performance of state bank of hyderabad : with special reference to ...
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131 CHAPTER III PERFORMANCE OF STATE BANK OF HYDERABAD : WITH SPECIAL REFERENCE TO SOCIAL BANKING
Transcript of performance of state bank of hyderabad : with special reference to ...
131
CHAPTER III
PERFORMANCE OF STATE BANK
OF HYDERABAD : WITH SPECIAL
REFERENCE TO SOCIAL BANKING
132
CHAPTER – III
PERFORMANCE OF STATE BANK OF HYDERABAD : WITH SPECIAL
REFERENCE TO SOCIAL BANKING
Contents Page No.
Introduction 100
Historical Background of SBH 100
Important Developments 101 – 107
Product Range offered by SBH
Deposits 108– 111
Advances 111 – 123
International Banking 123 – 127
Merchant Banking 128 – 130
Services 130 – 133
Deposits, Advances, Capital & Investments 133 – 138
Customer Satisfaction 138 – 140
Technology and MIS 140 – 142
Human Resource Development 142 – 143
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Social Banking
Priority Sector Lending 144 – 146
Branch Expansion 147 – 149
Financial Inclusion 149 – 151
Lead Bank Responsibility 151 – 152
Sponsored Regional Rural Bank 153
Community Service Banking 153
Conclusion 155
References 156
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CHAPTER III
PERFORMANCE OF STATE BANK OF HYDERABAD : WITH SPECIAL
REFERENCE TO SOCIAL BANKING
Introduction
The bank originated as the central bank of the erstwhile Nizam state under the name, Hyderabad
State Bank. It was established on 8 August 1941 under the Hyderabad State Bank Act, 1941,
during the reign of the last Nizam of Hyderabad, Mir Osman Ali Khan. The bank managed the
Osmania Sicca, the currency of Hyderabad state, which covered the present-day Telangana
region of Andhra Pradesh, Hyderabad-Karnataka of Karnataka and Marathwada of Maharashtra.
(At the time a number of the princely states had their own currencies.) The bank also carried out
commercial banking. The Bank opened its first branch at Gunfoundry, Hyderabad on 5 April
1942. After Partition, on 17 September 1948 the Indian Army conducted Operation Polo, a
“police action” that annexed Hyderabad to India.
In 1953, the bank absorbed, by merger, the Mercantile Bank of Hyderabad, which Raja
Pannalal Pitti had founded in 1935.1 (Other accounts give year of founding as 1946 and that of
merger as 1952). In the same year, the Bank started conducting government and Treasury
business as agent for the Reserve Bank of India.
In 1956 the Reserve Bank of India took over the bank as its first subsidiary and renamed it State
Bank of Hyderabad. The Subsidiary Banks Act was passed in 1959, so on 1 October 1959 it and
the other banks of the princely states became subsidiaries of SBI.
In this Chapter it is proposed to present a brief profile of the State Bank of Hyderabad. It is also
proposed to discuss about the Performance of the State Bank of Hyderabad in general and Social
Banking in particular.
Progress of the Bank
State Bank of Hyderabad (SBH) is an associate bank of State Bank of India (SBI), and is one
of the scheduled banks in India. The Bank's Head Office is situated at Gunfoundry Area, in
Hyderabad, India. SBH has over 1,600 branches and about 15,000 employees. Assets are in
excess of Rupees 767 billion. It is now the largest Associate Bank of State Bank of India. SBH
has 963 branches in Andhra Pradesh alone, giving it the third largest branch network in the State.
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The bank has performed well in the past decades, winning several awards for its banking
practices.2
Mission of SBH
"To achieve pre-eminence in banking and financial sectors with commitment to excellence in
customer satisfaction, profit maximisation and continued emphasis on developmental banking
through a skilled and committed work force by providing training facilities and technological
upgradation”.3
Based on the Mission Statement of the SBH the Performance of the Bank can be assessed in
terms of the volume of the operations, profitability and soundness position (CRAR & NPA
Management), Social Banking or Development Banking activities, the level of Technology
upgradation, Customer Satisfaction and the Human Resources Management & training facilities
provided by the Bank to its Employees. Therefore to understand the progress or otherwise made
by the State Bank of Hyderabad, the growth of Deposits & Advances, Net Profit earned, Capital
Adequacy Ratio and the percentage of Non-Performing Assets are analysed.
Important Developments
The following are the milestones in the history of the State Bank of Hyderabad.
MILESTONES OF SBH
5th
April,
1942
The Bank opened its door to the public by opening its first branch at
Gunfoundry, Hyderabad
27th
October,
1947
The HSB became a ‘Scheduled Bank’ by inclusion in the second schedule of the
Reserve Bank of India Act, 1934.
1st April,
1950
The Government of India assumed control over several subjects including
management of currency and public debt after the financial integration of the
State of Hyderabad with the Union of India on the 1st April, 1950. With this the
HSB lost its character of Banker to the Government.
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1953 In the year 1953 the Hyderabad State Bank became the agent of the Reserve
Bank of India for maintaining currency chest, handling Government transactions
and remittance facilities under a tripartite agreement entered among the
Hyderabad State Bank, Government of Hyderabad State and RBI. In the same
year , with effect from 1st April, The HSB took over the assets and liabilities of
the Hyderabad Mercantile Bank Ltd.
22nd
October
1956
The HSB became a fully owned subsidiary of the Reserve Bank of India under
the name of State Bank of Hyderabad (SBH) (vide State Bank of Hyderabad
Act 79 of 1956).
1st
October1959
The SBH became a fully owned subsidiary of State Bank of India under the
State Bank of India (Subsidiary Banks) Act, 1959.
1st January,
1964
SBH became a ‘A’ class bank in terms of Desai Award (in terms of the Award
‘A’ class banks are those whose working funds amount to Rs.25 crores or more.
1970 The Bank opened a full fledged training centre at Hyderabad.
1971 The Bank opened its first Agricultural Development branch at Beed in
Marathwada in the year.
1974 A Regional Development Office was opened at Aurangabad. The Bank also set
up a Consultancy Cell at Head Office to give expert advice and guidance on
production, planning, inventory control, marketing and financial management
problems of Small Scale Industries.
1975 Won the President’s award for employing physically handicapped persons.
1976 Bank’s operations were reorganized on the lines adopted by State Bank of India.
1977 introduced Performance Budgeting based on the MBO process of planned
business growth.
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1978 introduction of participative management with one representative each from the
officers and staff cadre nominated to the Board.
1981 Bank’s 50th
branch was opened at Gruhakala, Hyderabad. In the same year
deposits crossed the 500 crore mark.
1982 Modular structure was adopted. The three Zonal Offices were opened at
Hyderabad, Warangal and Gulbarga.
1982 saw the introduction of front office mechanization at 25 branches.
1982-85 The SBH sponsored four “Regional Rural banks (RRBs)”. The first RRB –
Saraswathi Grameena Bank started operating in Adilabad district from 1982
onwards and the second one – Sri Sathavahana Grameena Bank in Karimnagar
district from 1983 onwards. Two more RRBs were sponsored by the bank
during the year 1985, one for Ranga Reddy District viz., Golconda Grameena
Bank and the other for Nizamabad District viz., Sreerama Grameena Bank.
1989-90 Overseas branches were opened at Hyderabad and Mumbai in the year 1989-90.
1990-91 i) Bank was reorganized as Category-I Merchant Banker by SEBI;
ii) Two Dealing Rooms were set up at Mumbai and New Delhi;
iii) Industrial Finance Branch was opened at Hyderabad;
iv) Deposits crossed the 2500 crore mark.
1991-92 Merchant Banking Bureau was opened at Mumbai. In the same year the Bank
celebrated its Golden Jubilee.
1992-93 NRI branch was opened at Hyderabad and also a dividend of 14 per cent was
declared by the Bank.
1994-95 i) Deposits crossed the 5000 crore mark;
ii) The Bank now has representation at all the districts of Andhra
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Pradesh.
1995-96 i) The Bank’s bonds / deposits were rated by ICRA indicating the highest
safety to the investors.
ii) Bond Issue (Subordinated Debt) got concluded to strengthen capital
funds to enable the Bank to achieve the stipulated capital adequacy ratio
of 8 per cent by 31.3.1996.
iii) The Bank achieved a capital adequacy of 9.9 per cent as on 31.3.1996.
iv) The Bank’s overall performance was rated among the top 5 Public Sector
Banks (PSBs) in a survey published by the ‘Business Today’ Magazine.
The Bank got Rated sixth during the earlier two years (1993-94 and
1994-95). The Bank improved its position to 5th
during 1995-96.
1996-97 i) The Bank’s aggregate deposits crossed the 7000 crore mark.
ii) The Branch network touched the 800 mark.
iii) Partial Computerisation (FOMs) was completed at 154 branches.
iv) Full Computerisation was done at 20 branches.
v) New facilities like Quick Collection Service, Relationship Banking,
Corporate Terminals were introduced to improve customer service.
1997-98 i) Net profit increasing by 85 per cent to reach Rs.97.12 crore;
ii) Total business level crossing 13000 crore mark;
iii) The opening of the First Commercial Branch at Secunderabad.
iv) Full computerization at 72 branches and partial computerization at 134
branches.
v) Covering of all branches by Centralised Data Base System on loans and
advances.
vi) Opening of ATMs at Hyderabad, Mumbai and Delhi.
vii) Getting rated at 4th
position among the top Public Sector Banks (PSBs)
in a survey published by the ‘Business Today’ Magazine.
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1998-99 i) Net profit crossed 100 crore mark.
ii) Aggregate deposits crossed 10000 crore mark. Growth rate of 22.23 per
cent was achieved which was higher than ASCB growth rate of 18.57
per cent.
iii) Per employee business crossed 100 lakh mark.
iv) 100 per cent investments have been marked to market.
v) The Bank’s net NPAs stood at 8.78 per cent.
vi) Capital Adequacy Ratio stood at 10.65 per cent.
vii) 23 new branches were opened taking the total network of branches to
855.
viii) Successful Y2K Compliance.
ix) Krishi Credit Card has been launched in 16 ACBs.
1999-2000 i) Operating Profit crossed 400 crore mark.
ii) Deposits crossed 12000 crore mark.
iii) Advances crossed 6000 crore mark.
iv) Net NPAs reduced to 7.30 per cent.
v) Investments surpassed 7000 crore mark.
vi) Bank has 236 computerised branches.
i) The Bank has launched the Depository Services at its Gunfoundry
branch in January 2000 as a Depository participant with NSDL.
2000-01 ii) Deposits crossed 14000 crore mark.
iii) Advances crossed 7000 crore mark.
iv) Net profit surpassed 150 crore mark.
v) Investments surpassed 8000 crore mark.
vi) 100 per cent investments marked to market.
vii) Capital Adequacy ratio of 12.28 per cent was achieved.
viii) Total network of branches increased to 878.
ix) 117 branches were fully computerized.
x) 193 branches were partially computerized.
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2001 – 02 i) Net Profit crossed 200 crore mark;
ii) Advances crossed 8,000 crore mark;
iii) The Bank completed 60 eventful years on 5.4.2002
2002-03 i) Investments crossed 12,000 crore mark;
ii) Profit per employee crossed 2 lakh mark;
iii) Net Profit crossed 300 crore mark;
iv) Specialised SSI / SIB branches were opened in the districts of
Adilabad, Khammam, Karimnagar and Rangareddy in Andhra
Pradesh where the Bank holds the Lead Bank Responsibility;
v) 139 more branches were fully computerized;
vi) Deposits crossed 20,000 crore mark;
2003-04 i) The Bank has become a Corporate Agent for marketing SBI Life
Products
ii) Two specialized SSI / SIB branches were opened in the districts of
Khammam and Nalgonda and one general branch at Nizamabad
district has been converted to SIB branch
iii) 250 ATMs have been installed and all the ATMs are networked with
SB group ATMs;
iv) Introduction of Single Window service at all its branches;
v) Introduced code of Fair Banking Practices and Citizens’ Charter
towards achieving excellence in Customer Service;
vi) Bank has achieved full computerization of its branches;
vii) Deposits crossed 25,000 crore mark;
viii) Advances crossed 10,000 crore mark.
2004 – 05 i) Advances crossed 15,000 crore mark;
ii) Agricultural advances crossed 2,000 crore mark;
iii) Credit Cards Crossed 20,000 mark
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2005 – 06 i) Paid up Capital crossed 2,000 crore mark;
ii) Deposits crossed 30,000 crore mark;
iii) Advances crossed 20,000 crore mark;
iv) The aggregate deposits of the four sponsored RRBs crossed 1,000
crore mark
2006 – 07 i) Net Profit crossed 5000 crore mark;
ii) Bank proposes to declare a dividend 400 per cent for the year;
iii) Four sponsored Regional Rural Banks merged into one entity by
name Deccan Grameena Bank;
iv) International Service Branch (ISB) was opened during the year.
