$re meas$rement& imit setting& and risk
ratingA#assifi#ation pro#esses) The% sho$d aso #onsider #redit deri,ati,es a#ti,it% in
their assessment of the ade*$a#% of the ao"an#e for oan and ease osses DA???E and
their e,a$ation of #on#entrations of #redit)
BABASAB PATIL 2/

There a n$m!er of #redit risks for !oth seers and !$%ers of #redit prote#tion& ea#h of
"hi#h raises separate risk management iss$es) Mor !anks and finan#ia instit$tions seing
#redit prote#tion the primar% so$r#e of #redit is the referen#e asset or entit%)
Managing (redit risk$/
Mor !anks and finan#ia instit$tions seing #redit prote#tion thro$gh a #redit
deri,ati,e& management sho$d #ompete a finan#ia ana%sis of !oth referen#e o!igorDsE
and the #o$nterpart% Din !oth defa$t s"aps and TRSsE& esta!ish separate #redit imits for
ea#h& and assign appropriate risk rating) The ana%sis of the referen#e o!igor sho$d
in#$de the same e,e of s#r$tin% that a traditiona #ommer#ia !orro"er "o$d re#ei,e)
=o#$mentation in the #redit fie sho$d s$pport the p$rpose of the transa#tion and #redit
"orthiness of the referen#e o!igor) =o#$mentation sho$d !e s$ffi#ient to s$pport the
referen#e o!igor) =o#$mentation sho$d !e s$ffi#ient to s$pport the referen#e o!igor's
risk rating) It is espe#ia% important for !anks and finan#ia instit$tions to $se rigoro$s
d$e diigen#e pro#ed$re in originating #redit e(pos$re ,ia #redit deri,ati,e) Banks and
finan#ia instit$tions sho$d not ao" the ease "ith "hi#h the% #an originate #redit
E(pos$re in the #apita markets ,ia deri,ati,es to ead to a( $nder"riting standards& or to
ass$me e(pos$res indire#t% that the% "o$d not originate dire#t%)
Mor !anks and finan#ia instit$tions p$r#hasing #redit prote#tion thro$gh a #redit
deri,ati,e& management sho$d re,ie" the #redit"orthiness of the #o$nterpart%& esta!ish
a #redit imit& and assign a risk rating) The #redit ana%sis of the #o$nterpart% sho$d !e
#onsistent "ith that #ond$#ted for other !orro"ers or trading #o$nterparties) Management
sho$d #ontin$e to monitor the #redit *$ait% of the $nder%ing #redits hedged) Atho$gh
the #redit deri,ati,es ma% pro,ide defa$t prote#tion& in man% instan#es the !ank "i
retain the $nder%ing #redits after settement or mat$rit% of the #redit deri,ati,es) In the
e,ent the #redit *$ait% deteriorates& as ega o"ner of the asset& management m$st take
a#tions ne#essar% to impro,e the #redit)
BABASAB PATIL 20

Banks and finan#ia instit$tions sho$d meas$re #redit e(pos$res arising from #redit
deri,ati,es transa#tions and aggregate "ith other #redit e(pos$res to referen#e entities
and #o$nterparties) These transa#tions #an #reate high% #$stomi3ed e(pos$res and the
e,e of riskAprote#tion #an ,ar% signifi#ant% !et"een transa#tions) Meas$rement sho$d
do#$ment and s$pport their e(pos$res meas$rement methodoog% and $nder%ing
ass$mptions)
The #ost of prote#tion& ho"e,er& sho$d refe#t the pro!a!iit% of !enefiting from this
!asis risk) More genera%& $ness a the terms of the #redit deri,ati,es mat#h those of the
$nder%ing e(pos$re& some !asis risk "i e(ist& #reating an e(pos$re for the terms and
#onditions of prote#tion agreements to ens$re that the #ontra#t pro,ides the prote#tion
desired& and that the hedger has identified so$r#es of !asis risk)
A 0)rtf)+i) a00r)a(- t) (redit risk management$/
Sin#e the 1JI8s& Banks and finan#ia instit$tions ha,e s$##essf$% appied modern
portfoio theor% DM-TE to market risk) Man% !anks and finan#ia instit$tions are no"
$sing earnings at risk DEaRE and Va$e at Risk DVaRE modes to manage their interest rate
and market RISG EX-OSURES) Unfort$nate%& ho"e,er& e,en thro$gh #redit risk
remains the argest risk fa#ing most !anks and finan#ia instit$tions& the appi#ation of
M-T to #redit risk has agged)
The so" de,eopment to"ard a portfoio approa#h for #redit risk res$ts for the
foo"ing fa#tors<
F The traditiona ,ie" of oans as hodFtoFmat$rit% assets)
F The a!sen#e of toos ena!ing the effi#ient transfer of #redit risk to in,estors
"hie #ontin$ing to maintain !ank #$stomer reationships)
F The a#k of effe#ti,e methodoogies to meas$re portfoio #redit risk)
F =ata pro!ems
BABASAB PATIL 22

Banks and finan#ia instit$tions re#ogni3e ho" #redit #on#entrations #an ad,erse%
impa#t finan#ia performan#e) As a res$t& a n$m!er of sophisti#ated instit$tions are
a#ti,e% p$rs$ing *$antitati,e approa#hes to #redit risk meas$rement) 6hie date
pro!ems remain an o!sta#e& these ind$str% pra#titioners are making signifi#ant progress
to"ard de,eoping toos that meas$re #redit risk in a portfoio #onte(t) The% are aso
$sing #redit deri,ati,es to transfer risk effi#ient% "hie preser,ing #$stomer
reationships) The #om!ination of these t"o de,eopments has pre#ipitated ,ast%
a##eerated progress in managing #redit risk in a portfoio #onte(t o,er the past se,era
%ears)
Asset A 2' A asset a00r)a(-$/
Traditiona%& !anks ha,e taken an asset 7 !% 7 asset approa#h to #redit risk
management) 6hie ea#h !ank's method ,aries& in genera this approa#h in,o,es
periodi#a% e,a$ating the #redit *$ait% of oans and other #redit e(pos$res) App%ing a
a##redit risk rating and aggregating the res$ts of this ana%sis to identif% a portfoio's
e(pe#ted osses)
The fo$ndation of thee assetF!%Fasst approa#h is a so$nd oan re,ie" and interna #redit
risk rating s%stem) A oan re,ie" and #redit risk rating s%stem ena!es management to
identif% #hanges in indi,id$a #redits& or portfoio trends& in a time% manner) Based on
the res$ts of its pro!em oan identifi#ation& oan re,ie" and #redit risk rating s%stem
management #an make ne#essar% modifi#ations to portfoio strategies or in#rease the
s$per,ision of #redits in a time% manner)
Banks and finan#ia instit$tions m$st determine the appropriate e,e of the ao"an#es
for oan and osses DA???E on a *$arter% !asis) On arge pro!em #redits& the% assess
ranges of e(pe#ted osses !ased on their e,a$ation of a n$m!er of fa#tors& s$#h as
e#onomi# #onditions and #oatera) On smaer pro!em #redits and on 5pass' #redits&
!anks #ommon% assess the defa$t pro!a!iit% from histori#a migration ana%sis)
Com!ining the res$ts of the e,a$ation of indi,id$a arge pro!em #redits and histori#a
BABASAB PATIL 29

