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STATUTORY REQUIRMENTS OF STATE BANK OF INDIA MASTER OF COMMERCE ADVANCED ACCOUNTANCY SEMESTER – 1 ACADEMIC YEAR (2014-2015) SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENT FOR THE AWARD OF DEGREE OF MASTER OF COMMERCE ADVANCED FINANCIAL ACCOUNTING BY OLIA UTPAL BISWAS SEAT NO

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Page 1: Sbi Statue

STATUTORY REQUIRMENTS OF STATE BANK OF INDIA

MASTER OF COMMERCE

ADVANCED ACCOUNTANCY

SEMESTER – 1

ACADEMIC YEAR (2014-2015)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENT FOR

THE AWARD OF DEGREE OF

MASTER OF COMMERCE

ADVANCED FINANCIAL ACCOUNTING

BY

OLIA UTPAL BISWAS

SEAT NO

JAI HIND COLLEGE

‘A’ ROAD, CHURCHGATE, MUMBAI- 400020

Page 2: Sbi Statue

DECLARATION

I hereby declare that the project work entitled

"STATUTORY REQUIREMENT OF STATE BANK OF INDIA”

submitted to the JAI HIND COLLEGE Churchgate, is done by me

OLIA UTPAL BISWAS, and this project work is submitted in the

partial fulfillment of therequirements for the award of the degree of

Master of commerce in accounts. The results embodied in this project

have not been submitted to any other University or Institute for the

award of any degree or diploma.

OLIA UTPAL BISWAS

Seat no.

Page 3: Sbi Statue

INDEX

Sr.no

.

Particulars Page no.

1 Introducion

About SBI 4

History of SBI 5

Vision, mission and values 13

SWOT analysis 14

Major competitors 17

2 Operation spread 18

Domestic presence 19

International presence 19

3 Important legal aspects 20

Licensing of banking companies (sec.22) 23

Prohibiting trading (sec.8) 27

Disposal of immovable property (sec. 9) 28

Minimum aggregate value of paid up Capital and

reserve (sec. 11)

29

Management (sec. 10) 33

Capital structure (sec. 12) 34

Commission on sale of shares (sec. 13) 35

Statutory reserve (sec. 17) 36

Restriction on payment of dividend (sec 15) 37

4 Guidelines for Appointment of Statutory Auditors in

Public Sector Banks By RBI

38

Page 4: Sbi Statue

5 Facilities provided by SBI 44

6 Preparation of financial statement 52

7 Comparative standalone P&L statements of preceeding four

years

54

8 Comparative standalone balance sheet of preceeding four

years.

55

9 conclusion 56

10 Bibliography 59

Introduction

Page 5: Sbi Statue

About SBI

State Bank of India (SBI) is a multinational banking and financial

services company based in India. The Bank is actively involved since

1973 in non-profit activity called Community Services Banking. All

their branches and administrative offices throughout the country sponsor

and participate in large number of welfare activities and social causes.

Their business is more than banking because we touch the lives of

people anywhere in many ways

Their commitment to nation-building is complete & comprehensive

It is a government-owned corporation with its headquarters in Mumbai,

Maharashtra. As of December 2013, it had assets of US$388 billion and

17,000 branches, including 190 foreign offices, making it the largest

banking and financial services company in India by assets.

State Bank of India is one of the Big Four banks of India, along

with ICICI Bank, Punjab National Bank and HDFC Bank.

State Bank of India is a regional banking behemoth and has 20% market

share in deposits and loans among Indian commercial banks.

HISTORY OF SBI

Page 6: Sbi Statue

The origin of the State Bank of India goes back to the first decade of the

nineteenth century with the establishment of the Bank of Calcutta in

Calcutta on 2 June 1806. Three years later the bank received its charter

and was re-designed as the Bank of Bengal (2 January 1809). A unique

institution, it was the first joint-stock bank of British India sponsored by

the Government of Bengal. The Bank of Bombay (15 April 1840) and

the Bank of Madras (1 July 1843) followed the Bank of Bengal. These

three banks remained at the apex of modern banking in India till their

amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into

existence either as a result of the compulsions of imperial finance or by

the felt needs of local European commerce and were not imposed from

outside in an arbitrary manner to modernise India's economy. Their

evolution was, however, shaped by ideas culled from similar

developments in Europe and England, and was influenced by changes

occurring in the structure of both the local trading environment and

those in the relations of the Indian economy to the economy of Europe

and the global economic framework.

Page 7: Sbi Statue

Bank of Bengal H.O.

Establishment

The establishment of the Bank of Bengal marked the advent of limited

liability, joint-stock banking in India. So was the associated innovation

in banking, viz. the decision to allow the Bank of Bengal to issue notes,

which would be accepted for payment of public revenues within a

restricted geographical area. This right of note issue was very valuable

not only for the Bank of Bengal but also its two siblings, the Banks of

Bombay and Madras. It meant an accretion to the capital of the banks, a

capital on which the proprietors did not have to pay any interest. The

concept of deposit banking was also an innovation because the practice

of accepting money for safekeeping (and in some cases, even investment

on behalf of the clients) by the indigenous bankers had not spread as a

general habit in most parts of India. But, for a long time, and especially

Page 8: Sbi Statue

upto the time that the three presidency banks had a right of note issue,

bank notes and government balances made up the bulk of the investible

resources of the banks.

Group photo of central board(1921)

Business

The business of the banks was initially confined to discounting of bills

of exchange or other negotiable private securities, keeping cash accounts

and receiving deposits and issuing and circulating cash notes. Loans

were restricted to Rs.one lakh and the period of accommodation

confined to three months only. The security for such loans was public

Page 9: Sbi Statue

securities, commonly called Company's Paper, bullion, treasure, plate,

jewels, or goods 'not of a perishable nature' and no interest could be

charged beyond a rate of twelve per cent. Loans against goods like

opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and

silk goods were also granted but such finance by way of cash credits

gained momentum only from the third decade of the nineteenth century.

All commodities, including tea, sugar and jute, which began to be

financed later, were either pledged or hypothecated to the bank. Demand

promissory notes were signed by the borrower in favour of the

guarantor, which was in turn endorsed to the bank. Lending against

shares of the banks or on the mortgage of houses, land or other real

property was, however, forbidden.