2007 – 08 i) Deposits crossed 50,000 crore mark;
ii) Bank achieved 100 per cent Financial inclusion in the Lead Districts
of Nizamabad, Rangareddy, Koppal and Raichur;
iii) Number of Branches crossed 1000 mark;
iv) All the 1,001 branches are on core platform;
v) 610 ATMs installed by the Bank and is providing access to over
10,000 ATMs under the State Bank ATM network
2009 – 10 i) Advances crossed 50,000 crore mark;
ii) Investments cross 20,000 crore mark;
iii) Introduced an online Supply Chain Management Product;
2010 – 11 i) Net Profit crossed 1,000 crore mark;
ii) Business per employee crossed 1,000 lakhs
2011 - 12 i) 1600th
Branch opened
Source: Various Records and Annual Reports of State Bank of Hyderabad
Product Range Offered By SBH
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The broad range of products offered by SBH can be classified as follows:
A) Deposits
B) Advances
C) NRI Services
D) International Banking
E) Merchant Banking
A. Deposits: The State Bank of Hyderabad is offering the following different types of deposits
to suit the needs of various categories of customers.
1. Term Deposit Schemes
2. Term Deposit Schemes qualifying for the Income Tax benefit
3. Current Account
4. Savings Account
The following is the brief explanation of the sub categorization of the each type of deposit
offered by the Bank.
1. Term Deposit Schemes: “Term deposit” means a deposit received by the Bank for a fixed
period withdrawable only after the expiry of the fixed period and include deposits such as
Recurring/Short Deposits / Fixed Deposit, Special Term Deposit, Multi Option Deposit
(MOD), Savings Plus etc., The Bank is offering the facility of the encashment of the Term
Deposit at any time under the premature payment facility or the loan facility as per the option
to tide over any immediate requirement. The following are the different schemes offered
under the term deposit:
a) Sri Venkateshwara Nitya Annadana Scheme: The Bank accepts the donations towards
Venkateshwara Nitya Annadana Padakam of a minimum amount of Rs.1,000/- and multiples
thereof. TTD uses these donations to feed devotees at Tirumala. All such donations are
exempt from income tax under section 80-G.
b) Sri Venkateshwara Pranadana Scheme: The Bank accepts the donations of a minimum
amount of Rs.1,000/- and multiples thereof towards the scheme. The TTD uses these
donations to provide free medical facilities.
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c) Special Term Deposit: Special term deposit can be opened by individuals, singly or jointly
with a minimum amount of Rs.1,000/- and multiples of Rs.100 thereof with no maximum
limit for a period of 6 months to 120 months. The deposit has the facility of nomination,
premature payment and demand loan. TDS is applicable as per IT rules.
d) Short Term Deposit: This deposit is open to individuals singly or jointly. The amount of
deposit is a minimum of Rs.1,000/- and multiples of Rs.100/- there with no maximum limit.
The period of deposit ranges in between 15 days and 179 days. For a deposit of Rs.15 lakhs
and above, the period starts from 7 days only.
e) SBH 1000 Scheme: This deposit is open to individuals divided into four categories – Public,
Senior citizens, Staff, Staff senior citizens. This deposit is for a period of 1000 days. Loan
facility and premature withdrawal is available on the deposit.
2) Term Deposits qualifying for Income Tax Benefit: Under this scheme the deposits
upto Rs.1.00 lakh for a tenure of 5 years and above, will qualify for tax-benefit, under section
80-c of the Income Tax Act. However, premature withdrawals are not allowed on these
deposits, upto 5 years. The following are the different schemes offered by the bank.
a) Term deposit: Under this scheme the principal amount is intact and the deposit holder
can withdraw the interest pay out at monthly, quarterly, half-yearly or yearly frequency
as per the choice.
b) Recurring Deposit Scheme: For opening the recurring deposit account the customer
needs to fix the amount of monthly installments and time the maturity date to meet the
commitments on due dates like paying the income tax, insurance premium, children’s fee
etc. Also, this scheme inculcates a habit of thrift. This deposit can be converted into
term deposit on maturity.
c) Multi Option Deposit Scheme: This deposit is a simple solution to meet the
contingencies. When the balance in the savings account is not sufficient to meet the
urgent requirements, the system simply splits the term deposit to the extgent of shortfall
and credits the amount with interest (no penalty) applicable to date, to the savings bank
account. The rest of the amount continues as term deposit and earns applicable rate of
interest.
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d) Super Saver Term Deposit: The Super Saver term Deposit scheme is for a longer
period ranging from 5 to 10 years. All the surplus funds can be invested in this scheme to
meet the security needs and earn attractive interest.
e) Recurring Deposit Plus (RD+): This account is provided with additional features like
free accident insurance cover, Demat Account and loan facility.
f) SBH Tax Saver Scheme: The Depositor can save in this account for availing benefit
under section 80C of IT Act. All income tax payers having permanent number are
eligible to open the deposit.
g) Savings Plus Scheme: The depositor can earn more on the savings account by opting for
automatic sweep from savings plus account on any given day and the period for the term
deposit account i.e., 12,24 or 36 months.
h) Senior Citizen Scheme: Under our Deposit Scheme for senior citizens, all senior
citizens are offered additional rate of interest over the normal rate for all the deposits of
one year and above. Changes, if any, with regard to the rate of interest/scheme shall also
be communicated well in time and shall be prominently displayed.
i) SBH 500: This deposit is for a period of 500 days with a minimum amount of Rs.1,000/-
and in multiples of Rs.1,000/- thereof. This is a special term deposit and fixed deposit
with an option to pay monthly interest.
(3) Current Account: Individuals, Organisations, Clubs, Societies, and Business concerns
can open a current account with SBH. There is no restriction on the number of transactions.
The statements of accounts and pass books are also provided for cross-verification of
transactions.
a) SBH Power Gain: In this account a quarterly average balance of Rs.1,00,000 needs to
be maintained. Unlimited cash deposit at home branch can be done. No cash handling
charges, bankers cheques are free, cheque collection free, cheque return protection
facility, free corporate internet banking, multicity cheque facility, are some of the
features of the deposit.
b) SBH Power Pack: This is same as SBH Power gain with extended limits.
(4) Savings Bank Account: Opening a Savings Bank with SBH is easy. The Bank offeres the
facility of nomination, single or joint account, services such as payments to LIC and house rent
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at nominal costs, free account transfer facility between branches and half yearly payment of
interest.
B. Advances: SBH has designed several Loan products to cater to the requirements of the
Customers. Their claim is “TODAY, take your STRIDE with us, in our endeavor to
translate your TOMORROWS into TODAY. Avail Housing Loans, Car Loans,
Education Loans and Personal loans with us and Savor the moments of Pride and
happiness that comes with acquisitions, achievements and comforts. Lead your life in
Peace and Harmony by fulfilling your obligations and responsibilities. Come to us with
the confidence that “SBH is for ME”
The following are different types of advances are offered by the bank to suit the requirements of
the different types of customers.
1. Personal Advances
2. Commercial and institutional advances
3. Advances to Micro Small and Medium Enterprises (MSME)
4. Agricultural Advances
5. Other Agricultural advances.
1. Personal Advances: The following schemes are given under personal advances:
a) Housing Loan Scheme: This loan is offered to purchase, construct, renovate, and
purchase plots to construct dwelling units, for purchase of consumer durables and
furnishings.
b) Varun Mitra (Rain water harvesting Scheme): SBH extends the scheme towards the
cost of installing a rain water system to individual house owners, housing societies,
building complexes, co-operative housing society, as well as houses under construction.
c) Personal Loan: This is a general purpose loan.
d) Educational Loan: This loan is given to extend financial assistance to all
eligible/deserving/meritorious students for pursuing higher education in India and abroad.
e) Loan to Pensioners: This facility is available to all the central and state government
pensioners for meeting domestic expenses.
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f) Scoom(Two Wheelers): This loan is given to the customers for purchasing two
wheelers (scooter/motor cycle/moped etc).
g) Purchase of Car: Loans are sanctioned for the purchase of new passenger cars, jeeps,
multi utility vehicles (MUVs) and sports utility vehicles (SUVs).
h) Personal Computers: Loans are given for the purchase of new home or personal
computers of reputed make with related accessories.
i) Loans against Term Deposit Receipts: Personal loans are given against term deposit
receipts.
j) Cash Key: Cash key is the overdraft facility given against the term deposit receipts.
k) Personal Loan to Trainees for Pilot Training Programmes and Air Hostess Courses:
Individuals who undertake a course for training / skill development. This scheme is
applicable to persons joining Commercial Pilot training courses and Airhostess Training
courses in India from institutes recognized by the Ministry of Civil Aviation / DGCA.
l) JNNURM Loan: Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is a
scheme that extends loan for construction of Urban residential individual houses /
dwelling units at various centres in Hyderabad, Vijayawada and Visakhapatnam. .
Persons, whose income does not exceed Rs.24,000/- p.a will be considered under DRI
scheme for which the maximum amount that can be sanctioned is Rs.20,000/-. 2.
Persons, whose income exceeds Rs.24,000/- p.a. will be considered under Regular
Housing loan Scheme. Maximum amount that can be sanctioned is Rs.30,000.
m) `Pension Loan to Affluent Pensioners: All Central, State Government pensioners and
SBH Pensioners whose pensions are paid by the branch and pension accounts are
maintained by our branches, subject to the condition that the pensioner should be not be
more than 72 years of age are eligible for taking the loan under this scheme.
n) Demand Loan Againt Pledge of Gold Ornaments: This loan is given for general
purpose against the pledge of Gold Ornaments.
o) Overdraft against Pledge of Gold Ornaments: Overdraft facility on Current Account
is given against the pledge of gold Ornaments.
p) Loans Against NSCs, IVPs and KVPs: This loan is given to personal or for the
purpose of investment against National Savings certificates, Indira Vikas Patra, and
Kisan Vikas Patra.
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q) Loans against LIC and SBI Life: Personal loans are given against LIC and SBI Life
policies.
r) Kanya Vivah Suvidah Scheme: This Loan is given to parents having grown up
daughters, persons having dependent sisters and other female relatives, women who
require marriage expenses for self and having/repaying capacity from his/her income
generating assets or expecting matching funds to meet the loan commitments or from
salary if employed. However the age of the bride for whose marriage the loan is taken
should be more than 18 years.
s) Vanitha Gold Scheme: This loan is given to provide liquidity to the women to purchase
jewellery/gold ornaments.
t) SBH Paryatan Scheme: This Loan is given to provide financial assistance to meet
travel expenses, to visit tourist/pilgrimage centres in India/abroad.
u) SBH Loan to Family Pensioners is given personal expenses.
v) SBH Rakshak Scheme offers loan for general purpose to all serving State and Central
Police Personnel, including CRPF and BSF and serving defense Personnel with a
minimum Net Monthly Income of Rs.3,000/-
w) SBH Tax Suvidha Scheme offers loan to meet tax obligations.
x) Advance against Shares and Debentures etc is given for meeting
contingencies/personal need/reinvestment, but not for speculative purpose.
y) Reverse Mortgage Loan Scheme is introduced to provide a source of additional income
for senior citizens of India who own a self-acquired and self-occupied house property in
India.
z) Udyog Bandhu Scheme is for extending financial help for the students getting trained
in communication skills and placement services.
aa) Mortgage Loans: This loan is extended for the general purpose to the individuals who
are employees, professionals, agriculturists, self-employed and others who are income tax
assesses.
bb) Adhyapak Suvidha Scheme: This loan is extended to all the serving teachers of
Central/State Government/Educational institutions and also teachers of Government
recognized /and private educational institutions for the general purpose.
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cc) SBH Rail Plus: This is a general purpose loan for all railway employees in different
categories.
dd) SBH Sanchar Plus: General purpose loan is given for BSNL/VSNL/MTNL and other
employees of DOT, P&T.
ee) Software Professional Plus Scheme: General purpose loan for
professionals/engineers/officials working in reputed software companies located in all
metro cities, Bangalore, Pune and twin cities and having a minimum of two years
services.
ff) SBH – Journalist Plus: General purpose loan to meet the needs of the journalists.
gg) Credit to Credit Card Holders – SBH C3 Scheme: To facilitate a credit card holder to
avail a loan under this scheme from the bank at a lower rate of interest and adjust the
same into the credit card account there by reducing his liability.
hh) Education Loan Plus Scheme: This loan is extended to the students who have already
availed education loan and prosecuting for higher studies. Financing will be considered
within one year of completing the course already financed.
ii) Coaching plus Scheme is given to the students for undergoing coaching for entrance
tests for any course from a reputed/recognized organization.
jj) SARAL Loan Scheme offers general purpose loans to individuals.
kk) SBH Fast Credit Scheme offers general purpose loan for individuals – private
employees.