migration ana%sis& !anks estimate e(pe#ted osses for the portfoio and determine
pro,isions re*$irements for the A???)
=efa$t pro!a!iities do not& ho"e,er indi#ate oss se,erit%< i)e)& ho" m$#h the !ank "i
ose if a #redit defa$ts) A #redit ma% defa$t& %et e(pose a !ank to a minima oss risk if
the oan is "e se#$red) On the other hand& a defa$t might res$t in a #ompete oss)
Therefore& !anks and finan#ia instit$tions #$rrent% $se histori#a migration matri#es
"ith information on re#o,er% rates in defa$t sit$ations to assess the e(pe#ted potentia in
their portfoios)
P)rtf)+i) a00r)a(-$/
6hie the assetF!%Fasset approa#h is a #riti#a #omponent to managing #redit risk& it
does not pro,ide a #ompete ,ie" of portfoio #redit risk "here the term 5risk' refers to
the possi!iit% that osses e(#eed e(pe#ted osses) Therefore& to again greater insights into
#redit risk& !anks in#reasing% ook to #ompement the assetF!%Fasset approa#h "ith the
*$antitati,e portfoio re,ie" $sing a #redit mode)
6hie !anks e(tending #redit fa#e a high pro!a!iit% of a sma gain Dpa%ment of
interest and ret$rn of prin#ipaE& the% fa#e a ,er% o" pro!a!iit% of arge osses)
=epending& $pon risk toeran#e& in,estor ma% #onsider a #redit portfoio "ith a arger
,arian#e ess risk% than one "ith a smaer ,arian#e if the sma ,arian#e portfoio has
some pro!a!iit% of an $na##epta!% arge oss) One "eakness "ith the assetF!%Fasset
approa#h is that it has diffi#$t% and meas$ring #on#entration risk) Con#entration risk
refers to additiona portfoio risk res$ting from in#reased e(pos$re to a !orro"er or to a
gro$p of #orreated !orro"ers) for e(ampe the high #orreation !et"een energ% and rea
estate pri#es pre#ipitated a arge n$m!er of fai$res of !anks that had #redit
#on#entrations in those se#tors in the mid 1JI8s)
BABASAB PATIL 2H

T"o important ass$mptions of portfoio #redit risk modes are<
1) the hoding period of panning hori3on o,er "hi#h osses are predi#ted
.) >o" #redit osses "i !e reported !% the mode)
Modes genera% report either a defa$t or market ,a$e distri!$tion)
The o!+e#ti,e of #redit risk modeing is to identif% e(pos$res that #reate an $na##epta!e
riskAre"ard profie) S$#h as might arise from #redit #on#entration) Credit risk
management seeks to red$#e the $ns%stemati# risk of a portfoio !% di,ersif%ing risks) As
!anks and finan#ia instit$tions gain greater #onfiden#e in their portfoio modeing
#apa!iities) It is ike% that #redit deri,ati,es "i !e#ome a more signifi#ant ,ehi#e in to
manage portfoio #redit risk) 6hie some !anks #$rrent% $se #redit deri,ati,es to hedge
$ndesired e(pos$res m$#h of that a#ti,e% in,o,es a desire to red$#e #apita
re*$irements)
APPRAISAL OF THE FIRMS POSITIO" O" BASIS OF FOLLO,I" OTHER
PARAMETERS
1) Manageria Competen#e
.) Te#hni#a Measi!iit%
/) Commer#ia ,ia!iit%
0) Minan#ia Via!iit%
Manageria+ C)m0eten(e $
Ba#k gro$nd of promoters
E(perien#e
Te#hni#a skis& Integrit% 4 >onest%
?e,e of interest A #ommitment in pro+e#t
Asso#iate #on#erns

BABASAB PATIL 2I

Te(-ni(a+ Feasi2i+it' <
?o#ation
Si3e of the -ro+e#t
Ma#tor% !$iding
-ant 4 Ma#hiner%
-ro#ess 4 Te#hnoog%
Inp$ts A $tiities
) C)mmer(ia+ %ia2i+it' <
=emand fore#asting A Ana%sis
Market s$r,e%
-ri#ing poi#ies
Competition
E(port poi#ies
Finan(ia+ %ia2i+it'$
6hether ade*$ate f$nds are a,aia!e at afforda!e #ost to impement the pro+e#t
6hether s$ffi#ient profits "i !e a,aia!e
6hether BE- or margin of safet% are satisfa#tor%
6hat "i !e the o,era finan#ia position of the !orro"er in #oming %ears)
Credit in*estigati)n re0)rt
Bran#h prepares Credit in,estigation report in order to a,oid #onse*$en#e in ater stage
Credit in,estigation report sho$d !e a part of #redit proposa) Bank has to s$!mit the
d$% #ompeted #redit in,estigation reports after #ond$#ting a detaied #redit in,estigation
as per g$ideines)
BABASAB PATIL 2J

S)me )f t-e g.ide+ines in t-is regards as f)++)3$
6here,er a proposa is to !e #onsidered !ased on% on merits of fagships
#on#erns of the gro$p& then s$#h s$pport sho$d aso !e #ompied in respe#t of
s$!+e#t fagship in #on#ern !esides the appi#ant #ompan%)
In regard of proposas faing !e%ond the po"er of rating offi#er& the !ran#h
sho$d ens$re parti#ipation of rating offi#er in #ompiation of this report)
The #redit in,estigation report sho$d a##ompan% a the proposas "ith the f$nd
!ased imit of a!o,e .2 ?akhs and or non f$nd !ased of a!o,e Rs) 28 ?akhs)
The part% ma% !e s$ita!% kept informed that the #ompiation of this report is one
of the re*$irements in the #onne#tion "ith the pro#essing for #onsideration of the
proposa)
The !ran#h sho$d o!tain a #op% of atest san#tion etter !% e(isting !anker or the
finan#ia instit$tion to the part% and terms and #onditions of the san#tion sho$d
st$died in detai)
Comments sho$d !e made "here,er ne#essar%& after making the
o!ser,ationsAapses in the foo"ing terms of san#tion)
Some of the important fa#tors ike f$nding of interest& re s#hed$e of oans et#
terms and #onditions sho$d !e highighted)
Cop% of statement of a##o$nts for the atest 9 months period sho$d !e o!tained
!% the !ank) To get the present #ondition of the part%)
Remarks sho$d !e made !% the !ank on ad,erse feat$res o!ser,ed) De)g)& e(#ess
dra"ings& ret$rn of #he*$es et#E)
-ersona en*$ir% sho$d !e made !% the !ank offi#ia "ith responsi!e offi#ia of
part%'s present A other !ankers and en*$iries sho$d !e made "ith a ei#it
information on #ond$#t of a##o$nt et#)
BABASAB PATIL 98

