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SBM is the second-largest bank in Mauritius with a market share of about 25% of domestic
banking assets. As of June 2011, its total asset valuation was approximately US$3.34 billion
(MUR:95.7 billion), with shareholders' equity of about US$557.1 million (MUR:16 billion).
SBM, together with its subsidiary businesses in Mauritius, Madagascar and India, is known as
SBM Group. The stock of the group is listed on the Stock Exchange of Mauritius and is owned
by nearly 17,000 domestic and International shareholders. SBM has more than 1,200 employees
and services over 340,000 customers through its network of 48 service units and counters in
Mauritius, India and Madagascar.

The government of Mauritius established State Bank of Mauritius in 1973 under the name State
Commercial Bank. In 1994, SBM opened its first overseas branch in Mumbai, India. In 1995, the
bank was listed on the Stock Exchange of Mauritius. Then in 1997 the South African bank
Nedcor acquired 20.1% of SBMs voting equity. That same year SBM opened its second branch
in India in Chennai, and the next year one in Hyderabad, India.
Banque SBM Madagascar, a fully owned subsidiary of SBM, started banking operations in
Madagascar in January 1998. The company operates from Antananarivo, the capital of
Madagascar. The next year, SBM and Nedcor established SBM Nedcor International (SNI) as a
50/50 joint venture to engage in offshore banking, and SNI started operations in 2000. In order to
avoid any conflict of interest with SBI International, Mauritius (formerly State Bank
International), another joint venture offshore company between SBM and State Bank of India,
SBM disinvested its 49 percent equity holding in SBI International. In 2005, Nedcor sold back to
SBM its 20.1% in the latter, and at the same time took over 100% ownership of SNI. Then
Nedcor announced the sale of SNI to Sasfin Bank, which will rename the bank Sasfin Bank
International (SBI).

SBM Holdings Ltd is a leading financial services group in Mauritius with a growing
international presence. It provides all services of a universal bank within a diversified business
model. The lines of business include: Retail Banking, Small and Medium Enterprises, Wealth
Management & Private Banking, Corporate Banking and International Banking & Global
Business, Treasury services, eBusiness, Fiduciary services, Asset Financing, Stockbrocking and
Asset Management. SBM started operations in 1973 and was listed on the Stock Exchange of
Mauritius in 1995. Innovation, flexibility, accessibility and reliability are the key attributes that
have contributed to the Groups reputation and trustworthiness. Owned by nearly 17,000
domestic and international shareholders, SBM has more than 1,100 employees and services over
450,000 customers through its network of 50 service units and counters in Mauritius,
Madagascar and India with a representative office in Myanmar. Going forward, the Group is
laying greater emphasis on international operations as well as non-banking activities. The SBM
brand value also benefits from continued investment in people, infrastructure and technology.

Retail Banking, SMEs and Wealth Management & Private Banking

SBM is well entrenched in the domestic banking landscape with a diversified and loyal customer
base, serviced through a large branch network by employees who are being made more
responsive to evolving client needs. Besides a broad range of savings, investment and financing
products, in both local and foreign currency, SBM offers a large portfolio of cards, designed to
suit needs of specific customer segments. Innovation and market insights continue to drive
product development. In line with the Groups diversification strategy and in view of market

trends, the Group is now looking to further develop its Small and Medium Enterprise business as
well as Wealth Management & Private Banking services.
SBMs Wealth Management and Private Banking is specialised in providing tailor-made
financial planning solutions, investment advice and services to corporates, high net worth
individuals and families, both locally and abroad. The unit offers increased interactions between
the Private Banking, Asset Management and Securities departments by providing discretionary
investment management as well as execution only services, banking and credit solutions, advice
in all areas of financial planning and wealth structuring and offers a large range of products and
services related to wealth management. It also measures portfolio performance and provides
customised reports to enable better tracking by customers, especially those pursuing multiple
investment strategies.

Corporate Banking and International Banking & Global Business

The Corporate Banking and International Banking & Global Business Divisions of the Group,
through their growing team of professionals, provide comprehensive financial solutions to their
business customers across geographical borders and industrial portfolios. These include
traditional banking products, transactional banking services, asset finance, commercial loan and
working capital finance, structured finance, structured trade finance and project finance, in both
local and foreign currencies. We also provide banking services to Global Business Customers
and are involved in cross-border transactions. The share of Global Business and Cross Border
transactions has steadily risen over the past few years and, in line with the Groups strategic
objectives, is set to increase further over the medium term. In addition with the Groups presence
in India and Madagascar, the International Banking & Global Business Division is able to
provide tailor- made solutions to customers present in these jurisdictions.


Treasury activities at SBM encompass different financial products including foreign exchange,
money market, fixed income and commodities trading. The Groups professional and dynamic
treasury team offers an array of services to customers, from up-to-date market information and
advice to timely execution of deals. Products offered to customers range from basic spot, forward
and swap transactions to currency options and structured deposits, tailored to the requirements of
our customers. In addition to the Groups core Mauritian operations, treasury services are also
provided in India and Madagascar.

In line with its spirit of innovation, the Group has invested in state-of-the-art technology to place
multiple, reliable and sophisticated electronic delivery channels at the service of its customers for
convenient banking from anywhere on a 24/7 basis. These channels include an eCommerce
platform, internet and mobile phone banking services as well as an extensive network of Point of
Sales and Automated Teller Machines. Capitalising on superior technology, SBM has introduced
a number of innovative products in the eBusiness segment. SBM has also invested considerably
in risk management infrastructure to provide a safe and secure platform for its customers.