(2) Commercial and Institutional Loans: The following different types of loans are
extended under this category.
a) Rent Plus Scheme is offered to meet the liquidity mismatch of applicant to the owners of
residential and commercial properties in rural/urban/and metros, which are rented or to be
rented to MNCs, Banks, and large and medium Corporate Houses.
b) Total Package for Financing Traders (TPFT) scheme is given to meet the financing
needs of all law full trading activity in goods and services to the sole proprietorship unit,
partnership firm, HUF, or limited company.
c) Overdraft/Cash Credit to Contractors is extended under this Scheme.
d) Take-Over of Advances (Trade and Services Sector): Under this scheme takeover of
advances from other Banks facility is provided.
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e) Take Over of Advances Under C&I (Other than Trade and Services Sector): Under
this Scheme takeover of advances from other Banks facility is provided to other than
Trade and Services Sector.
f) School Plus: This loan is extended to educational institutions with adequate source of
income (both Government aided schools/schools governed by private management) for
the purpose of construction of new building/repair, repair, renovation of existing building
with adequate safe infrastructure, for purchase of electronic equipments and such other
requirements.
g) Vehicle Loans to Corporates are given for purchase of new conveyance/transport
vehicles.
h) Merchant Banking : SBH has been in Merchant Banking business since 1982. As a
Category I Merchant Banker, the Bank transacts barious businesses, such as : Merchange
Banking Services – Management of Issues, Investment Advisory Services, Managerial,
Consultancy, and Corporate Advisory Services, Project Appraisals, Underwriting issues,
Bankers to issues, Debenture trust services, Depository Services, Mutual funds Services.
(3) Micro Small & Medium Enterprises (MSME): Finance is extended to the Micro, Small
and Medium Enterprises under this scheme. The following is the categorization of these loans.
a) Plan Scheme of Technology Upgradation / Setting up / Modernisation / Expansion
of Food Processing Industries: This Scheme is being implemented by Ministry of Food
Processing Industries, Government of India. State Bank of Hyderabad has been
designated as one of the participation banks in the scheme for receiving application forms
from entrepreneurs and processing the grant/subsidy.
b) Special Services to SME Borrowers: The Bank has simplified the project appraisal
system for seedy sanctions to SMEs. No collateral security is required for loans up to
Rs.10 lakhs. The Bank also waives collateral security requirements for SME units for
loans above Rs.10 lakhs and upto Rs.25 lakhs based on good track record. The working
capital limits are sanctioned accordint to Nayak Committee recommendation. The Bank
exgtends consultancy services through Technical Consultancy Cell at Head Office. The
Technical Officers (SSI) are trained for Comrehensive techno-economic studies.
c) Credit Guarantee Fund Scheme for Micro and Small Enterprise: The Scheme is
offered by Credit Guarantee Fund Trust for Micro and Small Enterprises [CGTMSE] set
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by jointly by Government of India and Small Industries Development Bank of India
[SIDBI]. The Scheme covers Manufacturing and Service sector of Micro and Small
Enterprises (except Retail Trade) for setting up new enterprises, expansion,
diversification, modernization, technology up gradation and working capital
requirements.
d) MSME General Purpose Term Loans: Term Loans are extended for pre approval limit
for multipurpose needs like expansion and modernization, substitution of high cost
debts/high cost term debts of other banks/FIs, up gradation of technology and energy
conservation schemes/machinery, design and introduction of new lay outs in the factory
to enhance productivity etc.
e) Laghu Udyami Credit Card: SBH offers hassle-free credit to small borrowers by way
of the Laghu Udyami Credit Card for meeting working capital requirements of Micro
and Small enterprises (both manufacturing and Services).
f) SME Credit Plus: Loans under this scheme are extended to meet expenditure such as –
repairs to plant and machinery, payments to labour, tax payment, additional purchases of
raw materials for execution of bulk order etc.
g) Artisan Cards are given to provide adequate and timely assistance to the artisans to meet
their credit requirements both investment needs as well as working capital in a flexible
and cost effective manner.
h) Dall Mills Plus Scheme: Under this scheme loans are extended for the acquisition of
machinery / purchase, construction of factory building / for modernization of existing
Dall Mill and for the working capital needs.
i) Hotel Plus: Under this scheme existing / prospective owners of hotels, restaurants and
such other businesses are offered loans for purchase of land and construction of
buildings, purchase of furniture and fixtures, kitchen equipment, interior decoration, for
purchase of vehicles and for working capital needs.
j) School plus: Advances are extended to all the Educational institutions for the purchase
of building / play ground, construction of school building, purchase of laboratory
equipment and such other purposes.
k) Stree Shakthi Package: This Package is introduced by the bank in 1988, aims to
developing entrereneurship among women by providing certain concessions and special
facilities to train women entrepreneurs.
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l) Mortgage Loan: The purpose of the scheme is to provide hassle free working capital /
contingency finance to MSME borrowers who are willing to provide mortgage of
property of adequate value.
m) Transport Operator Finance: Financial assistance is given to the small road and water
transport operators for the purchase of new and used vehicles, meeting expenses related
to repairs, etc.
n) Tourism Finance: Tem loans and cash credit is extended to the sole proprietorship,
firms, companies and trusts involved in the tourism activity.
o) Swarojgar Credit Cards: SCC Scheme aims at providing adequate and timely credit
i.e., working capital or both with a reasonable component for consumption needs from
the banking system in a flexible, hassle free and cost effective manner.
p) Cotton Ginning Plus Scheme: Loans are given for the purpose of acquisition of
machinery / purchase, construction of factory building / for modernization and working
capital needs of existing cotton ginning mills.
q) Doctor Plus: The scheme aims to provide financial assistance for the capital and
working capital requirements of the individuals / firms / companies / trusts involved in
the activity related to medical profession.
r) SME Smart Score: The purpose of this scheme is to standardize the loan appraisal
process, reduce the delay in sanctioning process and bring in consistency in appraisal.
s) Construction Equipment Loan is for catering to the needs of the customers of
infrastructure construction segment.
t) SME Car Loan Scheme: The purpose of the loan is to provide term loans to the SME
units for purchase of new or pre-owned passenger cars, jeeps multi utility vehicles
(MUVs) and sports utility vehicles (SUVs).
u) Scheme for Financing Commission Agents: The purpose is to finance commission
agents against their receivables from the farmers.
v) Rice Mills Plus: Term loans, cash credit, outward bill limit, LCs, BGs, SME Credit Plus
are provided for the capital and working capital requirements of Rice Mills.
w) Liquid Gold Plus: Finance is provided against gold to MSME customers to meet urgent
requirements.
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x) Contractor Plus: Capital and working capital finance is provided to first finance is
provided to first class contractors of good repute.
y) Automobile Dealer Finance: Finance is provided to authorized dealers of reputed
transport vehicles to set up new show room / service station or renovation /
modernization of existing show room / service centre.
(4) Agricultural Advances: The following categories of loans are given under Agricultural
Advances: (i) Production Credit Loans; (ii) Assistance for Boosting Seed Production; (iii)
Kisan Credit Card; (iv) Other Agricultural Advances.
(i) Production Credit Loans: Under this scheme the finance is extended to the farmers
for the production requirements. The different loans given under this head are as
following:
(a) Crop Loans Scheme: Under the crop loans scheme agricultural gold loans are offered
for agriculturists, tenant farmers, and share croppers to raise all types of crops.
(b) Agricultural Advances / Advances against Ware House Receipt of National Bulk
Handling Corporation ltd (NBHCL) to Processors / Traders / Farmers are given by
way of demand loans.
(c) Financing Tenant Farmers and Oral Lessees for Raising Crops: The objective is to
provide crop loans through institutional agencies to tenant farmers / or a lessees and
farmers having land without roper records who are not being extended adequate credit
support by the agencies due to inability of the farmers in providing tangible securities and
/ or producing records regarding their rights on the crops cultivated.
(d) Capital Investment Subsidy for Construction / Expansion / Modernisation of Cold
Storage and Storages for Horticulture Produce: The subsidy will be available only in
States/Union Territories/Areas which do not administer or control rentals for cold
storages under any statutory or administrative order. NABARD would provide refinance
to commercial banks @90% of the amount financed by the Banks. Cooperatives,
Companies, Corporations, Partnership and Proprietary firms, Agricultural Produce
Marketing Committees/Boards, Agro-Industries Corporations and Growers' Associations
are eligible under this scheme.
(e) Produce Marketing Loans: The objective of this loan is to provide liquidity to farmers
and to save them from selling their produce in distress.
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(f) Scheme for Financing of Rural Godowns: Loans shall be given to individual farmers
for storing Agricultural Produce, and entrepreneurs and group of persons engaged in
storing and marketing of Agricultural Commodities for establishment of Rural Godowns.
(g) Assistance for Boosting Seed Production: The assistance will be available to
individuals, Group of farmers/ growers/ consumers, Partnership/ Proprietary firms, Non-
Government Organizations (NGOs), Self Help Groups (SHGs), Companies,
Corporations, Autonomous Bodies of the Government, Cooperatives, Cooperative
Marketing Federations, Local Bodies, Agricultural Produce Market Committees
&Marketing Boards in the entire country for boosting seed production.
(h) Central Sector Scheme for Strengthening of Agricultural Marketing Infrastructure,
Grading and Standardisation: The main objective of the Scheme is to provide finance
for strengthening of agricultural marketing infrastructure like transport facility, market
user common facility, E-trade facility, etc.
(i) Loans against Ware House Receipt of Cold Storage Units / Private Warehouses /
Godowns / Cold Storage: Finance is given against ware house receipts for the
agricultural production purposes.
(j) Scheme for Financing for Construction of Farmer’s Godowns facilitates the farmers
for storing their agricultural produce, food, grains, oil seeds and inputs required for crop
cultivation and allied activities.
(k) Capital Investment Subsidy Scheme for Commercial Production units of Organic
Inputs: Under this scheme the Capital requirements of Bio-fertiliser units, fruit and
vegetable waste compost units, vermin hatchery units are financed.
(ii) Investment Credit Loans: Under this scheme the Investment requirements of the
Farmers are financed by the Bank. The following are the different loans extended
under this scheme.
a) Agricultural Term Loan Scheme: Agriculture term loans refer to capital
investments required by farmers to realize benefits over a period of time. The outlay,
is according to the NABARD unit of the scheme cost. The schemes are financed
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subject to the technical feasibility and economic viability of the proposal in the area
of operation.
b) Minor Irrigation – Dug Wells Scheme: Finance is extended for digging the wells
for the irrigation purpose.
c) Development of Old Wells Scheme: These loans are given against the mortgage of
farm lands.
d) Land Development Finance Scheme: Loans are given for general land
development like land leveling, shaping, building bonds and field channels, water and
soil conservation.
e) SAHAYOG NIVAS: The Objective of this scheme is to finance Self Help Groups
(SHGs) for housing in semi urban and rural areas.
f) Consumption Loans are sanctioned in the villages allotted to the branches under
service area. This scheme is applicable to the weaker section of the community i.e.,
all IRDP beneficiaries.
g) Central Scheme for Strengthening of Agricultural Marketing Infrastructure,
Grading and Standardisation: Finance is extended to the farmers for improving
marketing infrastructure.
h) Financing to Dealers in Drip Irrigation / Sprinkler Irrigation Systems /
Agricultural Machinery: Finance is given for the purchase and organizing of the
drip irrigation system.
i) Finance is given for Tractor and Power Tiller against hypothecation.
j) Gramin Bhandar Yojana Scheme: This is a Capital Investment Sudsidy scheme for
construction / renovation of rural godowns.
k) Financing for Drip Irrigation System: Under this scheme financing is offered by
way of agricultural term loans for the establishment of drip irrigation and sprinkler
irrigation.
l) Jewellery Loans to Farmers: The Jewellery loans to farmers are to be encouraged
for purchase of inputs like seeds, fertilizers and for raising crops etc against the
pledge of gold ornaments.