Care sho$d !e taken in see#tion of #$stomers or #reditors "ho a#ts as the
representati,e) The% sho$d !e inter,ie"ed and #ompiation of opinion sho$d !e
done)
En*$iries sho$d !e made regarding the *$ait% of prod$#t& pa%ment terms& and
period of o,erd$e "hi#h sho$d !e mentioned #ear% in the report) En*$ir%
sho$d !e aimed to as#ertain the stat$s of trading of the appi#ant and to kno"
their #apa!iit% to meet their #ommitments in time)
To kno" the market trend !ran#h sho$d en*$ire the person or ind$str% that is in
the same ine of !$siness a#ti,it%)
In depth o!ser,ation ma% !e made of the appi#ant as to <
i) "hether the $nit is "orking in f$ s"ing
ii) n$m!er of shifts and n$m!er of empo%ees
iii) an% o!soete sto#ks "ith the $nit
i,) #apa#it% of the $nit
,) nat$re and #onditions of the ma#hiner% instaed
,i) Information on po"er& "ater and po$tion #ontro et#)
,ii) information on ind$stria reation and marketing strateg%
CRE#IT FILES$/
It's the fie& "hi#h pro,ides important so$r#e materia for oan s$per,ision in regard to
information for interna re,ie" and e(terna a$dit) Bran#h has to maintain separate #redit
fie #omp$sori% in #ase of ?oans e(#eeding Rs 28 ?akhs "hi#h sho$d !e maintained
for *$i#k a##ess of the reated information)
C)ntents )f t-e (redit fi+e<F
!asi# information report on the !orro"er
miestones of the !orro"ing $nit
BABASAB PATIL 91

#ompetiti,e ana%sis of the !orro"er
#redit appro,a memorand$m
finan#ia statement
#op% of san#tion #omm$ni#ation
se#$rit% do#$mentation ist
=ossier of the se*$en#e of e,ents in the a##o$nts
Coatera ,a$ation report
?atest edger page s$per,ision report
>af %ear% #redit reporting of the !orro"er
S$arter% risk #assifi#ation
-ress #ippings and ind$stria ana%sis appearing in ne"spaper
Min$tes of atest #onsorti$m meeting
C$stomer profita!iit%
S$mmar% of inspe#tion of a$dit o!ser,ation
Credit fies pro,ide a information regarding present stat$s of the oan a##o$nt on !asis
of #redit de#ision in the past) This fie heps the #redit offi#er to monitor the a##o$nts and
pro,ides #on#ise information regarding !a#kgro$nd and the #$rrent stat$s of the a##o$nt
BABASAB PATIL 9.

STU=Y O; CRE=IT RISG
MA;A1EME;T I; STATE BA;G
OM I;=IA
BABASAB PATIL 9/

THE TERMS

\ Credit is Mone% ent for a period of Time at a Cost DinterestE
\ Credit Risk is ina!iit% or $n"iingness of #$stomer or #o$nter part% to meet
#ommitments =efa$tA 6if$ defa$t
\ ?osses d$e to fa in #redit *$ait% rea A per#ei,ed
Treatment )f ad*an(es
MaB)r Categ)ries$
\ 1o,ernments
\ -SEs Dp$!i# Se#tor EnterprisesE
\ Banks
\ Corporate
\ Retai
\ Caims against residentia propert%
\ Caims against #ommer#ia rea estate
T"o Approa#hes
7 Standardised Approa#h and
7 Interna Ratings Based Approa#h Din f$t$re 7 to !e notified !% RBI aterE
7not to !e #o,ered no"
BABASAB PATIL 90

Standardised A00r)a(-
The standardi3ed approa#h is #on#ept$a% the same as the present a##ord& !$t is
more risk sensiti,e) The !ank ao#ates risk to ea#h of its assets and off !aan#e sheet
positions and prod$#es a s$m of risk "eighted asset ,a$es) Arisk "eight of 188: means
that an e(pos$re is in#$ded in the #a#$ation of risk "eighted assets ,a$e& "hi#h
transates into a #apita #harge e*$a to J: of that ,a$e) Indi,id$a risk "eight #$rrent%
depends on the !road #ategor% of !orro"er Di)e so,ereign& !anks or #orporateE) Under the
ne" a##ord the risk "eights are to !e refined !% referen#e rating pro,ided !% an e(terna
#redit assessment instit$tionD s$#h as rating agen#%E that meets stri#t demands)
BABASAB PATIL 92
Standardi3ed
Approa#h
Interna Rating
Based Approa#h
Se#$riti3ation
Mrame"ork
Mo$ndation
IRB
Ad,an#ed
IRB
Credit Risk

PROPOSE# RISK ,EIHT TABLE
Option 1 ] Risk 6eight !ased on risk "eight of the #o$ntr%
Option .a ] Risk "eight !ased on assessment of indi,id$a !ank
Option .! ] Risk 6eight !ased on assessment of indi,id$a !anks "ith #aims of origina
mat$rit% of ess than 9 months)
Retai -ortfoioD s$!+e#t to *$aif%ing #riteriaE H2:
Caims Se#$red !% residentia propert% /2:
;on -erforming Assets<
If spe#ifi# pro,ision is ess than .8: 128:
If spe#ifi# pro,ision is more than .8: 188:
\ Simpe approa#h simiar to Base I
BABASAB PATIL 99
Credit
Assessment
AAA t)
AA/
AC t)
A/
BBBC
t) BBB/
BBC
T) B/
Be+)3
B/
!nrated
So,ereignD1o,t)
4
Centra BankE
8: .8: 28: 188: 128: 188:
Caims on Banks
Option 1 .8: 28: 188: 188: 128: 188:
Option .a .8: 28: 28: 188: 128: 28:
Option .! .8: .8: .8: 28: 128: .8:
Corporate .8:

