205

Pillar 3 Disclosures (Consolidated)

as on 31.03.2018

DF-1 : SCOPE OF APPLICATION

State Bank of India is the parent company to which the Basel III Framework applies. The consolidated financial statements of the group conform
to Generally Accepted Accounting Principles (GAAP) in India which comprises the statutory provisions, Regulatory/Reserve Bank of India (RBI)
guidelines, Accounting Standards/guidance notes issued by the ICAI.

(i) Qualitative Disclosures:

a. List of group entities considered for consolidation for the period ended 31.03.2018
The following subsidiaries, joint ventures and associates are considered for the preparation of consolidated financial statements of SBI Group.

Sr. Name of the entity Country of Whether the entity Explain the Whether Explain the Explain the Explain the
No. incorporation is included under method of the entity is method of reasons for reasons if
accounting scope consolidation included under consolidation difference in consolidated
of consolidation regulatory scope the method of under only one
(yes / no) of consolidation consolidation of the scopes of
(yes / no) consolidation
1 SBI Capital Markets Ltd. India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
2 SBICAP Securities Ltd. India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
3 SBICAP Ventures Ltd. India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
4 SBICAP Trustee Company Ltd. India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
5 SBICAP (UK) Ltd. U.K. Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
6 SBICAP (Singapore) Ltd. Singapore Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
7 SBI DFHI Ltd. India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
8 SBI Payment Services Pvt. Ltd. India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
9 SBI Global Factors Ltd. India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
10 SBI Pension Funds Pvt Ltd. India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
11 SBI –SG Global Securities Services India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
Pvt. Ltd. per AS 21 per AS 21
12 SBI Mutual Fund Trustee Company India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
Pvt Ltd. per AS 21 per AS 21
13 SBI Funds Management Pvt. Ltd. India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
14 SBI Funds Management Mauritius Yes Consolidated as Yes Consolidated as Not applicable Not applicable
(International) Private Ltd. per AS 21 per AS 21
15 SBI Cards and Payment Services India Yes Consolidated as Yes Consolidated as Not applicable Not applicable
Pvt. Ltd. per AS 21 per AS 21
16 State Bank of India (California) USA Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
17 SBI Canada Bank Canada Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
18 Commercial Indo Bank Llc, Moscow Russia Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
19 SBI (Mauritius) Ltd. Mauritius Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
206 Pillar 3 Disclosures

Sr. Name of the entity Country of Whether the entity Explain the Whether Explain the Explain the Explain the
No. incorporation is included under method of the entity is method of reasons for reasons if
accounting scope consolidation included under consolidation difference in consolidated
of consolidation regulatory scope the method of under only one
(yes / no) of consolidation consolidation of the scopes of
(yes / no) consolidation
20 PT Bank SBI Indonesia Indonesia Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
21 Nepal SBI Bank Ltd. Nepal Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
22 Nepal SBI Merchant Banking Ltd. Nepal Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
23 Bank SBI Botswana Ltd. Botswana Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
24 State Bank of India Servicos Limitada Brazil Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
25 State Bank of India (UK) Limited UK Yes Consolidated as Yes Consolidated as Not applicable Not applicable
per AS 21 per AS 21
26 SBI Infra Management Solutions India Yes Consolidated as No Not applicable Not applicable Non-financial
Private Limited per AS 21 Subsidiary: Not
under scope
of Regulatory
Consolidation
27 SBI Life Insurance Company Ltd. India Yes Consolidated as No Not applicable Not applicable Insurance Joint
per AS 21 Venture: Not under
scope of Regulatory
Consolidation
28 SBI General Insurance Company Ltd. India Yes Consolidated as No Not applicable Not applicable Insurance Joint
per AS 21 Venture: Not under
scope of Regulatory
Consolidation
29 GE Capital Business Process India Yes Consolidated as No Not applicable Not applicable Non-financial Joint
Management Services Pvt Ltd. per AS 21 Venture: Not under
scope of Regulatory
Consolidation
30 C - Edge Technologies Ltd. India Yes Consolidated as No Not applicable Not applicable Non-financial Joint
per AS 27 Venture: Not under
scope of Regulatory
Consolidation
31 SBI Macquarie Infrastructure India Yes Consolidated as No Not applicable Not applicable Joint Venture:
Management Pvt. Ltd. per AS 27 Not under scope
of Regulatory
Consolidation
32 SBI Macquarie Infrastructure Trustee India Yes Consolidated as No Not applicable Not applicable Non-financial Joint
Pvt. Ltd. per AS 27 Venture: Not under
scope of Regulatory
Consolidation
33 Macquarie SBI Infrastructure Singapore Yes Consolidated as No Not applicable Not applicable Joint Venture:
Management Pte. Ltd. per AS 27 Not under scope
of Regulatory
Consolidation
34 Macquarie SBI Infrastructure Trustee Bermuda Yes Consolidated as No Not applicable Not applicable Joint Venture:
Ltd. per AS 27 Not under scope
of Regulatory
Consolidation
35 Oman India Joint Investment Fund – India Yes Consolidated as No Not applicable Not applicable Joint Venture:
Management Company Pvt. Ltd. per AS 27 Not under scope
of Regulatory
Consolidation
36 Oman India Joint Investment Fund – India Yes Consolidated as No Not applicable Not applicable Joint Venture:
Trustee Company Pvt. Ltd. per AS 27 Not under scope
of Regulatory
Consolidation
 207

Sr. Name of the entity Country of Whether the entity Explain the Whether Explain the Explain the Explain the
No. incorporation is included under method of the entity is method of reasons for reasons if
accounting scope consolidation included under consolidation difference in consolidated
of consolidation regulatory scope the method of under only one
(yes / no) of consolidation consolidation of the scopes of
(yes / no) consolidation
37 Jio Payments Bank Limited India Yes Consolidated as No Not applicable Not applicable Joint Venture:
per AS 27 Not under scope
of Regulatory
Consolidation
38 Andhra Pradesh Grameena Vikas India Yes Consolidated as No Not applicable Not applicable Associate: Not
Bank per AS 23 under scope
of Regulatory
Consolidation
39 Arunachal Pradesh Rural Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
40 Chhattisgarh Rajya Gramin Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
41 Ellaquai Dehati Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
42 Meghalaya Rural Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
43 Langpi Dehangi Rural Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
44 Madhyanchal Gramin Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
45 Mizoram Rural Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
46 Nagaland Rural Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
47 Purvanchal Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
48 Utkal Grameen Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
49 Uttarakhand Gramin Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
50 Vananchal Gramin Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
51 Saurashtra Gramin Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
208 Pillar 3 Disclosures

Sr. Name of the entity Country of Whether the entity Explain the Whether Explain the Explain the Explain the
No. incorporation is included under method of the entity is method of reasons for reasons if
accounting scope consolidation included under consolidation difference in consolidated
of consolidation regulatory scope the method of under only one
(yes / no) of consolidation consolidation of the scopes of
(yes / no) consolidation
52 Rajasthan Marudhara Gramin Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
53 Telangana Grameena Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
54 Kaveri Grameena Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
55 Malwa Gramin Bank India Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation
56 The Clearing Corporation of India India Yes Consolidated as No Not applicable Not applicable Associate: Not
Ltd. per AS 23 under scope
of Regulatory
Consolidation
57 Bank of Bhutan Ltd. Bhutan Yes Consolidated as No Not applicable Not applicable Associate: Not
per AS 23 under scope
of Regulatory
Consolidation

b. List of group entities not considered for consolidated both under the accounting and regulatory scope of consolidation as on
31.03.2018

Sr. Name of the Country of Principle activity Total balance % of bank’s Regulatory Total balance
No. entity incorporation of the entity sheet equity holding in the treatment sheet assets
(as stated in total equity of bank’s (as stated in
the accounting investments the accounting
balance sheet of in the capital balance sheet of
the legal entity) instruments of the legal entity)
the entity
1 SBI Foundation India A Not-for-Profit 15.40 99.72% Deducted from the 15.40
Company to focus Regulatory Capital
on Corporate Social
Responsibility (CSR)
Activities
2 SBI Home India Under winding up N.A. 25.05% Full provision N.A.
Finance Ltd. available
 209