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m) Financing Aromatic and Medicinal Plants: These loans are considered under
horticulture development and the working capital and investment requirements are
financed.
n) Dairy Venture Capital Fund: To generate self employment and provide
infrastructure mainly to the unorganized sector for making improvement in the
quality resulting in food safety and to held in bringing a significant portion of the
unorganized sector in the ambit of organized sector that will result in increasing the
commercial viability of the activities.
o) Financing Stall Fed Goat Rearing: Stall .fed goat rearing, the scheme which was
under negative list, has since been revived on finding that it is as an alternate activity
for agriculture in rainfed areas, which provided employment opportunity in rural
areas. The proposals for stallfed goat rearing may be encouraged for a flock of
minimum 100 gats in rainfed areas. NABARD prepared a Model Project.
p) Vehicle Loans (Two Wheelers) for Farmers: Loans are extended for the purchase
of new / old / pre used two wheelers.
q) Cold Storage Finance: The purpose of the loan is lending to farmers against
commodities stored in the cold storage / warehouse.
r) Finance for Purchase of Land for Agriculture Purpose: The objective of this
scheme is to make the small and marginal holdings economically viable, to bring
fallow and waste lands under cultivation, to step up agricultural production and
productivity and to finance the share croppers / tenant farmers to purchase land to
enable them to increase their income.
s) Gram Niwas: Housing loans are provided to farmers and other rural dwellers.
t) Debt Swapping of Borrowers: To mitigate acute distress, farmers might be facing
due to the heavy burden of debt from non-institutional lenders a scheme has been
devised which enables our branches to extend finance to farmers for paying off loans
taken from non-institutional lenders (e.g. money lenders etc.) and also meet their crop
production needs.
u) Venture Capital Scheme for Agriculture Business Development: This Central
Sector scheme for Agri. Business Development is being implemented by Small
Farmers’ Agri. Business Consortium (SFAC) an autonomous body under Ministry of
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Agriculture and Cooperation, which provides Venture Capital for Agri. Business
Projects and assistance to producer groups.
iii) Kisan Credit Card: Kisan credit card (KCC) aims at adequate and timely support to the
farmers for their short term crops production credit need, which is in a revolving cash credit
nature.
a) General Credit Card (GCC) Scheme: The scheme shall cover general credit needs of our
constituents in Rural and Semi urban branches. No Plastic/Electronic card will be issued
under the scheme, but in place a card, a Special Pass book will be issued to the borrower.
The objective of the scheme is to provide hassle-free credit to the customers based on the
assessment of cash flow without insistence on security, purpose or end-use of the credit.
The Cash credit is in the nature of revolving credit. The GCC holder is entitled to draw
cash from the specified branch upto the limit sanctioned.
b) Accident Insurance for Kisan Credit Card Holders: All KCC holders up to the age of 70
years are covered under this scheme.
c) SBH Kisan Star Card Scheme: Under the scheme, the farmers have freedom to avail Agri.
Term loans as per their choice. Maximum accounts permitted are 5 including one account
for Consumption purpose. Farmers financed under KSC scheme are also eligible for
financing Crop loans/ KCC.
iv) Other Agricultural Advances: The following loans are given under the heading other
agricultural advances.
a) Self Help Groups: The purpose of this loan is to meet emergency health and education
needs of members children and subsequently for income generation activities.
b) Agri Clinics and Agri Business Centres: Loans are extended to agricultural
graduates / graduates in allied subjects like horticulture, animal husbandry, forestry,
dairy, veterinary, poultry, pisci culture who are involved in consultancy and extension
activity to agriculture.
c) Yuva Krishi Plus Scheme: The objective of the scheme is to promote young
entrepreneurs in rural areas, to assist small and marginal farmers both directly and
indirectly, and to increase lending under the AGR segment.
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The progress of the bank in terms of number of branches, deposits and advances along with data
for the same for State Bank Group (SBG) and all Scheduled Commercial Banks is presented in
the table 3.1.
It can be observed from the table 3.1 that State Bank of Hyderabad has outperformed the State
Bank Group and the Scheduled Banks in terms of Compounded Annual Growth Rate for the
growth Amount of Deposits and Advances. State Bank of Hyderabad is a little behind in the
CAGR for the growth in Branches for the period 1970 to 2011-12.
C) NRI Services: The acronym NRI just means NON RESIDENT INDIAN for most but for
SBH, they say, NRI has an inherent appeal in itself which means NURTURE your ROOTS in
INDIA, the unparalleled bond, the sense of belonging and the affections they share with the
MOTHER is just the same with the MOTHERLAND That is INDIA, therefore SBH is making
an appeal to ENRICH INDIA and, SBH, as a BANKER, is assuring NRIs with
Good returns on the Investment / Repatriation of Funds / Interest Exemption from IT Rules
/Loan Facility / Internet Banking. All this and more, they accompany with a VISA to
Unmatched Security of Funds and Dependability.
Non-Resident Indian [NRI]: A Non Resident Indian (NRI) as per FEMA 1999 is an Indian
citizen or Foreign National of Indian Origin resident outside India for purposes of employment,
carrying on business or vocation in circumstances as would indicate an intention to stay outside
India for an indefinite period. An individual will also be considered NRI if his stay in India is
less than 182 days during the preceding financial year. A Person of Indian origin (PIO) is a
citizen of any country other than Pakistan, Bangladesh or Sri Lanka who
At any time held an Indian Passport.
He or any of his parents or grand parents was a citizen of India, is a spouse of an Indian citizen
or a person referred to above.
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TABLE 3. 1
PROGRESS AT A GLANCE RELATING TO SBH, SBG AND ALL SCHEDULED
COMMERCIAL BANKS
(Rs. In Crores)
YEAR BRANCHES DEPOSITS ADVANCES
SBH SBG SCH SBH SBG SCH SBH SBG SCH
December
1942
1 NA NA NA NA NA NA
1956 50 NA NA 24 NA NA 7 NA NA
1969 182 NA NA 58 NA NA 52 NA NA
1970 230 NA NA 65 NA NA 50 NA NA
1975 329 NA NA 155 NA NA 105 NA NA
1980 459 8207
(5.59)
34385
(1.33)
462
36997
(1.25)
267 8701
(3.07)
24760
(1.08)
1985 613 10847
(5.65)
53899
(1.14)
1128 29796
(3.79)
85922
(1.31)
630 18955
(3.32)
54162
(1.160)
March
1990
755 12240
(6.17)
58914
(1.28)
2434 56825
(4.28)
172758
(1.41)
1394 42038
(3.320)
113592
(1.23)
1991 768 12506
(6.14)
60113
(1.28)
2598 61810
(4.20)
200036
(1.30)
1651 49030
(3.37)
132510
(1.25)
1992 794 12637
(6.28)
60690
(1.31)
3179 75864
(4.19)
233086.00
(1.36)
1906 53535
(3.56)
142211
(1.34)
1996 NA 12902 NA NA NA 4,33,819.00 NA NA 2,54,105.00
1997 NA 12995 NA NA NA 5,05,599.00 NA NA 2,78,402.00
1998 NA 13,100 NA NA NA 6,05,410.00 NA NA 3,24,079.00
2000 874 13265 50855 12527.02 2,56,288.02 896695.70 6080.91 1,29,252.76 444124.64
2001 878 13420 51468 14841.86 3,12,117.50 1055233.47 7091.49 1,50,390.52 525682.94
2002 885 13464 51757 17402.75 3,51,072.79 1205930.00 8422.58 1,64,537.26 645438
2003 894 13499 51970 20598.94 3,91,886.36 1355880.00 9662.6 1,89,203.88 740473
2004 920 13567 52821 25310.72 4,32,890.61 1578450.25 11813.68 2,20,515.80 864270.16
2005 929 13661 53815 28929.52 5,05,649.41 1821884.40 15599.74 2,84,753.97 1105724.59
2006 944 13879 55279 34024.6 5,42,409.12 2164681 20863.02 3,71,519.93 1516811
2007 965 14058 57245 41502.67 6,33,474.60 2696980 28109.25 4,82,269.67 1981216
2008 1016 15390 62023 50108.3 7,73,875.00 3320061 35848.75 5,93,722 2476936
2009 1031 16260 65181 62448.91 10,07,042.00 4063203 43679.17 7,39,606 3000906
2010 1125 17229 69160 72970.72 NA 4752456 53040.07 NA 3497054
2011 1315 17,913 74,130 88627.87 NA 56,16,432 64720.31 NA 42,98,704
2012 1475 20181 88,562 98627.87 NA 64,53,500 77052.31 NA 50,73,600
CAGR % 4.45 3.56 4.73 18.76 - 17.88 23.57 - 22.50
Source: Compiled from various annual reports of RBI and records of State Bank of
Hyderabad
The following services are offered by SBH to the NRIs.
(i) GLS
(ii) NRI Loan Products
(iii) NRI Deposits
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(i) Global Link Services: State Bank of Hyderabad brings Remittance facility to
NRIs/Persons of Indian Origin at low charges and Fine Exchange Rates all over the world
with special electronic money transfer products. Remittances are handled on user
friendly Electronic Platform with Multiple User Friendly features including Online
Tracking and SMS advices.
(ii) NRI Loan Products: The Bank is offering various loan products to the NRIs. They are
listed below.
a) Housing Loan to NRIs: Loans are given for the Construction / Purchase of New House
or Old House / Flat, Purchase of plot for House Construction, repairs and renovation of
House.
b) Mortgage Loans to NRIs: General purpose loans are given against the mortgage of the
immovable property like residential house / flat, non-agricultural urban land, commercial
or industrial property.
c) Personal Loan Scheme: Finance is extended under this scheme for general purpose.
d) NRI Home Décor Scheme: Loans are given for furnishing homes and purchase of
consumer durables.
e) Education Loans to NRIs: Financial assistance is given to deserving / meritorious
students for pursuing higher professional / technical studies in India or abroad.
f) Car Loan to NRIs: Loans are given to purchase new / old / pre owned passenger cars /
jeeps / multi utility vehicles / single utility vehicles.
g) Gold Loan / Overdraft : Overdraft against the mortgage of Gold is provided for
meeting personal needs.
h) Rupee Loan to NRIs: Rupee loans are given in India to holders of FCNR (B) Deposits /
NRE Deposits.
i) Cash Key: Overdraft facility along with cheque book is given under this scheme. 80 per
cent of the value to the deposits plus accrued interest with a minimum limit of
Rs.50,000/-, maximum limit of Rs.20 lakhs can be overdrawn.
j) Loans to Emigrants: Demand loans are given to meet visa, travel expenses, purchase of
foreign exchange for travel / emigration of persons going abroad for employment.
(iii) Deposits: The following different types of Deposits can be availed by the NRIs.
160
a) RFCA – Resident Foreign Currency Accounts: NRIs returning to India for permanent
settlement can open RFC accounts. The accounts can be converted to FCNR / NRE
accounts in case the person becomes an NRI again.
b) RFCA – Electronic Funds Transfer / Draft Remittance: This service is for speedy
remittance of money to India from the Gulf denominated in Indian Rupees.
c) FCNR Deposits – Foreign Currency Non-Resident Deposit Accounts: FCNR
accounts can be opened only by an NRI and kept in term deposit for minimum period of
one year and maximum period of 5 years. Deposits can be opened in USD, Euro,
Sterling Pounds, Canadian Dollars and Australian Dollars. Nomination, premature
withdrawal and rupee loan facilities are given. Foreign currency loans can be availed
abroad against the security of FCNR deposits.
d) NRE – Savings Bank / Current Account: This deposit account can be opened by NRI
only. The Customer can avail internet banking facility. The minimum balance in
Savings account is Rs.1,000/- and in Current account it is Rs.5,000/-.
e) Special Term Deposit (STDR): This deposit can be opened with a nominal amount of
Rs.1,000/- for a minimum period of 1 year and maximum period of 5 years. Premature
withdrawals and nomination facility is given.
f) Term Deposit (FDR): This is a general term deposit account. However interest amount
is completely repatriable. Operations in account are through power of attorney.
g) Non Resident Ordinary Account: It can be held jointly with other non-residents or
residents. The deposit can be opened in Savings Bank, Current Accounts, Fixed Deposits
and Special Term Deposits. Accounts can be withdrawn for making local payments in
rupees. Investment in shares / securities / immovable properties can be made on non
repatriation basis with general or specific permission from the RBI. Premature
withdrawals are permitted (conditions apply). Interest earned in NRO a/c is repatriable
fully. The principal amount is entirely non-repatriable. Banks are permitted to allow
remittance up to $1 million USD per calendar year out of the balances held in NRO
account, from current year earnings including proceeds of sale of immovable property,
acquired in India out of the rupee or foreign currency funds or by inheritance.
161
D) International Banking: SBH has developed expertise in international trade over the years.
They offer comprehensive facilities to exporters, importers, NRIs, and others through their 66
authorized branches. The Bank has a full-fledged department at Mumbai offering a wide range of
services, an integrated treasury at Mumbai, and a large network of correspondents across the
world. Swift/Routing Numbers are given for sending Remittance in USD.
a) Money Gram: “MoneyGram” MONEY is a foreign inward remittance facility in which money
transfer is affected in minutes using the web / Internet based technology. Only personal
remittances such as remittances from NRIs towards their family maintenance in India and
remittances favouring foreign tourists visiting India are permissible under the arrangement.