\ Ro o$t from Mar#h .88I
\ Risk "eight for ea#h !aan#e sheet 4 off !aan#e sheet item) That is& MB 4 ;MB&
!oth)
\ Risk "eight for Retai red$#ed
\ Risk "eight for Corporate F a##ording to e(terna rating !% agen#ies appro,ed !%
RBI and registered "ith SEBI
\ ?o"er risk "eight for smaer home oans D^ .8 a#sE
\ Risk "eight for $n$tii3ed imits ] D?imitF o$tstandingE _8 Importan#e of
reporting imit data #orre#t% DIf a imit of Rs)18 a#s is reported in ?imit fied as
Rs)188 a#s& e,en "ith f$ $tiisation of a#t$a imit& Rs) J8 a#s "i !e sho"n as
$n$tiised imit& and #apita ao#ated against s$#h fi#titio$s data at pres#ri!ed
ratesE)
Risk 3eig-ts
\ Centra 1o,ernment g$aranteed 7 8:
\ State 1o,t) 1$aranteed 7 .8:
\ S#hed$ed !anks Dha,ing min) CRARE 7 .8:
\ ;onFs#hed$ed !ank Dha,ing min) CRARE F188:
\ >ome ?oans D?TV ^ H2:E
\ ?ess than Rs .8 akhs 7 28:
\ Rs .8 akhs and a!o,e 7 H2:
\ >ome ?oans D?TV _ H2:E 7 188:
\ Commer#ia Rea estate oans 7 128:
\ -ersona ?oans and #redit #ard re#ei,a!esF 1.2:
\ Staff >ome ?oansA-M ?ien noted oans 7 .8:
BABASAB PATIL 9H

\ Cons$mer #redit D-ersona ?oansA Credit Card Re#ei,a!esE 7 1.2:
\ 1od oans $p to Rs 1 akh 7 28:
\ ;-As "ith pro,isions ^.8: 128:
FdoF .8 to ^ 28: 188:
FdoF 28: and a!o,e 28:
\ Restr$#t$redA res#hed$ed ad,an#es 7 1.2:
\ Credit Con,ersion Ma#tors DCCMsE to !e appied on off !aan#e sheet items X;MBY
4 $n$tiised imits !efore app%ing risk "eights)
\ Some important CCMs 7
=o#$mentar% ?Cs 7 .8: D;onF do#$mentar% F 188:EK
-erf) 1$arantees 7 28:& Min) 1teesF 188:&
Un$tiised imits 7 .8: D$p to 1 %earE& 28: D!e%ond 1 %earE
Standardised Approa#h 7 ?ong term
BABASAB PATIL 9I
Rating
Risk ,eig-t
AAA
.8
AA /8
A
28
BBB 188
BB 4 !eo" 128
Unrated 188

Mrom 1)0).88J& $nrated e(pos$re more than Rs 18 #rores "i attra#t a Risk 6eight of
128:
Mor .88IF.88J D"ef 1)0).88IE& $nrated e(pos$re more than Rs 28 #rores "i attra#t a
Risk 6eight of 128:
Standardi3ed Approa#h 7 Short Term
Coateras re#ognised !% Base II $nder Standardised Approach
BABASAB PATIL 9J
CARE CRISIL FITCH ICRA RISK
,EIHT
-R1W

-1W M1W A1W .8:
-R1

-1 M1 A1 /8:
-R.

-. M. A. 28:
-R/

-/ M/ A/ 188:
-R0
4-R2

-04-2 B&C&= A0AA2 128:

Cash
1od
Se#$rities iss$ed !% Centra and State 1o,t
GV-s and ;SCs Dnot o#ked inE
?ife -oi#ies
Spe#ified i*$id =e!t Se#$rities
E*$ities forming part of inde(
MMs 7 S$oted and in,esting in Base II #oatera
Components of Credit Risk
BABASAB PATIL H8
Si3e of E(pe#ted ?oss
Si3e of E(pe#ted ?oss
BE(pe#ted ?ossB
BE(pe#ted ?ossB
-ro!a!iit% of =efa$t
DMre*$en#%E
-ro!a!iit% of =efa$t
DMre*$en#%E
E(pos$re at =efa$t
E(pos$re at =efa$t
]
]
]
1) 6hat is the pro!a!iit%
of a
defa$t D;-AEZ
1) 6hat is the pro!a!iit%
of a
defa$t D;-AEZ
/) >o" m$#h of that e(pos$re
is the !ank going to oseZ
/) >o" m$#h of that e(pos$re
is the !ank going to oseZ
?oss 1i,en =efa$t
BSe,erit%C
E?
-=
Ea=
?1=
X
X
.) >o" m$#h "i !e the
ike%
e(pos$re in the #ase the ad,an#e
!e#omes ;-AZ
.) >o" m$#h "i !e the
ike%
e(pos$re in the #ase the ad,an#e
!e#omes ;-AZ
]
]

S-)rt/term and L)ng/Term Ratings$
Mor E(pos$res "ith a #ontra#t$a mat$rit% of ess than or e*$a to one %ear
;eD(e0t Cas- Credit1 O*erdraft and )t-er Re*)+*ing Credits< ShortFterm
Ratings gi,en !% ECAIs "i !e appi#a!e)
Mor =omesti# Cash Credit& O,erdraft and other Re,o,ing Credits irrespe#ti,e of
the period and Term ?oan e(pos$res of o,er 1 %ear& ?ong Term Ratings gi,en !%
ECAIs "i !e appi#a!e)
Mor O,erseas e(pos$res& irrespe#ti,e of the #ontra#t$a mat$rit%& ?ong Term
Ratings gi,en !% IRAs "i !e appi#a!e)
Rating assigned to one parti#$ar entit% "ithin a #orporate gro$p #annot !e $sed
to risk "eight other entities "ithin the same gro$p)
BABASAB PATIL H1

COMPETITORS #ETAILS
In =har"ad Main #ompetitors of State Bank of India are ICICI Bank in pri,ate
se#tor !anks and S%ndi#ate Bank and Corporation Bank In p$!i# se#tor)
In SBI& it #an !e !etter $nderstood "ith gi,en -ie diagram as foo"s) <
POSITIO" OF STATE BA"K OF I"#IA I" LE"#I"
;PRI%ATE SECTOR BA"K <$
BA"K LE"#I" I" Cr
State Bank Of India .J
ICICI !ank 12
>=MC 2
UTI .2

Lending in cr
BANK
State Bank Of India
ICICI bank
HDFC
UTI
BABASAB PATIL H.