(ii) Quantitative Disclosures:

c. List of group entities considered for regulatory consolidation as on 31.03.2018
(` In crore)
Sr. Name of the entity Country of Principle activity of the entity Total balance sheet Total balance sheet
No. incorporation equity (as stated assets (as stated in the
in the accounting accounting balance
balance sheet of the sheet of the legal
legal entity) $ entity)
1 SBI Capital Markets Ltd. India Merchant Banking and Advisory 1,244.38 1,657.02
Services
2 SBICAP Securities Ltd. India Securities Broking & its allied 217.63 1,620.83
services and third party
distribution of financial products
3 SBICAP Ventures Ltd. India Asset Management Company for 47.48 49.49
Venture Capital Fund
4 SBICAP Trustee Company Ltd. India Corporate Trusteeship Activities 76.26 133.32
5 SBICAP (UK) Ltd. U.K. Arrangement of corporate 5.17 5.70
finance & providing advisory
services
6 SBICAP (Singapore) Ltd. Singapore Business & management 59.52 60.18
Consultancy Services
7 SBI DFHI Ltd. India Primary Dealer in Govt. Securities 891.60 5,659.46
8 SBI Payment Services Pvt. Ltd. India Payment Solution Services 3.80 5.61
9 SBI Global Factors Ltd. India Factoring Activities 320.58 1,151.87
10 SBI Pension Funds Pvt Ltd. India Management of assets of NPS 36.50 37.09
Trust allocated to them
11 SBI –SG Global Securities India Custody and Fund accounting 125.45 131.62
Services Pvt. Ltd. services
12 SBI Mutual Fund Trustee India Trusteeship Services to schemes 27.03 27.11
Company Pvt Ltd. floated by SBI Mutual Fund
13 SBI Funds Management Pvt. India Asset Management Services to 1,018.80 1,290.96
Ltd. schemes floated by SBI Mutual
Fund
14 SBI Funds Management Mauritius Investment Management Services 0.85 1.79
(International) Private Ltd.
15 SBI Cards and Payment India Credit Cards Business 1,814.02 14,893.87
Services Pvt. Ltd.
16 GE Capital Business Process India Card Processing and Other 326.40 569.93
Management Services Pvt Ltd. Services
17 State Bank of India (California) USA Banking Services 862.69 4,752.45
18 SBI Canada Bank Canada Banking Services 706.90 5,307.77
19 Commercial Indo Bank Llc. , Russia Banking Services 233.35 823.56
Moscow
20 SBI (Mauritius) Ltd. Mauritius Banking Services 1,054.85 7,318.96
21 PT Bank SBI Indonesia Indonesia Banking Services 610.97 2,102.24
22 Nepal SBI Bank Ltd. Nepal Banking Services 761.77 6,530.60
23 Nepal SBI Merchant Banking Nepal Merchant Banking and Advisory 12.96 13.25
Ltd. Services
24 Bank SBI Botswana Ltd. Botswana Banking Services 75.54 312.21
25 State Bank of India Servicos Brazil Representative Office Services 1.94 2.01
Limitada
$ Comprises of Equity Capital and Reserve & Surplus
210 Pillar 3 Disclosures

(d) The aggregate amount of capital deficiencies in all subsidiaries which are not included in the regulatory scope of consolidation i.e. that are
deducted:

Name of the Principle activity of the Total balance sheet % of Bank's holding in Capital Deficiency
Subsidiaries/Country of entity equity (as stated in the the total equity
incorporation accounting balance
sheet of the legal entity)
NIL

(e) The aggregate amount (e.g. current book value) of the Bank’s total interests in Insurance entities, which are risk weighted:

Name of the Insurance Principle activity of the Total balance sheet % of Bank's holding in Quantitative impact
entities/Country of entity equity (as stated in the the total equity on regulatory capital
incorporation accounting balance of using risk weighting
sheet of the legal entity) method Vs using the full
deduction method
NIL

(f) Any restrictions or impediments on transfer of funds or regulatory capital within banking group:

Subsidiaries Restriction
SBI California As per regulations, the only way to transfer capital to parent bank is
to pay dividends or buyback shares or capital repatriation to parent
bank.
SBI Canada Prior permission from the regulatory (OSFI) before transferring any
type of capital (equity or debt) to parent bank.
Bank SBI Botswana Ltd. Only after permission of the Bank of Botswana the transfer of
regulatory capital within the banking group/Group company is
allowed. The same to be approved by the Board with Statutory
Auditor certificate for the capital maintained by the bank on date.
SBI Mauritius Ltd. There are regulatory restrictions for the reduction of the Bank’s
capital to be paid back to the shareholders including the parent
bank. Any reduction in capital can be made either through payment
of dividend or reduction in stated capital as provided in the banking
act and the companies Act of Mauritius. The amount to be paid is
subject to SBIML maintaining adequate capital and the liquidity ratio
as per the regulatory requirements.
(a) The central bank shall not grant, and no bank shall hold, a
banking license unless it maintains and continues to maintain
in Mauritius, an amount paid as stated capital or an amount
of assigned capital or not less than 200 million rupees of the
equivalent.
(b) Every bank shall maintain in Mauritius, capital of not less than
10%, or such higher ratio as may be determined by the central
bank, of such of that bank’s risk assets and of other types of risks.
Bank SBI Indonesia The Bank maintains a minimum regulatory capital to be able to
operate as a Book II bank as well as a forex bank. However, transfer of
funds as dividend to parent bank is allowed on 31st March 2018 after
generation of sufficient profit.
Nepal SBI Bank Ltd. Under the laws of Nepal, Assets and Liabilities of the Company
are exclusive and non-transferable. Hence, the transfer of funds or
regulatory capital within the banking group is not possible.
CIBL There are no restrictions or impediments on transfer of funds or
regulatory capital within the banking group.
 211

DF-2 : CAPITAL ADEQUACY

Qualitative Disclosures

(a) A summary discussion of the Bank’s approach to assessing the zz T he Bank and its Banking Subsidiaries undertake the Internal
adequacy of its capital to support current and future activities Capital Adequacy Assessment Process (ICAAP) on an annual basis
in line with the New Capital Adequacy Framework (NCAF)
Guidelines of RBI. The ICAAP details the capital planning process
and carries out an assessment covering measurement,
monitoring, internal controls, reporting, capital requirement and
stress testing of the following Risks:
‹‹ Credit Risk ‹‹ Credit Concentration
‹‹ Operational Risk Risk
‹‹ Liquidity Risk ‹‹ Interest Rate Risk in the
Banking Book
‹‹ Compliance Risk
‹‹ Country Risk
‹‹ Pension Fund
Obligation Risk ‹‹ New Businesses Risk
‹‹ Reputation Risk ‹‹ Strategic Risk
‹‹ Residual Risk from Credit ‹‹ Model Risk
Risk Mitigants ‹‹ Contagion Risk
‹‹ Settlement Risk ‹‹ Securitization Risk
‹‹ Talent Risk ‹‹ Cyber Risk
‹‹ Market Risk
zz Sensitivity Analysis is conducted annually or more frequently as
required, on the movement of Capital Adequacy Ratio (CAR) in
the medium horizon of 3 to 5 years, considering the projected
investment in Subsidiaries / Joint Ventures by SBI and growth in
Advances by SBI and its Subsidiaries (Domestic / Foreign). This
analysis is done for the SBI and SBI Group separately.
zz RAR of the Bank and for the Group as a whole is estimated to
C
be well above the Regulatory CAR in the medium horizon of 3
to 5 years. However, to maintain adequate capital, the Bank has
options to augment its capital resources by raising Subordinated
Debt and Perpetual Debt Instruments, besides Equity as and
when required.
zz S trategic Capital Plan for the Foreign Subsidiaries covers an
assessment of capital requirement for growth of assets and
the capital required complying with various local regulatory
requirements and prudential norms. The growth plan is
approved by the parent bank after satisfying itself about the
capacity of the individual subsidiaries to raise CET 1 / AT 1 / Tier
2 Capital to support the increased level of assets and at the same
time maintaining the Capital Adequacy Ratio (CAR).
Quantitative Disclosures
(b) Capital requirements for credit risk:
zz Portfolios subject to standardized approach ` 1,35,025.34 crore
zz Securitization exposures Nil
---------------------------------
Total ` 1,35,025.34 crore
212 Pillar 3 Disclosures

(c) Capital requirements for market risk:

zz Standardized duration approach;
- Interest Rate Risk `14,481.78 crore
- Foreign Exchange ` 173.77 crore
Risk(including gold)
- Equity Risk ` 4,959.00 crore
---------------------------------
Total ` 19,614.55 crore
(d) Capital requirements for operational risk:
zz Basic Indicator Approach ` 17,971.97 crore
zz The Standardized Approach (if applicable) ---------------------------------
Total ` 17,971.97 crore
(e) Common Equity Tier 1, Tier 1 and Total Capital Ratios: CAPITAL ADEQUACY RATIOS AS ON 31.03.2018
zz For the top consolidated group; and CET 1 (%) Tier 1 (%) Total (%)
zz F or significant bank subsidiaries (stand alone or sub- SBI Group 9.86 10.53 12.72
consolidated depending on how the Framework is applied)
State Bank of India 9.68 10.36 12.60
SBI (Mauritius) Ltd. 19.39 19.39 20.47
State Bank of India 14.79 14.79 16.90
(Canada)
State Bank of India 17.60 17.60 18.65
(California)
Commercial Indo Bank 34.15 34.15 34.15
LLC, Moscow
Bank SBI Indonesia 34.04 34.04 34.90
Nepal SBI Bank Ltd. 14.67 14.67 16.79
Bank SBI Botswana Ltd. 30.55 30.55 30.86

DF-3: CREDIT RISK: GENERAL DISCLOSURES

As on 31.03.2018

Qualitative Disclosures
zz Definitions of past due and impaired assets (for accounting purposes)
Non-performing assets
An asset becomes non-performing when it ceases to generate income for the Bank. As from 31st March 2006, a non-performing Asset (NPA)
is an advance where
(i) Interest and/or instalment of principal remain ‘overdue’ for a period of more than 90 days in respect of a Term Loan
(ii) The account remains ‘out of order’ for a period of more than 90 days, in respect of an Overdraft/Cash Credit (OD/CC)
(iii) The bill remains ‘overdue’ for a period of more than 90 days in the case of bills purchased and discounted
(iv) Any amount to be received remains ‘overdue’ for a period of more than 90 days in respect of other accounts
(v) A loan granted for short duration crops is treated as NPA, if the instalment of principal or interest thereon remains overdue for two crop
seasons and a loan granted for long duration crops is treated as NPA, if instalment of principal or interest thereon remains overdue for
one crop season
(vi) An account would be classified as NPA only if the interest charged during any quarter is not serviced fully within 90 days from the end of
the quarter.
(vii) The amount of a liquidity facility remains outstanding for more than 90 days, in respect of securitization transactions undertaken in
accordance with the RBI guidelines on securitization dated February 1, 2006.
(viii) In respect of derivative transactions, the overdue receivables representing the positive mark to market value of a derivative contract,
remain unpaid for a period of 90 days from the specified due date for payment.
 213

‘Out of Order’ status

An account is treated as ‘out of order’ if the outstanding balance remains continuously in excess of the sanctioned limit/drawing power.
In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/drawing power, but there are no
credits continuously for 90 days as on the date of Bank’s Balance Sheet, or where credits are not enough to cover the interest debited during
the same period, such accounts are treated as ‘out of order’.

