DF-2 – CAPITAL ADEQUACY
As on 31.12.2023
Qualitative Disclosures
(a) A summary discussion • The Bank and its Subsidiaries undertake the Internal Capital
of the Bank’s approach to Adequacy Assessment Process (ICAAP) on an annual basis.
assessing the adequacy of The ICAAP details the capital planning process and carries out
its capital to support an assessment covering measurement, monitoring, internal
current and future activities
controls, reporting, capital requirement and stress testing of the
following Risks:
➢ Credit Risk ➢ Market Risk
➢ Operational Risk ➢ Credit Concentration Risk
➢ Liquidity Risk ➢ Interest Rate Risk in the
➢ Compliance Risk Banking Book
➢ Pension Fund Obligation ➢ Country Risk
Risk ➢ Strategic Risk
➢ Reputation Risk ➢ Model Risk
➢ Residual Risk from Credit ➢ Contagion Risk
Risk Mitigants ➢ Cyber Risk
➢ Talent Risk ➢ Underwriting Risk
➢ Any other applicable Risk
• Sensitivity Analysis is conducted annually or more frequently as
required, on the movement of Capital Adequacy Ratio (CAR) in
the medium horizon of 3 to 5 years, considering the projected
investment in Subsidiaries / Joint Ventures by SBI and growth
in Advances by SBI and its Subsidiaries (Domestic / Foreign).
This analysis is done for the SBI and SBI Group separately.
• CRAR of the Bank and for the Group as a whole is estimated to
be well above the Regulatory CAR in the medium horizon of 3
to 5 years. However, to maintain adequate capital, the Bank
has options to augment its capital resources by raising
Subordinated Debt, Perpetual Cumulative Preference Shares
(PCPS), Redeemable Non-Cumulative Preference Shares
(RNCPS), Redeemable Cumulative Preference Shares
(RCPS), Perpetual Debt Instruments (PDIs) and Perpetual
Non-Cumulative Preference Shares (PNCPS) besides Equity
as and when required.
• Strategic Capital Plan for the Foreign Subsidiaries covers an
assessment of capital requirement for growth of assets and the
capital required complying with various local regulatory
requirements and prudential norms. The growth plan is
approved by the parent bank after satisfying itself about the
capacity of the individual subsidiaries to raise CET 1 / AT 1 /
Tier 2 Capital to support the increased level of assets and at the
same time maintaining the Capital Adequacy Ratio (CAR).
1
Quantitative Disclosures
(b) Capital requirements
for credit risk:
▪ Portfolios subject to → Rs. 3,24,926.79 crs.
standardized approach
▪ Securitization
→ Nil
exposures
……………………………
Total Rs. 3,24,926.79 crs
(c) Capital requirements
for market risk:
▪ Standardized duration
approach;
- Interest Rate Risk → Rs. 18,991.76 crs.
- Foreign Exchange
→ Rs 980.33 crs.
Risk(including gold)
- Equity Risk
→ Rs 19,073.20 crs.
………………………..
Total Rs. 39,045.29 crs.
(d) Capital requirements
for operational risk:
•Basic Indicator → Rs. 39,324.51 crs.
Approach
•The Standardized
Approach (if NA
applicable) …………………………..
Total Rs 39,324.51 crs.
(e) Common
Equity Tier 1, Tier CAPITAL ADEQUACY RATIOS AS ON 31.12.2023
1 and Total
Capital Ratios: CET 1 (%) Tier 1 (%) Total (%)
• For the top SBI Group 9.36 10.78 13.14
consolidated
group; and State Bank of India 9.09 10.58 13.05
• For significant
SBI (Mauritius) Ltd. 19.24 19.24 20.25
bank
subsidiaries State Bank of India (Canada) 16.84 16.84 19.37
(stand alone or
sub- State Bank of India (California) 13.73 13.73 14.77
consolidated
depending on Commercial Indo Bank LLC, 5.46 5.46 5.46
how the Moscow
Framework is Bank SBI Indonesia 71.66 71.66 72.35
applied)
Nepal SBI Bank Ltd. 12.79 12.79 16.29
SBI (UK) Ltd. 18.05 18.05 18.05
2
DF-3: CREDIT RISK: GENERAL DISCLOSURES
As on 31.12.2023
General Disclosures
a. Qualitative Disclosures
▪ Definitions of past due and impaired assets (for accounting purposes)
Non-performing assets
An asset becomes non-performing when it ceases to generate income for the Bank. As from
31st March 2006, a non-performing Asset (NPA) is an advance were
(i) Interest and/or instalment of principal remain ‘overdue’ for a period of more than 90
days in respect of a Term Loan.