POSITIO" OF STATE BA"K OF I"#IA I" LE"#I"
;P!BLIC SECTOR BA"KS <$
BA"K LE"#I" I" Cr
State Bank Of India .J
S%ndi#ate Bank .9
Canara Bank ./
Corporation Bank .2

Lending in cr
BANK
State Bank Of India
Syndicate Bank
Canara Bank
Corporation Bank
In t)ta+ +ending1 State Bank Of India is in first 0+a(e re+ati*e+' in P.2+i( Se(t)r
Banks6
BABASAB PATIL H/

Credit risk mitigati)n te(-ni4.es A .arantees
6here g$arantees are dire#t& e(pi#it& irre,o#a!e and $n#onditiona !anks ma%
take a##o$nt of s$#h #redit prote#tion in #a#$ating #apita re*$irements)
A range of g$arantors are re#ognised) As $nder the 1JII A##ord& a s$!stit$tion
approa#h "i !e appied) Th$s on% g$arantees iss$ed !% entities "ith a o"er
risk "eight than the #o$nterpart% "i ead to red$#ed #apita #harges sin#e the
prote#ted portion of the #o$nterpart% e(pos$re is assigned the risk "eight of the
g$arantor& "hereas the $n#o,ered portion retains the risk "eight of the
$nder%ing #o$nterpart%)
=etaied operationa re*$irements for g$arantees eigi!e for !eing treated as a
CRM are as $nder<
O0erati)na+ re4.irements f)r g.arantees
DiE A g$arantee D#o$nterFg$aranteeE m$st represent a dire#t #aim on the prote#tion
pro,ider and m$st !e e(pi#it% referen#ed to spe#ifi# e(pos$res or a poo of e(pos$res&
so that the e(tent of the #o,er is #ear% defined and in#ontro,erti!e) The g$arantee m$st
!e irre,o#a!eK there m$st !e no #a$se in the #ontra#t that "o$d ao" the prote#tion
pro,ider $niatera% to #an#e the #o,er or that "o$d in#rease the effe#ti,e #ost of #o,er
as a res$t of deteriorating #redit *$ait% in the g$aranteed e(pos$re) The g$arantee m$st
aso !e $n#onditionaK there sho$d !e no #a$se in the g$arantee o$tside the dire#t
#ontro of the !ank that #o$d pre,ent the prote#tion pro,ider from !eing o!iged to pa%
o$t in a time% manner in the e,ent that the origina #o$nterpart% fais to make the
pa%mentDsEd$e)
BABASAB PATIL H0

DiiE A e(pos$res "i !e risk "eighted after taking into a##o$nt risk mitigation a,aia!e
in the form of g$arantees) 6hen a g$aranteed e(pos$re is #assified as nonFperforming&
the g$arantee "i #ease to !e a #redit risk mitigant and no ad+$stment "o$d !e
permissi!e on a##o$nt of #redit risk mitigation in the form of g$arantees) The entire
o$tstanding& net of spe#ifi# pro,ision and net of reaisa!e ,a$e of eigi!e #oateras A
#redit risk mitigants& "i attra#t the appropriate risk "eight
Additi)na+ )0erati)na+ re4.irements f)r g.arantees
In addition to the ega #ertaint% re*$irements in paragraphs H). a!o,e& in order for a
g$arantee to !e re#ognised& the foo"ing #onditions m$st !es satisfied<
DiE On the *$aif%ing defa$tAnonFpa%ment of the #o$nterpart%& the !ank is a!e in a time%
manner to p$rs$e the g$arantor for an% monies o$tstanding $nder the do#$mentation
go,erning the transa#tion) The g$arantor ma% make one $mp s$m pa%ment of a monies
$nder s$#h do#$mentation to the !ank& or the g$arantor ma% ass$me the f$t$re pa%ment
o!igations of the #o$nterpart% #o,ered !% the g$arantee) The !ank m$st ha,e theright to
re#ei,e an% s$#h pa%ments from the g$arantor "itho$t first ha,ing to take ega a#tions in
order to p$rs$e the #o$nterpart% for pa%ment)
DiiEThe g$arantee is an e(pi#it% do#$mented o!igation ass$med !% the g$arantor)
DiiiEE(#ept as noted in the foo"ing senten#e& the g$arantee #o,ers a t%pes of pa%ments
the $nder%ing o!igor is e(pe#ted to make $nder the do#$mentation go,erning the
transa#tion& for e(ampe notiona amo$nt& margin pa%ments et#) 6here a g$arantee
#o,ers pa%ment of prin#ipa on%& interests and other $n#o,ered pa%ments)
BABASAB PATIL H2

@.a+itati*e #is(+)s.res
DaE The genera *$aitati,e dis#os$re re*$irement Dparagraph 18)1/ E "ith respe#t to
#redit risk& in#$ding<
=efinitions of past d$e and impaired Dfor a##o$nting p$rposesEK
=is#$ssion of the !ank's #redit risk management poi#%K
@.antitati*e #is(+)s.res
D!E Tota gross #redit risk e(pos$res.0& M$nd !ased and ;onFf$nd !ased separate%)
D#E 1eographi# distri!$tion of e(pos$res.2& M$nd !ased and ;onFf$nd !ased separate%
O,erseas
=omesti#
DdE Ind$str%.9 t%pe distri!$tion of e(pos$res& f$nd !ased and nonFf$nd !ased separate%
DeE Resid$a #ontra#t$a mat$rit% !reakdo"n of assets&.H
DgE Amo$nt of ;-As D1rossE
S$!standard
=o$!tf$ 1
=o$!tf$ .
=o$!tf$ /
?oss
DhE ;et ;-As
DiE ;-A Ratios
BABASAB PATIL H9

1ross ;-As to gross ad,an#es
;et ;-As to net ad,an#es
D+E Mo,ement of ;-As D1rossE
Opening !aan#e
Additions
Red$#tions
Cosing !aan#e
DkE Mo,ement of pro,isions for ;-As
Opening !aan#e
-ro,isions made d$ring the period
6riteFoff
6riteF!a#k of e(#ess pro,isions
Cosing !aan#e
DE Amo$nt of ;onF-erforming In,estments
DmE Amo$nt of pro,isions hed for nonFperforming in,estments
DnE Mo,ement of pro,isions for depre#iation on in,estments Opening !aan#e
-ro,isions made d$ring the period
6riteFoff
6riteF!a#k of e(#ess pro,isions
Cosing !aan#e
BABASAB PATIL HH

STU=Y O; CRE=IT -O?ICY
BABASAB PATIL HI

Intr)d.(ti)n t) Credit P)+i('6
Bank's in,estments in a##o$nts re#ei,a!e depends on< DaE the ,o$me of #redit
saes& and D!E the #oe#tion period) There is one "a% in "hi#h the finan#ia manager #an
affe#t the ,o$me of #redit saes and #oe#tion period and #onse*$ent%& in,estment in
a##o$nts re#ei,a!es) That is thro$gh the #hanges in #redit poi#%) The term #redit poi#%
is $sed to refer to the #om!ination of three de#ision ,aria!es< D1E #redit standards& D.E
#redit terms& and D/E #oe#tion efforts& on "hi#h the finan#ia manager has inf$en#e)
;E< Credit Standards<
Credit Standards are #riteria to de#ide the t%pes of #$stomers to "hom goods #o$d
!e sod on #redit) If a firm has more so"Fpa%ing #$stomers& its in,estment in a##o$nts
re#ei,a!e "i in#rease) The firm "i aso !e e(posed to higher risk of defa$t)
;F< Credit Terms$
Credit Terms spe#if% d$ration of #redit and terms of pa%ment !% #$stomers)
In,estment in a##o$nts re#ei,a!es "i !e high if #$stomers are ao"ed e(tended time
period for making pa%ments)
;G< C)++e(ti)n Eff)rts$
Coe#tion efforts determine the a#t$a #oe#tion period) The o"er the #oe#tion
period& the o"er the in,estment in a##o$nts re#ei,a!e and higher the #oe#tion period&
the higher the in,estment in a##o$nts re#ei,a!e)
BABASAB PATIL HJ