‘Overdue’
Any amount due to the Bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the Bank.
zz Discussion of the Bank’s Credit Risk Management Policy
The Bank has an integrated Credit Risk Management, Credit Risk Mitigation and Collateral Management Policy in place which is reviewed
annually. Over the years, the policy & procedures in this regard have been refined as a result of evolving concepts and actual experience. The
policy and procedures have been aligned to the approach laid down in Basel-II and RBI guidelines.
Credit Risk Management encompasses identification, assessment, measurement, monitoring and control of the credit risk in exposures.

In the processes of identification and assessment of Credit Risk, the following functions are undertaken:
(i) Developing and refining the Credit Risk Assessment (CRA) Models/Scoring Models to assess the Counterparty Risk, by taking into account
the various risks categorized broadly into Financial, Business, Industrial and Management Risks, each of which is scored separately.
(ii) Conducting industry research to give specific policy prescriptions and setting quantitative exposure parameters for handling portfolio in
large / important industries, by issuing advisories on the general outlook for the Industries / Sectors, from time to time.

The measurement of Credit Risk involves computation of Credit Risk Components viz Probability of Default (PD), Loss Given Default (LGD) and
Exposure At Default (EAD).

The monitoring and control of Credit Risk includes setting up exposure limits to achieve a well-diversified portfolio across dimensions such
as single borrower, group borrower and industries. For better risk management and avoidance of concentration of Credit Risks, internal
guidelines on prudential exposure norms in respect of individual companies, group companies, Banks, individual borrowers, non-corporate
entities, sensitive sectors such as capital market, real estate, sensitive commodities, etc., are in place. Credit Risk Stress Tests are conducted at
half yearly interval to identify vulnerable areas for initiating corrective action, where necessary.

The Bank has also a Loan Policy which aims at ensuring that there is no undue deterioration in quality of individual assets within the portfolio.
Simultaneously, it also aims at continued improvement of the overall quality of assets at the portfolio level, by establishing a commonality
of approach regarding credit basics, appraisal skills, documentation standards and awareness of institutional concerns and strategies, while
leaving enough room for flexibility and innovation

The Bank has processes and controls in place in regard to various aspects of Credit Risk Management such as appraisal, pricing, credit approval
authority, documentation, reporting and monitoring, review and renewal of credit facilities, management of problem loans, credit monitoring,
etc. The Bank also have a system of Credit Audit with the aims of achieving continuous improvement in the quality of the Commercial Credit
portfolio with exposure of ` 10 crore and above. Credit Audit covers audit of credit sanction decisions at various levels. Both the pre-sanction
process and post-sanction position are examined as a part of the Credit Audit System. Credit Audit also examines identified Risks and suggests
Risk Mitigation Measures.

Quantitative Disclosures as on 31.03.2018

(Insurance entities, JVs & Non-financial entities excluded)
(` In crore)
Quantitative Disclosures Fund Based Non-Fund Based Total
b Total Gross Credit Risk Exposures 2074462.60 391795.47 2466258.07
c Geographic Distribution of Exposures: FB / NFB
Overseas 307767.00 28249.54 336016.54
Domestic 1766695.60 363545.93 2130241.53
d Industry Type Distribution of Exposures Please refer to
Fund based / Non Fund Based separately Table “A”

e Residual Contractual Maturity Breakdown of Assets Please refer to

Table “B”
214 Pillar 3 Disclosures

(` In crore)
Quantitative Disclosures Total
f Amount of NPAs (Gross) i.e. Sum of (i to v) 225104.51
i. Substandard 50899.22
ii. Doubtful 1 56099.14
iii. Doubtful 2 94403.66
iv. Doubtful 3 15502.04
v. Loss 8200.45
g Net NPAs 111523.30
h NPA Ratios
i) Gross NPAs to gross advances 10.85%
ii) Net NPAs to net advances 5.69%
i Movement of NPAs (Gross)
i) Opening balance 113676.74
ii) Additions 161475.03
iii) Reductions 50047.26
iv) Closing balance 225104.51
j Movement of provisions for NPAs
i) Opening balance 54670.69
ii) Provisions made during the period 99752.13
iii) Write-off 40808.72
iv) Write-back of excess provisions 32.89
v) Closing balance 113581.21
k Write-offs and recoveries that have been booked directly to the Income St. 4737.77
l Amount of Provisions held for Non-Performing Investments 2584.12
m Movement of Provisions for Depreciation on Investments
Opening balance 649.02
Provisions made during the period 6273.35
Add: Foreign Exchange Revaluation Adj. 0.00
Write-off 159.95
Write-back of excess provisions 235.72
Closing balance 6526.33
n By major industry or counter party type
Amt. of NPA and if available, past due loans, provided separately 143966.31
Specific & general provisions; and -
Specific provisions and write-offs during the current period -
o Amt. of NPAs and past due loans provided separately by significant -
geographical areas including specific and general provisions
Provisions
 215

Table- A: DF-3 (d) Industry Type Distribution of Exposures as on 31.03.2018

(` In crore)
Code Industry Fund Based [Outstanding-O/s)] Non-Fund
Standard NPA Total Based(O/s)

1 Coal 2243.57 1240.60 3484.17 2416.80

2 Mining 4911.17 507.39 5418.56 2212.25
3 Iron & Steel 71119.25 53247.37 124366.62 21967.17
4 Metal Products 31452.32 4151.94 35604.26 6590.78
5 All Engineering 26171.53 12020.85 38192.38 73267.70
5.1 Of which Electronics 3322.73 3279.81 6602.54 3713.83
6 Electricity 3268.46 0.00 3268.46 55.97
7 Cotton Textiles 24144.32 11327.80 35472.12 1788.00
8 Jute Textiles 414.71 61.17 475.88 37.65
9 Other Textiles 13597.23 3565.10 17162.33 1806.73
10 Sugar 6687.30 678.67 7365.97 1038.73
11 Tea 579.30 173.32 752.62 93.34
12 Food Processing 49482.80 8906.91 58389.71 2423.05
13 Vegetable Oils &Vanaspati 3899.65 2548.45 6448.10 2222.45
14 Tobacco / Tobacco Products 485.34 22.46 507.80 292.20
15 Paper / Paper Products 3903.85 878.25 4782.10 885.80
16 Rubber / Rubber Products 8257.65 648.08 8905.73 2303.52
17 Chemicals / Dyes / Paints etc. 87274.81 3830.02 91104.83 48873.24
17.1 Of which Fertilizers 14339.99 424.05 14764.04 4216.06
17.2 Of which Petrochemicals 45727.91 321.86 46049.77 38585.70
17.3 Of which Drugs &Pharma 9900.18 1904.78 11804.96 1649.65
18 Cement 8203.65 1089.65 9293.30 3550.24
19 Leather & Leather Products 2429.25 277.68 2706.93 362.01
20 Gems & Jewellery 12693.13 2242.65 14935.78 2488.56
21 Construction 24910.98 1823.43 26734.41 6708.64
22 Petroleum 28474.74 4084.51 32559.25 18721.10
23 Automobiles & Trucks 9589.81 3628.03 13217.84 6212.10
24 Computer Software 2570.21 70.69 2640.90 1241.91
25 Infrastructure 222107.72 58206.11 280313.83 91144.46
25.1 Of which Power 145270.79 31708.25 176979.04 28453.01
25.2 Of which Telecommunication 13059.30 8573.03 21632.33 14616.17
25.3 Of which Roads & Ports 28347.94 9001.68 37349.62 22695.73
26 Other Industries 262967.80 20928.98 283896.78 49860.96
27 NBFCs & Trading 249720.30 9776.92 259497.21 30014.03
28 Residual Advances 687797.26 19167.47 706964.73 13216.08
  Total 1849358.09 225104.50 2074462.60 391795.47
 216 Pillar 3 Disclosures

(` In crore) DF-4: CREDIT RISK: DISCLOSURES FOR PORTFOLIOS SUBJECT TO

3508618.32
229103.49
40395.71
1072790.62
1968127.80
47551.71
134973.52
15675.47
TOTAL THE STANDARDISED APPROACH
Qualitative Disclosures
zz Names of Credit Rating Agencies used, plus reasons for
any changes

1419759.38
40154.02
40380.96
547315.98
722696.69
37.64
39174.09
0.00
Over 5 years

As per RBI Guidelines, the Bank has identified CARE, CRISIL, ICRA,
India Rating, SMERA, Brickwork (Domestic Credit Rating Agencies),
INFOMERICS, FITCH, Moody’s, INFOMERICS and S&P (International
Rating Agencies) as approved Rating Agencies, for the purpose
of rating Domestic and Overseas Exposures, respectively, whose

462466.89
18571.79
11.53
175314.24
253998.45
268.25
14302.63
0.00
Over 3 years
&upto 5 years

ratings are used for the purpose of computing Risk-weighted Assets

and Capital Charge.
zz Types of exposures for which each Agency is used
(i) For Exposures with a contractual maturity of less than or
equal to one year (except Cash Credit, Overdraft and other
501388.70
18747.60
3.22
166247.81
291710.82
1075.91
23603.34
0.00
Over 1 year
&upto 3 years

Revolving Credits), Short-term Ratings given by approved

Rating Agencies are used.
(ii) For Cash Credit, Overdraft and other Revolving Credits
(irrespective of the period) and for Term Loan exposures of
over 1 year, Long Term Ratings are used.
368208.26
19091.24
0.00
56156.56
276785.82
846.38
15328.26
0.00
Over 6 months
&upto 1 year

zz Description of the process used to transfer Public Issue

Ratings onto comparable assets in the Banking Book
i) Insurance entities, Non-financial entities, JVs, Special Purpose Vehicles & Intra-group Adjustments are excluded.