(ii) The account remains ‘out of order’ for a period of more than 90 days, in respect of an
Overdraft/Cash Credit (OD/CC).
(iii) The bill remains ‘overdue’ for a period of more than 90 days in the case of bills
purchased and discounted.
(iv) Any amount to be received remains ‘overdue’ for a period of more than 90 days in
respect of other accounts.
(v) A loan granted for short duration crops is treated as NPA, if the instalment of principal
or interest thereon remains overdue for two crop seasons and a loan granted for long
duration crops is treated as NPA, if instalment of principal or interest thereon remains
overdue for one crop season.
(vi) An account would be classified as NPA only if the interest charged during any quarter
is not serviced fully within 90 days from the end of the quarter.
(vii) The amount of a liquidity facility remains outstanding for more than 90 days, in respect
of securitization transactions undertaken in accordance with the RBI guidelines on
securitization dated February 1, 2006.
(viii) In respect of derivative transactions, the overdue receivables representing the
positive mark to market value of a derivative contract, remain unpaid for a period of
90 days from the specified due date for payment.
'Out of Order' status
An account is treated as 'out of order' if the outstanding balance remains continuously in excess
of the sanctioned limit/drawing power.
In cases where the outstanding balance in the principal operating account is less than the
sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date
of Bank’s Balance Sheet, or where credits are not enough to cover the interest debited during
the same period, such accounts are treated as ‘out of order’.
‘Overdue’
Any amount due to the Bank under any credit facility is ‘overdue’ if it is not paid on the due date
fixed by the Bank.
3
▪ Resolution of Stressed Assets
Early identification and reporting of stress:
Identification of incipient stress in loan accounts, immediately on default*, by classifying stressed
assets as special mention accounts (SMA) as per the following categories:
Basis for classification – Principal or interest
SMA Sub-categories payment or any other amount wholly or partly
overdue between
SMA-0 1-30 days
SMA-1 31-60 days
SMA-2 61-90 days
* Default’ means non-payment of debt when whole or any part or instalment of the amount of debt
has become due and payable and is not repaid by the debtor or the corporate debtor. For revolving
facilities like cash credit, default would also mean, without prejudice to the above, the outstanding
balance remaining continuously in excess of the sanctioned limit or drawing power, whichever is
lower, for more than 30 days.
▪ Discussion of the Bank’s Credit Risk Management Policy
The Bank has an integrated Credit Risk Management, Credit Risk Mitigation and Collateral
Management Policy in place which is reviewed annually. Over the years, the policy & procedures
in this regard have been refined as a result of evolving concepts and actual experience. The policy
and procedures have been aligned to the approach laid down in Basel-II and RBI guidelines.
Credit Risk Management encompasses identification, assessment, measurement, monitoring and
control of the credit risk in exposures.
In the processes of identification and assessment of Credit Risk, the following functions are
undertaken:
(i) Developing and refining the Credit Risk Assessment (CRA) Models/Scoring Models to
assess the Counterparty Risk, by taking into account the various risks categorized broadly
into Financial, Business, Industrial and Management Risks, each of which is scored
separately.
(ii) Conducting industry research to give specific policy prescriptions and setting quantitative
exposure parameters for handling portfolio in large / important industries, by issuing
advisories on the general outlook for the Industries / Sectors, from time to time.
The measurement of Credit Risk involves computation of Credit Risk Components viz Probability
of Default (PD), Loss Given Default (LGD) and Exposure At Default (EAD).
