COMPANY PROFILE The state bank of India was established on 1st july1955 at Mumbai.

It
has 14 local head offices ,57 zonal offices and more than 16,000 branches all over the India. It
has more then 12,000 ATM’s. There are 8 subsidiaries. The bank had a total strength of 2,05,896
employees.

 Mission Statement
• To retain the banks position as the premier Indian financial services.
• Group with world class standards and significant global business commitment to
excellence in customer, shareholder and employee satisfaction and to play a leading role
in the expanding and diversifying financial services sector while continuing emphasis on
its development banking role.
 Vision Statement
• Premier Indian financial services group with
global perspective, world class standards of
the efficiency and professionalism and core
institutional values.
• Retain its position in the country as a pioneer in developing countries.
• Maximize shareholder value through high sustained earnings per share.
 • An institution with a culture of mutual care and commitment a satisfying and exciting.
• Work environment and continuous learning opportunity.
 Values
• Excellence in customer service.
• Profit orientation.
• Belonging and commitment to the bank.
• Fairness in all dealings and relations.
• Risk taking and innovation.
• Team-playing.
• Learning and renewal.
• Integrity.
• Transparency and discipline in policies
and systems.
 STRATEGY ADOPTED BY STATE BANK OF INDIA
• Institution for advanced learning :
To provide state of the art training in financial products to middle level and senior level
executives.
• Internal consultant/change agent :
To act as catalyst for change in attitudes and orientation of banking staff and to provide expertise
and consultative support.
 Continue
Feedback supplier :
To capture and structure feedback from trainees and from the market.
Think Tank :
To provide expert and informed suggestions, model business strategies, analysis of market
developments from a banker perspective.
• Research and development role :
To carry out research on contemporary subjects which are relevant to the banks short term and
medium term and operational needs and policy formulation.
• Overlapping staff training centers :
To liaise, validate and closely monitor the staff training centers in seven circles attached to the
academy

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COMPENSATION POLICY

Introduction

Technological progress in payment and settlement systems

and qualitative changes in operational systems and
processes undertaken by various players in the market
have improved efficiencies for providing better service to
the users of the system. It has been the endeavour of the
Bank to offer services to its customers with best possible
utilisation of its technology infrastructure. Withdrawal of
RBI's instructions to banks on time frame for collection of
outstation cheques, payment of interest on delayed
collection of outstation cheques/instruments etc., with Bottom of Form
effect from 1st November 2004 had given further scope for
increasing efficiency for better performance.

Objective

The objective of the policy, namely "State Bank of India

Compensation Policy (Banking Services)" (hereinafter
called the Policy), is to establish a system whereby the
Bank compensates the customer due to deficiency in
service on the part of the Bank or any act of omission or
commission, directly attributable to the Bank.

Scope
• The Policy is based on principles of transparency
and fairness in the treatment of customers.
• It is designed to cover deficiency in service in areas
relating to account operations, collections and
remittances etc., as specified in this Policy.
• Grant of compensation under this Policy is without
prejudice to the Bank's rights in defending its
position before any Court of Law, Tribunal or any
other forum duly constituted to adjudicate banker-
customer disputes and does not constitute
 admission of liability or any other issue, of any
nature whatsoever for the purposes of Adjudicatory
proceedings.
Recognition of deficiency and compensation