Payment is to be made after verifying the identity details of the beneficiary and furnishing the
relevant code number. Trade related remittances, remittances towards purchase of property
investment or credit to NRE / FCNR accounts etc. or donations / contributions to charitable
organizations are not permitted to be routed under the scheme. The maximum amount of
remittance which can be payable in cash under the scheme at present, is restricted to Rs.50,000.
Remittances above Rs.50,000 are payable by way of Account Payee cheque. Payments to the
recipients in India shall be made in Indian Rupees. Not more than 12 remittances shall be
received by a single recipient in a calendar year.
Benefits to the Customer : The beneficiary of the remittance will receive the money
instantly as the payment instructions are provided on “Money Gram” website.
b) USA Patriot Act Certification: Following the USA PATRIOT Act and the final rules
issued by the U.S. Department of Treasury, Banks ("Foreign banks") are required to issue
Certification to U.S. banks or broker-dealers in securities ("Covered Financial Institutions")
with which they maintain Correspondent accounts. For this purpose and as permitted by the
final rules, State bank of Hyderabad has prepared a Certification for use by any financial
institution that needs a USA PATRIOT Act Certification from State Bank of Hyderabad its
branches. We request you to use this Certification instead of approaching directly to State
Bank of Hyderabad / its branches. This Certification only covers State Bank of Hyderabad
and its authorized branches.
E) Merchant Banking: State Bank of Hyderabad is one of the pioneers among the public
sector banks to offer Merchant Banking Services since 1983. The Bank is offering the
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following services / products through their Branch Network and are holding the various
required licenses /registrations for carrying out these activities.
a) Debenture Trust Services: A debenture Trustee “means a trust deed for securing any issue
of debentures of a body corporate”. To represent and protect the interest of debenture /
bond holders, appointment of a Debenture Trustee by the company, who wants to tap the
capital market by raising funds through bonds / debentures, is a mandatory under SEBI
guidelines. The Bank is ;providing trusteeship services for debentures / bonds for
Government Corporations, public / private limited companies and has handled more than 50
mandates.
b) Banker’s to Issue and SBH e – invest (ASBA): SBH has acted as Bankers to issue for
more than 100 IPOs/Debt issues since its inception. With Pan India presence of SBH
network and Fully computerised atmosphere (Core Banking solutions), covering all Metros
and Important towns, the Bank provides Escrow Collection services and Refund Bank
services related to Initial Public Offer (IPO), Follow-On Public Offering (FPO) , Rights
Issue of Equity / Debt papers.
“Application Supported by Blocked Amount (ASBA)” means an application for
subscribing to an issue (IPOs/Rights) containing an authorisation to block the
application money in a bank account. SBH is one of the pioneers in launching this
product and has been empanelled with SEBI to offer this product to the customers.
Under this product, a Customer with a Demat account can apply for an IPO/Rights
Issues without parting funds from his account. The Other advantages of the product
are:
Can earn interest while applying for Public Issues;
No need to write cheques or make demand drafts;
Convenient and transparent management of funds;
Need not wait for refund orders.
Instant release / unlocking of funds after allotment / non-allotment of shares. This is
possible by using ASBA application and giving a mandate to the bank to mark lien
against his account for the application money. A customer of bank can apply to IPO
/ Rights by using physical ASBA application or e-ipo through internet banking site
www.onlinesbh/e-ipo
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c) E – Broking (3 in 1 Account): This Bank has entered into a franchisee agreement with
SBICap Securities Limited (SSL) on 17-01-2008 to offer the e-broking facility (3 in 1
account) to the customers. The arrangement provides the following set-up:
Bank Account with State Bank of Hyderabad (SBH)
Demat Account wih SBICap Seurities (SSL)
Trading Account with SBICap securities limited (SSL)
Any customer of any branch of the SBH can open e-broking account to transact in share markets.
d) Project Appraisal and Debt Syndication: The Bank has been offering the Project
Appraisal and Debt Syndication Services w.e.f., February, 2009. The Services
include:
Advisory on Debt Structuring;
Financial Appraisal of Project;
Preparation of Information Memorandum
Syndication of Debt;
Documentation etc.
The Merchant Banking Department is acting as Nodal point for marketing and interface with the
clients with the clients and Banks and deliver the services in collaboration with credit processing
cell (CPC) of our credit department.
e) Monitoring Agency Services: In case of public issues exceeding Rs.500 crores or
wherever the regulatory feels the requirement, the issuer shall make arrangements by
appointing an Agency to monitor the end use of proceeds of the issue. SBH is extending the
services of monitoring agency to various issuers, who are approaching caital markets to raise
funds through IPO route and falls under this category as per SEBI guidelines.
f) Depository Services: The Bank is offering the Depository Participant services since 2000,
through the Gunfoundry Branch, under franchisee agreement with National Securities
Depositories Ltd (NSDL). It is mandatory to have a Demat account to apply for IPOs/NFOs
of Mutual Funds/e-trading etc.
g) Corporate Agent – Sale of IPOs, Bonds, Debentures: The Bank offers services of
corporate agent in sale of IPOs, Primary issues of Bonds, Debentures etc for selective issues,
under tie-up with various syndicate members.
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F) Services: The Bank provides following various services to its customers to make the
transaction easy and convenient.
1) ATM Services: SBH’s ATM Debit card services offer customers easy access to money
anytime from anywhere. The card is safe and secure and eliminates the need to carry large
amounts of cash. It saves the time and the inconvenience of going to the bank for cash
withdrawals. The customer can withdraw from Savings and Current accounts, including
overdraft accounts. They can view the current balance and also a mini statement of the last
five transactions in their account. They are provided a Personal Identification Number (PIN)
when they receive the card. PIN can be changed later. ATM cum Debit Cards issued by the
Bank can be used at more than 12500 ATMs of Andhra Bank, Bank of India, Corporation
Bank, Dena Bank, HDFC Bank, Indian Bank, IndusInd Bank, Punjab National Bank, UCO
Bank, Union Bank of India , UTI Bank, Canara Bank and Bank of Rajasthan which are
members of bilateral sharing arrangement. ATM cum Debit Cards issued by the Bank can
also be used in India at the ATMs, other than those under bilateral sharing arrangement,
displaying any one or all of MasterCard, Maestro or Cirrus Logos. The Bank’s International
Debit Card can be used at more than 10,00,000 ATMs across the world, displaying any one
or all of MasterCard, Maestro or Cirrus Logos.
2) Mobile Banking Services: SB Freedom – Your Mobile Your Bank, Away from home,
bills can be paid or money sent to the loved ones or balance enquiries done anytime 24x7.
That is what SBI FreedoM offers -convenience, simple, secure, anytime and anywhere
banking. The service is presently available on java enabled mobile phones over SMS/
GPRS/ WAP as also non java phones with GPRS connection. The service can be availed
over the free GPRS facilities offered by various mobile service providers. The services for
other non-Java mobile phones are under development and will be offered using Unstructured
Supplementary Services Data (USSD).
The following functionalities will be provided in the Phase I :
Funds transfer (within and outside the bank –using NEFT)
Enquiry services (Balance enquiry/ Mini statement)
Request services (cheque book request)
Bill Payment (Utility bills, credit cards)
M Commerce (Mobile Top Up, Merchant payment, SBI life insurance premium)
165
3) New Pension System(NPS): NPS is regulated by PFRDA. It is sustainable & Efficient,
voluntary, defined contribution system in India. The Objectives of the NPS are :
Provides old age income( post retirement)
Reasonable market based returns over the long term
Extends old age security coverage to all citizens (including NRIs)
The following are the Benefits associated with NPS:
Lowest cost as compared to any other investments
Very simple: open an account with any SBH PoP-SP and get PRAN
Subscriber can operate from anywhere in the country
Transparent Investment norms with regular monitoring by PFRDA
Nomination facility (max. of three nominees can be made)
Tax benefits – Get tax benefits on investments upto Rs 1 lakh under Section
80 ( c) of I.T.Act (only for Tier I)
Any Indian Citizen in the age group of 18 to 60 years (NRIs) is eligible to open an NPS account.
4) RBI’s Electronic Funds Transfer (EFT) system facilitates inter-bank and intra-bank fund
transfers among our 15 notified centers. EFT transfers are soon coming to replace demand
drafts because they are faster, less expensive, and more secure. SBH levies nominal service
charges for such transfers. The funds are transferred to the beneficiary’s account either on
the same day or on the next working day.
The customer can transfer a maximum of Rs.2 crore in a single transaction. To make an EFT
transfer, you need to fill up and submit an EFT request form. He can submit the form either
online or at the branch where he holds an account. Provide the following information in the
EFT form:
The name of the beneficiary
The name of your bank and branch name
Your account number
The amount to be remitted
SBH offers the EFT service at the following centers: Mumbai, Chennai, Kolkata, New
Delhi, Ahmedabad, Bangalore, Bhubaneshwar, Chandigarh, Guwahati, Hyderabad, Jaipur,
Kanpur, Nagpur, Patna, and Thiruvananthapuram.
166
5) Internet Banking: SBH’s Internet banking facility is an online banking facility that can be
accessed from the website. The Customer need to register at the branch where he holds an
account. He will be provided with a customer identification number and an initial password.
The Customer can:
Browse various types of accounts, such as Savings Bank account and Current
account
Download account statement
Communicate with SBH through eMail
Order new cheque books through eMail
Query if a cheque has been encashed
Change the password and e-Mail address
Order a demand draft
6) RTGS / NEFT / SBGRPT : The following are the facilities given under these schemes.
RTGS
Instant Electronic Money Transfer to any a/c with any Bank in India
Secured & direct credit afforded to beneficiaries a/c at other Bank
Available for High value transactions of over Rs.1.00 lac and over
Up to 5 lacs - Rs28/- per transaction; Above 5 lacs for any amount Maximum
Rs 56/- per transaction only
NEFT:
Speedy Electronic Money Transfer to any a/c with any Bank in India
Secured & direct credit afforded to beneficiaries a/c at other Bank
Available for transfer of any amount and credit afforded to the beneficiary on the
same day
Up to Rs.100,000/- Rs.6/-; Above 1 lac for any amount – Maximum Rs.28/- only
GRPT:
For instant money transfer across State Bank Group Branches
Secured & direct credit afforded to beneficiaries a/c at other Bank
Available for transfer of any amount
167
Up to Rs.100,000/- Rs.6/- per transaction; Above 1 lac and up to Rs5 lacs for any
amount – Maximum Rs.28/- per transaction only
For availing any of the above facilities the customer should know and provide only just two
things about the beneficiary 1. Account Number & Name of the beneficiary Customer, 2. IFS
Code of the Bank / Branch of the beneficiary
(IFSC available on all the cheque leaves issued by the Bank) , Bulk neft / rtgs for corporates is
available, Neft / rtgs facilities available on net banking.
7) Cash Management Product (CMP): All companies who wish to pay Dividends to their
investors are eligible to avail the facility. The following are the benefits associated with the
service:
Dividend Warrants payable at par at all branches
Built in security features, as the system validates DW No. & amount at the time of
payment
Manual intervention for reconciliation of account is not required
Company can access details of paid Warrants through statement of account /
Corporate Internet Banking facility
8) Safe Custody Lockers: For the safety of the valuables SBH is offering the customers safe
deposit vaults or locker facilities at nominal annual charges depending on the size of the
locker and the branch.
Deposits, Advances, Capital and Investments
The two main functions of the Bank are to accept deposits and give credit. Capital forms the
base for starting and carrying out any activity. It is not just the amount of the capital invested
that is important, but the quality of the capital also is important. Therefore the Capital adequacy
ratio is being considered. The Non Performing Assets contribute to the loss of profitability.
Therefore the net NPAs as a percentage to the Net Advances is also considered for analyzing the
quality of the assets. Hence analyzing these aspects gives a glimpse of the Performance of the
State Bank of Hyderabad.
168
The table 3.2 shows the paid up capital and reserves, CAR Basel I, CAR Basel II, Deposits
accepted, Advances given, Investments made, Percentage of net NPAs to Net Advances and the
Number of Employees working with SBH since 1970. The Compounded Annual Growth rate
for the period of 12 years from 1999-2000 to 2011-12 for Capital & Reserves is 22.03 per cent,
for the Deposits it is 18.36 per cent, for Net Advances it is 18.39 per cent, for investments it is
18.50. The percentage of Net NPAs to Net Advances has registered a negative growth rate of
12.40 per cent indicating actual decrease in the NPAs. The total number of employees is around
15,000+ mark. The low growth rate might be due to the usage of the Technology.
Profit can be defined as, in simple terms, as excess of income over expenditure. In order for a
business to become self-sustaining and capable of attracting investment, it must generate profits.