The monitoring and control of Credit Risk includes setting up exposure limits to achieve a well-
diversified portfolio across dimensions such as single borrower, group borrower and industries.
For better risk management and avoidance of concentration of Credit Risks, internal guidelines on
prudential exposure norms in respect of individual companies, group companies, Banks, individual
borrowers, non-corporate entities, sensitive sectors such as capital market, real estate, sensitive
commodities, etc., are in place. Credit Risk Stress Tests are conducted at half yearly interval to
identify vulnerable areas for initiating corrective action, where necessary.
4
The Bank has also a Loan Policy which aims at continued improvement of the overall quality of
assets at the portfolio level, by establishing a commonality of approach regarding credit basics,
appraisal skills, documentation standards and awareness of institutional concerns and
strategies, while leaving enough room for flexibility and innovation.
The Bank has processes and controls in place in regard to various aspects of Credit Risk
Management such as appraisal, pricing, credit approval authority, documentation, reporting and
monitoring, review and renewal of credit facilities, management of problem loans, credit
monitoring, etc. The Bank also has a system of Credit Audit with the aims of achieving continuous
improvement in the quality of the credit portfolio with exposure of Rs. 20 cr. and above. Credit
Audit covers audit of credit sanction decisions at various levels. Both the pre-sanction process
and post-sanction position are examined as a part of the Credit Audit System. Credit Audit also
examines identified Risks and suggests Risk Mitigation Measures.
5
DF-3: Quantitative Disclosures as on 31.12.2023
(Insurance entities, JVs & Non-financial entities excluded)
General Disclosures:
Rs. in crores
Quantitative Disclosures Non-Fund
Fund Based Based Total
b Total Gross Credit Risk Exposures 3663827.76 545035.61 4208863.37
c Geographic Distribution of Exposures: FB / NFB
Overseas
596951.04 80612.51 677563.55
Domestic 3066876.72 464423.10 3531299.82
d Industry Type Distribution of Exposures Please refer to Table “A”
Fund based / Non-Fund Based separately
e Please refer to Table “B”
Residual Contractual Maturity Breakdown of Assets
f Amount of NPAs (Gross) i.e. Sum of (i to v) 88064.17
i. Substandard 16066.53
ii. Doubtful 1 9889.32
iii. Doubtful 2 16962.43
iv. Doubtful 3 16492.83
v. Loss 28653.06
g Net NPAs 22484.30
h NPA Ratios
i) Gross NPAs to gross advances 2.40%
ii) Net NPAs to net advances 0.62%
i Movement of NPAs (Gross)
i) Opening balance 91874.12
ii) Additions 19082.03
iii) Reductions 22891.98
iv) Closing balance 88064.17
j Movement of provisions for NPAs
i) Opening balance 70377.12
ii) Provisions made during the period 8203.35
iii) Write-off/Write-back of excess provisions 13000.60
iv) Closing balance 65579.87
k Amount of Non-Performing Investments 2922.25
l Amount of Provisions held for Non-Performing Investments 2527.47
m Movement of Provisions for Depreciation on Investments
Opening balance 16244.68
Provisions made during the period 209.93
Write-off -23.30
Write-back of excess provisions 4835.77
Closing balance 11642.14
n By major industry or counter party type
Amt. of NPA and if available, past due loans, provided separately 35638.47
Specific & general provisions; and -
Specific provisions and write-offs during the current period -
o Amt. of NPAs and past due loans provided separately by significant geographical
areas including specific and general provisions -
Provisions -
6
Table- A: DF-3 (d) Industry Type Distribution of Exposures as on 31.12.2023
(Rs. in crores)
Code Industry Fund Based [Outstanding-O/s)] Non-Fund
Standard NPA Total Based(O/s)
1 Coal 6,545.44 333.01 6,878.45 7908.91
2 Mining 11,298.90 57.36 11,356.26 4931.56
3 Iron & Steel 71,652.13 442.02 72,094.15 47221.88
4 Metal Products 41,874.07 289.24 42,163.31 15407.35
5 All Engineering 37,726.49 1,994.61 39,721.10 70180.94
5.1 Of which Electronics 7,412.29 96.00 7,508.29 5279.67
6 Electricity 673.25 0.61 673.86 0.70
7 Cotton Textiles 22,946.99 1,083.47 24,030.46 1717.32
8 Jute Textiles 709.49 39.19 748.68 42.35
9 Other Textiles 12,064.48 1,062.42 13,126.90 2204.43
10 Sugar 4,432.67 232.05 4,664.72 1017.49
11 Tea 1,444.36 60.72 1,505.08 37.92
12 Food Processing 66,269.97 4,167.20 70,437.17 5152.49
13 Vegetable Oils &Vanaspati 5,627.14 357.98 5,985.12 4389.19
14 Tobacco / Tobacco Products 1,618.59 9.79 1,628.38 191.26
15 Paper / Paper Products 6,073.22 202.02 6,275.24 1201.38
16 Rubber / Rubber Products 10,026.59 479.22 10,505.81 1880.38
17 Chemicals / Dyes / Paints 97,731.23 776.11 98,507.34 60964.59
etc.