Old Bank of Bengal

Major change in the conditions

A major change in the conditions of operation of the Banks of Bengal,

Bombay and Madras occurred after 1860. With the passing of the Paper

Currency Act of 1861, the right of note issue of the presidency banks

was abolished and the Government of India assumed from 1 March 1862

the sole power of issuing paper currency within British India. The task

Page 10: Sbi Statue

of management and circulation of the new currency notes was conferred

on the presidency banks and the Government undertook to transfer the

Treasury balances to the banks at places where the banks would open

branches. None of the three banks had till then any branches (except the

sole attempt and that too a short-lived one by the Bank of Bengal at

Mirzapore in 1839) although the charters had given them such authority.

But as soon as the three presidency bands were assured of the free use of

government Treasury balances at places where they would open

branches, they embarked on branch expansion at a rapid pace. By 1876,

the branches, agencies and sub agencies of the three presidency banks

covered most of the major parts and many of the inland trade centres in

India. While the Bank of Bengal had eighteen branches including its

head office, seasonal branches and sub agencies, the Banks of Bombay

and Madras had fifteen each.

bank of Madras note date 1961 for Rs.10

Page 11: Sbi Statue

EVOLUTION OF SBI

The origin of the State Bank of India goes back to the first decade of the

nineteenth century with the establishment of the Bank of Calcutta in

Calcutta on 2 June 1806. Three years later the bank received its charter

and was re-designed as the Bank of Bengal (2 January 1809). A unique

institution, it was the first joint-stock bank of British India sponsored by

the Government of Bengal. The Bank of Bombay (15 April 1840) and

the Bank of Madras (1 July 1843) followed the Bank of Bengal. These

three banks remained at the apex of modern banking in India till their

amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into

existence either as a result of the compulsions of imperial finance or by

the felt needs of local European commerce and were not imposed from

outside in an arbitrary manner to modernise India's economy. Their

evolution was, however, shaped by ideas culled from similar

developments in Europe and England, and was influenced by changes

occurring in the structure of both the local trading environment and

those in the relations of the Indian economy to the economy of Europe

and the global economic framework.Presidency Banks Act

The presidency Banks Act, which came into operation on 1 May 1876,

brought the three presidency banks under a common statute with similar

restrictions on business. The proprietary connection of the Government

Page 12: Sbi Statue

was, however, terminated, though the banks continued to hold charge of

the public debt offices in the three presidency towns, and the custody of

a part of the government balances. The Act also stipulated the creation

of Reserve Treasuries at Calcutta, Bombay and Madras into which sums

above the specified minimum balances promised to the presidency banks

at only their head offices were to be lodged. The Government could lend

to the presidency banks from such Reserve Treasuries but the latter

could look upon them more as a favour than as a right.

Bank of Madras

Bank of Madras

The decision of the Government to keep the surplus balances in Reserve

Treasuries outside the normal control of the presidency banks and the

connected decision not to guarantee minimum government balances at

new places where branches were to be opened effectively checked the

growth of new branches after 1876. The pace of expansion witnessed in

the previous decade fell sharply although, in the case of the Bank of

Page 13: Sbi Statue

Madras, it continued on a modest scale as the profits of that bank were

mainly derived from trade dispersed among a number of port towns and

inland centres of the presidency.

Presidency Banks of Bengal

The presidency Banks of Bengal, Bombay and Madras with their 70

branches were merged in 1921 to form the Imperial Bank of India.

Imperial Bank

The Imperial Bank during the three and a half decades of its existence

recorded an impressive growth in terms of offices, reserves, deposits,

investments and advances, the increases in some cases amounting to

more than six-fold. The financial status and security inherited from its

forerunners no doubt provided a firm and durable platform.

STAMP OF IMPERIAL BANK

Page 14: Sbi Statue

VISION

My SBI.

My Customer first.

My SBI: First in customer satisfaction

MISSION

We will be prompt, polite and proactive with our customers.

We will speak the language of young India.

We will create products and services that help our customers

achieve their goals.

We will go beyond the call of duty to make our customers feel

valued.

We will be of service even in the remotest part of our country.

We will offer excellence in services to those abroad as much as we

do to those in India.

We will imbibe state of the art technology to drive excellence.

VALUES

We will always be honest, transparent and ethical.

We will respect our customers and fellow associates.

We will be knowledge driven.

We will learn and we will share our learning.

We will never take the easy way out.

Page 15: Sbi Statue

We will do everything we can to contribute to the community we

work in.

We will nurture pride in India

SWOT analysis of SBI

SBI has its roots since 1806 which was later transformed under various

names, finally SBI Was established after the act in parliament on May

1955. In the year 1959 SBI took over 8 state owned banks and since then

it started to grow up carrying its heritage of servicing people at various

economic levels.

Strengths

SBI is the largest bank in India in terms of market share, revenue

and assets.

As per recent data the bank has more than 13,000 outlets and

25,000 ATM centres

The bank has its presence in 32 countries engaging currency trade

all over the world

The bank has a merged with State Bank of Saurashtra, State bank

of Indore and the bank is planning to go further acquisition in the

current FY2012.

SBI has the first mover advantage in commercial banking service

SBI has recently changed its vision and mission statements

showing a sign of inclination towards new age banking services

Page 16: Sbi Statue

Weakness

Lack of proper technology driven services when compared to

private banks

Employees show reluctance to solve issues quickly due to higher

job security and customers’ waiting period is long when compared

to private banks

The banks spends a huge amount on its rented buildings

SBI has the largest number of employees in banking sector, hence

the bank spends a considerable amount of its income in employee’s

salary compensation

In spite of modernization, the bank still carries the perception of

traditional bank to new age customers

SBI fails to attract salary accounts of corporate and many

government sector employees salary accounts are also shifted to

private bank for ease of operations unlike before

Opportunities

SBI’s merger with five more banks namely State Bank of

Hyderebad, State bank of Patiala, State bank of Bikaber and Jaipur,

State of bank of Travancore and State bank of Mysore are in

approval stage

Mergers will result in expansion of market share to defend its

number one position

Page 17: Sbi Statue

SBI is planning to expand and invest in international operations

due to good inflow of money from Asian Market

Since the bank is yet to modernize few of its banking operations,

there is a better scope of using advanced technologies and software

to improve customer relations

Young and talented pool of graduates and B schools are in rise to

open new horizon to so called “old government bank”

Threats

Net profit of the year has decline from 9166.05 in the year FY

2010 to 7,370.35 in the year FY2011

This shows the reduce in market share to its close competitor

ICICI

Other private banks like HDFC, AXIS bank etc

FDIs allowed in banking sector is increased to 49% , this is a major

threat to SBI as people tend to switch to foreign banks for better

facilities and technologies in banking service

Other government banks like PNB, Andhra, Allahabad bank and

Indian bank are showing

Customer prefer to switch to private banks and financial service

providers for loans and mortgages, as SBI involves stringent

verification procedures and take long time for processing.