Otherwise, it will eventually become insolvent. Without profit, a business would stagnate and
risk losing its market share to other competitors. Profits and losses are indications of whether the
business is doing the right things or not. It is how the people in the marketplace tell a business
what is needed and wanted, what should be eliminated, what should be expanded, what needs to
be improved, etc. Profits and losses constitute an important feedback that improves economic
efficiency. Profits also enable the business to grow. If what the business is doing is good, then
the business needs to grow so that it can do more good. If business does not make profits, then
there's something wrong with what business is doing, and such they deserve to go out of
business.
Chart 3.1 depicts the Progress of the State Bank of Hyderabad in terms of Deposits, Net
Advances, Investments and Paid up Capital and Reserves. The Bank has registered a continuous
growth for all the parameters mentioned. However the growth of Deposits is higher followed by
Net Advances, Investments and Paid up Capital & Reserves in that order for the period 1970 to
2011-12.
169
Table 3.2
PROGRESS OVER THE YEARS OF STATE BANK OF HYDERABAD
YEAR
Paid up
Capital &
Reserves
CAR-
BASEL
I
CAR –
BASEL
II
Deposits
Rs. In
Crores
Net
Advances
Rs. In
Crores
Investments
In crores
Net
NPAs
%
No. of
employees
1970 1.13 - - 64.77 49.96 17.88 - 4301
1980 1.86 - - 461.61 267.43 130.84 - 8855
1990 36.59 - - 2433.56 1393.59 841.56 - 13063
1995-96 247.95 9.9 - 6091.6 3876.16 2155.25 - 14023
1999-00 618.15 10.86 - 12527.02 6080.91 7010.22 7.30 14740
2000-01 761.72 12.28 - 14841.86 7091.49 8758.11 7.82 13280
2001-02 998.41 14.03 - 17402.75 8422.58 9827.89 4.97 13476
2002-03 1250.94 14.91 - 20598.94 9662.6 12518.67 3.25 13378
2003-04 1573.77 14.29 - 25310.72 11813.68 14532.05 0.65 13278
2004-05 1765.65 11.74 - 28929.52 15599.74 14559.39 0.61 13107
2005-06 2060.05 12.08 - 34024.6 20863.02 14256.01 0.36 13108
2006-07 2488.37 12.51 - 41502.67 28109.25 13919.16 0.22 12880
2007-08 2694.14 12.35 11.97 50108.3 35848.75 16027.15 0.16 12813
2008-09 3208.33 10.58 11.53 62448.91 43679.17 20981.66 0.38 12577
2009-10 4264.49 13.71 14.90 72970.72 53040.07 24008.52 0.55 13597
2010-11 5315.16 13.35 14.25 88627.87 64720.31 28446.66 0.87 13519
2011-12 6497.67 12.39 13.56 98731.91 77052.31 29241.80 1.30 15043
CAGR
%(1999-
2000 to
2011-12) 22.03 - - 18.36 18.39
18.50
(12.40)
Source: Compiled from various Annual Reports of State Bank of Hyderabad
Absolute figures may not always represent the profitability in correct terms. Therefore along
with Net Profit the Return on Assets, Earning per Share and Profit per Employee are considered
for analysis of the profitability. The Table 3.3 shows that State Bank of Hyderabad has
registered an increase of Net Profit at a Compounded Annual Growth Rate of 21.75 per cent,
Return on Assets at 3.06 per cent, Earnings per Share at 19.50 per cent and Profit per Employee
at a rate of 21.21 per cent. The profitability of the State Bank of Hyderabad, may be said, is
good and is growing at a healthy rate. However when compared against the 24.35 per cent
industry average of the Compounded Annual Growth Rate of the Scheduled Commercial Banks
the SBH is trailing. SBH is also falling behind the Public sector Commercial Banks, Private
170
Sector Commercial Banks and Foreign Banks whose CAGR of the Net Profit is 23.38 per cent,
24.64 per cent and 28.78 per cent respectively (as per calculations in Chapter II).
Chart 3.1
Progress of SBH over the Years
Source: Compiled from Various Annual Reports of SBH
0
20000
40000
60000
80000
100000
120000
1970
1980
1990
1995
-96
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
Paid up Capital & Reserves
Deposits
Net Advances
Investments
R
s
.
i
n
C
r
o
r
e
s
Y E A R
171
TABLE 3.3
TRENDS OF PROFITABILITY OF STATE BANK OF HYDERABAD
Year Net Profit
(Amt in Rs.
Crores)
Return on
Assets
(in Percentage)
Earnings per
Share
(in Rs.)
Profit per
Employee
(Rs. In Lakhs)
1994-95 43.60 0.62 - 0.313
1995-96 50.00 0.66 290 0.356
1996-97 52.45 0.60 304.06 0.372
1997-98 97.12 0.91 563.00 0.681
1998-99 111.53 0.94 646.55 0.763
1999-00 127.81 0.87 740.93 0.867
2000-01 150.22 0.90 870.84 1.13
2001-02 226.49 1.02 1312.99 1.65
2002-03 301.40 1.15 1747.19 2.25
2003-04 381.20 1.24 2209.86 2.87
2004-05 250.90 0.72 1454.49 1.91
2005-06 427.04 1.13 2475.59 3.26
2006-07 505.50 1.15 2930.43 3.92
2007-08 556.99 1.00 3228.92 4.35
2008-09 615.81 0.91 3569.91 4.90
2009-10 822.71 1.03 4766.66 5.58
2010-11 1166.24 1.22 5620.38 7.89
2011-12 1298.27 1.15 6256.71 8.63
CAGR % 21.75 3.06 19.50 21.21
Source: Compiled from various Annual Reports of State Bank of Hyderabad
Chart 3.2
Profitability of SBH
Source: Compiled from Various Annual Reports of SBH
0.00
200.00
400.00
600.00
800.00
1000.00
1200.00
1400.00
1994
-95
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
Net Profit
Y E A R
R
s
i
n
C
r
o
r
e
s
172
Chart 3.2 shows the Profitability of the State Bank of Hyderabad for the period 1994-95 to 2011-
12 in terms of Net Profit. From the chart it is clear that the State Bank of Hyderabad has
registered a consistent growth (except 2004-05) in terms of Net Profit.
Customer Satisfaction
Customer satisfaction, a term frequently used in marketing, is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."
It is seen as a key performance indicator within business. In a competitive marketplace where
businesses compete for customers, customer satisfaction is seen as a key differentiator and
increasingly has become a key element of business strategy.
"Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers’ expectations. Furthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. . . . These metrics
quantify an important dynamic. When an organization has loyal customers, it gains positive
word-of-mouth marketing, which is both free and highly effective."
Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able
do this, firms need reliable and representative measures of satisfaction.
"In researching satisfaction, firms generally ask customers whether their product or service has
met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When
customers have high expectations and the reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying.
State Bank of Hyderabad recognizing the importance of the Customer Satisfaction has designed
the policy. They believe that “Excellent customer service and an efficient customer grievances
redressal machinery is the bedrock for any service organization”. Therefore they say that they
are committed to provide customer delight and have constituted the following committees to
oversee the level of customer service in the Bank. Gallup Inc and IBA, in their 2008 national
survey of Banks, have rated the Bank as #1 in customer satisfaction in Savings Bank account
amongst 23 midsized banks. (6 private, 2 foreign & 15 Public Sector banks).
173
Heads Office Customer Service Committee (HOCSC): This committee comprises of
all Zonal Managers and representatives from both the Award/Officers associations. Their
suggestions are being implemented for improving customer service.
Standing Committee on Customer Service: This Committee is headed by the Chief
General Manager. It also has two representatives of the customers, who are eminent
citizens. The Standing Committee reviews areas of customer service and the
implementation of the processes related to customer service. It also serves as the micro
level executive committee driving the implementation process and providing relevant
feedback while the Customer Service Committee of the Board would oversee and review
the initiatives. Feedback from the Branch Level Customer Service Committees
(Comprising of customers) are also reviewed in these Committee meetings. The
meetings of the Standing Committee are held every quarter.
Customers Grievances Redressal: The Bank’s policy on Grievance Redressal, has been
placed on the Bank website www.sbhyd.com. The Nodal Officer for complaints is
General Manager (Operations) under whom a Grievance Cell is functioning at Head
Office, Hyderabad. Branches also display salient features of Banking Obudsman Scheme
2006 for the benefit of public to escalate their grievances in case of necessity.
As a result of the sustained efforts of the SBH to educate the staff regarding the need for
faster redressal of grievances, the average time taken for redressal of grievances has come
down from 5 days in the year 2009-10 to 2010-11.
Business Process Re-engineering: As Banking Industry is undergoing rapid changes, to
meet increasing customer expectations, the Bank is putting effort to innovate new
products and services. To address such challenges effectively, the Bank rolled out a
number of BPR initiatives during the past years to enhance value and service quality for
the customers. The establishment of the Centralised loan processing centres, centralized
pension processing centres, Liability CPC, Currency Administration Cells, Stressed
Assets Resolution Centres, Centralised Clearing Processing Centre, Currency
Administration Branch and Document Archival Centre are part of it. The Bank also
introduced many new products to suit the specific customer group requirements.
Specialised Branches: The Bank established specialized branches to serve the specific
group of customer more effectively. Agricultural Development Bank, Specialised
174
MSME branches are the specialized branches that cater to the requirements of the farmers
and small scale units. The State Bank of Hyderabad has Merchant Banking wing through
which it delivers Debenture Trusteeship, Depository Services, Banker to an Issue, E-
broking Project Appraisal and Debt Syndication and Online Supply Chain Management
services. Special women cells have been constituted at Head Office / Zonal Offices to
monitor Credit Flow to Women Beneficiaries. The Bank continues to accord due priority
to extend financial assistance to SC / ST borrowers. A Nodal Officer at Head Office and
at the Lead District, Hyderabad has been appointed to monitor Credit Flow to Minorities.
Lead Bank Scheme: The Bank holds Lead Bank responsibilities in six districts of
Andhra Pradesh and two districts in Karnataka. In addition, the Bank also has Lead Bank
responsibilities of Hyderabad Metro District. It is duly delivering its Lead Bank
Responsibilities.
Rural Institute for Self Emloyment Training: Under the “State Bank of Hyderabad
Diamond Jubilee Rural Development Trust”, the Bank has established eight “Rural Self
Employment Training Institute” (RSETI).
Feedback Policy: The Bank seeks feedback from its customers. Feedback forms are
made available freely in all its branches. The feedback forms are posted on their website
through which customer can send his or her feedback. Their policy statement is “Your
feedbacks are important to us. They help us to rectify our mistakes, and find out if our
new ideas have found favour with you”.
However ‘Customer satisfaction’ is individualistic and varies from time to time. Customer
service is a dynamic concept. What is rated as a high quality customer service today may be
considered as a low quality or bad customer service tomorrow. However, it is evident from the
above information that the State Bank of Hyderabad is putting relentless effort for giving quality
service to its varied customers.
Technology and MIS
Since the implementation of Core Banking Solutions (CBS) in December 2005 all new branches
are opened on CBS Platform only. A countrywide network of branches is now available,
offering customers the benefits of Anywhere Banking, Anytime Banking, Mobile Banking
Services (MBS), Multicity Cheque facility, Express & Speed Clearing, Speed Remittance, 3 in 1
account facility comprising Deposit, Demat & Trading Accounts, Applications Supported by
175
Blocked Amount (ASBA) functionality, Centralised National Electronic Clearing facility, New
Pension Scheme, SMS alerts, Centralised outward clearing with drop box facility, Bilingual
software for CBS operations, etc.
SBH as a member of all Payment Settlement Systems, provides facilities for Inter-Bank
Remittances to customers through RTGS, NEFT & ECS at all its branches. Additionally Bank
also provides State Bank Group Payment facility (SBGRT) for remittances to branches
belonging to entire State Bank Group, covering more than 15500 branches.
SBH has been adjudged as the #1 Tech savvy Bank in India in a survey conducted by the
Business World Magazine in association with Pricewaterhouse Cooper in December 2009.
Leveraging the CBS platform, the Bank offers several customized cost effective solutions, and
has successfully deployed solutions such as Aarogyasri (Online claims processing under the
Rajiv Aarogyasri Health Insurance Scheme of the Government of AP, for designated Hospitals),
Centralised Funds Management Systems for Rural Department of Government of Andhra
Pradesh in respect of NREGS; Fee Online Collection from University students (FOCUS) a
special facility developed for the purpose of Online collection of fees from students of Dr. B.R.
Ambedkar Open University, Hyderabad.
Customer education and imparting knowledge is an integral part of the Banking of SBH.