17.1 Of which Fertilizers 11,740.94 14.83 11,755.77 11368.30
17.2 Of which Petrochemicals 43,180.26 23.94 43,204.20 44416.09
17.3 Of which Drugs &Pharma 21,114.35 393.13 21,507.48 1665.16
18 Cement 8,663.32 732.07 9,395.39 5070.02
19 Leather & Leather Products 2,255.10 162.50 2,417.60 177.20
20 Gems & Jewellery 9,417.14 1,346.39 10,763.53 229.18
21 Construction 45,182.58 1,189.65 46,372.23 18706.93
22 Petroleum 80,273.80 159.75 80,433.55 29500.43
23 Automobiles & Trucks 17,869.32 868.28 18,737.60 5027.23
24 Computer Software 2,266.59 9.12 2,275.71 1625.80
25 Infrastructure 3,93,192.44 17,305.37 4,10,497.81 79282.32
25.1 Of which Power 2,07,613.72 2,020.06 2,09,633.78 37876.84
25.2 Of which Telecommunication 37,292.14 2,213.89 39,506.03 1586.16
25.3 Of which Roads & Ports 96,540.53 6,650.12 1,03,190.65 20580.99
26 Other Industries 5,58,982.57 29,262.16 5,88,244.73 121546.11
27 NBFCs & Trading 5,96,988.05 10,994.11 6,07,982.16 34125.33
28 Residual Advances 14,61,957.66 14,447.73 14,76,405.39 25294.92
Total 35,75,763.39 88,064.17 36,63,827.76 545035.61
7
Table- B
DF-3 (e) SBI (CONSOLIDATED) Residual contractual maturity breakdown of assets as on 31.12.2023*
(Rs. In crores)
INFLOWS 1 2-7 8-14 15-30 31 days More than Over 3 Over 6 Over 1 Over 3 Over 5 TOTAL
day days days days &upto 2 2 months months months year years years
months &upto 3 &upto 6 &upto 1 &upto 3 &upto 5
months months year years years
1 Cash 18001.65 7.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18009.03
2 Balances 1675.03 3142.98 1787.31 2452.80 2939.03 3394.11 7534.78 42217.10 53207.79 19248.80 55727.24 193326.97
with RBI
3 Balances
with other 50109.91 7607.79 1081.80 2110.83 4920.52 2349.01 1269.60 2322.10 2688.86 467.71 208.46 75136.60
Banks
4 Invest 16768.28 2350.61 4876.22 24201.28 36193.85 34480.87 49838.46 110729.34 314544.04 187060.70 951529.78 1732573.42
ments
5 Advances 37757.92 26480.16 28769.92 60874.89 102378.87 91717.40 176028.36 264242.69 1337710.96 536452.19 954175.69 3616589.06
6 Fixed 0.00 0.00 0.00 7.50 15.00 15.00 15.04 102.05 132.07 78.70 43440.24 43805.61
Assets
7 Other 9170.43 31643.74 21411.31 19424.20 12080.51 16534.43 19672.64 26294.73 231468.78 18613.88 46632.99 452947.64
Assets
TOTAL 133483.21 71232.67 57926.56 109071.50 158527.78 148490.81 254358.89 445908.02 1939752.50 761921.97 2051714.42 6132388.33
*Notes:
i) Insurance entities, Non-financial entities, JVs, Special Purpose Vehicles & Intra-group Adjustments are excluded.