Page 18: Sbi Statue

Major competitors

Some of the major competitors for SBI in the banking sector are Axis

Bank, ICICI Bank, HDFC Bank, Punjab National Bank, Bank of

Baroda, Indusind Bank, Canara Bank and Bank of India. However in

terms of average market share, SBI is by far the largest player in the

market.

Page 19: Sbi Statue

Operations

SBI provides a range of banking products through its network of

branches in India and overseas, including products aimed at non-resident

Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are

located at important cities throughout India.

Domestic presence

SBI has 14,816 branches in India, as on 31 March 2013, of which 9,851

(66%) were in Rural and Semi-urban areas.[1] In the financial year 2012-

13, its revenue was INR 200,560 Crores (US$ 36.9 billion), out of which

domestic operations contributed to 95.35% of revenue. Similarly,

domestic operations contributed to 88.37% of total profits for the same

financial year.

Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion

launched by Government in August 2014, SBI held 11,300 camps and

opened over 30 lakhs accounts by September, which included 21.16 lakh

accounts in rural areas and 8.8 lakh accounts in urban areas.

International presence

Page 20: Sbi Statue

The Israeli branch of the State Bank of India located in Ramat Gan.

As of 28 June 2013, the bank had 180 overseas offices spread over 34

countries. It has branches of the parent in Moscow, Colombo, Dhaka,

Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles,

Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and

Tokyo. It has offshore banking units in the Bahamas, Bahrain,

and Singapore, and representative offices in Bhutan and Cape Town. It

also has an ADB in Boston, USA.

The Canadian subsidiary, State Bank of India (Canada) also dates to

1982. It has seven branches, four in the Toronto area and three in

theVancouver area.

SBI operates several foreign subsidiaries or affiliates. In 1990, it

established an offshore bank: State Bank of India (Mauritius). SBI

(Mauritius) has 15 branches in major cities/towns of the country

including Rodrigues.

Page 21: Sbi Statue

State Bank of India Branch atJaffna, Sri Lanka

SBI Sri Lanka, Oldest Bank in Sri Lanka now has three branches located

in Colombo, Kandy and Jaffna. The 3rd branch was opened inJaffna,

Northern Province on 09th September 2013. On 1st July 2014 SBI Sri

Lanka celebrated their 150th year presence in Sri Lanka.

State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong

In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches

throughout the country. In Moscow, SBI owns 60% of Commercial

Bank of India, with Canara Bank owning the rest. In Indonesia, it owns

76% of PT Bank Indo Monex.

The State Bank of India already has a branch in Shanghai and plans to

open one in Tianjin.

Page 22: Sbi Statue

In Kenya, State Bank of India owns 76% of Giro Commercial Bank,

Associate banks

Main Branch of SBI in Mumbai.

SBI has five associate banks; all use the State Bank of India logo, which

is a blue circle, and all use the "State Bank of" name, followed by the

regional headquarters' name:

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

Non-banking subsidiaries

Apart from its five associate banks, SBI also has the following non-

banking subsidiaries:

SBI Capital Markets  Ltd

SBI Funds Management Pvt. Ltd

SBI Factors & Commercial Services Pvt. Ltd

Page 23: Sbi Statue

SBI Cards  & Payments Services Pvt. Ltd. (SBICPSL)

SBI DFHI Ltd

SBI Life Insurance Company Limited

SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP

Paribas (with 26% of the remaining capital), to form a joint venture life

insurance company named SBI Life Insurance company Ltd.

IMPORTANT LEGAL ASPECTS

Page 24: Sbi Statue

Section 22 in BANKING REGULATION ACT,1949

22. Licensing of banking companies

(1) Save as hereinafter provided, no company shall carry on banking

business in India unless it holds a licence issued in that behalf by the

Reserve Bank and any such licence may be issued subject to such condi-

tions as the Reserve Bank may think fit to impose.]

(2) Every banking company in existence on the commencement of this

Act, before the expiry of six months from such commencement, and

every other company before commencing banking business [in India],

shall apply in writing to the Reserve Bank for a licence under this

section: Provided that in the case of a banking company in existence on

the commencement of this Act, nothing in sub-section (1) shall be

deemed to prohibit the company from carrying on banking business until

it is granted a licence in pursuance of 3[this section] or is by notice in

writing informed by the Reserve Bank that a licence cannot be granted

to it: Provided further that the Reserve Bank shall not give a notice as

aforesaid to a banking company in existence on the commencement of

this Act before the expiry of the three years referred to in sub-section (1)

of section 11 or of such further period as the Reserve Bank may under

that sub-section think fit to allow.

(3) Before granting any licence under this section, the Reserve Bank

may require to be satisfied by an inspection of the books of the company

Page 25: Sbi Statue

or otherwise that the following conditions are fulfilled, namely:— 5[(a)

that the company is or will be in a position to pay its present or future

depositors in full as their claims accrue;

(b) that the affairs of the company are not being, or are not likely to be,

conducted in a manner deterimental to the interests of its present or

future depositors that the general character of the proposed management

of the company will not be prejudicial to the public interest or the

interest of its depositors;

(d) that the company has adequate capital structure and earning

prospects;

(e) that the public interest will be served by the grant of a licence to the

company to carry on banking business in India;

(f) that having regard to the banking facilities available in the proposed

principal area of operations of the company, the potential scope for

expansion of banks already in existence in the area and other relevant

factors the grant of the licence would not be prejudicial to the operation

and consolidation of the banking system consistent with monetary

stability and economic growth;

(g) any other condition, the fulfilment of which would, in the opinion of

the Reserve Bank, be necessary to ensure that the carrying on of banking

business in India by the company will not be prejudicial to the public

interest or the interests of the depositors. 7[(3A) Before granting any

Page 26: Sbi Statue

licence under this section to a company incorporated outside India, the

Reserve Bank may require to be satisfied by an inspection of the books

of the company or otherwise that the conditions specified in sub-section

(3) are fulfilled and that the carrying on of banking business by such

company in India will be in the public interest and that the Government

or law of the country in which it is incorporated does not discriminate in

any way against banking companies registered in India and that the

company complies with all the provisions of this Act applicable to

banking companies incorporated outside India.] 8[(4) The Reserve Bank

may cancel a licence granted to a banking company under this section —

(i) if the company ceases to carry on banking business in India; or

(ii) if the company at any time fails to comply with any of the conditions

imposed upon it under sub-section (1); or

(iii) if at any time, any of the conditions referred to in sub-section (3) 9

and sub-section (3A)] is not fulfilled: Provided that before cancelling a

licence under clause (ii) or clause (iii) of this sub-section on the ground

that the banking company has failed to comply with or has failed to fulfil

any of the conditions referred to therein, the Reserve Bank, unless it is of

opinion that the delay will be prejudicial to the interests of the

company’s depositors or the public, shall grant to the company on such

terms as it may specify, an opportunity of taking the necessary steps for

complying with or fulfilling such condition.