Adhering to this philosophy and considering the emerging new technology roducts & services,
Bank has published handy booklets & Z-cards, covering FAQs on various new electronic based
remittance facilities viz., RTGS, NEFT, ECS & GRT and other IT based services viz., ATM,
Internet Banking, MBS etc. These documents are available to the general public on the website
of SBH. Bank also conducts frequent special customer meets, where new developments are
shared with customers, and they are encouraged to avail of the several new benefits from
enhanced facilities and services being introduced by the Bank from time to time.
NRI Services: New technology solutions have been devised to further improve facilities for
NRI customers, such as
Speed Remittance facility for processing foreign inward remittances through SWIFT;
MoneyGram & XpressMoney Transfer Services facilitating easy remittance of funds
through internet;
Speed collection of foreign instruments (FCIC)
176
Internet Banking services are made available through www.onlinesbh.com to the Net Banking
Customers. Various measures have been taken by the Bank to provide a safe and secure
environment to perform online Banking
Bank’s Website: (www.sbhyd.com) Details of all Services & Products offered by the Bank are
provided on the website. In addition, complete details of service charges, interest rates, branch
locator, product information, time norms for various Banking transactions have been provided.
Bank’s website can be viewed in the Rajbasha (Hindi) also. The Bank also enabled online
submission of application for education loan by students pursuing higher studies. Bank has also
enabled filing of customer grievances online.
Bank is utilizing its technological strengths to improve MIS reporting and statutory compliance.
Innovative use of technology solutions has helped the Bank in speeding up reporting, improve
data accuracy, and ensured prompt compliance with reporting requirements of Government,
Reserve Bank of India and other authorities.
From the above discussion it is evident that the State Bank of Hyderabad is striving hard for
continuous Technology upgradation.
Human Resources Development
The Bank has accorded due primacy to Human Resources Development (HRD) as a Corporate
Philosophy. The HRD process is directed towards:
i. Providing skill-based training to the employees especially in the areas of funds
management, credit, merchant banking, leasing, forex, computers etc. In addition, the
visiting faculty of the STC covered almost all the branches imparting training on specific
topics as required by the employees at these places.
ii. Job enrichment through a collaborative approach at a few select branches;
iii. Introduction of Distance Learning providing study materials to a target group of officers
in order to equip them with the necessary knowledge and skills;
iv. Arranging workshops on Corporate Management for senior officers and Stress
Management for Top executives;
v. Encouraging effective functioning of Quality circles. The quality circle at Agriculture
Banking Department, Head Office won a prize for its resentation in the Seventh Chapter
Convention (CCQC-94) at Hyderabad.
177
vi. The Bank has a number of welfare schemes for its employees which cover education for
their children, health-care for the employees and their families, group insurance and
facilities for sports and recreation.
Training & Development
State Bank of Hyderabad has a Training & Development Plan. Every year this training plan is
re-assessed at all levels to align it with the emerging requirements. SBH has three Staff College
and Learning Centres. The programmes at these Training Centres are carefully and
conscientiously structured to bring about measurable changes in knowledge, skills, attitude and
social behavior of the personnel to improve customer service and business development. Table
3.4 shows the number of employees deputed for training programmes from the year 2000 to
2012. State Bank of Hyderabad is imparting training for not less than 50 per cent of its various
cadres of employees in different aspects.
TABLE 3.4
TRAINING OF EMPLOYEES AT SBH – CADRE WISE
Year Clerks Officers Controllers Total Percentage of Total Employees
2000-01 7460 243 - 7703 58.00
2001-02 5924 478 31 6433 47.70
2002-03 5668 439 - 6107 45.64
2003-04 6184 689 - 6873 51.76
2004-05 7657 802 - 8459 64.50
2005-06 8566 721 - 9287 70.84
2006-07 7061 795 40 7896 61.30
2007-08 5124 903 - 6027 47.00
2008-09 6072 622 - 6694 53.22
2009-10 6823 683 - 7506 55.20
2010-11 6974 696 - 7670 56.73
2011-12 - - - 7344 44.72
Source: Compiled from various Annual Reports of State Bank of Hyderabad
Social Banking
Social Banking in India can be defined as that part of ‘banking’ which works for economic
betterment of poorer segments of the society and thus encompasses all those banking operations,
178
plans and programmes which aim to carry and which extend the banking services to such of the
territorial divisions, population segments and economic sectors and sub sectors whose economic
operations are not viable presently, but given the support of bank’s services, have a potential for
viability. For the purpose of the study the Priority Sector Lending, the Branch Expansion and the
Financial Inclusion activities of the Bank are considered. Therefore for the performance
evaluation of the State Bank of Hyderabad in terms of Social Banking these three aspects are
considered.
1. Priority Sector Lending
Priority Sector Lending primarily consists of lending to Agriculture, Small Scale Industries,
Small Business and Other Priority Sectors like small road and water transport operators, Retail
trade, loans to professional and self employed persons, Housing loans etc. From the table 3.5 it
can be observed that there is a consistent increase in the advances to the Agriculture, Small Scale
units, Small Business and Other Priority Sectors. The Compounded Annual Growth rate for the
period 1994-95 to 2011-12 for the Total Priority Sector Lending is calculated as 19.22 per cent,
for Agricultural Advances it is 19.66 per cent, for Advances to Small Scale Units it is 16.70 per
cent, for Advances to Small Business it is 17.10 per cent. For Advances to Other Priority Sectors
the Compounded Annual Growth Rate is 33.85 per cent. The CAGR for the Agricultural
Advances surpassed the CAGR for the Total Priority Sector Advances.
The Industry average CAGR for the Priority Sector Lending is 20.26 per cent, for the Public
Sector Banks it is 19.40 per cent, Private Sector Banks achieved a CAGR of 26.10 per cent and
the Foreign Banks have achieved 18.72 per cent (as per the calculations shown in II Chapter).
State Bank of Hyderabad has registered a healthy growth of 18.57 per cent, however this growth
is lesser when compared to the growth rates achieved by the Industry i.e., Public Sector Banks,
Private Sector Banks and the Foreign Banks. Therefore the State Bank Hyderabad has to put in
additional efforts to improve its performance in this area.
179
TABLE 3.5
PRIORITY SECTOR LENDING BY STATE BANK OF HYDERABAD
(Rs. In Crores)
Year Total
Priority
Sector
Lending
Agricultural
Advances
Small
Scale Industries
Advances
Small Business
Advances
Advances to
Other Priority
Sectors
1994-95 1306.22
(38.06)
559.30
(16.30)
472.61 250.83 23.48
1995-96 1601.58
(40.45)
709.67
(17.33)
540.92 320.19 30.80
1996-97 - 779.47 524.40 369.94 -
1997-98 1843.64
(41.81)
767.45
(17.41)
622.03 206.16 248
1998-99 2037.58
(40.59)
851.05
(16.95)
660.36 463.04 63.13
1999-00 2475.50
(43.05)
985.04
(17.13)
793.93 524.54 171.99
2000-01 2915.24
(43.66)
1214.30
(18.19)
824.49 556.91 319.54
2001-02 3514.75
(43.53)
1411.41
(17.48)
921.53 573.24 608.57
2002-03 3839.46
(40.08)
1526.36
(15.93)
982.69 644.75 685.66
2003-04 4803.97
(40.01)
1659.95
(13.83)
1096.76 694.49 1352.77
2004-05 6388.72
(40.65)
2113.42
(13.45)
1237.56 751.08 2286.66
2005-06 8390.87
(40.14)
2879.35
(13.78)
1445.57 898.48 3167.47
2006-07 11315
(40.31)
3873
(13.80)
1659.00 995.00 4788.00
2007-08 12869
(45.40)
5289.74
(18.66)
2391.00 1129.00 4059.26
2008-09 15189
(42.14)
7049.53
(19.01)
2909.92 1500.34 3729.21
2009-10 18148.14
(41.16)
8580.18
(18.47)
4318.22 2528.95 2720.79
2010-11 23639.47
(44.31)
10675.02
(18.77)
5642.00 2692.00 4630.45
2011-12 27087.75
(41.40)
12908.51
(18.92)
6779.60 3818.07 3581.57
CAGR % 19.22 19.96 16.70 17.10 33.85
Note: Figures in parenthesis show the percentage to the Total Priority Sector Advances
Source: Compiled from various Annual Reports of State Bank of Hyderabad
180
Chart 3.3
Priority Sector Lending By SBH
Source: Compiled from various Annual Reports of State Bank of Hyderabad
Chart 3.3 shows the Priority Sector Lending – Sector Wise. State Bank of Hyderabad registered
a consistent increase in the Total Priority Sector Lending for the period 1994-95 to 2011-12. It
registered a consistent growth for the Advances given to the Agriculture, Small & Medium
Enterprises and Small Business. However there is a decline in the advances to Other Priority
Sector for the years 2007-10, increased for the year 2010-11 and again decreased for the year
2011-12.
0.00
5000.00
10000.00
15000.00
20000.00
25000.00
30000.00
1994
-95
1995
-96
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
Total Priority Sector Lending
Agricultural Advances
Small Scale Industries
Small Business Advances
Advances to Other Priority Sectors
R
s
i
n
C
r
o
r
e
s
Y E A R
181
2. Branch Expansion
The branch authorization policy implemented by the Reserve Bank of India sub serves the goals
of greater penetration of banking services and financial inclusion to the Rural and Sub Urban
areas for meeting the requirements of the poor and underprivileged. Since nationalization in the
year 1959 State Bank of Hyderabad is putting relentless effort to stand up to the expectations of
the Policy and Authorities. The Bank's Head Office is situated at Gunfoundry Area, in
Hyderabad, India. All the branches of the Bank are totally networked under Core Banking
Solutions, offering a vide range of products to its customers. All the customers of the Bank have
access to the latest technologies like Internet Banking, ATMs etc. The Bank has pan India
presence and operates through more than 1600 Bank branches. State Bank of Hyderabad has 963
branches in Andhra Pradesh alone, giving it the third largest branch network in the State.
The Population group – wise share of branches of the State Bank of Hyderabad over the years
1995-96 to 2010-12 is presented in the table 3.6. It can be observed from the table 3.6 that the
Compounded Annual Growth Rate of the Branch expansion of State Bank of Hyderabad at Rural
and Semi-Urban areas is very less compared to the growth rate of the Urban and Metropolitan
Branch expansion. Rural area Branch Expansion growth rate is less than even the overall branch
expansion growth rate. The combined Compounded Annual Growth Rate of Rural and Semi-
urban branch expansion is 6.235 per cent also is much less than combined urban and
metropolitan branch expansion growth rate.
However when compared against the growth rates of industry average of (0.1843) per cent for
the Rural Branches, 2.559 per cent for the Semi-urban branches, the State Bank of Hyderabad
registered a better performance. The growth rate of 3.772 per cent for the increase of total
branches also is better when compared to 3.287 of the industry average. The State Bank of
Hyderabad has outperformed the State Bank Group and Nationalised Banks growth rates also.
The SB group growth rates are – Rural Branches (0.142) per cent, Semi-urban branches 1.928
per cent, Urban branches 3.43 per cent, Metro branches 4.12 per cent, Total Branches 1.868.
The Nationalised Banks growth rates are – Rural Branches (0.325) per cent, Semi-urban
branches 2.383 per cent, Urban branches 3.33 per cent, Metro branches 4.11 per cent, Total
Branches 1.824 (as per the calculations shown in the II Chapter).
182
TABLE 3.6
POPULATION GROUP – WISE SHARE OF BRANCHES OF THE
STATE BANK OF HYDERABAD
Year Rural Semi-
Urban
Urban Metro-
Politan
Total
1995-96 280 246 125 128 779
1997-98 281 258 146 147 832
1998-99 284 260 163 148 855
1999-00 285 268 170 151 874
2000-01 285 269 174 150 878
2001-02 285 275 175 150 885
2002-03 287 279 177 151 894
2003-04 286 281 182 153 902
2004-05 286 290 197 156 929
2005-06 287 293 204 160 944
2006-07 280 298 211 176 965
2007-08 284 308 224 185 1001
2008-09 287 312 237 195 1031
2009-10 317 376 277 215 1185
2010-11 356 438 286 235 1315
2011-12 424 468 321 262 1475
CAGR %
(1995-96 to 2011-12)
2.435 3.80 5.622 4.424 3.772
Source: Compiled from various Annual Reports of State Bank of Hyderabad
Chart 3.4 shows the Population group wise share of Branches of the State Bank of Hyderabad. It
is clear from the chart that the growth of Branches – Rural, Semi-Urban, Urban and Metropolitan
is consistent. Out of the total Branches the Semi-Urban Branches are higher in number followed
by Rural, Urban and Metropolitan branches in that order for the period 1995-96 to 2011-12.
183
Chart 3.4
Population Group – wise Share of Branches of the
State Bank of Hyderabad
Source: Compiled from various Annual Reports of State Bank of Hyderabad
3. Financial Inclusion
Financial inclusion is about ensuring that everyone has access to appropriate financial services
enabling them to manage their money on a day to day basis effectively, securely and confidently.