ii) Investments include Non-Performing Investments and Advances includes Non-Performing Advances.
iii) The Bucketing structure has been revised based on the RBI guidelines dated March 23, 2016.
DF-4: CREDIT RISK: DISCLOSURES FOR PORTFOLIOS SUBJECT TO THE
STANDARDISED APPROACH
As on 31.12.2023
Disclosures for Portfolios subject to Standardised Approach
Qualitative Disclosures
▪ Names of Credit Rating Agencies used, plus reasons for any changes
(a) As per RBI Guidelines, the Bank has identified CARE, CRISIL, ICRA, India Rating,
*Brickwork, ACUITE Ratings and Research and INFOMERICs (Domestic Credit Rating
Agencies) and FITCH, Moody’s and S&P (International Rating Agencies) as approved Rating
Agencies, for the purpose of rating Domestic and Overseas Exposures, respectively, whose
ratings are used for the purpose of computing Risk-weighted Assets and Capital Charge.
▪ Types of exposures for which each Agency is used
(i) For Exposures with a contractual maturity of less than or equal to one year (except
Cash Credit, Overdraft and other Revolving Credits), Short-term Ratings given by
approved Rating Agencies are used.
(ii) For Cash Credit, Overdraft and other Revolving Credits (irrespective of the period)
and for Term Loan exposures of over 1 year, Long Term Ratings are used.
▪ Description of the process used to transfer Public Issue Ratings onto comparable
assets in the Banking Book
The key aspects of the Bank’s external ratings application framework are as follows:
• All long term and short term ratings assigned by the credit rating agencies specifically
to the Bank's long term and short term exposures respectively are considered by the
Bank as issue specific ratings.
• Foreign sovereign and foreign bank exposures are risk-weighted based on issuer
ratings assigned to them.
• The Bank ensures that the external rating of the facility/borrower has been reviewed
at least once by the ECAI during the previous 15 months and is in force on the date
of its application.
• Where multiple issuer ratings are assigned to an entity by various credit rating
agencies, the risk weight is determined as follows:
o If there is only one rating by a chosen credit rating agency for a particular claim,
then that rating is used to determine the risk weight of the claim.
o If there are two ratings accorded by chosen credit rating agencies, which map
into different risk weights, the higher risk weight is applied.
o If there are three or more ratings accorded by chosen credit rating agencies
with different risk weights, the ratings corresponding to the two lowest risk
weights are referred to and the higher of those two risk weights is applied, i.e.,
the second lowest risk weight.
9
Long-term Issue Specific Ratings (For the Bank’s own exposures or other issuance of debt
by the same borrower-constituent/counterparty) or Issuer (borrower-
constituents/counterparty) Ratings are applied to other unrated exposures of the same
borrower-constituent/counter-party in the following cases:
• If the Issue Specific Rating or Issuer Rating maps to Risk Weight equal to or higher
than the unrated exposures, any other unrated exposure on the same counter-party
is assigned the same Risk Weight, if the exposure ranks pari passu or junior to the
rated exposure in all respects.
• In cases where the borrower-constituent/counterparty has issued a debt (which is not
a borrowing from the Bank), the rating given to that debt is applied to the Bank’s
unrated exposures, if the Bank’s exposure ranks pari-passu or senior to the specific
rated debt in all respects and the maturity of unrated Bank’s exposure is not later than
the maturity of the rated debt.
* The Securities and Exchange Board of India has cancelled the Certificate of Registration (CoR) granted to Brickwork Ratings India
Private Limited as a Credit Rating Agency (CRA), vide Order WTM/ASB/MIRSD/MIRSD_CRADT/20175/2022-23 dated October 6, 2022.