a) Unauthorised / Erroneous Debit

• If the Bank has raised an unauthorized/ erroneous
debit to an account, the entry shall be reversed
immediately on being detected/informed, after due
verification. If such a debit has resulted in reduction
in the minimum balance applicable for payment of
interest on savings bank deposit or payment of
additional interest to the Bank in a loan account or
levying of penalty for not maintaining the stipulated
minimum balance in the account, Bank shall
compensate the customer to that extent.
• In case of return of a cheque or not carrying out of
direct debit instructions due to insufficiency of
balance on account of the unauthorized / erroneous
debit, Bank will compensate the customer with an
amount equivalent to interest calculated on the
unauthorised/erroneously debited amount at
applicable Savings Bank rate, minimum Rs.20/-,
besides refunding the cheque return charges.
• In case verification of the entry reported to be
unauthorised/erroneous by the customer does not
involve a third party, the Bank shall arrange to
complete the process of verification within a
maximum period of 3 working days from the date of
reporting of erroneous debit. If it involves a third
party, the Bank shall complete the verification
process within one month from the date of reporting
of unauthorised/erroneous transaction by the
customer.
b) ECS direct debits/other debits to accounts
• The Bank undertakes to carry out, within the
prescribed time, direct debit / ECS (Electronic
Clearing Service) debit instructions of customers. In
the event of non-compliance/delayed compliance of
instructions by the Bank to meet such
commitments, the customer will be compensated
equivalent to interest calculated on the amount to
be debited, for the delayed period, at applicable
Savings Bank rate minimum Rs. 20/-, subject to a
maximum of Rs. 1,000/-.
• In the event the Bank levies any charge in violation
of the arrangement/ or inadvertently, the Bank will
reverse the charges, subject to scrutiny of agreed
terms and conditions, and compensate the customer
 by a sum equal to the charges reversed.
c) Issue of ATM/Debit Cards
• Where the Bank had issued and activated a debit
card without written consent of the customer which
has been disputed by the customer without using
the card, the Bank would not only reverse the
charges, if levied, immediately but also pay
compensation to the customer minimum Rs 50/-
and maximum Rs. 100/-.
d) Payment of Cheques after Acknowledgement of
Stop Payment Instructions
• In case a cheque has been paid after stop payment
instruction is acknowledged by the Bank, the Bank
shall reverse the debit with value dated credit within
two working days of the customer intimating the
transaction to the Bank and also compensate the
customer with Rs. 100/-.
e) Collection of cheque drawn on foreign countries
• As time for collection of instruments drawn on banks
in different countries vary and even within a country
from place to place, delay in collection of cheques
payable at foreign centres will be construed if the
customers account is not credited within 10 working
days, excluding Saturdays, from the date of clear
credit to the Bank's Nostro account i.e. after taking
into account the prescribed cooling period for that
currency, with the correspondent.
• The compensation on account of delays in collection
of instruments in foreign currency would be as
detailed below:
○ i) At 5% p.a. if the period of delay is beyond
prescribed collection period and upto 45 days
where proceeds of the instruments are to be
credited to the deposit accounts.
○ ii) In case of abnormal delay i.e. delays
exceeding 45 days, interest will be paid at
1% above the specified rate (i.e. 5% p.a.).
○ iii) In the event of the proceeds of cheque
under collection being required to be credited
to an overdraft / loan account of the
customer, interest will be paid at interest
rate applicable to the loan account or State
Bank Advance Rate (SBAR), whichever is
lower.
○ iv) For abnormal delays i.e beyond 45 days,
interest will be paid at the rate of 1% above
the applicable interest rate to the loan
 account or SBAR, whichever is lower.

Such interest shall be payable with a minimum of

Rs. 20/-.

No separate compensation is payable by the Bank

on account of movement in the values of the
respective currency.
f) Collection of cheques payable in India
• The compensation on account of delays in collection
of instruments drawn and payable in India for
individual account holders will be as per 'Cheque
Collection Policy' and in respect of other account
holders it would be paid as detailed below:
○ i) At 5% p.a. if the period of delay is beyond
prescribed collection period and upto 45 days
where proceeds of the instruments are to be
credited to the deposit accounts.
○ ii) In case of abnormal delay i.e. delays
exceeding 45 days, interest will be paid at
1% above the specified rate (i.e. 5% p.a.).
○ iii) In the event of the proceeds of cheque
under collection being required to be credited
to an overdraft / loan account of the
customer, interest will be paid at the
applicable interest rate or State Bank
Advance Rate (SBAR), whichever is lower.
○ iv) For abnormal delays, interest will be paid
at the rate of 1% above at the applicable
interest rate or State Bank Advance Rate
(SBAR), whichever is lower
Such interest shall be payable with a minimum of
Rs. 20/-.

Compensation as detailed above shall be paid

without any formal demand from customers and
there shall be no distinction between instruments
drawn on the Bank's own branches or on other
banks which are payable in India.
g) Cheques / Instruments lost while in Bank's
custody
• In the event a cheque or an instrument accepted for
collection is lost in Bank's custody or in transit, Bank
shall, immediately on coming to know of the loss of
instrument, notify the customer and shall,
simultaneously, advise the drawee bank particulars
of lost cheques for exercising caution against
payment and provide assistance to the customer to
 obtain a duplicate instrument from the drawer /
maker of the instrument.
• The Bank will compensate the account holder in
respect of instruments lost while in its custody as
detailed below:
○ i) In case intimation regarding loss of
instrument is conveyed to the customer
beyond the time limit stipulated for
collection, as per the Cheque Collection
Policy of the Bank, interest will be paid for
the period beyond the stipulated collection
period at the rates specified in (f) above for
cheques payable in India and at rates
specified at (e) above in regard to cheques
payable abroad.
○ ii) Bank will pay interest on the amount of
the cheque for a further period of 15 days at
Savings Bank rate to provide for possible
further delay in obtaining duplicate cheque/
instrument and collection thereof.
○ iii) The Bank will bear the actual charges of
recording Stop Payment instructions levied
by drawee bank.
○ iv) The Bank would also reimburse the
customer with actual charges levied by the
drawer/bank in issuing duplicate
cheque/instrument, subject to a maximum of
Rs. 250/-.
Compensation for delay in other services