It is about helping them plan for the future and cope with financial pressure by managing their
finances to protect against short term variation in income and expenditure and take advantage of
longer term opportunities and deal effectively with financial distress as finance has been
recognized as a factor for growth and development. As banking services are in nature of public
good it is essential that availability of banking and payment services to the entire population
without discrimination and is the prime objective of the public policy. The importance of an
inclusive financial system is widely recognized in the policy in recent years and financial
inclusion is seen as a policy priority.
0
200
400
600
800
1000
1200
1400
1600
Rural
Semi-Urban
Urban
Metropolitan
Total
R
s
.
i
n
C
r
o
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e
s
Y E A R
184
State Bank of Hyderabad is playing its due role towards the achievement of the Financial
Inclusion. The Bank has taken up the following activities under the programme.
Districts of Nizamabad and Rangareddy in Andhra Pradesh and Koppal and Raichur in
Karnataka where the Bank has lead bank responsibilities have achieved 100% Financial
Inclusion by the end of March 2008.
The Bank launched a pilot project in June 2007 in Raiparthy Mandal in Warangal district,
Andhra Pradesh as a part of financial inclusion drive with other major commercial banks for
effecting payments under Social Security Pensions (SSP) and National Rural Employment
Guarantee Schemes (NREGS) through the smart card technology. The Bank has covered 23
villages under the Raiparthy Mandal with details of beneficiaries covered till March 2008.
In the year 2009-10 the Bank has been allotted 5 more districts of Andhra Pradesh and 1
district in Karnataka for issuing of smart cards to nearly 17 lakh beneficiaries, covering a
total of 2,534 villages. The process was commenced in these districts in the year 2009-10
and 16.60 lakh beneficiaries were registered.
The Bank appointed 8 Business Correspondents (BC) to provide Banking Services in
unbanked areas in the year 2009-10.
The Bank has been allotted 1,102 villages under Phase-I and 2,529 villages under Phase-II
with above 2,000 population under Financial Inclusion Plan spread over four States of
Andhra Pradesh, Maharashtra, Karnataka and Gujarat. In the first phase by 31.03.2012 the
Bank has covered all the villages. The Bank has initiated the process in all 2,529 villages
under Phase-II.
During the year 2010-11, the Bank has appointed 320 Business Agents and all have been
trained by Service Providers for handling POS machines and by M/s.Crux Management
Systems, an accredited Institution by NABARD and Institute of Banking and Finance, on
Behavioural Etiquettes, Customer Service, Product Knowledge, Cash Management etc. Bank
has opened 6.25 lakh accounts under FI and has released overdrafts to some of the
beneficiaries.
State Bank of Hyderabad is also implementing AP Government Smartcard Project in six
districts namely Adilabad, Karimnagar, Mahabubnagar, Medak, Nellore and Warangal in
Andhra Pradesh and Gulbarga and Yadgir in Karnataka covering total of 2,529 Gram
Panchayats. The Bank enrolled 9,57,294 beneficiaries and issued 3,87,000 Smartcards till
185
31st March, 2011. During the year an amount of Rs.160.50 crores were disbursed for SSP
payments and MGNREGS wages by 31st March, 2012. The Bank is intending to make
Smartcard enabled EBT payment to 15 lakh beneficiaries during 2012-13.
Bank has established Financial Literacy and Credit Counselling Centre at Adilabad and will
be establishing another 7 centres at different districts.
Bank has entered into MOU with UIDAI as Registrar, for enrolment of citizens for Aadhaar.
The table 3.7 shows the gist of the number of pensioners/beneficiaries, number of Smartcards
issued, Amount disbursed to the beneficiaries, number of villages/Grampanchayats covered
under financial inclusion and number of business correspondents appointed for achieving
financial inclusion. SBH has achieved 207.20 per cent growth in the increase of number of
beneficiaries, 112.93 per cent growth in the issue of smart cards, 77.73 per cent growth in
Amount disbursed, 158.56 per cent growth in number of villages covered and 3900 per cent
growth in appointing Business Correspondents under the programme of Financial Inclusion.
This explains that the State Bank of Hyderabad is actively taking part in the Financial Inclusion
programme under the guidelines of the Reserve Bank of India.
Lead Bank Scheme:
The Bank holds Lead Bank responsibilities in six districts of Andhra Pradesh – Adilabad,
Karimnagar, Khammam, Nalgonda, Nizamabad, Rangareddy, and two districts in Karnataka,
Raichur and Gulbarga. In addition to this, the Bank also has Lead Bank responsibilities of
Hyderabad Metro District. The table 3.5 gives information about the Allocated share, percentage
of allocated share achieved by the State Bank of Hyderabad as against the percentage share
achievement by all Banks and Financial Institutions.
It can be observed from the Table 3.8 that the State Bank of Hyderabad’s percentage of allocated
share achieved is higher than that of the combined percentage of allocated share achieved by all
Banks and Financial Institutions for the period 1994-95 to 2011-12 excepting in the year 2005-
06.
186
Table 3.7
FINANCIAL INCLUSION AT SBH
Particulars Social Security Pensions and NREG Scheme CAGR %
2007-08 2008-09 2009-10 2010-11 2011-12
Total No. of
Pensioners/Beneficiaries
10,745 - 16.60
lakh
9.57 lakh - 207.20
No. of Smart Cards issued 14,280 12,323 12,578 3.87 lakh 6.25
lakh
112.93
Amount Disbursed(Rs. In
crores)
9.05 2.39 3.51 8.05 160.50 77.73
No. of Villages covered 23 23 2534 2529 2658 158.56
No. of Business
Correspondents
- - 8 320 - 3900.00
Source: Compiled from Annual Reports of State Bank of Hyderabad
TABLE 3.8
LEAD BANK RESPONSIBILITIES
(Rs. In Crores)
Year Allocated Share
Rs.
% of Allocated
Share Achieved
Combined % Share achievement
By all Banks & Financial Institutions
1994-95 173.58 99.0
1995-96 213.77 82.0 -
1996-97 - - -
1997-98 - 94.0 91
1998-99 - 92.0 85
1999-00 - 88.0 84
2000-01 - 86.0 73
2001-02 - 86.01 65
2002-03 87 77
2003-04 93.89 73.91
2004-05 1,180.90 102.47 84.85
2005-06 1,213.71 78.84 83.88
2006-07 1,731.00 92.14 84.38
2007-08 2,003.00 87.43 -
2008-09 2,274.00 76.39 -
2009-10 2,723.00 90.28 76.95
2010-11 2,959.53 100.62 79.08
2011-12 3,864.11 83.61 79.65
Source: Compiled from various annual reports and records of State Bank of Hyderabad
187
Sponsored Regional Rural Bank:
The State Bank of Hyderabad is extending the reach of rural poor and underprivileged through
providing financial services through its own branches and also through sponsoring the Regional
Rural Bank/s. The Performance of the Regional Rural Bank may be considered as an indirect
factor for the Performance of the SBH.
State Bank of Hyderabad was sponsoring four Regional Rural Banks (RRBs) namely Sri
Saraswathi Grameena Bank, Sri Rama Grameena Bank, Sri Satavahana Grameena Bank and
Golconda Grameena Bank which were amalgamated into a single outfit named Deccan
Grameena Bank with effect from 24.03.2006. The Table 3.9 shows the details about the
aggregate deposits, advances, net profit, the average credit-deposit ratio, credit linkage to Self
Help Groups and kisan credit cards for the period 1994-95 to 2011-12. The sponsored Regional
Rural Bank has recorded very good growth rates. The Deccan Grameena Bank is doing an
appreciable job in extending the reach of the financial services to the Rural poor.
Community Service Banking
The Bank, as a responsible corporate citizen, is active in rendering services for the betterment of
the society in modest way. The Bank is effectively associating with and participates in various
community development activities and programmes pertaining to health, education, social,
vocational training, sports, etc. The basic aim of these activities is to respond to the needs and
expectations of the community and in turn enhance the image of the Bank as a socially
responsible institution. The Table 3.10 shows the total donations made by the Bank as a
responsible corporate citizen.
As it can be observed from the table 3.10 the Compounded Annual Growth rate in the donations
made by the State Bank of Hyderabad towards Community Services is 32.87 per cent for the
period 1995-96 to 2011-12.
188
TABLE 3.9
PERFORMANCE OF DECCAN GRAMEENA BANK
( SPONSORED REGIONAL RURAL BANK/S)
(Rs. In Crores) Year Branches Deposits
Rs.
Advances
Rs.
Credit-
Deposit
Ratio
Self Help Groups Kisan Credit Cards Net
Profit
Rs.
No. of SHGs
Financed
Credit
Limits
No. of
Beneficiaries
Issued Aggregate
Limit
1994-95 166 141.93 110.29 - - - - - - (0.87)
1997-98 171 282.71 162.39 - - - - - - -
1998-99 172 360.36 208.69 - - - - - - 9.08
1999-00 169 440.07 232.44 - 2077 - 32,201 1,392 0.20 -
2000-01 169 523.67 288.75 - 6,777 - 1,02,000 10,584 0.16 -
2001-02 169 608.20 327.68 53.87 - 8.46 57,067 23,992 12.35 9.13
2002-03 166 701.00 394.00 59 19,705 41.96 2,67,654 71,930 93.11 10.06
2003-04 165 799.50 435.38 59.25 28,360 64.27 3,82,996 92,693 121.53 13.21
2004-05 165 932.14 559.14 65.0 38,776 99.91 5,60,591 1,30,038 164.95 15.40
2005-06 166 1,011.44 605.93 66.46 56,093 98.91 7,58,339 1,50,016 214.96 17.46
2006-07 166 1,262.00 741.00 59.28 70,173 202.00 9,44,790 1,64,978 263.00 100.00
2007-08 173 1,444 1,002.0
0
69.34 87,204 345 11,90,335 1,86,353 319.00 100.00
2008-09 200 1,760 1,286.0
0
71.84 1,04,417 486 15,66,255 2,30,313 415.00 -
2009-10 215 2,259.00 1,606.0
0
71.00 1,20,078 640.00 16,81,092 2,61,703 481.00 -
2010-11 226 2,601 1,956.0
0
75.00 57,147 771.00 7,14,338 2,25,793 597.00 -
2011-12 243 2,920.67 2,362.3
7
80.88 51,961 633.42 6,33,924 2,42,379 732.71 -
CAGR %
1999-00
To
2011-
12)
2.088 19.47 19.75 4.15 30.77 43.28 28.19 53.72 98.15
Source: Compiled from various annual reports and records of State Bank of Hyderabad
189
TABLE 3.10
TOTAL DONATIONS TOWARDS COMMUNITY SERVICES (Rs. In Crores)
Year Total
Donations
1995-96 0.0515
1999-00 0.8532
2000-01 -
2001-02 0.2376
2002-03 0.2042
2003-04 1.6300
2004-05 2.3600
2005-06 1.6800
2006-07 -
2007-08 2.4400
2008-09 1.7500
2009-10 5.0100
2010-11 2.3600
2011-12 6.4600
CAGR % 32.87
Source: Compiled from various Annual Reports of State Bank of Hyderabad
Conclusion
Efficiency, Excellency, Effectiveness and other such words are not superlative and hence they do
not have given measures or benchmarks. They are all comparative terms. In that sense it can be
said that the State Bank of Hyderabad is able to achieve efficiency, for, compared to the past it is
showing improvement in the bench marks which it has fixed for itself in its mission statement.
Compared to the industry averages and other Banks-group wise State Bank of Hyderabad is a
little behind in the Priority Sector Lending. However it is ahead than the State Bank Group and
the industry average in accepting Deposits and giving Advances and Branch expansion in Rural
and Semi Urban Areas. The Bank is duly giving its services in the Financial Inclusion area and
has well sort out Financial Inclusion Plan. The Bank has Policies for improving Customer
satisfaction, Technology Upgradation and Human Resource Development. Therefore it can be
said that the State Bank of Hyderabad is able to achieve the efficiency and the journey is still on.
190
References:
1. Pagdi, Raghavendra Rao (1987) Short History of Banking in Hyderabad District, 1879-
1950. In M. Radhakrishna Sarma, K.D. Abhyankar, and V.G. Bilolikar, eds. History of
Hyderabad District, 1879-1950AD (Yugabda 4981-5052). (Hyderabad : Bharatiya
Itihasa Sankalana Samiti), Vol. 2, pp.85-87.
2. Avinandan Mukherjee and Prithwiraj Nath. 2005. "An empirical assessment of
comparative approaches to service quality measurement", Journal of Services Marketing
19 (3), 174-184.
3. Annual Reports of SBH
4. www.sbhyd.com