2. In view of the above, Regulated Entities/ Market Participants are advised by RBI, in respect of ratings/credit evaluations required in
terms of any guidelines issued by them, no such fresh ratings/evaluations shall be obtained from the above-mentioned rating agency with
immediate effect. The instructions regarding the prudential treatment of the existing ratings issued by the rating agency shall be advised
separately.
Quantitative Disclosures as on 31.12.2023
(Rs. in crores)
(b) For exposure amounts after risk Amount
mitigation subject to the Below 100% Risk Weight 2855502.84
Standardized Approach, amount of 100% Risk Weight 581237.89
group’s outstanding (rated and More than 100% Risk
unrated) in each risk bucket as well Weight 772122.64
as those that are deducted. Deducted 0
4208863.37
Total
10
DF-17: COMPARISON OF ACCOUNTING ASSETS VS. LEVERAGE RATIO EXPOSURE
MEASURE
AS ON 31.12.2023
ITEM Rs. (In millions)
1 Total consolidated assets as per published financial 6,49,30,511.64
statements
2 Adjustment for investments in banking, financial, insurance or -40,01,967.59
commercial entities that are consolidated for accounting
purposes but outside the scope of regulatory consolidation
3 Adjustment for fiduciary assets recognized on the balance 0.00
sheet pursuant to the operative accounting framework but
excluded from the leverage ratio exposure measure
4 Adjustments for derivative financial instruments 4,42,388.20
5 Adjustment for securities financing transactions (i.e. repos and 23,601.22
similar secured lending)
6 Adjustment for off-balance sheet items (i.e. conversion to 58,40,302.81
credit equivalent amounts of off-balance sheet exposures)
7 Other adjustments -1,89,410.95
8 Leverage ratio exposure (State Bank Group) 6,70,45,425.33
11
DF-18: LEVERAGE RATIO COMMON DISCLOSURE TEMPLATE
As on 31.12.2023
ITEM (Rs. in Millions)
On balance sheet exposures
1 On-balance sheet items (excluding derivatives and SFTs, but 6,09,28,544.05
including collateral)
2 (Asset amounts deducted in determining Basel III Tier 1 -189410.95
capital)
3 Total on-balance sheet exposures (excluding derivatives 6,07,39,133.10
and SFTs) (sum of lines 1 and 2)
Derivatives exposures
4 Replacement cost associated with all derivatives transactions 1,85,040.21
(i.e. net of eligible cash variation margin)
5 Add-on amounts for PFE associated with all derivatives 2,57,347.99
transactions
6 Gross-up for derivatives collateral provided where deducted 0.00
from the balance sheet assets pursuant to the operative
accounting framework
7 (Deductions of receivables assets for cash variation margin 0.00
provided in derivatives transactions)
8 (Exempted CCP leg of client-cleared trade exposures) 0.00
9 Adjusted effective notional amount of written credit derivatives 0.00
10 (Adjusted effective notional offsets and add-on deductions for 0.00
written credit derivatives)
11 Total derivative exposures (sum of lines 4 to 10) 4,42,388.20
Securities financing transaction exposure
12 Gross SFT assets (with no recognition of netting), after 23,601.22
adjusting for sale accounting transactions
13 (Netted amounts of cash payables and cash receivables of 0.00
gross SFT assets)
14 CCR exposure for SFT assets 0.00
15 Agent transaction exposures 0.00
16 Total securities financing transaction exposures (sum of 23,601.22
lines 12 to 15)
Other off balance sheet exposures
17 Off-balance sheet exposure at gross notional amount 1,40,17,082.06
18 (Adjustments for conversion to credit equivalent amounts) -81,76,779.25
19 Off-balance sheet items (sum of lines 17 and 18) 58,40,302.81
Capital and total exposures
20 Tier 1 capital 35,92,798.46
21 Total exposures (sum of lines 3,11,16 and 19) 6,70,45,425.33
Leverage ratio
22 Basel III leverage ratio (%) (State Bank Group) 5.36%
12