In respect of the following services provided to the

customers, if the delay in providing services is beyond
twice the time norms, specified hereunder, compensation
would be payable as indicated hereinafter:

Sl.
Services Time Norms
No
Delay in issue of cheque book by
Beyond 3
1. Liability Centralised Processing Centre
working days
(LCPC)/Branch
Delay in issue of duplicate ATM Beyond 7
2.
card/PIN working days
Delay in issue of internet banking Beyond 7
3.
id/password working days
4. Delay in providing banking services Beyond 3
after receipt of request / completed working days
formalities,
 either through internet banking
platform or across the counter.
Beyond 14
5. Delay in transfer of accounts
working days
Delay in effecting remittances or
Beyond 2
6. crediting customers account after
working days
receipt of funds

The compensation paid by the Bank will be Rs.100/- per

instance, if the delay is upto twice the specified time norm
given above and Rs. 250/- per instance for delays beyond
twice the time norm.

Payment of "at par" cheques issued by other Banks

Bank will not pay any compensation, to the cheque holder,

for dishonour of "at par" cheques issued by other banks,
including co-operative banks, in the absence of adequate
funds in the account on which cheques are issued even
though the amount of the cheque may have been paid to
the bank which had issued the "at par" cheque.

Force Majeure

The Bank shall not be liable to compensate customers

under this Policy if some unforeseen event including but not
limited to civil commotion, sabotage, lockout, strike or
other labour disturbances, accident, fire, natural disasters
or other "Acts of God", war, damage to the Bank's or its
correspondent bank(s) systems, communication channels
etc. beyond the control of the Bank, prevents it from
performing its obligations within the specified service
delivery parameters

Amendment/Modification of the Policy

The Bank reserves the right to amend/modify this Policy, as

and when deemed fit and proper, at its sole discretion.

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CITIZEN’S CHARTER
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CITIZENS’ CHARTER OF STATE BANK OF INDIA

PREFACE :
I. State Bank of India strongly believes that a satisfied
customer is the most important factor for growth of its
business. The Bank was the first in India to introduce a code
of Fair Banking Practices in India called “Towards Excellence”.
The code reflected the commitment of the Bank to provide
Banking services of a high order to individual banking
customers. The code came into effect from October 1997 as
part of the Golden Jubilee Celebrations of Indian Bottom of Form
Independence. The Code was substantially revised in the
year 2005 taking into consideration the transformation in
banking practices and customer service standards that have
since taken place.
II. In February 2006, Reserve Bank of India set up the
Banking Codes and Standards Board of India (BCSBI) as an
independent autonomous watchdog to ensure that customers
get fair treatment in their dealings with Banks. The BCSBI
has published the “Code of Banks’ Commitments to
Customers “ (the Code) which sets minimum standards of
banking practice and benchmarks in customer service for
banks to follow. SBI is a member of the BCSBI and has
therefore voluntarily adopted the Code as its Fair Practice
Code in dealings with its customers. The complete copy of
the Code is available at
III. This document called the “Citizens’ Charter of State Bank
of India” provides key information on various
facilities/services provided to customers in ordinary branches
of State Bank of India. The Code together with the Citizens’
Charter will thus ensure high standards of accountability,
 responsibility and transparency in the Bank’s dealings with
customers. The Charter also provides comprehensive
information on Bank’s Grievance redressal mechanism. It
also specifies the obligations on the part of the customers for
healthy banker-customer relationship.
IV. This is not a legal document creating rights and liabilities.
The information on general terms and conditions provided
herein may not apply to special branches of the Bank like
Personal Banking Branches etc. (The information on services
provided by these branches can be obtained from the
branches or the helplines of the respective Local Head office
Centres). Loans and advances may also have specific terms
and conditions not mentioned in the Charter. However, all
terms and conditions will comply with the principles and
commitments undertaken by the Bank in the Code.
V. Copies of the Code and Citizens’ Charter will be available
on request to all our customers at our branches,
administrative offices and at our web site. We will ensure
that all our staff members are aware of the commitments
contained in these documents and faithfully implement them.