The key aspects of the Bank’s external ratings application

framework are as follows:
DF-3 (e) SBI (CONSOLIDATED) Residual contractual maturity breakdown of assets as on 31.03.2018*

ii) Investments include Non-performing Investments and Advances includes Non-performing Advances.

zz All long term and short term ratings assigned by the credit
rating agencies specifically to the Bank’s long term and short
183721.47
23544.15
0.00
33704.01
120962.42
791.29
4719.60
0.00
Over 3 months
&upto 6
months

term exposures respectively are considered by the Bank as

iii) The Bucketing structure has been revised based on the RBI guidelines dated March 23, 2016.

issue specific ratings.

zz Foreign sovereign and foreign bank exposures are risk-
weighted based on issuer ratings assigned to them.
zz The Bank ensures that the external rating of the facility/
115563.63
17325.34
0.00
29602.85
54401.62
2507.49
1726.33
0.00
More than 2
months &upto
3 months

borrower has been reviewed at least once by the ECAI during

the previous 15 months and is in force on the date of its
application.
zz Where multiple issuer ratings are assigned to an entity by
various credit rating agencies, In this context, the lower rating,
212936.23 129121.22 115452.54
17459.44
0.00
43021.23
50090.98
2960.73
1920.16
0.00
31 days
&upto 2
months

where there are two ratings and the second-lowest rating

where there are three or more ratings are used for a given
facility.
Long-term Issue Specific Ratings (For the Bank’s own exposures or
other issuance of debt by the same borrower-constituent/counter-
19727.35
0.00
7192.44
99014.15
1638.56
1548.72
0.00
15-30 days

party) or Issuer (borrower-constituents/counter-party) Ratings

are applied to other unrated exposures of the same borrower-
constituent/counter-party in the following cases:
zz If the Issue Specific Rating or Issuer Rating maps to Risk Weight
equal to or higher than the unrated exposures, any other
54482.56
0.00
14235.50
58466.85
37425.46
32650.39
15675.47
1-14 days

unrated exposure on the same counter-party is assigned the

same Risk Weight, if the exposure ranks paripassu or junior to
the rated exposure in all respects.
zz In cases where the borrower-constituent/counter-party has
issued a debt (which is not a borrowing from the Bank), the
Balances with RBI

rating given to that debt is applied to the Bank’s unrated

Balances with

Other Assets
Investments

Fixed Assets
other Banks

exposures, if the Bank’s exposure ranks paripassu or senior

Advances
INFLOWS

to the specific rated debt in all respects and the maturity of

TOTAL

unrated Bank’s exposure is not later than the maturity of the

Cash
Table- B

rated debt
*Notes:
7
6
4
5
3
2
1

 
 
 217

Quantitative Disclosures as on 31.03.2018

(` In crore)
Amount
(b) For exposure amounts after risk mitigation subject to the Standardized Approach, Below 100% Risk Weight 1632686.41
amount of group’s outstanding (rated and unrated) in each risk bucket as well as 100% Risk Weight 494004.93
those that are deducted.
More than 100% Risk Weight 339566.73
Deducted 0.00
Total 2466258.07

DF-5: CREDIT RISK MITIGATION: DISCLOSURES FOR STANDARDISED APPROACHES

(a) Qualitative Disclosures

zz Policies and Processes for, and indication of the extent to which the bank makes use of, on-and off-balance Sheet netting
On-balance sheet netting is confined to loans/advances and deposits, where the Bank have legally enforceable netting arrangements,
involving specific lien with proof of documentation. The Bank calculates capital requirements on the basis of net credit exposures subject to
the following conditions:
Where bank,
a. has a well-founded legal basis for concluding that the netting or offsetting agreement is enforceable in each relevant jurisdiction
regardless of whether the counterparty is insolvent or bankrupt;
b. is able at any time to determine the loans/advances and deposits with the same counterparty that are subject to the netting agreement;
and
c. monitors and controls the relevant exposures on a net basis, it may use the net exposure of loans/advances and deposits as the basis for
its capital adequacy calculation. Loans/advances are treated as exposure and deposits as collateral
zz Policies and Processes for Collateral Valuation and Management
The Bank has an integrated Credit Risk Management, Credit Risk Mitigation and Collateral Management Policy in place which is reviewed
annually. Part B of this policy deals with Credit Risk Mitigation and Collateral Management, addressing the Bank’s approach towards the
credit risk mitigants used for capital calculation.
The objective of this Policy is to enable classification and valuation of credit risk mitigants in a manner that allows regulatory capital
adjustment to reflect them.
The Policy adopts the Comprehensive Approach, which allows full offset of collateral (after appropriate haircuts), wherever applicable
against exposures, by effectively reducing the exposure amount by the value ascribed to the collateral. The following issues are addressed
in the Policy :
(i) Classification of credit risk-mitigants
(ii) Acceptable credit risk-mitigants
(iii) Documentation and legal process requirements for credit risk-mitigants
(iv) Valuation of collateral
(v) Margin and Haircut requirements
(vi) External ratings
(vii) Custody of collateral
(viii) Insurance
(ix) Monitoring of credit risk mitigants
(x) General guidelines.
zz Description of the main types of collateral taken by the Bank
The following collaterals are usually recognised as Credit Risk Mitigants under the Standardised Approach :
Cash or Cash equivalent (Bank Deposits/NSCs/KVP/LIC Policy, etc.)
Gold
Securities issued by Central / State Governments
Debt Securities rated BBB- or better/ PR3/P3/F3/A3 for Short-Term Debt Instrument
218 Pillar 3 Disclosures

zz Main types of Guarantor Counterparty and their creditworthiness

The Bank accepts the following entities as eligible guarantors, in line with RBI guidelines :
‹‹ Sovereign, Sovereign entities [including Bank for International Settlements (BIS), International Monetary Fund (IMF), European
Central Bank and European Community as well as Multilateral Development Banks, Export Credit & Guarantee Corporation (ECGC)
and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)], Public Sector Enterprises (PSEs), Banks and Primary
Dealers with a lower risk weight than the counterparty.
‹‹ Other guarantors having an external rating of AA or better. In case the guarantor is a parent company, affiliate or subsidiary, they
should enjoy a risk weight lower than the obligor for the guarantee to be recognised by the Bank. The rating of the guarantor
should be an entity rating which has factored in all the liabilities and commitments (including guarantees) of the entity.
Information about (Market or Credit) risk concentrations within the mitigation taken:
The Bank has a well-dispersed portfolio of assets which are secured by various types of collaterals, such as:-
zz Eligible financial collaterals listed above
zz Guarantees by sovereigns and well-rated corporates,
zz Fixed assets and current assets of the counterparty.
Quantitative Disclosures as on 31.03.2018 (` In crore)
(b) For each separately disclosed credit risk portfolio the total exposure (after, where applicable, on- or off balance sheet 240264.68
netting) that is covered by eligible financial collateral after the application of haircuts.
c) For each separately disclosed portfolio the total exposure (after, where applicable, on- or off-balance sheet netting) that 17484.86
is covered by guarantees/credit derivatives (whenever specifically permitted by RBI)

DF-6: SECURITISATION EXPOSURES: DISCLOSURE FOR STANDARDISED APPROACH

As on 31.03.2018

  Qualitative Disclosures  
(a) The general qualitative disclosure requirement with respect to securitisation including a discussion of:
  The bank’s objectives in relation to securitisation activity, including the extent to which these activities transfer credit Nil
risk of the underlying securitised exposures away from the bank to other entities.
  The nature of other risks (e.g. liquidity risk) inherent in securitised assets; Not Applicable
  The various roles played by the bank in the securitisation process (For example: originator, investor, servicer, provider Not Applicable
of credit enhancement, liquidity provider, swap provider@, protection provider#) and an indication of the extent of
the bank’s involvement in each of them;
@ A bank may have provided support to a securitisation structure in the form of an interest rate swap or currency
swap to mitigate the interest rate/currency risk of the underlying assets, if permitted as per regulatory rules.
# A bank may provide credit protection to a securitisation transaction through guarantees, credit derivatives or any
other similar product, if permitted as per regulatory rules.
  A description of the processes in place to monitor changes in the credit and market risk of securitisation exposures Not Applicable
(for example, how the behaviour of the underlying assets impacts securitisation exposures as defined in para 5.16.1 of
the Master Circular on NCAF dated July 1, 2012).
  A description of the bank’s policy governing the use of credit risk mitigation to mitigate the risks retained through Not Applicable
securitisation exposures;
(b) Summary of the bank’s accounting policies for securitization activities, including:
  Whether the transactions are treated as sales or financings; Not Applicable
  Methods and key assumptions (including inputs) applied in valuing positions retained or purchased Not Applicable
  Changes in methods and key assumptions from the previous period and impact of the changes; Not Applicable
  Policies for recognising liabilities on the balance sheet for arrangements that could require the bank to provide Not Applicable
financial support for securitised assets.
(c ) In the banking book, the names of ECAIs used for securitisations and the types of securitisation exposure for which Not Applicable
each agency is used.
  Quantitative Disclosures: Banking Book
(d) The total amount of exposures securitised by the bank. Nil
(e) For exposures securitised losses recognised by the bank during the current period broken by the exposure type (e.g. Nil
Credit cards, housing loans, auto loans etc. detailed by underlying security)
 219