Page 27: Sbi Statue

(5) Any banking company aggrieved by the decision of the Reserve

Bank cancelling a licence under this section may, within thirty days

from the date on which such decision is communicated to it, appeal to

the Central Government.

(6) The decision of the Central Government where an appeal has been

preferred to it under sub-section (5) or of the Reserve Bank where no

such appeal has been preferred shall be final.

Section 8 in BANKING REGULATION ACT,1949

8. Prohibition of trading.—Notwithstanding anything contained in

section 6 or in any contract, no banking company shall directly or

indirectly deal in the buying or selling or bartering of goods, except in

connection with the realisation of security given to or held by it, or

engage in any trade, or buy, sell or barter goods for others otherwise

than in connection with bills of exchange received for collection or

negotiation or with such of its business as is referred to in clause

(i) of sub-section (1) of section 6: 42 [Provided that this section shall not

apply to any such business as is specified in pursuance of clause (o) of

sub-section (1) of section 6.] Explanation.—For the purposes of this

section, “goods” means every kind of movable property, other than

actionable claims, stocks, shares, money, bullion and specie, and all

instruments referred to in clause (a) of sub-section (1) of section 6.

Page 28: Sbi Statue

Section 9 in BANKING REGULATION ACT,1949

9. Disposal of non-banking assets.—Notwithstanding anything

contained in section 6, no banking company shall hold any immovable

property howsoever acquired, except such as is required for its own use,

for any period exceeding seven years from the acquisition thereof or

from the commencement of this Act, whichever is later or any extension

of such period as in this section provided, and such property shall be

disposed of within such period or extended period, as the case may be:

Provided that the banking company may, within the period of seven

years as aforesaid deal or trade in any such property for the purpose of

facilitating the disposal thereof: Provided further that the Reserve Bank

may in any particular case extend the aforesaid period of seven years by

such period not exceeding five years where it is satisfied that such

extension would be in the interests of the depositors of the banking

company.

Section 11 in BANKING REGULATION ACT,1949

11. Requirement as to minimum paid-up capital and reserves.—

Page 29: Sbi Statue

(1) Notwithstanding anything contained in 73 [section 149 of the

Companies Act, 1956 (1 of 1956)], no banking company in existence on

the commencement of this Act, shall, after the expiry of three years from

such commencement or of such further period not exceeding one year as

the Reserve Bank, having regard to the interests of the depositors of the

company, may think fit in any particular case to allow, carry on business

74 [in India], and no other banking company shall after the

commencement of this Act, commence or carry on business 74 [in India]

75 [unless it complies with such of the requirements of this section as

are applicable to it].

76 [(2) In the case of a banking company incorporated outside India—

(a) the aggregate value of its paid-up capital and reserves shall not be

less than fifteen lakhs of rupees and if it has a place or places of business

in the city of Bombay or Calcutta or both, twenty lakhs of rupees; and

(b) 77 [the banking company shall deposit and keep deposited with the

Reserve Bank either in cash or in the form of unencumbered approved

securities, or partly in cash and partly in the form of such securities—

(i) an amount which shall not be less than the minimum required by

clause (a); and

(ii) as soon as may be after the expiration of each 78 [***] year, an

amount calculated at twenty per cent of its profit for that year in respect

of all business transacted through its branches in India, as disclosed in

Page 30: Sbi Statue

the profit and loss account prepared with reference to that year under

section 29:] Provided that any such banking company may at any time

replace—

(i) any securities so deposited by cash or by any other unencumbered

approved securities or partly by cash and partly by other such securities,

so however, that the total amount deposited is not affected;

(ii) any cash so deposited by unencumbered approved securities of an

equal value.]

79 [(2A) Notwithstanding anything contained in sub-section (2), the

Central Government may, on the recommendation of the Reserve Bank,

and having regard to the adequacy of the amounts already deposited and

kept deposited by a banking company under sub-section (2), in relation

to its deposit liabilities in India, declare by order in writing that the

provisions of sub-clause (ii) of clause (b) of sub-section (2) shall not

apply to such banking company for such period as may be specified in

the order.]

(3) In the case of any banking company to which the provisions of sub-

section (2) do not apply, the aggregate value of its paid-up capital and

reserves shall not be less than—

(i) if it has places of business in more than one State, five lakhs of

rupees, and if any such place or places of business is or are situated in

the city of Bombay or Calcutta or both, ten lakhs of rupees;

Page 31: Sbi Statue

(ii) if it has all its places of business in one State none of which is

situated in the city of Bombay or Calcutta, one lakh of rupees in respect

of its principal place of business, plus ten thousand rupees in respect of

each of its other places of business situated in the same district in which

it has its principal place of business, plus twenty-five thousand rupees in

respect of each place of business situated elsewhere in the State other-

wise than in the same district: Provided that no banking company to

which this clause applies shall be required to have paid-up capital and

reserves exceeding an aggregate value of five lakhs of rupees: Provided

further that no banking company to which this clause applies and which

has only one place of business, shall be required to have paid-up capital

and reserves exceeding an aggregate value of fifty thousand rupees: 80

[Provided further that in the case of every banking company to which

this clause applies and which commences banking business for the first

time after the commencement of the Banking Companies (Amendment)

Act, 1962 (36 of 1962), the value of its paid-up capital shall not be less

than five lakhs of rupees;]

(iii) if it has all its places of business in one State, one or more of which

is or are situated in the city of Bombay or Calcutta, five lakhs of rupees,

plus twenty-five thousand rupees in respect of each place of business

situated outside the city of Bombay or Calcutta, as the case may be:

Provided that no banking company to which this clause applies shall be

required to have paid-up capital and reserves exceeding an aggregate

Page 32: Sbi Statue

value of ten lakhs of rupees. Explanation.—For the purposes of this sub-

section, a place of business situated 81 [in a State] other than that in

which the principal place of business of the banking company is situated

shall, if it is not more than twenty-five miles distant from such principal

place of business, be deemed to be situated within the same State as such

principal place of business.

(4) Any amount deposited and kept deposited with the Reserve Bank

under 82 [***] sub-section (2) by any banking company incorporated 83

[outside India] shall, in the event of the company ceasing for any reason

to carry on banking business 84 [in India], be an asset of the company on

which the claims of all the creditors of the company 84 [in India] shall

be a first charge.