OALS OF CRE#IT POLIC&
A firm ma% foo" a enient or a stringent #redit poi#%) The firm foo"ing a enient
#redit poi#% tends to se on #redit to #$stomers on ,er% i!era terms and standardsK
#redits are granted for onger periods e,en to those #$stomers "hose #redit"orthiness is
not f$% kno"n or "hose finan#ia position is do$!tf$) In #ontrast& a firm foo"ing a
stringent #redit poi#% ses on #redit on a high% see#ti,e !asis on% to those #$stomers
"ho ha,e pro,en #redit"orthiness and "ho are finan#ia% strong) In pra#ti#e& foo"
#redit poi#ies are ranging !et"een stringent to enient)
Mirms $se #redit poi#% as a marketing too for e(panding saes) In de#ining
market& it ma% !e $sed to maintain the market share) Credit -oi#% heps to retain od
#$stomers and #reate ne" #$stomers !% "eaning them a"a% from #ompetitors) In a
gro"ing market& it is $sed to in#rease the firm's market share) Under a high% #ompetiti,e
sit$ation or re#essionar% e#onomi# #onditions& a firm ma% oose its #redit poi#% to
maintain saes or to minimi3e erosion of saes)
BABASAB PATIL I8

OBJECTI%ES
T-e main )2Be(ti*es )f BankHs Credit P)+i(' are$
A !aan#ed gro"th of the #redit portfoio "hi#h does not #ompromise safet%)
Adoption of a for"ardFooking and market responsi,e approa#h for mo,ing into
profita!e ne" areas of ending "hish emerge& "ithin the pre determined e(pos$re
#eiings)
So$nd risk management pra#ti#es to identif%& meas$re& monitor and #ontro #redit
risks)
Ma(imi3e interest %ieds from the #redit portfoio thro$gh a +$di#io$s management of
,ar%ing spreads for oan assets !ased $pon their si3e& #redit rating and ten$re
Ens$re d$e #ompian#e of ,ario$s reg$ator% norms& in#$ding CAR& In#ome
Re#ognition and Asset Cassifi#ation)
A##ompish !aan#ed depo%ment of #redit a#ross ,ario$s se#tors and geographi#a
regions)
A#hie,e gro"th of #redit to priorit% se#tors A s$! se#tors and #ontin$e to s$rpass the
targets stip$ated !% Reser,e Bank of India)
Use pri#ing as a too of #ompetiti,e ad,antage ens$ring ho"e,er that earnings are
prote#ted)
=e,eop and maintain enhan#ed #ompeten#ies in #redit management at a e,es
thro$gh a #om!ination of training initiati,es and dissemination of !est pra#ti#es)
BABASAB PATIL I1

s
COMPARISO" OF LOA"S = A#%A"CES OF STATE BA"K OF I"#IA ,ITH
OTHER P!BLIC A"# PRI%ATE SECTOR BA"KS
F)r t-e 'ear FIIG$
"ame Of t-e Banks Amt )f ad*an(es
State Bank Of India 1/HH2I)09
S%ndi#ate Bank 19/82)/2
Canara Bank 080H1)98
Corporation Bank 1.8.J)1H
>=MC Bank 11H20)I9
ICICI Bank 2.0H0)0I
UTI Bank H1HJ)J.

0
20000
40000
0000
!0000
"00000
"20000
"40000
Amount
" 2 # 4 $ % !
Banks
loans And Advances or the !ear "##$
Serie&"
Serie&2
BABASAB PATIL I.

F)r t-e 'ear FIIJ$
State Bank Of India 12HJ//)20
S%ndi#ate Bank .8909)J/
Canara Bank 0H9/I)9.
Corporation Bank 1/IIJ)H.
>=MC Bank 1HH00)21
ICICI Bank 98H2H)/9
UTI Bank J/9.)J2
0
20000
40000
0000
!0000
"00000
"20000
"40000
"0000
Amount
" 2 # 4 $ % !
%ames o &anks
loans and Advances or the !ear "##'
Serie&"
Serie&2
F)r t-e 'ear FIIK$
BABASAB PATIL I/

State Bank Of India .8./H0)09
S%ndi#ate Bank .9H.J).1
Canara Bank 980.1)08
Corporation Bank 1I209)/H
>=MC Bank .2299)/8
ICICI Bank IIJJ1)H2
UTI Bank 1298.)J.

0
$0000
"00000
"$0000
200000
2$0000
Amount
" 2 # 4 $ % !
%um&ers o Banks
loans and Advances or the !ear "##(
Serie&"
Serie&2
BABASAB PATIL I0

F)r t-e 'ear FIIL$
State Bank Of India .91901)20
S%ndi#ate Bank /9099).0
Canara Bank HJ0.2)9J
Corporation Bank ./J9.)0/
>=MC Bank /2891).9
ICICI Bank 10/8.J)IJ
UTI Bank ../10)./

0
$0000
"00000
"$0000
200000
2$0000
#00000
Amount
" 2 # 4 $ % !
%um&er o &anks
loans and Advance or the !ear "##)
Serie&"
Serie&2
BABASAB PATIL I2

F)r t-e 'ear FIIM$
State Bank Of India //H//9)0J
S%ndi#ate Bank 219H8)00
Canara Bank JI282)9J
Corporation Bank .JJ0J)92
>=MC Bank 09J00)HI
ICICI Bank 1900I0)/I
UTI Bank /9IH9)0I

0
$0000
"00000
"$0000
200000
2$0000
#00000
#$0000
Amount
" 2 # 4 $ % !
%ame o Banks
Loans * Advances or the !ear "##+
Bank&
A't

BABASAB PATIL I9

Inter0retati)n$
Considering the a!o,e data "e #an sa% that %ear on %ear the amo$nt of ad,an#es ent !%
State Bank of India has in#reased "hi#h indi#ates that the !ank's !$siness is rea%
#ommenda!e and the Credit -oi#% it has maintained is a!so$te% good) 6hereas other
!anks do not ha,e s$#h good !$siness SBI is ahead in terms of its !$siness "hen
#ompared to !oth -$!i# Se#tor and -ri,ate Se#tor !anks& this impies that SBI has
in#orporated so$nd !$siness poi#ies in its !ank)