(f) Amount of assets intended to be securitised within a year Nil

(g) Of (f), amount of assets originated within a year before securitisation. Not Applicable
(h) The total amount of exposures securitised (by exposure type) and unrecognised gain or losses on sale by exposure Nil
type.
(i) Aggregate amount of:
  On-balance sheet securitisation exposures retained or purchased broken down by exposure type and Nil
  Off-balance sheet securitisation exposures broken down by exposure type Nil
(j) Aggregate amount of securitisation exposures retained or purchased and the associated capital charges, broken Nil
down between exposures and further broken down into different risk weight bands for each regulatory capital
approach
  Exposures that have been deducted entirely from Tier 1 capital, credit enhancing I/Os deducted from total capital, and Nil
other exposures deducted from total capital (by exposure type).
  Quantitative Disclosures: Trading Book 
(k) Aggregate amount of exposures securitised by the bank for which the bank has retained some exposures and which is Nil
subject to the market risk approach, by exposure type.
(I) Aggregate amount of:
  On-balance sheet securitisation exposures retained or purchased broken down by exposure type; and Nil
  Off-balance sheet securitisation exposures broken down by exposure type. Nil
(m) Aggregate amount of securitisation exposures retained or purchased separately for: Nil
  Securitisation exposures retained or purchased subject to Comprehensive Risk Measure for specific risk; and Nil
  Securitisation exposures subject to the securitisation framework for specific risk broken down into different risk Nil
weight bands.
(n) Aggregate amount of:
  The capital requirements for the securitisation exposures, subject to the securitisation framework broken down into Nil
different risk weight bands.
Securitization exposures that are deducted entirely from Tier 1 capital, credit enhancing I/Os deducted from total Nil
capital, and other exposures deducted from total capital(by exposure type).

DF 7: MARKET RISK IN TRADING BOOK (6) Risk management and reporting is based on parameters such as
Modified Duration, PV01, Option Greeks, Maximum permissible
As on 31.03.2018
exposures, Value at Risk Limits, Concentration Risk Limits, Cut
(a) QUALITATIVE DISCLOSURES: Loss Trigger and Management Action Triggers, in line with
global best practices.
(1) The Bank follows Standardised Measurement Method (SMM) for
computing capital requirement for Market Risk. (7) Forex Open position limit (Daylight/Overnight), Stop Loss
Limit, Aggregate Gap Limit (AGL), Individual Gap Limit (IGL)
(2) Market Risk Management Department (MRMD) is functioning as as approved by the Board is monitored and exceptions, if
a part of Risk Management Department of the Bank, in terms of any, is reported to Top Management of the Bank, Market Risk
Governance structure approved by the Board of the Bank. Management Committee and Risk Management Committee of
(3) MRMD is responsible for identification, assessment, monitoring the Board.
and reporting of market risk associated with Treasury Operations. (8) Value at Risk (VaR) is computed on a daily basis. Back-Testing of
(4) The following Board approved policies with defined Market Risk VaR number is carried out on daily basis. Stress Testing is carried
Management parameters for each asset class are in place: out at quarterly intervals as a complement to Value at Risk.
Results are reported to Top Management of the Bank, Market
(a) Market Risk Management Policy Risk Management Committee and Risk Management Committee
(b) Market Risk Limits of the Board.

(c) Investment Policy (9) Respective Foreign offices monitor risk of their investment
portfolio, as per the local regulatory and RBI stipulations. Stop
(d) Trading Policy Loss limit for individual investments and exposure limits for
(e) Stress Test Policy for Market Risk certain portfolios have been prescribed.

(5) Risk monitoring is an ongoing process and risk positions are (10) Bank has submitted Letter of Intent (LOI) to RBI to migrate to
analysed and reported to Top Management of the Bank, Market advanced approach i.e. Internal Models Approach for calculating
Risk Management Committee and Risk Management Committee capital charge for market risk and.
of the Board.
220 Pillar 3 Disclosures

(b) QUANTITATIVE DISCLOSURES:

CAPITAL CHARGE ON MARKET RISK

Bank maintains Capital Charge for Market Risk under the Standardised measurement method as under.
(` in crore)
Category 31.03.2018
Interest rate Risk (including Derivatives) 14481.79
Equity Position Risk 4958.99
Foreign Exchange Risk 173.77
Total 19614.55

DF–8: OPERATIONAL RISK

As on 31.03.2018

Qualitative disclosures
A. The structure and organization of Operational Risk Management function
‹‹ The Operational Risk Management Department functions in SBI as part of the Integrated Risk Governance Structure under the
control of respective Chief Risk Officer. In SBI, Chief Risk Officer reports to MD (Risk, IT & Subsidiaries)
‹‹ The operational risk related issues in other Group entities are being dealt with as per the requirements of the business model and
their regulators under the overall control of Chief Risk Officers of respective entities.
B. Policies for control and mitigation of Operational Risk in SBI
The following Policies, Framework Documents and Manuals are in place in SBI:
Policies and Framework Documents
‹‹ Operational Risk Management policy, encompasses Operational Risk Management Framework for systematic and proactive
identification, assessment, measurement, monitoring, mitigation and reporting of the Operational Risks
‹‹ Loss Data Management Policy;
‹‹ External Loss Data Management Policy;
‹‹ IS Policy;
‹‹ IT Policy;
‹‹ Business Continuity Planning (BCP) Policy;
‹‹ Business Continuity Management System (BCMS) Policy;
‹‹ Policy on Know Your Customer (KYC) Standards and Anti Money Laundering (AML)/ Combating of Financing of Terrorism Measures;
‹‹ Policy on Fraud Risk Management;
‹‹ Bank’s Outsourcing Policy;
‹‹ Policy on Insurance;
‹‹ Operational Risk Appetite Framework (SBI) Document;
‹‹ Capital Computation Framework Document;
Manuals
‹‹ Operational Risk Management Manual
‹‹ Loss Data Management Manual
‹‹ Business Continuity Planning (BCP) Manual
‹‹ Business Continuity Management System (BCMS) Manual
‹‹ External Loss Data Manual

Domestic Non-Banking and Overseas Banking entities

Policies and Manuals, as relevant to the business model of Non-Banking entities and as per the requirements of the overseas regulators in
respect of Overseas Banking subsidiaries are in place. A few of the policies in place are – Disaster Recovery Plan/ Business Continuity Plan,
Incident Reporting Mechanism, Near Miss Events Reporting Mechanism, Outsourcing Policy, etc.
 221

C. Strategies and Processes

Advanced Measurement Approach (Parallel Run)
‹‹ In SBI, in order to successfully embed the risk culture and operational risk management, Risk Management Committees at various
levels at circles like RMCAOs, RMCCs, and also RMCs at the Business and Support Groups (RNC-NBG, RMC-IBG, RMC-GMU, RMC-CBG,
RMC-MCG, RMC-SAMG & RMC-IT) are in place in addition to the Operational Risk Management Committee (ORMC) and the Risk
Management Committee of the Board (RMCB).
‹‹ The process of building a comprehensive database of internal and external losses due to Operational Risks as per Basel defined 8
Business Lines and 7 Loss Event Types is in place, as part of AMA process. In addition, Near Miss Events and external losses are also
captured so as to improve risk management practices.
‹‹ Excel based template for conducting Risk & Control Self-Assessment (RCSA) exercise through workshops has been introduced with
the provision of Inherent Risk and Residual Risk, control element to arrive at and assess the effectiveness of the current control
environment and heat maps to describe the Risk Levels. During current financial year RCSA Phase-6 was rolled out across major
branches/CPCs. Top risks identified in the RCSA exercises along with their mitigation plan are being addressed on an ongoing basis.
‹‹ Key Indicators (KIs) have been identified across the Business and Support Groups with threshold and monitoring mechanism. KIs
are being monitored at quarterly intervals by the RMCs, the ORMC and the RMCB. Top 10 KIs have been identified during current
financial year.
‹‹ Bank also periodically undertakes the process of AMA Use-Test.
‹‹ Development of internal systems for quantifying and monitoring operational risk as required under Basel II defined Advanced
Measurement Approach (AMA) is in place.
‹‹ The Bank has already received approval for parallel run for AMA from RBI.
Others
‹‹ The following measures are being used to control and mitigate Operational Risks in the Domestic Banking entities:
‹‹ “Book of Instructions” (Manual on General Instructions, Manual on Loans & Advances) which contains detailed procedural guidelines
for processing various banking transactions. Amendments and modifications to update these guidelines are being carried out
regularly through e-circulars/Master circulars. Guidelines and instructions are also propagated through Job Cards, e-Circulars,
E-Learning Lessons, Mobile nuggets, Training Programs, etc.
‹‹ Updated Manuals and operating instructions relating to Business Process Re-engineering (BPR) units.
‹‹ Delegation of Financial powers, which details sanctioning powers of various levels of officials for different types of financial and
non-financial transactions.
‹‹ Training of staff-Inputs on Operational Risk is included as a part of Risk Management modules in the trainings conducted for various
categories of staff at Bank’s Apex Training Institutes and State Bank Learning Centers.
‹‹ Insurance cover is obtained for most of the potential operational risks excluding frauds as per Bank’s policy on insurance.
‹‹ Internal Auditors are responsible for the examination and evaluation of the adequacy and effectiveness of the control systems and
the functioning of specific control procedures. They also conduct review of the existing systems to ensure compliance with legal
and regulatory requirements, codes of conduct and the implementation of policies and procedures.
‹‹ In order to ensure business continuity, resumption and recovery of critical business process after a disaster, the Bank has robust
Business Continuity Management Policy and Manuals in place.
‹‹ Stringent Implementation of vacation policy.
‹‹ Conduct of RAW (Risk Awareness Workshop) at all branches.
Domestic Non-Banking and Overseas Banking entities
Adequate measures by way of systems and procedures and reporting has been put in place in the Domestic Non-Banking and Overseas
Banking entities.