85 (5) For the purposes of this section,—

(a) “place of business” means any office, sub-office, sub-pay office and

any place of business at which deposits are received, cheques cashed, or

moneys lent;

(b) “value” means the real or exchangeable value, and not the nominal

value which may be shown in the books of the banking company

concerned.]

(6) If any dispute arises in computing the aggregate value of the paid-up

capital and reserves of any banking company, a determination thereof by

the Reserve Bank shall be final for the purposes of this section.

Page 33: Sbi Statue

Section 10(1) in BANKING REGULATION ACT,1949

(1) No banking company—

(a) shall employ or be managed by a managing agent; or

(b) shall employ or continue the employment of any person—

(i) who is, or at any time has been, adjudicated insolvent, or has

suspended payment or has compounded with his creditors,or who is, or

has been, convicted by a criminal court of an offence involving moral

turpitude; or

(ii) whose remuneration or part of whose remuneration takes the form of

commission or of a share in the profits of the company: 44 [Provided

that nothing contained in this sub-clause shall apply to the payment by a

banking company of—

(a) any bonus in pursuance of a settlement or award arrived at or made

under any law relating to industrial disputes or in accordance with any

scheme framed by such banking company or in accordance with the

usual practice prevailing in banking business;

(b) any commission to any broker (including guarantee broker), cashier-

contractor, clearing and forwarding agent, auctioneer or any other

Page 34: Sbi Statue

person, employed by the banking company under a contract otherwise

than as a regular member of the staff of the company; or]

(iii) whose remuneration is, in the opinion of the Reserve Bank,

excessive; or

(c) shall be managed by any person—

45 [(i) who is a director of any other company not being—

(a) a subsidiary of the banking company, or

(b) a company registered under section 25 of the Companies Act, 1956

(1 of 1956): Provided that the prohibition in this sub-clause shall not

apply in respect of any such director for a temporary period not ex-

ceeding three months or such further period not exceeding nine months

as the Reserve Bank may allow; or]

(ii) who is engaged in any other business or vocation; or

(iii) 46 [whose term of office as a person managing the company is] for

period exceeding five years at any one time: 47 [Provided that the term

of office of any such person may be renewed or extended by further

periods not exceeding five years on each occasion subject to the

condition that such renewal/extension shall not be sanctioned earlier

than two years from the date on which it is to come into force: Provided

also that where the term of office of such person is for an indefinite

period, such term, unless it otherwise comes to an end eallier, shall come

Page 35: Sbi Statue

to an end immediately on the expiry of five years from the date of his

appointment or on the expiry of three months from the date of

commencement of section 8 of the Banking Laws (Miscellaneous

Provisions) Act, 1963 (55 of 1963), whichever is later:] Provided further

that nothing in this clause shall apply to a director, other than the

managing director, of a banking company by reason only of his being

such director. Explanation.—For the purpose of sub-clause (iii) of clause

(b), the expression "remuneration”, in relation to person employed or

continued in employment, shall include salary, fees and perquisites but

shall not include any allowances or other amounts paid to him for the

purpose of reimbursing him in respect of the expense actually incurred

by him in the performance of his duties.

Section 12 in BANKING REGULATION ACT,1949

86 [12. Regulation of paid-up capital, subscribed capital and authorised

capital and voting rights of shareholders.—

(1) No banking company shall carry on business in India, unless it

satisfies the following conditions, namely:—

(i) that the subscribed capital of the company is not less than one-half of

the authorised capital, and the paid-up capital is not less than one-half of

the subscribed capital and that, if the capital is increased, it complies

with the conditions prescribed in this clause within such period not

exceeding two years as the Reserve Bank may allow;

Page 36: Sbi Statue

(ii) that the capital of the company consists of ordinary shares only or of

ordinary shares or equity shares and such preferential shares as may

have been issued prior to the 1st day of July, 1944: Provided that

nothing contained in this sub-section shall apply to any banking

company incorporated before the 15th day of January, 1937.

(2) No person holding shares in a banking company shall, in respect of

any shares held by him, exercise voting rights 87 [on poll] 88 [in excess

of 89 [ten per cent.]] of the total voting rights of all the shareholders of

the banking company.

(3) Notwithstanding anything contained in any law for the time being in

force or in any contract or instrument no suit or other proceeding shall

be maintained against any person registered as the holder of a share in a

banking company on the ground that the title to the said share vests in a

person other than the registered holder: Provided that nothing contained

in this sub-section shall bar a suit or other proceeding—

(a) by a transferee of the share on the ground that he has obtained from

the registered holder a transfer of the share in accordance with any law

relating to such transfer; or

(b) on behalf of a minor or a lunatic on the ground that the registered

holder holds the share on behalf of the minor or lunatic.

(4) Every chairman, managing director or chief executive officer by

whatever name called of a banking company shall furnish to the Reserve

Page 37: Sbi Statue

Bank through that banking company returns containing full particulars

of the extent and value of his holding of shares, whether directly or

indirectly, in the banking company and of any change in the extent of

such holding or any variation in the rights attaching thereto and such

other information relating to those shares as the Reserve Bank may, by

order, require and in such form and at such time as may be specified in

the order.]

Section 13 in BANKING REGULATION ACT,1949

13. Restriction on commission, brokerage, discount, etc., on sale of

shares.—Notwithstanding anything to the contrary contained in 91

[sections 76 and 79 of the Companies Act, 1956 (1 of 1956)], no

banking company shall pay out directly or indirectly by way of

commission, brokerage, discount or remuneration in any form in respect

of any shares issued by it, any amount exceeding in the aggregate two

and one-half per cent. of the paid-up value of the said shares.

Guidelines for Appointment of Statutory Auditors in Public Sector

Banks By RBI

Page 38: Sbi Statue

Based on the recommendations of a Working Group (WG) to review the

norms for empanelment of statutory auditors for public sector banks and

other related issues and after seeking the approval of GoI, it has been

decided to revise the guidelines on appointment of statutory auditors in

public sector banks with effect from the year 2013-14. The revised

eligibility norms for empanelment of SCAs as prescribed by RBI in

consultation with the WG have been indicated in Annex 1. The

categorization/eligibility norms for empanelment of branch auditors

which have been kept unchanged are indicated in Annex 2.