Risk Management
The Group has a well-diversified credit portfolio, whether by segment or by industry group.
International business expansion is also helping the Group to further spread the risk in its books.
The Groups risk management structure is independent from the business generating areas to
avoid conflicts of interest, and is overseen by the Board of Directors. The Risk Management Unit
ensures adherence to regulatory norms and the risk appetite limits and recommends changes to
the set risk parameters and limits. The risk management capabilities are supported by good
management information systems, a solid internal rating system and robust policies.

Human Resources
The Groups people strategy is at the heart of its growth objectives. SBM employs more than
1,200 staff in Mauritius, India and Madagascar. These employees are core to the organisation in
providing quality service to customers, thus generating sustainable business and building the
brand. As a key source of competitive advantage, human capital has gained increasing
importance notably through a clear programme of retention, motivation, training and reward.

Market Firsts
True to its philosophy of being close to its customers, SBM was the first bank to establish
branches in the rural areas, thereby establishing a national branch network. SBM is also rightly
recognised for its lead in technology. It was the first bank in Mauritius to introduce the EuropayMasterCard-Visa (EMV) chip card technology, TopUp (mobile phone recharge) and Mobile
Banking as well as the first eCommerce portal. The Bank has also introduced, under its brand
name SBM eSecure, enhanced security standards for internet transactions through the
implementation of Verified by Visa and MasterCard SecureCode services. Besides, SBM is
the preferred Visa partner in Mauritius. Using market insights and critical thinking, SBM aims to
continuously offer innovative products and services to meet the needs of its growing customer

International Recognition & Ratings

SBM continues to be recognised, both in Mauritius and internationally, for superior
achievements. Recent recognition includes the following awards:

SBM was awarded "Best E-Commerce Bank East Africa 2015" and "Most Innovative
Prepaid Card (SBM Smile Prepaid Cards) East Africa 2015" during the Global Banking
& Finance Review Awards 2015

SBM was recognised as "Bank of the Year - Mauritius" by The Banker in 2014

SBM has been awarded "Best Retail Bank in Africa" by African Banker Awards 2014

SBM was recognised as "Bank of the Year - Mauritius" by The Banker in 2013

SBM has been awarded "Best Bank, Mauritius : 2013" by Capital Finance International

SBM has been awarded "Best Bank in Mauritius" in the Euromoney Awards for
Excellence 2013











PricewaterhouseCoopers Corporate Reporting Awards 2013

SBM has been conferred the award of "Best Bank Mauritius : 2012" by Capital Finance
International (

SBM has been elected as top rated Bank in Mauritius for its range of investment products
and first in servicing of clients in the High Net Worth category by the annual Euromoney
Private Banking Survey 2012

SBM won the award in the Risk Management Disclosures category for the
PricewaterhouseCoopers Corporate Reporting Awards 2012

SBM has been designated Best Local Bank by the annual Euromoney Private Banking
Survey 2011

SBM won the Best Private Bank Award by the African Banking Awards 2010 presented
by Emeafinance

SBM won the Online Reporting category for the PricewaterhouseCoopers Corporate
Reporting Awards 2011

SBM has been awarded the 'Overall Winner' in the BDO CSR Awards 2010 as well as the
'Winner' in the Education and Sports category

Moody's Investors Service rates SBM Bank (Mauritius) Ltd's long-term and short-term deposit
ratings, both foreign and domestic, at Baa3/P-3. The bank is also rated D+ on Bank Financial
Strength Rating (BFSR).
Corporate Social Responsibility
SBM firmly believes that sustainable growth can only be achieved in partnership with the
community in which it operates. SBM Group ploughs back 2% of its profits annually in the
community through Corporate Social Responsibility (CSR) initiatives. The areas of intervention
of SBM are: Health & Wellness, Education, Environment, Sports, Leisure & Arts and the
Empowerment of vulnerable groups, all of which have an educational dimension. Education is
key for the development of the individual and the country. The ultimate goal is to combat social
ills and poverty by providing the opportunity to vulnerable groups to acquire skills so as to be
economically independent. SBM also fosters a culture of volunteering among staff through
awareness, opportunities and company support.
Equality & Diversity Programme
Equality translates our recognition of the close interlink between all economic agents, in
whatever role they may be, and of the importance to ensure that people are treated justly and
given fair chances. Within the Group, we are committed to equal opportunity policies and strive
to become the preferred employer of choice by providing growth opportunities to employees and
investing in staff welfare. In addition to our internal policies which promote equality at all levels,
the Groups Corporate Social Responsibility programme is aimed at improving opportunities and
participation within the community at large. Diversity, for its part, challenges established
practices and, hence, pushes the Group to strive for the best in everything it does. Whether in
terms of customers, employees, business segments, revenue streams, risks or ideas, diversity
generates self-reinforcing dynamics, which help the Group grow into a stronger and more
balanced organisation. To further our commitment as an Equality & Diversity champion, SBM
has symbolically earmarked four of our national festivals, namely Chinese Spring Festival, EidUl-Fitr, Divali and Christmas, which are celebrated with staff and customers through various

Annual Report of State Bank of Mauritius