D. The scope and nature of Risk Reporting and Measurement Systems

‹‹ A system of prompt submission of reports on Frauds is in place in all the Group entities.
‹‹ A comprehensive system of Preventive Vigilance & Whistle Blowing has been established in all the Group entities.
‹‹ Significant risks thrown up in RCSA/RAW exercise, Scenario Analysis and loss data analysis are reported to Top Management at
regular intervals and corrective actions are initiated on an ongoing basis.
‹‹ Basic Indicator Approach with capital charge of 15% of average gross income for previous 3 years is applied for Operational Risk,
except Insurance Companies, for the year ended 31st March, 2018. Bank’s Capital under AMA is also computed for the year ended
31st March, 2018 as part of AMA Parallel Run.
222 Pillar 3 Disclosures

DF–9: Interest Rate Risk in the Banking Book (IRRBB) 1.4 The prudential limit aims to restrict the overall adverse impact
on account of interest rate risk to the extent of 20% of capital
As on 31.03.2018
and reserves, while part of the remaining capital and reserves
Qualitative Disclosures serves as cushion for other risks.

INTEREST RATE RISK:

Quantitative Disclosures
Interest rate risk refers to impact on Bank’s Net Interest Income
and the value of its assets and liabilities arising from fluctuations in Earnings at Risk (EaR)
interest rate due to internal and external factors. Internal factors (` in crore)
include the composition of the Bank’s assets and liabilities, quality, Impact on NII
maturity, existing rates and re-pricing period of deposits, borrowings,
Impact of 100 bps parallel shift in interest rate on 2,635.96
loans and investments. External factors cover general economic
both assets & liability on Net Interest Income (NII)
conditions. Rising or falling interest rates impact the Bank depending
on whether the Balance Sheet is asset sensitive or liability sensitive.
Market Value of Equity (MVE)
The Asset - Liability Management Committee (ALCO) is responsible (` in crore)
for evolving appropriate systems and procedures for ongoing Impact on
identification and analysis of Balance Sheet risks and laying down MVE
parameters for efficient management of these risks through
Impact of 200 bps parallel shift in interest rate on 26,292.31
Asset Liability Management Policy of the Bank. ALCO, therefore,
both assets & liability on Market Value of Equity
periodically monitors and controls the risks and returns, funding
(MVE)
and deployment, setting Bank’s lending and deposit rates, and
directing the investment activities of the Bank. ALCO also develops Impact of 100 bps parallel shift in interest rate on 13,146.16
the market risk strategy by clearly articulating the acceptable levels both assets & liability on Market Value of Equity
of exposure to specific risk types (i.e. interest rate, liquidity etc). (MVE)
The Risk Management Committee of the Board of Directors (RMCB)
oversees the implementation of the system for ALM and reviews its DF-10: GENERAL DISCLOSURE FOR EXPOSURE RELATED TO
functioning periodically and provides direction. It reviews various COUNTERPARTY CREDIT RISK
decisions taken by Asset - Liability Management Committee (ALCO)
for managing interest risk. As on 31.03.2018

1.1 RBI has stipulated monitoring of interest rate risk through a Qualitative Disclosure:
Statement of Interest Rate Sensitivity (Repricing Gaps) to be Counterparty Credit Risk is the risk that the counterparty to a
prepared on a monthly basis. Accordingly, ALCO reviews Interest derivative transaction can default before the final settlement of the
Rate Sensitivity statement on monthly basis and monitors the transaction’s cash flow. To mitigate this risk, derivative transactions
Earning at Risk (EaR) which measures the change in Net Interest are undertaken only with those counterparties where approved
Income of the Bank due to parallel change in interest rate on counterparty limits are in place. Counterparty limits for banks are
both the assets & liabilities. assessed using internal models considering a number of financial
1.2 RBI has also stipulated to estimate the impact of change in parameters like networth, capital adequacy ratio, rating etc. For
interest rates on economic value of bank’s assets and liabilities corporates, the Derivatives limits are assessed and sanctioned in
through Interest rate sensitivity under Duration Gap Analysis conjunction with regular credit limit as part of regular appraisal.
(IRS-DGA). Bank also carries out Duration Gap Analysis as
stipulated by RBI on monthly basis. The impact of interest rate Quantitative Disclosure:
changes on the Market Value of Equity is monitored through (` in crore)
Duration Gap Analysis by recognizing the changes in the value Distribution of Notional and Notional Current
of assets and liabilities by a given change in the market interest Current Credit Exposure (` In credit
rate. The change in value of equity (including reserves) with crore) exposure
2% parallel shift in interest rates for both assets and liabilities is a) Interest rate Swaps 103996.59 449.90
estimated.
b) Cross Currency Swaps 78423.62 1369.39
1.3 The following prudential limits have been fixed for monitoring
of various interest risks: c) Currency Options 26175.32 304.75
d) Foreign Exchange Contracts 198946.19 1991.68
Changes on account of Interest rate Maximum Impact
volatility (as % of capital e) Currency Futures 0.00 0.00
and reserve) f) Forward Rate Agreements 0.00 0.00
Changes in Net Interest Income (with 1% 5% g) Others (please specify product 0.00 0.00
change in interest rates for both assets and name)
liabilities)
Total 407617.82 4115.72
Change in Market value of Equity (with 20%
2% change in interest rates for assets and
liabilities) – Banking Book only
 223

DF-11 : COMPOSITION OF CAPITAL

As on 31.03.2018
(` in crore)
Basel III common disclosure template to be used from March 31, 2017
Common Equity Tier 1 capital: instruments and reserves Ref No.
(with respect to
DF - 12: Step 2)
1 Directly issued qualifying common share capital plus related stock surplus (share premium) 80016.67 A1 + B3
2 Retained earnings 112509.48 B1 + B2 + B7 +
B8 (#)
3 Accumulated other comprehensive income (and other reserves) 15965.05 B5 * 75% + B6
* 45%
4 Directly issued capital subject to phase out from CET1 (only applicable to non-joint stock    
companies)
5 Common share capital issued by subsidiaries and held by third parties (amount allowed in 802.62  
group CET1)
6 Common Equity Tier 1 capital before regulatory adjustments 209293.82  
Common Equity Tier 1 capital: regulatory adjustments
7 Prudential valuation adjustments    
8 Goodwill (net of related tax liability) 1734.07 D
9 Intangibles (net of related tax liability) 63.92  
10 Deferred Tax Assets 13889.32  
11 Cash-flow hedge reserve    
12 Shortfall of provisions to expected losses    
13 Securitisation gain on sale    
14 Gains and losses due to changes in own credit risk on fair valued liabilities    
15 Defined-benefit pension fund net assets    
16 Investments in own shares (if not already netted off paid-up capital on reported balance 27.60  
sheet)
17 Reciprocal cross-holdings in common equity 58.02  
18 Investments in the capital of banking, financial and insurance entities that are outside the    
scope of regulatory consolidation, net of eligible short positions, where the bank does not
own more than 10% of the issued share capital (amount above 10% threshold)
19 Significant investments in the common stock of banking, financial and insurance entities that    
are outside the scope of regulatory consolidation, net of eligible short positions (amount
above 10% threshold)
20 Mortgage servicing rights (amount above 10% threshold)    
21 Deferred tax assets arising from temporary differences (amount above 10% threshold, net of    
related tax liability)
22 Amount exceeding the 15% threshold    
23 of which: significant investments in the common stock of financial entities    
24 of which: mortgage servicing rights    
25 of which: deferred tax assets arising from temporary differences    
26 National specific regulatory adjustments (26a+26b+26c+26d) 1693.50  
26a of which: Investments in the equity capital of unconsolidated insurance subsidiaries 1394.30  
26b of which: Investments in the equity capital of unconsolidated non-financial subsidiaries 299.20  
26c of which: Shortfall in the equity capital of majority owned financial entities which have not    
been consolidated with the bank
26d of which: Unamortised pension funds expenditures    
224 Pillar 3 Disclosures