VI. The Charter provides essential information on

transactions relating to savings, current and fixed deposit
accounts, collections and remittances, grievance redressal
etc. For further details and complete information on terms
and conditions of service visit our branches or write to our
Local Head Offices (addresses and contact nos. available on
our website www.sbi.co.in) or contact us at the following
address:
The Chief General Manager
(Personal Banking)
State Bank of India
Customer Services Department
State Bank Bhawan, IV floor
Nariman Point, Mumbai 400021
Telephone: (022)-22029456, 22029451
Fax: (022)-22885369; email: dgm.customer@sbi.co.in
VII. Information given in the Charter is current as of March
31 2007. Information given is subject to change/revision.
The Bank will endeavour to update the information on the
website when changes are made but please contact the
nearest branch/Zonal Office/Local Head Office for the latest
changes, if any.

VIII. We request all our customers to keep us informed of

Bottom of Form their experiences about the customer services rendered at
our branches and feel free to comment on the Code and
Citizens Charter. Your feedback will help us evaluate,
improve and widen our range of services. Your comments
and feedback may be sent to the address given in paragraph
 VI above.

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About us | Affiliates | Corporate Governance | Investor Relations | Contact Us | Customer Care

PERSONAL BANKING

NRI SERVICES

AGRICULTURE

INTERNATIONAL

CORPORATE

SME

DOMESTIC TREASURY

SERVICES

INTEREST RATES

ATM

Branch

Foreign Offices
Specialised Branches
 Top of Form
CODE OF ETHICS
Top of Form [Print Page]

FAIR LENDING PRACTICES CODE (FLPC)

1. PREAMBLE

Scope: l(a)

FAIR LENDING PRACTICES CODE (FLPC for short) is a

voluntary code adopted by our Bank, which aims to achieve
synchronization of best practices while dealing with KEY POINTS ›
Customers in India. It aims to provide valuable inputs to
Customers and facilitates effective interaction of
customers with the Bank. Important
declarations
Extent:
FAIR
l(b) FLPC would be applicable in the Bank from the PRACTICES
date it is placed in the Bank's web site or is
otherwise publicised through the media. Interest Rates
FLPC contains 8 important declarations from us,
the spirit of which pervades the entire FLPC Revision in
provisions. Interest Rates

2. Default
Important declarations: Interest/Penal
The Bank declares and undertakes Interest
 To provide in a professional manner, efficient,
courteous, diligent and speedy services in the Charges:
matter of retail lending.
 Not to discriminate on the basis of religion, caste,
sex, descent or any of them. Terms and
 To be fair and honest in advertisement and Conditions for
marketing of Loan Products. Lending:
HOME »
CUSTOMER CARE »  To provide customers with accurate and timely
disclosure of terms, costs, rights and liabilities as Accounting
regards loan transactions. Practices
COMPENSATION
 If sought, to provide such assistance or advice to
POLICY customers in contracting loans. Information
 To attempt in good faith to resolve any disputes or Secrecy
CONTACT differences with customers by setting up complaint
CENTRE redressal cells within the organization.
 To comply with all the regulatory requirements in Financial Distress
CHEQUE good faith.
COLLECTION  To spread general awareness about potential risks Grievance
POLICY in contracting loans and encourage customers to Redressal
take independent financial advice and not act only
on representations from banks.

3.
FAIR PRACTICES:
 (a) A prospective customer would be given all the
necessary information adequately explaining the
range of loan products available with the Bank to
suit his / her needs.
(b) On exercise of choice, the customer would be
given the relevant information about the loan
product of choice.
(c) The Customer would be explained the processes
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involved | Right to Information
sanction Act 2005
and disbursement | Disclaimer
of loan and
would be informed of timeframe within which all
the processes will be completed ordinarily at our
bank.
(d) The Customer would be informed of the names
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default and phone numbers of branches and the persons
whom he can contact for the purpose of loan to
suit his needs.
(e) The Customer would be informed the procedure
involved in servicing and closure of the loan taken.

3.2. Bottom of Form

Interest Rates
3.2.1. Interest Rates for different loan products would be
made available through and in anyone or all of the
following media, namely:
(a) In the Bank's Web site
(b) Over phone, if Tele Banking services are provided
(c) Through prominent display in the branches and at
other delivery points
(d) Through other media from time to time
Branch
3.2.2 Customers would be entitled to receive periodic
Foreign Offices updates on the interest rates applicable to their
accounts.