The guidelines/instructions relating to the selection procedure to be

followed for appointment of statutory auditors in PSBs and details

thereof are furnished in Annex 3

Annex 1

Norms of Empanelment for Statutory Central Auditors

of Public Sector Banks applicable from the year 2013-14

As on 1 January of the relative year the firm should have

(i) minimum 7 full time chartered accountants, of which at least

5 should be full time partners exclusively associated* with

Page 39: Sbi Statue

the firm. These partners should have minimum continuous

association with the firm i.e. one each should have

continuous association with the firm at least for 15 years and

10 years , two with a minimum of 5 years each and one with

a minimum of one year. The remaining 2 full-time chartered

accountants or partners, as the case may be, should also have

a continuous association with the firm for a period of one

year*. Four of the partners should be FCAs. Also at least two

of the partners should have minimum 15 and 10 years

experience in practice. In case the paid Chartered Accountant

available with the firm without any break was admitted as a

partner of the said firm at a future date, his association with

the firm as a partner will be counted from the date of his

joining the firm as a paid Chartered Accountant.

(ii) the number of professional staff (excluding typists,

stenographers, computer operators, secretary/ies and sub-

ordinate staff etc.), consisting of audit and articled clerks

with the knowledge in book-keeping and accountancy and

are engaged in outdoor audit should be 18.

(iii) the standing of the firm should be of at least 15 years which

would be reckoned from the date of availability of one full

time FCA continuously with the firm.

Page 40: Sbi Statue

(iv) the firm should have minimum statutory central audit

experience of 15 years of public sector banks (before or after

nationalisation) and/or by way of statutory branch audit

thereof or that of statutory audit experience of a private

sector bank. In case any of the partner of an audit firm is

nominated / elected for a period of at least 3 years or more on

the Board of any public sector bank then his / her such

experience for a maximum period of three years will be

considered as bank audit experience, provided such

experience has not been earned by him/her concurrently i.e.

when his / her firm was assigned statutory audit of any PSB,

select all India financial Institutions or RBI.

(v) the firm should have statutory audit experience of 5 years of

the public sector undertakings (either Central or State

Government undertaking).

(vi) at least two partners of the firm or its paid Chartered

Accountants must possess DISA/CISA or any other

equivalent qualification.

(ANNEX 2) Norms for the empanelment of audit firms to be

appointed as statutory branch auditors for public sector banks

(2013-14)

Page 41: Sbi Statue

Cate-

gory

No. of CAs exclusively

associated with the firm

(Full time)

No. of partners exclusively

associated with the firm

(full time) (Out of 2)

Profe-

ssional

staff

Bank audit

experience

Standing

of the

audit

firm

(1) (2) (3) (4) (5) (6)

I. 5 3 8 The firm or

at least one

of the

partners

should have

a minimum

of 8 years

experience

of branch

audit of a

nationalised

bank and/

or of a

private

sector bank

8 years

II. 3 2 6 The firm or

at least one

of the

6 years 

(for the

firm or at

Page 42: Sbi Statue

partners

should have

preferably

conducted

branch

audit of a

nationalised

bank or of a

private

sector bank.

least one

partner)

III. 2 1 4 The firm or

at least one

of the CAs

should have

preferably

conducted

branch

audit of a

nationalised

bank or of a

private

sector bank

for at least

3 years

5 years 

(for the

firm or at

least one

partner)

IV. 2                        2

Even proprietorship concern without bank audit

2 Not 3 years

Page 43: Sbi Statue

experience may be considered as hitherto. (The

proprietary concerns of Chartered Accountants with 1

paid CA, 2 professional staff and not having any

statutory branch audit experience of a nationalised bank

or of a private sector bank will be treated at par with the

partnership firm after deducting their 3 years seniority

from the date of their establishment).

necessary 

 

ANNEX 3

PROCEDURE FOR APPOINTMENT OF

STATUTORY AUDITORS IN PUBLIC SECTOR BANKS

Statutory Central Auditors (SCAs)

1. For the year 2013-14 and onwards, GoI have approved the revision in

the norms on the number of SCAs to be appointed in PSB as under:

i) Category “A” Banks (Large Banks viz. Bank of Baroda, Bank of

India, Canara Bank, Punjab National Bank, Central Bank of India and

Union Bank of India) shall not have more than 6 SCAs. However, in

case of SBI the number of SCAs shall not be more than 14.

ii) Category “B” Banks (Medium Banks viz. Allahabad Bank,

Corporation Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of

Page 44: Sbi Statue

Commerce, Syndicate Bank and UCO Bank) shall not have more than 5

SCAs, and;

iii) Category “C” Banks (Small Banks viz. Andhra Bank, Bank of

Maharashtra, Dena Bank, Punjab & Sind Bank, United Bank of India,

Vijaya Bank, State Bank of Bikaner & Jaipur, State Bank of Hyderabad,

State Bank of Mysore, State Bank of Patiala and State Bank of

Travancore) shall not have more than 4 SCAs.

DIFFERENT TYPES OF FACILITIES PROVIDED BY SBI

Personal Banking

Page 45: Sbi Statue

Deposit Schemes: Whatever your needs - an investment of your

surplus funds or to create a fund for your childrens' education and

marriage.

You will find a product from SBI that suits your requirement, delivered

at a branch close to you.

Open an account with any of SBIs branches, all of them are fully

computerised, and realise the advantage of their vast network.

Place funds in Multi Option Deposit Scheme, a term deposit which is not

fixed at all and comes with a unique break-up facility which provides

you full liquidity as well as benefits of higher rates of returns, through

your savings bank account.

Alternately, keep that deposit intact by availing an overdraft facility, to

meet your occasional temporary funds requirements. They provide the

following:

(i) Premium Savings Account

(ii) Current Account

(iii) Savings Bank Account

(iv) Term Deposits

(v) SBI Capgains Plus (Capital Gain Scheme 1988)

Personal Finance: State Bank of India has a variety of schemes

under Personal Finance to satisfy varying needs of the banking

Page 46: Sbi Statue

public. The Bank offers the following schemes with attractive rates

of interest:

a. Home Loan

b. SBI Gold Loan

c. Car Loan

d. Personal Loans

e. Loans Against Securities

f. Loans Against Property

g. Career Loan

h. Education Loan

i. Central Scheme for Interest Subsidy on Education Loans

j. EMI Calculator

Many of our branches offer loans under Personal Finance. This

section also offers an EMI calculator to facilitate computation of

monthly repayment.

Services: State Bank of India offers a wide range of services in the

Personal Banking Segment which are indexed here. Click on each

of them to access the details.