Ref No.
(with respect to
DF - 12: Step 2)
27 Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1    
and Tier 2 to cover deductions
28 Total regulatory adjustments to Common equity Tier 1 17466.43  
29 Common Equity Tier 1 capital (CET1) 191827.39  
Additional Tier 1 capital: instruments
30 Directly issued qualifying Additional Tier 1 instruments plus related stock surplus (share 11055.25  
premium) (31+32)
31 of which: classified as equity under applicable accounting standards (Perpetual Non-    
Cumulative Preference Shares)
32 of which: classified as liabilities under applicable accounting standards (Perpetual debt 11055.25  
Instruments)
33 Directly issued capital instruments subject to phase out from Additional Tier 1 2185.00  
34 Additional Tier 1 instruments (and CET1 instruments not included in row 5) issued by 86.36  
subsidiaries and held by third parties (amount allowed in group AT1)
35 of which: instruments issued by subsidiaries subject to phase out    
36 Additional Tier 1 capital before regulatory adjustments 13326.61  
Additional Tier 1 capital: regulatory adjustments
37 Investments in own Additional Tier 1 instruments    
38 Reciprocal cross-holdings in Additional Tier 1 instruments 391.18  
39 Investments in the capital of banking, financial and insurance entities that are outside the    
scope of regulatory consolidation, net of eligible short positions, where the bank does not
own more than 10% of the issued common share capital of the entity (amount above 10%
threshold)
40 Significant investments in the capital of banking, financial and insurance entities that are    
outside the scope of regulatory consolidation (net of eligible short positions)
41 National specific regulatory adjustments (41a+41b) 0.00  
41a of which: Investments in the Additional Tier 1 capital of unconsolidated insurance subsidiaries    
41b of which: Shortfall in the Additional Tier 1 capital of majority owned financial entities which    
have not been consolidated with the bank
42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover    
deductions
43 Total regulatory adjustments to Additional Tier 1 capital 391.18  
44 Additional Tier 1 capital (AT1) 12935.43  
45 Tier 1 capital (T1 = CET1 + AT1) (29 + 44) 204762.82  
Tier 2 capital: instruments and provisions
46 Directly issued qualifying Tier 2 instruments plus related stock surplus 16258.00  
47 Directly issued capital instruments subject to phase out from Tier 2 13582.84  
48 Tier 2 instruments (and CET1 and AT1 instruments not included in rows 5 or 34) issued by 148.00  
subsidiaries and held by third parties (amount allowed in group Tier 2)
49 of which: instruments issued by subsidiaries subject to phase out    
50 Provisions 12872.50  
51 Tier 2 capital before regulatory adjustments 42861.34  
 225

Ref No.
(with respect to
DF - 12: Step 2)
Tier 2 capital: regulatory adjustments
52 Investments in own Tier 2 instruments 88.01  
53 Reciprocal cross-holdings in Tier 2 instruments 29.39  
54 Investments in the capital of banking, financial and insurance entities that are outside the    
scope of regulatory consolidation, net of eligible short positions, where the bank does not
own more than 10% of the issued common share capital of the entity (amount above the 10%
threshold)
55 Significant investments in the capital banking, financial and insurance entities that are outside    
the scope of regulatory consolidation (net of eligible short positions)
56 National specific regulatory adjustments (56a+56b) 0.00  
56a of which: Investments in the Tier 2 capital of unconsolidated insurance subsidiaries    
56b of which: Shortfall in the Tier 2 capital of majority owned financial entities which have not    
been consolidated with the bank
57 Total regulatory adjustments to Tier 2 capital 117.40  
58 Tier 2 capital (T2) 42743.94  
59 Total capital (TC = T1 + T2) (45 + 58) 247506.76  
60 Total risk weighted assets (60a + 60b + 60c) 1945151.99  
60a of which: total credit risk weighted assets 1500281.59  
60b of which: total market risk weighted assets 245181.90  
60c of which: total operational risk weighted assets 199688.50  
Capital ratios and buffers
61 Common Equity Tier 1 (as a percentage of risk weighted assets) 9.86  
62 Tier 1 (as a percentage of risk weighted assets) 10.53  
63 Total capital (as a percentage of risk weighted assets) 12.72  
64 Institution specific buffer requirement (minimum CET1 requirement plus capital conservation 7.675  
plus countercyclical buffer requirements plus G-SIB buffer requirement, expressed as a
percentage of risk weighted assets)
65 of which: capital conservation buffer requirement 1.875  
66 of which: bank specific countercyclical buffer requirement 0.00  
67 of which: G-SIB buffer requirement 0.30  
68 Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted assets) 4.36  
National minima (if different from Basel III)
69 National Common Equity Tier 1 minimum ratio (if different from Basel III minimum) 5.50  
70 National Tier 1 minimum ratio (if different from Basel III minimum) 7.00  
71 National total capital minimum ratio (if different from Basel III minimum) 9.00  
Amounts below the thresholds for deduction (before risk weighting)
 
72 Non-significant investments in the capital of other financial entities    
73 Significant investments in the common stock of financial entities    
74 Mortgage servicing rights (net of related tax liability)    
75 Deferred tax assets arising from temporary differences (net of related tax liability) 776.16  
226 Pillar 3 Disclosures

Ref No.
(with respect to
DF - 12: Step 2)
Applicable caps on the inclusion of provisions in Tier 2
76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardised 12872.50  
approach (prior to application of cap)
77 Cap on inclusion of provisions in Tier 2 under standardised approach 18753.52  
78 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings- 0.00  
based approach (prior to application of cap)
79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach 0.00  
Capital instruments subject to phase-out arrangements (only applicable between March 31, 2017
and March 31, 2022)
80 Current cap on CET1 instruments subject to phase out arrangements 0.00  
81 Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities) 0.00  
82 Current cap on AT1 instruments subject to phase out arrangements 40%  
83 Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities)    
84 Current cap on T2 instruments subject to phase out arrangements 40%  
85 Amount excluded from T2 due to cap (excess over cap after redemptions and maturities)    
Notes to the Template
Row No. Particular (` in crore)
of the
template
10 Deferred tax assets associated with accumulated losses 13889.32
Deferred tax assets (excluding those associated with accumulated losses) net of Deferred tax 776.16
liability
Total as indicated in row 10 13889.32
19 If investments in insurance subsidiaries are not deducted fully from capital and instead 0.00
considered under 10% threshold for deduction, the resultant increase in the capital of bank
of which: Increase in Common Equity Tier 1 capital 0.00
of which: Increase in Additional Tier 1 capital 0.00
of which: Increase in Tier 2 capital 0.00
26b If investments in the equity capital of unconsolidated non-financial subsidiaries are not 0.00
deducted and hence, risk weighted then:
(i) Increase in Common Equity Tier 1 capital 0.00
(ii) Increase in risk weighted assets 0.00
50 Eligible Provisions included in Tier 2 capital 12872.50
Eligible Revaluation Reserves included in Tier 2 capital 0.00
Total of row 50 12872.50

# B7: Revenue & Other Reserves is taken net of Integration & Development Fund (` 5 crore)
 227

DF -12: Composition of Capital - Reconciliation Requirement

As on 31.03.2018
Consolidated Balance Sheet of SBI Group as per Basel III as on 31.03.2018
Step 1
(` In crore)
Balance sheet as in Balance sheet under
financial statements regulatory scope of
consolidation
As on reporting date As on reporting date
Capital & Liabilities
Paid-up Capital 892.46 892.46
Reserves & Surplus 229,429.49 222,864.61
Minority Interest 4,615.24 1,751.56
Total Capital 234,937.19 225,508.63
Deposits 2,722,178.28 2,723,574.19
of which: Deposits from banks 20,268.13 20,268.13
of which: Customer deposits 2,701,910.15 2,703,306.06
of which: Other deposits (pl. specify)
Borrowings 369,079.34 369,103.91
of which: From RBI 95,394.09 95,394.09
of which: From banks 176,568.31 176,568.31
of which: From other institutions & agencies 49,598.53 49,597.93
of which: Others (pl. specify) - -
of which: Capital instruments 47,518.41 47,543.58
Other liabilities & provisions 290,238.19 171,283.16
Total 3,616,433.00 3,489,469.89
Assets
Cash and balances with Reserve Bank of India 150,769.46 150,648.92
Balance with banks and money at call and short notice 44,519.65 42,432.89
Investments 1,183,794.24 1,065,074.66
of which: Government securities 911,688.79 865,596.73
of which: Other approved securities 9,203.63 -
of which: Shares 36,911.26 10,532.74
of which: Debentures & Bonds 141,913.12 113,320.62
of which: Subsidiaries / Joint Ventures / Associates 3,175.05 2,054.58
of which: Others (Commercial Papers, Mutual Funds etc.) 80,902.39 73,569.99
Loans and advances 1,960,118.54 1,959,947.04
of which: Loans and advances to banks 80,389.71 80,389.71
of which: Loans and advances to customers 1,879,728.83 1,879,557.33
Fixed assets 41,225.79 40,570.45
Other assets 234,271.25 229,061.86
of which: Goodwill - -
of which: Other intangibles (excluding MSRs) - -
of which: Deferred tax assets 11,837.70 11,800.37
Goodwill on consolidation 1,734.07 1,734.07
Debit balance in Profit & Loss account - -
Total Assets 3,616,433.00 3,489,469.89
228 Pillar 3 Disclosures