3.2.3 On demand, Customers can have full details of

method of application of interest.

3.3
Revision in Interest Rates:
(a) The Bank would notify immediately or as soon as Top of Form
DISCLAIMERpossible any revision in the existing interest rates
and rnake them available to the customers[Print in thePage]
Top of Form

media listed in Para 3.2.1.

(b) Interest Rate revisions to the existing customers
would be intimatedadvices
The information,material, within suggestions,
7 working days from the
illustrations
date of
notifications, changeetc.
circulars through notifications
are collectively in the
stated Bank’s
"the
content"Website / media/
in this website notice
. If board
the said at branches.
content contains any
mistakes , omissions , inaccuracies and typographical errors,
etc.
3.4.SBI assumes no responsibility thereof. SBI makes no
warranty
Defaultor representation regarding
Interest/Penal Interest: any content provided
through this website and disclaims
(a) The Bank would notify clearly its about
liabilities
thein respect
default
thereof. interest/penal
Any action on interest
your part on the basis of the
rates to the prospective said
content customers.
is at your own risk and responsibility . SBI reserves
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its right to correct any part of the said content at any time as
and when required at its sole discretion. The content of this
3.5.
website shall not be displayed or printed in any form in part
Charges:
(a) The Bank would notify details of all charges
payable by the customers in relation to their loan
account.
(b) The Bank would make available for the benefit of
prospective customers all the details relating to
charges generally in respect of their retail
 (c) Any revision in charges would be notified in
advance and would also be made available in the
media as listed in Para 3.2.1.

3.6.
Terms and Conditions for Lending:

or whole
(a) Thewithout
Bankthe prior
would written approval
ordinarily give an of SBI.
acknowledgement of receipt of loan request and if
demanded by the customer, a copy of the
application form duly acknowledged would also be
given, as soon as the customer chooses to buy a
product of or service of his choice.
(b) Immediately after the decision to sanction the
loan, the Bank would show draft of the documents
that the customer is required to execute and
would explain, if demanded by the customer, the
relevant terms and conditions for sanction and
disbursement of loan.
(c) Loan Application forms, Draft documents or such
other papers to be signed by a customer shall
comprehensively contain all the terms and
conditions relating to the product or service of his
choice.
(d) Reasons for rejection of loan applications would be
conveyed to all barrowers irrespective of the size
of the loan.
(e) Before disbursement of loan and on immediate
execution of the loan documents, the Bank shall
deliver a copy of the documents to the customers.

3.7.
Accounting Practices:
(a) The Bank would provide regular statement of
accounts, unless not found
necessary by the customers.
(b) The Bank would notify relevant due dates for
application of agreed interest, penal interest,
default interest, and charges if they are not
mentioned in the Loan applications, documents or
correspondence.
(c) The Bank would notify in advance any change in
accounting practices which would affect the
customer before implementation.

3.8.
Information Secrecy
(a) All personal information of the customer would be
confidential and would not be disclosed to any
third party unless agreed to by customer. The
term 'Third party' excludes all Law enforcement
agencies, Credit Information Bureaux, Reserve
Bank of India, other banks/ financial and lending
institutions.
(b) Subject to above Para, customer information
would be revealed only under the following
circumstances;

 If our Bank is compelled by law.

 If it is in the Public Interest to reveal the
information.
 If the interest of the Bank require disclosure.
 Financial Distress:
a) The Bank would sympathetically reckon cases of
customer's financial distress.
b) Customers would be encouraged to inform about
their financial distress as soon as possible.
c) The Bank would adequately train the operational
staff to give patient hearing to the Customers in
financial distress and would try to render such
help as may be possible in their view.

Bottom of Form 3.10.

Grievance Redressal
a) The Bank would have in place a Grievance
Redressal Cell/ Department/
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Centre.
http://w w w .bank
b) The Bank would make available all details,
namely;
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 Where a complaint can be made
 How a complaint should be made
 When to expect a reply
 Whom to approach for redressal of grievance etc.,
to the customers individually on demand and
through the media listed in Para 3.2.1.

c) Response to a complaint whether positive or

negative or requiring more time for redressal
would generally be given within a maximum
period of four weeks from the date of receipt of
complaint, unless the nature of complaint is such
that requires verification of voluminous facts and
figures.