CHAIRMAN’S MESSAGE TO STAFF POST Q2 FY 22 RESULTS

Dear Colleagues,

I extend my heartiest congratulations and warmest wishes to each and every

one of you on the occasion of Diwali. May this Deepawali light up your dreams
with new hopes, undiscovered avenues, and fresh perspectives for you and your
family. The results for the second quarter of FY22 have been declared and I
take this opportunity to share my thoughts with you.

During this quarter, the Bank registered its highest ever quarterly Net Profit
of Rs. 7,627 cr which is an increase of 66.73% over last year. The operating
profit has also increased by 9.84% YoY to Rs. 18,079 cr. Your collective efforts
have helped the bank in improving its asset quality which is reflected in the
decline in gross NPA by 38 bps YoY to 4.90%. Let us all continue with the
same zeal to bring down the NPA levels further and improve the Bank’s
profitability.

Though the Bank has performed well on most of the parameters during the
quarter, I am sure you will agree that there is still room for improvement. While
there has been growth in the advances, a lot needs to be done for growing our
SME and Agriculture book. SME has to be in sharper focus for us to become
the preferred banker of SMEs. I therefore urge all of you to pursue the leads
provided through the Analytics department meaningfully and convert these
into business.

No matter how good the results, being in the service industry, customer service
is one area, the importance of which cannot be over-emphasized. With most of
the banks and fintechs today providing almost all kinds of products, it is the
quality of customer service which will be the principal differentiating factor.
We must all resolve to remain customer centric in all aspects of our
functioning and aim to be the Bank of the First Choice for all Indians. The
growth of the Bank is intertwined with the growth of its people. Upskilling and
knowledge updation is expected and encouraged from each and everyone of
you. Towards this end, e-learning, mandatory learning, role-based
certification apart from the regular training programmes are some of the
initiatives taken by the Bank. I expect all of you to take advantage of the
resources made available to you and also keep abreast of developments around
you, especially in the field of finance and business.

You must all be aware of the recent developments concerning our former
Chairman, Shri Pratip Chaudhuri. While there have been several reactions in
the public space from the banking community as well as previous Chairmen
of the Bank, I will only say that it appears that Shri Chaudhuri was not given
an opportunity to be heard before issuing the arrest warrant. However, we have
utmost faith in the country’s judicial system and are confident that Shri
Chaudhuri will be released unconditionally at the earliest. We, in the State
Bank, stand resolutely behind Shri Chaudhuri and as a Bank, are doing
whatever we can, to help Shri Chaudhuri to get out of this situation. We have
complete faith in the judicial system and are confident that justice will prevail.

In State Bank of India, we adhere to the best practices in Corporate Governance,

and I can assure you that as far as the Bank is concerned, there has been no
irregularity in the instant case and the prescribed rules and processes were
followed by the Bank in dealing with the account.

The Bank has successfully conducted vaccination drives at various centres

and I am pleased to report that 91.81% of our employees are vaccinated against
COVID with at least one dose, while 61% are fully vaccinated. I urge all
employees who are yet to be vaccinated, not to dither, and get themselves
vaccinated at the earliest.

Let us all continue to spread positivity and good cheer. My best wishes for good
health and prosperity to you and your families.

Stay safe and happy!

Warm regards and festive greetings,

Dinesh Khara