1. eZ-trade@sbi

2. ATM SERVICES

3. GIFT CHEQUES

4. INTERNET BANKING

5. FOREIGN INWARD REMITTANCE

Page 47: Sbi Statue

6. LOCKER

7. CARDS

8. GREEN REMIT CARD

Gold Banking:

1. RETAIL SALE OF GOLD COINS

2. GOLD DEPOSIT SCHEME (GDS)

AGRICULTURAL BANKING

Branches of State Bank of India have covered a whole gamut of

agricultural activities. Some of them are:

Crop production, Horticulture, Plantation crops and Forestry

Mulberry cultivation, Rearing of silk worms and grainages

Allied activities like Dairy , Fisheries, Poultry, Sheep-Goat

andPiggery

Land development and reclamation

Farm mechanization and Refurbished second hand tractors

Digging of wells, Tube wells and Irrigation projects

Construction of Cold storages and Godowns

Processing of Agri-products and finance to Agri-input dealers

Loans against pledge of warehouse receipts and Loans against

produce stored by the farmer at his own premises

Page 48: Sbi Statue

Loans against Book Debts of Arthias

In fact Bank can cover any other agricultural related activities

undertaken.

Other facilities rendered to customers

BROKING SERVICES: SBI Capital Markets Ltd. has expanded

its retail broking network to help investors carry out their

broking transactions with confidence. At present the investors

can buy/sell shares at both NSE and BSE through their Retail

Broking Centres in the cash market.We furnish hereunder the

location of these Centres with full particulars of the contact

persons.All investors can approach these branches for their

broking needs.

E-PAY: Bill Payment(e-Pay) will let you to pay your

Telephone, Mobile, Electricity, Insurance and Credit Card bills

electronically over our Online SBI website

https://www.onlinesbi.com.

Say good-bye to queues: Check & Pay your bills online, 24 hours a

day, over e-Pay. You even get a Cyber Receipt for your payments

done online or scheduled over online SBI!

Page 49: Sbi Statue

If your biller presents bills online, you can also give us AutoPay

instructions and we will pay the bills as and when it falls due.

The national billers like LIC,SBI Cards, SBI Life Insurance etc. can

be paid at any centre accross the country.

You can add billers online using the Add Biller link on

https://www.onlinesbi.com site or you can fill up the SBI e-Pay

Registration Form (SeRF) which is available at the branch and submit

thereat. Branch will add your Billers for payment over e-Pay.

E-RAIL: Book your Railways Ticket Online.

(i) The facility has been launched wef Ist September 2003 in

association with IRCTC. The scheme facilitates Booking of

Railways Ticket Online. The salient features of the scheme are

as under:

(ii) All Internet banking customers can use the facility.

(iii) You are required to register on www.irctc.co.in. You can

select your train depending on your journey and book your

ticket online.

(iv) On giving payment option as SBI, the user will be redirected

to onlinesbi.com. After logging on to the site you will be

displayed payment amount, TID No. and Railway reference no.

Page 50: Sbi Statue

(v) On selecting the payment amount your account will be

debited. You will return to www.irctc.co.in. The ticket with

PNR No. will be displayed. You can print the ticket.

(vi) The ticket can be delivered or collected by the customer.

(vii) The user can collect the ticket personally at New Delhi

reservation counter .

(viii) The Payment amount will include ticket fare including

reservation charges, courier charges and Bank Service fee of Rs

10/.

(ix) For cancellation, the has ticket to be presented over

reservation counter.

(x) No cash will be paid at the time of cancellation. Only

cancellation ticket will be issued. Your account will be credited

after 4 days.

SAFE DEPOSIT LOCKER: For the safety of your valuables we

offer our customers safe deposit vault or locker facilities at a

large number of our branches. There is a nominal annual charge,

which depends on the size of the locker and the centre in which

the branch is located.

MICR CODES: In MICR technology the information is printed

on the instrument with a special type of ink which is made up of

Page 51: Sbi Statue

magnetic material. On insertion of the instrument in the

machine, the printed information is read by the machine. MICR

system is beneficial as it minimizes chances of error, clearing of

cheques becomes easy and transfer of funds becomes faster in

order to facilitate operations.

FOREIGN INWARD REMITTANCES:

Drafts in Indian rupees can be purchased from exchange companies

or our correspondents and mailed to the branch where you have your

account.

Telegraphic or wire transfers can be made through our branches

abroad [Click here to Branches] or our correspondents to branches

having SWIFT/TT drawing arrangements. Please indicate your

account number clearly.

Cheques can be deposited for credit of your accounts. These will be

collected and credited to your accounts.

Travelers cheques can be tendered by you personally during your visit

to India.

" SBI now provides your Account balance and last 5 Transaction

details over phone round the clock.

Page 52: Sbi Statue

Information on deposits/loan schemes and many more services are

available.''

PREPARATION OF FINANCIAL STATEMENT (sec 29)

29. Accounts and balance-sheet.—

(1) At the expiration of each calendar year [or at the expiration of a

period of twelve months ending with such date as the Central

Government may, by notification in the Official Gazette, specify in this

behalf,] every banking company incorporated in India, in respect of all

business transacted by it, and every banking company incorporated

4[outside India], in respect of all business transacted through its

branches 3[in India], shall prepare with reference to [that year or period,

as the case may be,] a balance-sheet and profit and loss account as on the

last working day of [that year or the period, as the case may be,] in the

Forms set out in the Third Schedule or as near thereto as circumstances

admit: [Provided that with a view to facilitating the transition from one

period, of accounting to another period of accounting under this sub-

section, the Central Government may, by order published in the Official

Gazette, make such provisions as it considers necessary or expedient for

the preparation of, or for other matters relating to, the balance sheet or

profit and loss account in respect of the concerned year or period, as the

case may be.]

Page 53: Sbi Statue

(2) The balance-sheet and profit and loss account shall be signed—

(a) in the case of a banking company incorporated in India, by the

manager or the principal officer of the company and where there are

more than three directors of the company, by at least three of those

directors, or where there are not more than three directors, by all the

directors, and

(b) in the case of a banking company incorporated outside India by the

manager or agent of the principal office of the company in India.