BABASAB PATIL IH

COMPARISO" ST!#& O" CRE#IT RECO%ER& MA"AEME"T
F)r t-e 'ear FIIJ$
"ame Of T-e Banks
L)ans Iss.ed Re()*ered O.tstanding
State Bank Of India 12HJ//)20 J1981)0 99//.)8J
S%ndi#ate Bank .8909)9. 1129.)11 J8I0)2
Canara Bank 0H9/I)9. .H82I)H0 .82HJ)II
Corporation Bank 10IIJ)H. H288 9/IJ)H.
>=MC Bank 1HH00)21 J9H8)H2 I8H/)H9
ICICI Bank 98H2H&/9 /09/1)H8 .91.2)99
UTI Bank J/9.)J. 0912)22 000H)08
0
20000
40000
0000
!0000
"00000
"20000
"40000
"0000
Amount
Banks
Total loans or the !ear "##'
Na'e Of T(e Bank&
State Bank Of India
Syndicate Bank
Canara Bank
Corporation Bank
HDFC Bank
ICICI Bank
UTI Bank
BABASAB PATIL II

F)r t-e 'ear FIIK$
"ame Of T-e Banks L)ans Iss.ed Re()*ered O.tstanding
State Bank Of India .8./H0)09 1.8.18)0/ I.190)8/
S%ndi#ate Bank .9H.J).1 120..)H2 11/89)09
Canara Bank 980.1)08 /2800)0. .2/H9)J9
Corporation Bank 1I209)/9 180HI)H8 I89H)9H
>=MC Bank .2299)/8 10.J1)29 11.H0)H0
ICICI Bank IIJJ1)H2 2./.H)12 /9990)98
UTI Bank 1298.)J. I228)08 H82.)2.

0
$0000
"00000
"$0000
200000
2$0000
Amount
Banks
Total loans or the !ear "##(
Na'e Of T(e Bank&
State Bank Of India
Syndicate Bank
Canara Bank
Corporation Bank
HDFC Bank
ICICI Bank
UTI Bank
BABASAB PATIL IJ

F)r t-e 'ear FIIL$
State Bank Of India .91901)20 19/.90)/. JI/HH)..
S%ndi#ate Bank /9099).0 .1IHJ)H0 10/I9)28
Canara Bank HJ0.2)9J 0I009)9H /8JH9)8.
Corporation Bank ./J9.)0/ 1/IJI).1 18890)..
>=MC Bank /2891).9 .81.2)91 10J/9)18
ICICI Bank 10/8.J)IJ II/J.)0H 209/H)09
UTI Bank ../10).0 1.0.J)8/ JII2).8

0
$0000
"00000
"$0000
200000
2$0000
#00000
amount
Banks
total loans or the !ear "##)
Na'e Of T(e Bank&
State Bank Of India
Syndicate Bank
Canara Bank
Corporation Bank
HDFC Bank
ICICI Bank
UTI Bank
F)r t-e 'ear FIIM$
BABASAB PATIL J8

State Bank Of India //H//9)0J .9/.90)/. H08H.)1H
S%ndi#ate Bank 219H8)00 /1IHJ)H0 1JHJ8)H
Canara Bank JI282)9J 9I00J)9H /8829)8.
Corporation Bank .JJ0J)92 12IJI).1 10821)00
>=MC Bank 09J00)HI /81.2)19 19I1J)9.
ICICI Bank 1900I0)/I JI/J.)0H 998J1)J1
UTI Bank /9IH9)0I ..0.J)8/ 1000H)02

0
$0000
"00000
"$0000
200000
2$0000
#00000
#$0000
Amount
Banks
Total loans or the !ear "##+
Na'e Of T(e Bank&
State Bank Of India
Syndicate Bank
Canara Bank
Corporation Bank
HDFC Bank
ICICI Bank
UTI Bank
BABASAB PATIL J1

PRIORIT& SECTOR A#%A"CES OF BA"KS
COMPARISO" ,ITH OTHER P!BLIC SETOR BA"KS
S6") "ame )f t-e Bank
#ire(t
Agri(.+t.re
Ad*an(es
Indire(t
Agri(.+t.re
Ad*an(es
T)ta+
Agri(.+t.re
Ad*an(es
,eaker
Se(ti)n
Ad*an(es
T)ta+
Pri)rit'
Se(t)r
Ad*an(es
Am).nt Am).nt Am).nt Am).nt Am).nt
1 STATE BA;G OM I;=IA ./0I0 H8/. /8219 1JII/ I.IJ2
. SY;=ICATE BA;G 0089)// 1090)90 2IH8)J0 /.9H)H1 109.9)9.
/ CA;ARA BA;G I/0I /9I0 1.8/. 00./ /8J/H
0 COR-ORATIO; BA;G J9/)2I JH1).. 1J/0)I8 992)/. J80/)H0

,riorit! sector Advance
0
"0000
20000
#0000
40000
$0000
0000
%0000
!0000
)0000
" 2 # 4 $
Banks
A
m
o
u
n
t
&*+no
Na'e of t(e Bank
Direct A,ri ad-ance
Indirect A,ri Ad-ance
Tota* A,ri Ad-ance
.eakar &ection Ad-ance
Tota* /riority &ector
Ad-ance
BABASAB PATIL J.

PRIORIT& SECTOR A#%A"CES OF P!BLIC SECTOR BA"KS I"
PERCE"TAES ARE AS FOLLO,S$
S6") "ame )f t-e Bank
#ire(t
Agri(.+t.re
Ad*an(es
Indire(t
Agri(.+t.re
Ad*an(es
T)ta+
Agri(.+t.re
Ad*an(es
,eaker
Se(ti)n
Ad*an(es
T)ta+
Pri)rit'
Se(t)r
Ad*an(es
N "et
Banks
Credit
N "et
Banks
Credit
N "et
Banks
Credit
N "et
Banks
Credit
N "et
Banks
Credit
1
STATE BA;G OM
I;=IA
18)2 /)1 1/)9 I)J /H)8
. SY;=ICATE BA;G 1/)2 0)2 1I)8 18)8 00)J
/ CA;ARA BA;G 11). 0)J 12)H 2)J 01)0
0 COR-ORATIO; BA;G 0)2 0)2 J)8 /)1 01)J

,riorit! sector o Bank
0
$
"0
"$
20
2$
#0
#$
40
4$
$0
" 2 # 4 $
Banks
A
m
o
u
n
t
Na'e of t(e Bank
Direct A,ri ad-ance
Indirect A,ri Ad-ance
Tota* A,ri Ad-ance
.eakar &ection Ad-ance
Tota* /riority &ector
Ad-ance
Inter0retati)ns$