Step 2
(` In crore)
Balance sheet as in Balance sheet under Reference
financial statements regulatory scope of number
consolidation
As on reporting As on reporting
date date
Capital & Liabilities
Paid-up Capital 892.46 892.46 A
of which: Amount eligible for CET 1 892.46 892.46 A1
of which: Amount eligible for AT1 - - A2
Reserves & Surplus 229,429.49 222,864.61 B
of which: Statutory Reserve 65,958.04 65,958.04 B1
of which: Capital Reserves 9,578.08 9,578.08 B2
of which: Share Premium 79,124.21 79,124.21 B3
of which: Investment Reserve - - B4
of which: Foreign Currency Translation Reserve 6,379.10 6,377.93 B5
of which: Revaluation Reserve 24,847.99 24,847.99 B6
of which: Revenue and Other Reserve 53,483.27 50,297.23 B7
of which: Balance in Profit & Loss Account (9,941.20) (13,318.87) B8
Minority Interest 4,615.24 1,751.56
Total Capital 234,937.19 225,508.63
Deposits 2,722,178.28 2,723,574.19
of which: Deposits from banks 20,268.13 20,268.13
of which: Customer deposits 2,701,910.15 2,703,306.06
of which: Other deposits (pl. specify)
Borrowings 369,079.34 369,103.91
of which: From RBI 95,394.09 95,394.09
of which: From banks 176,568.31 176,568.31
of which: From other institutions & agencies 49,598.53 49,597.93
of which: Others (pl. specify) - -
of which: Capital instruments 47,518.41 47,543.58
Other liabilities & provisions 290,238.19 171,283.16
of which: DTLs related to goodwill
of which: DTLs related to intangible assets
Total 3,616,433.00 3,489,469.89
Assets
Cash and balances with Reserve Bank of India 150,769.46 150,648.92
Balance with banks and money at call and short notice 44,519.65 42,432.89
Investments 1,183,794.24 1,065,074.66
of which: Government securities 911,688.79 865,596.73
of which: Other approved securities 9,203.63 -
of which: Shares 36,911.26 10,532.74
of which: Debentures & Bonds 141,913.12 113,320.62
 229

Balance sheet as in Balance sheet under Reference

financial statements regulatory scope of number
consolidation
As on reporting As on reporting
date date
of which: Subsidiaries / Joint Ventures / Associates 3,175.05 2,054.58
of which: Others (Commercial Papers, Mutual Funds etc.) 80,902.39 73,569.99
Loans and advances 1,960,118.54 1,959,947.04
of which: Loans and advances to banks 80,389.71 80,389.71
of which: Loans and advances to customers 1,879,728.83 1,879,557.33
Fixed assets 41,225.79 40,570.45
Other assets 234,271.25 229,061.86
of which: Goodwill - -
of which: Other intangibles (excluding MSRs) - -
of which: Deferred tax assets 11,837.70 11,800.37 C
Goodwill on consolidation 1,734.07 1,734.07 D
Debit balance in Profit & Loss account - -
Total Assets 3,616,433.00 3,489,469.89

DF-16: Equities - Disclosure for Banking Book Positions

As on 31.03.2018

Qualitative Disclosures
1 The general qualitative disclosure with respect to equity risk,
including:
Differentiation between holdings on which capital gains are All equity investment in HTM Category are made in Associates,
expected and those taken under other objectives including for Subsidiaries and Joint Ventures. These are strategic in nature.
relationship and strategic reasons;
Discussion of important policies covering the valuation and Accounting and valuation policies for securities held under HTM
accounting of equity holdings in the banking book. This includes category are detailed under Schedule 17 of Bank’s Annual Report.
the accounting techniques and valuation methodologies used,
including key assumptions and practices affecting valuation as
well as significant changes in these practices

Quantitative Disclosures
(` In crore)
1 Value disclosed in the balance sheet of investments, as well as the fair value of those investments; for quoted 539.40
securities, a comparison to publicly quoted share values where the share price is materially different from fair value.
2 The types and nature of investments, including the amount that can be classified as:
Particulars Type Book Value
(In crore)
Publicly traded Subsidiaries 621.00
Privately held Associates, 4,460.11
Subsidiaries & JVs
Note : The amount includes only the investment in the books of Global Markets

3 The cumulative realized gains (losses) arising from sales and liquidations in the reporting period 5596.26
4 Total unrealized gains (losses) -15.48
5 Total latent revaluation gains (losses) NIL
6 Any amounts of the above included in Tier 1 and/or Tier 2 capital -1.09
7 Capital requirements broken down by appropriate equity groupings, consistent with the bank’s methodology, as well 0.05
as the aggregate amounts and the type of equity investments subject to any supervisory transition or grandfathering
provisions regarding regulatory capital requirements
230 Pillar 3 Disclosures

DF-17: Summary comparison of accounting

assets vs. leverage ratio exposure measure
As on 31.03.2018
  ITEM (` In millions)
1 Total consolidated assets as per published financial statements 36164330.00
2 Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for -1269631.10
accounting purposes but outside the scope of regulatory consolidation
3 Adjustment for fiduciary assets recognized on the balance sheet pursuant to the operative accounting framework 0
but excluded from the leverage ratio exposure measure
4 Adjustments for derivative financial instruments 250,053.79
5 Adjustment for securities financing transactions (i.e. repos and similar secured lending) 16377.70
6 Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures) 3081725.67
7 Other adjustments -178576.11
8 Leverage ratio exposure 38064279.95

DF-18: Leverage ratio common disclosure template

As on 31.03.2018

  ITEM (` In millions)
  On balance sheet exposures  
1 On-balance sheet items (excluding derivatives and SFTs, but including collateral) 34894698.90
2 (Asset amounts deducted in determining Basel III Tier 1 capital) -178576.11
3 Total on-balance sheet exposures (excluding derivatives and SFTs) (sum of lines 1 and 2) 34716122.79
  Derivatives exposures  
4 Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation margin) 35,256.28
5 Add-on amounts for PFE associated with all derivatives transactions 214,797.51
6 Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to the 0
operative accounting framework
7 (Deductions of receivables assets for cash variation margin provided in derivatives transactions) 0
8 (Exempted CCP leg of client-cleared trade exposures) 0
9 Adjusted effective notional amount of written credit derivatives 0
10 (Adjusted effective notional offsets and add-on deductions for written credit derivatives) 0
11 Total derivative exposures (sum of lines 4 to 10) 250,053.79
  Securities financing transaction exposure  
12 Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions 16377.70
13 (Netted amounts of cash payables and cash receivables of gross SFT assets) 0
14 CCR exposure for SFT assets 0
15 Agent transaction exposures 0
16 Total securities financing transaction exposures (sum of lines 12 to 15) 16377.70
  Other off balance sheet exposures  
17 Off-balance sheet exposure at gross notional amount 8920632.57
18 (Adjustments for conversion to credit equivalent amounts) -5838906.90
19 Off-balance sheet items (sum of lines 17 and 18) 3081725.67
  Capital and total exposures  
20 Tier 1 capital 2047628.23
21 Total exposures (sum of lines 3,11,16 and 19) 38,064,279.95
  Leverage ratio  
22 Basel III leverage ratio 5.38
 231

DF- GR: Additional Disclosures on Group Risk

As on 31.03.2018

Qualitative Disclosure
In respect of Group entities *
[Overseas Banking entities and Non-Banking entities]
General Description on
Corporate Governance Practices All Group entities adhere to good Corporate Governance practices.
Disclosure Practices All Group entities adhere to / follow good disclosure practices.
Arm’s Length Policy in respect of Intra Group All Intra-Group transactions within the State Bank Group have been effected on Arm’s
Transactions Length basis, both as to their commercial terms and as to matters such as provision of
security.
Common marketing, branding and use of SBI’s No Group entity has made use of SBI symbol in a manner that may indicate to public
Symbol that common marketing, branding implies implicit support of SBI to the Group entity.
Details of Financial Support,# if any No Group entity has provided / received Financial Support from any other entity in the
Group.
Adherence to all other covenants of Group Risk All covenants of the Group Risk Management Policy have meticulously been complied
Management policy with by the Group entities.

Intra-group transactions which may lead to the following have been broadly treated as ‘Financial Support’:
a) inappropriate transfer of capital or income from one entity to the other in the Group;
b) vitiation of the Arm’s Length Policy within which the Group entities are expected to operate;
c) adverse impact on the solvency, liquidity and profitability of the individual entities within the Group;
d) evasion of capital or other regulatory requirements;
e) operation of ‘Cross Default Clauses’ whereby a default by a related entity on an obligation (whether financial or otherwise) is deemed to
trigger a default on itself.

* Entities covered:
BANKING - OVERSEAS NON - BANKING
State Bank of India (California) SBI Capital Markets Ltd.
State Bank of India (Canada) SBI Cards & Payment Services Pvt. Ltd.
SBI (Mauritius) Ltd. SBI DFHI Ltd.
Commercial Indo Bank LLC, Moscow SBI Funds Management Pvt. Ltd.
Nepal SBI Bank Ltd. SBI General Insurance Company Ltd.
PT Bank SBI Indonesia SBI Global Factors Ltd.
State Bank of India (Botswana) Ltd. SBI Life Insurance Co. Ltd.
SBI Pension Funds Pvt. Ltd.
SBI-SG Global Securities Services Pvt. Ltd.
SBI Payment Services Pvt. Ltd.

Disclosures pertaining to key features of regulatory capital instruments (DF-13) and the full terms and conditions of regulatory capital instruments
(DF-14) have been disclosed separately on the Bank’s website- www.sbi.co.in under the link Corporate Governance – Basel – 3 Disclosures’ Section

Disclosures on indicators for identification of Global Systemically Important Banks (G-SIBs) as on 31st March, 2018 have been disclosed
separately on the Bank’s website www.sbi.co.in under the link Corporate Governance