(3) Notwithstanding that the balance-sheet of a banking company is

under sub-section (1) required to be prepared in a form other than the

form 3[set out in Part I of Schedule VI to the Companies Act, 1956 (1 of

1956)], the requirements of that relating to the balance-sheet and profit

and loss account of a company shall, in so far as they are not

inconsistent with this Act, apply to the balance-sheet or profit and loss

account, as the case may be, of a banking company. 9[(3A) Companies

Act, 1956 (1 of 1956), the period to which the profit and loss account

relates shall, in the case of a banking company, be the period ending

with the last working day of the year immediately preceding the year in

which the annual general meeting is held.] 10[Explanation.—In sub-

section (3A), “year” means the year or, as the case may be, the period

referred to in sub-section (1).Comparitive profit and loss a/c records

State Bank of India

Page 54: Sbi Statue

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------  Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

  12 mths 12 mths 12 mths 12 mths 12 mths

IncomeInterest Earned 136,350.80 119,657.10 106,521.45 81,394.36 70,993.92

Other Income 18,552.92 16,034.84 14,351.45 14,930.42 14,968.15

Total Income 154,903.72 135,691.94 120,872.90 96,324.78 85,962.07ExpenditureInterest expended 87,068.63 75,325.80 63,230.37 48,867.96 47,322.48

Employee Cost 22,504.28 18,380.90 16,974.04 15,211.62 12,754.65

Selling and Admin Expenses 0.00 0.00 0.00 0.00 7,898.23

Depreciation 1,333.94 1,139.61 1,007.17 990.50 932.66

Miscellaneous Expenses 33,105.70 26,740.65 27,954.03 23,884.37 7,888.00

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 35,725.85 29,284.42 26,068.99 23,015.44 24,941.01

Provisions & Contingencies 21,218.07 16,976.74 19,866.25 17,071.05 4,532.53

Total Expenses 144,012.55 121,586.96 109,165.61 88,954.45 76,796.02  Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

  12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 10,891.17 14,104.98 11,707.29 7,370.35 9,166.05Extraordionary Items 0.00 0.00 0.00 0.00 0.00

Profit brought forward 0.34 0.34 6.05 0.34 0.34

Total 10,891.51 14,105.32 11,713.34 7,370.69 9,166.39Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 2,239.71 2,838.74 2,348.66 1,905.00 1,904.65

Corporate Dividend Tax 298.45 375.95 296.49 246.52 236.76

Per share data (annualised)Earning Per Share (Rs) 145.88 206.20 174.46 116.07 144.37Equity Dividend (%) 300.00 415.00 350.00 300.00 300.00

Book Value (Rs) 1,584.34 1,445.60 1,251.05 1,023.40 1,038.76

AppropriationsTransfer to Statutory Reserves 8,353.03 10,890.29 9,067.85 5,218.83 6,495.14

Transfer to Other Reserves 0.00 0.00 0.00 0.00 529.50

Proposed Dividend/Transfer to Govt 2,538.16 3,214.69 2,645.15 2,151.52 2,141.41

Balance c/f to Balance Sheet 0.32 0.34 0.34 0.34 0.34

Total 10,891.51 14,105.32 11,713.34 7,370.69 9,166.39

Page 55: Sbi Statue

Comparitive balancesheet records of SBI

Balance Sheet of State Bank of India ------------------- in Rs. Cr. -------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 746.57 684.03 671.04 635.00 634.88

Equity Share Capital 746.57 684.03 671.04 635.00 634.88

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 117,535.68 98,199.65 83,280.16 64,351.04 65,314.32

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 118,282.25 98,883.68 83,951.20 64,986.04 65,949.20

Deposits 1,394,408.51 1,202,739.57 1,043,647.36 933,932.81 804,116.23

Borrowings 183,130.88 169,182.71 127,005.57 119,568.96 103,011.60

Total Debt 1,577,539.39 1,371,922.28 1,170,652.93 1,053,501.77 907,127.83

Other Liabilities & Provisions 96,412.96 95,455.07 80,915.09 105,248.39 80,336.70

Total Liabilities 1,792,234.60 1,566,261.03 1,335,519.22 1,223,736.20 1,053,413.73

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Page 56: Sbi Statue

Assets

Cash & Balances with RBI 84,955.66 65,830.41 54,075.94 94,395.50 61,290.87

Balance with Banks, Money at Call 47,593.97 48,989.75 43,087.23 28,478.65 34,892.98

Advances 1,209,828.72 1,045,616.55 867,578.89 756,719.45 631,914.15

Investments 398,308.19 350,927.27 312,197.61 295,600.57 285,790.07

Gross Block 8,002.16 6,595.71 5,133.87 4,764.19 11,831.63

Accumulated Depreciation 0.00 0.00 0.00 0.00 7,713.90

Net Block 8,002.16 6,595.71 5,133.87 4,764.19 4,117.73

Capital Work In Progress 0.00 409.31 332.68 0.00 295.18

Other Assets 43,545.90 47,892.03 53,113.02 43,777.85 35,112.76

Total Assets 1,792,234.60 1,566,261.03 1,335,519.24 1,223,736.21 1,053,413.74

Contingent Liabilities 1,091,358.37 993,018.45 899,565.18 790,389.59 429,917.37

Bills for collection 0.00 0.00 0.00 0.00 166,449.04

Book Value (Rs) 1,584.34 1,445.60 1,251.05 1,023.40 1,038.76

Page 57: Sbi Statue

ConclusionThe users of the financial statements need information about the

financial position and performance of the bank in making economic

decisions. They are interested in its liquidity and solvency and the risks

related to the assets and liabilities recognised on its balance sheet and to

its off balance sheet items. In the interest of full and complete

disclosure, some very useful information is better provided, or can only

be provided, by notes to the financial statements. The use of notes and

supplementary information provides the means to explain and document

certain items, which are either presented in the financial statements or

otherwise affect the financial position and performance of the reporting

enterprise. Recently, a lot of attention has been paid to the issue of

market discipline in the banking sector. Market discipline, however,

works only if market participants have access to timely and reliable

information, which enables them to assess banks’ activities and the risks

Page 58: Sbi Statue

inherent in these activities. Enabling market discipline may have several

benefits. Market discipline has been given due importance under Basel II

framework on capital adequacy by recognizing it as one of its three

Pillars. In order to encourage market discipline, Reserve Bank has over

the years developed a set of disclosure requirements which allow the

market participants to assess key pieces of information on capital

adequacy, risk exposures, risk assessment processes and key business

parameters which provide a consistent and understandable disclosure

framework that enhances comparability. Banks are also required to

comply with the Accounting Standard 1 (AS 1) on Disclosure of

Accounting Policies issued by the Institute of Chartered Accountants of

India (ICAI). The enhanced disclosures have been achieved through

revision of Balance Sheet and Profit & Loss Account of banks and

enlarging the scope of disclosures to be made in “Notes to Accounts”. In

addition to the 16 detailed prescribed schedules to the balance sheet,

banks are required to furnish the following information in the “Notes to

Accounts”

Page 59: Sbi Statue

Bibliography

http://www.rbi.org.in/

http://www.moneycontrol.com/financials/sbi/consolidated-

balance-sheet/SBI

http://www.sbi.co.in/

advanced financial accounting by L.N. chopde

http://indiankanoon.org/