Highlights  Deposits have been particularly hard hit, with its share in total bank deposits coming down

from 18.72 per cent in March 2004 to 15.21 per cent by December 2005. ROLE OF CEO "The key to successful leadership today is influence, not authority." The first thing he did was to stop the roll-out of core banking solutions in SBI branches. But we needed some 700 modifications before the project restarted and, TCS rose to the occasion splendidly In the past five months, he has opened 955 branches— more than six branches a day on an average The process of liberalization and globalization of the Indian economy had already begun, bringing with it both opportunities and threats-State Bank of India having the largest network of branches in the country and a strong IT platform already in place, Mr. Bhatt felt that the Bank was at the threshold of its "golden period". With his deep knowledge of the market, both domestic and international, his close grasp of IT related issues, his hands-on approach to execution, and his proven ability to plan and strategize

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First priority of Sh. OP BHATT as CHAIRMAN has been to increase SBI's market share Super Circle of Excellence Staff also being given targets to bring in new business. For the year to 31 December 2006, its advances grew at 26.86 per cent while deposit growth was 11.17 per cent His policy was to target higher market share, but not at the cost of bank's strength, soundness and profitability Deposits were growing on a higher base compared to advances. So, a 5 per cent growth in deposits was higher as compared to a 10 per cent growth in advances in terms of absolute numbers A new ad campaign recently adopted by him to change the bank's brand image Yields are lower in corporate lending. So, he decides why not give more loan to buy homes rather than to corporate? It is a business strategy. But as a leading public sector

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So a massive internal communication initiative called Parivartan was launched.000 responses. struggling due to recession and stalling their expansion plans. to the various initiatives that it had taken since 2006. but only after due diligence. It was communicated to SBI's 14.000-odd branch managers across India and unions The top management realized that to achieve the transformation they sought. including 'Project Parivartan' According to SBI. India's leading bank State Bank of India (SBI). This will make the management of the bank's operations slightly easier. will have more elbowroom to raise money. Banks worth $3 million or $5 million does not make business sense. there are some obligations. The initiative was aimed at obtaining the support and acceptance of employees for the change initiatives undertaken by the bank. So that we will also be able to raise money through the subsidiaries According to him Sbi will acquire banks overseas only if they are sizeable. The bank attributed its good performance despite a turbulent phase in the industry. including private sector banks in India. They launched it across the country and covered all the employees in 120 days. and explaining to them why change was necessary  So what he did was send out a questionnaire to bank‘s 200.000 clerical staff. on the other hand. Sbi is the nation's bank and will be doing a disservice if it does not meet these obligations. was drawing up plans to further strengthen its position besides coming out with the announcement that it would recruit 20.000 employees asking them to craft a vision. Bank has to put money in large projects like ultra mega power projects. My SBI First In Customer Satisfaction The end of 2008 saw banks across the world. My Customer First. the initiative that was launched in July 2007 was a huge success and was instrumental in bringing about the attitudinal change in the workforce that was required to compete in a very competitive environment      . mission and a value statement for the bank. It does not make sense to have a few branches overseas. He got 141. If the RBI holding was brought down from 55 per cent to 51 per cent. He would not grow market share at the cost of profitability.  He decided that the number of Managing Directors may go up from two to four.bank. With his officres he distilled that and came up with a simple vision: My SBI. Rather he is more interested in consolidating Bank’s operations rather than acquiring a few more branches Document called the 'State Of The Nation' became the basis for transforming SBI. getting the grassroots level employees on board was extremely important.

000 branches to take their medicine. from 14th in 2006. Also bank have a 32% growth in fee income. and branch strength. NPAs from Dabhol (Rs 1. If you omit NPAs from State Bank of Saurashtra (Rs 206 crore).745 crore (Rs 1. SBI‘s asset quality is quite good Changing business realities. The income from lending has been higher than the industry average. The gross NPA ratio improved to 2. The annual treasury income trebled to Rs 3.78%. With the economy becoming more and more complex. overtaking ICICI Bank State Bank is now the country‘s 5th largest company in terms of market cap. they‘ve entered the Fortune Global 500.000 crore.000 workers stretched across 10. which came from across the spectrum. gold banking. Bhatt explains.84% as on March 31. The people weren‘t performing poorly as individuals.231 crore). In the past year. no vision. One of the major drivers of profit growth is the treasury operation. In 2007. but the challenge centered on getting 200. In January 2008.76% compared to 1.5 billion from the government. we became number one in India in terms of market cap. An over 30% growth in fee income for a bank of SBI‘s size is significant The SBI bad loans remained under control. risk management is the most important job in any bank         . Communicating the need for change and shaking this huge corporate behemoth from its lethargy became the critical task ahead of Bhatt. no commitment. Customer service is also improving. brokerages etc. are behind his reshuffling exercise.04% a year ago and net NPA at 1. guarantees. Indeed.615 crore) and NPAs on account of international business (Rs 954 crore). they just weren‘t aligned along a common set of objectives—no goals. 2009 from 3. Bank is engaged in issuing letter of credit.5 billion from the public and $2.And internationally. we‘ve also raised $4 billion through rights issues—$1. loan processing. brand loyalty. State Bank. was languishing in inertia.000 crore while its mortgage portfolio is Rs42. we were rated the best bank in India in terms of customer service. The prescription was innovation. in which the government has a 60 percent interest. big corporations were the bank‘s major borrowers but now SBI‘s exposure to these companies is Rs35. ―Things are not static and the relative importance of business groups is changing.

growing more than 30% year-on-year. higher than the competition. accounting for about 70% of the branch network of the Bank grew by Rs. the Bank had a network of 84 overseas offices spread over 32 countries covering all time zones.State Bank-Indore & State BankSaurashtra 3. treasury gains and reversal of provision on equity book. As on 31.04 billion in 31 Merger and Acquisition deals aggregating USD 22.298.34 billion in advances representing a growth of 23.6bn which proved to be a positive surprise and also it earned smart treasury gains of Rs7. ―Our home loan portfolio has grown 27% this year.07 billion in 13 deals aggregating US $ 5.37 billion during the previous year The bank has managed to increase the share of international advances in the total business to 16% at the end of Mar‘09.03. During the year 2007-08.8% and Rs. . Bhatt claims.56 billion in 2007-08 as against participation to the extent of US $ 1. It is a straight fourth consecutive quarter of ~40% growth in PAT. are showing. Similarly.176. Rural Business Group of the Bank comprising rural and semi urban branches. Bottom-Line grew by 42% on the back of higher growth in balance sheet.1bn. from 10% at the end of Mar‘06.67 billion in deposit and Rs.922 crore in June.84 billion in the advances in the previous year. Fee Income.163.187.2008. the auto loan portfolio‘s growth has been 30% Merger of associate banks with SBI to build scale.4 million apply for 11. The Bank has participated to the extent of USD 3.          .07 billion in deposit representing a growth of 22. This was against a growth of Rs.000 clerical vacancies in SBI! Business Line Bank‘s agricultural loans stood at Rs36. Fee Income grew by 45% to 18.4%. Net Profit from Bank‘s overseas operations (including subsidiaries and joint ventures with more than 50% shareholding) registered a growth of 84% during the fiscal year mainly driven by significant growth of 48% in Net Customer Credit.

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