BABASAB PATIL J/

Bank's Credit& "hi#h sho"s that Bank has not ent eno$gh #redit to dire#t agri#$t$re
se#tor)
In #ase of indire#t agri#$t$re ad,an#es& SBI is granting /)1: of ;et Banks Credit&
"hi#h is ess as #ompared to Canara Bank& S%ndi#ate Bank and Corporation Bank)
SBI has to entertain indire#t se#tors of agri#$t$re so that it #an ha,e more n$m!er of
!orro"ers for the Bank)
SBI has ad,an#ed 1/)9: of ;et Banks Credit to tota agri#$t$re and I)J: to "eaker
se#tion and /H: to priorit% se#tor& "hi#h is ess as #ompared "ith other Bank)
BABASAB PATIL J0

MI;=I;1S
Findings $
BABASAB PATIL J2

-ro+e#t findings re,ea that SBI is san#tioning ess Credit to agri#$t$re& as
#ompared "ith its ke% #ompetitor's ,i3)& Canara Bank& Corporation Bank&
S%ndi#ate Bank
Re()*er' )f Credit$ SBI re#o,er% of Credit d$ring the %ear .889 is 9.)0:
Compared to other Banks SBI 5s re#o,er% poi#% is ,er% good& hen#e this red$#es
;-A
T)ta+ Ad*an(es$ As #ompared tota ad,an#es of SBI is in#reased %ear !% %ear)
State Bank Of India is granting #redit in a se#tors in an E*$ated Month%
Instaments so that an% !od% #an !orro" mone% easi%
-ro+e#t findings re,ea that State Bank Of India is ending more #redit or
san#tioning more oans as #ompared to other Banks)
State !ank Of India is e(panding its Credit in the foo"ing fo#$s areas<
1 SBI Term =eposits
. SBI Re#$rring =eposits
/ SBI >o$sing ?oan
0 SBI Car ?oan
2 SBI Ed$#ationa ?oan
9 SBI -ersona ?oan @et#
In #ase of indire#t agri#$t$re ad,an#es& SBI is granting /)1: of ;et Banks
Credit& "hi#h is ess as #ompared to Canara Bank& S%ndi#ate Bank and
Corporation Bank) SBI has to entertain indire#t se#tors of agri#$t$re so that it
#an ha,e more n$m!er of !orro"ers for the Bank)
BABASAB PATIL J9

Bank's Credit& "hi#h sho"s that Bank has not ent eno$gh #redit to dire#t
agri#$t$re se#tor)
Credit risk management pro#ess of SBI $sed is ,er% effe#ti,e as #ompared "ith
other !anks)
LIMITATIO"S$
1) The time #onstraint "as a imiting fa#tor& as more in depth ana%sis #o$d not !e
#arried)
.) Some of the information is of #onfidentia in nat$re that #o$d not !e di,$ged for
the st$d%)
/) Empo%ees "ere not #o operati,e)

BABASAB PATIL JH

RECOMME;=ATIO;S
BABASAB PATIL JI

RECOMMENDATIONS
The Bank sho$d keep on re,ising its Credit -oi#% "hi#h "i hep Bank's effort to
#orre#t the #o$rse of the poi#ies
The Chairman and Managing =ire#torAE(e#$ti,e =ire#tor sho$d make
modifi#ations to the pro#ed$ra g$ideines re*$ired for impementation of the
Credit -oi#% as the% ma% !e#ome ne#essar% from time to time on a##o$nt of
organi3ationa needs)
Banks has to grant the oans for the esta!ishment of !$siness at a moderate rate of
interest) Be#a$se of this& the peope #an repa% the oan amo$nt to !ank reg$ar%
and prompt%)
Bank sho$d not iss$e entire amo$nt of oan to agri#$t$re se#tor at a time& it
sho$d reease the oan in instaments) If the #imati# #onditions are good then
the% ha,e to reease remaining amo$nt)
SBI has to red$#e the Interest Rate)
SBI has to entertain indire#t se#tors of agri#$t$re so that it #an ha,e more n$m!er
of !orro"ers for the Bank)
BABASAB PATIL JJ

CO;C?USIO;
BABASAB PATIL 188


CONCLUSION
The pro+e#t $ndertaken has heped a ot in gaining kno"edge of the BCredit -oi#% and
Credit Risk ManagementC in ;ationai3ed Bank "ith spe#ia referen#e to State Bank Of
India) Credit -oi#% and Credit Risk -oi#% of the Bank has !e#ome ,er% ,ita in the
smooth operation of the !anking a#ti,ities) Credit -oi#% of the Bank pro,ides the
frame"ork to determine DaE "hether or not to e(tend #redit to a #$stomer and D!E ho"
m$#h #redit to e(tend) The -ro+e#t "ork has #ertain% enri#hed the kno"edge a!o$t the
effe#ti,e management of BCredit -oi#%C and BCredit Risk ManagementC in !anking
se#tor)
BCredit -oi#%C and BCredit Risk ManagementC is a ,ast s$!+e#t and it is ,er%
diffi#$t to #o,er a the aspe#ts "ithin a short period) >o"e,er& e,er% effort has
!een made to #o,er most of the important aspe#ts& "hi#h ha,e a dire#t !earing
on impro,ing the finan#ia performan#e of Banking Ind$str%
To s$m $p& it "o$d not !e o$t of "a% to mention here that the State Bank Of
India has gi,en spe#ia inp$ts on BCredit -oi#%C and BCredit Risk
ManagementC) In p$rs$an#e of the instr$#tions and g$ideines iss$ed !% the
Reser,e Bank of India& the State !ank Of India is granting and e(panding #redit
to a se#tors)
The #on#erted efforts p$t in !% the Management and Staff of State Bank Of
India has heped the Bank in a#hie,ing remarka!e progress in amost a the
important parameters) The Bank is mar#hing ahead in the dire#tion of a#hie,ing
the ;$m!erF1 position in the Banking Ind$str%)
BABASAB PATIL 181

BABASAB PATIL 18.

BIB?IO1RA->
BABASAB PATIL 18/

BOOKS REFERRE#$
1) M)Y)Ghan and -)G)Lain& Management A##o$nting DThird EditionE& Tata M#1ra"
>i)
.) M)Y)Ghan and -)G)Lain& Minan#ia Management DMo$rth EditionE& Tata M#1ra"
>i)
/) =)M)Mitta& Mone%& Banking& Internationa Trade and -$!i# Minan#e DEe,enth
EditionE& >imaa%a -$!ishing >o$se)
,EB SITES
1) """)s!i)#o)in
.) """)i#i#idire#t)#om
/) """)r!i)org
0) """)indiainfoine)#om
2) """)googe)#om
BA"KS I"TER"AL RECORE#S$
1) Ann$a Reports of State !ank Of India D.88/F.88HE
.) State !ank Of India Man$as
/) Cir#$ars sent to a Bran#hes& Regiona Offi#es and a the =epartments of
Corporate Offi#es)
BABASAB PATIL 180

Executive Summary: Credit Risk Management in State Bank of India

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