RBI vide circular No. DBR.No.BP.BC.83/21.06.201/2015-16 dated 1^st March 2016, has given discretion to banks to consider Revaluation Reserve, Foreign Currency Translation Reserve and Deferred Tax Asset for purposes of computation of Capital Adequacy as CET- I capital ratio. The Bank has exercised the option in the above computation.

$ The Bank during the year, has allotted 400 equity shares of '1/- each for cash at a premium of '158/- per equity share out of 7,93,630 shares (issued as a part of Right Issue-2008) allotment of which was held in abeyance for resolution of title dispute. Out of the total subscription of '63,600/- received, '400/- was transferred to Share Capital Account and '63,200/- to Share Premium Account. As on 31^st March 2023 allotment of 7,93,230 shares is held in abeyance.

Bank's LCR comes to 146.61% based on daily average of three months (Q4 FY22-23) and is above the minimum regulatory requirement of 100%. Average HQLA held during the quarter was '12,13,100 Crore, with 95.90% being Level 1 assets. Level 2A and Level 2B assets constitute 3.45% and 0.65% of total HQLA, respectively. Government Securities constituted 95.77% of Total Level 1 Assets. During the quarter, the weighted average HQLA level has increased by '39,454 Crore primarily on account of increase in excess SLR balance. Further, weighted average net cash outflows position has declined by '79,204 Crore during the quarter, mainly on account of decline in cash outflows under the head other legal entity customers. Derivative exposures are considered insignificant due to almost matching inflows and outflows position. During the quarter, LCR for USD (significant Foreign Currency constituting more than 5% of the Balance Sheet of the Bank) was at 295.17%, on an average.

Liquidity Management in the Bank is driven by the ALM Policy of the Bank and regulatory prescriptions. The Domestic and International Treasuries are apprising the liquidity position to the Asset Liability Management Committee (ALCO) of the Bank. The ALCO has been empowered by the Bank's Board to formulate the Bank's funding strategies to ensure that the funding sources are well diversified and is consistent with the operational requirements of the Bank. All the major decisions of ALCO are being reported to the Bank's Board subsequently. In addition to daily/monthly LCR reporting, Bank also prepares daily Structural Liquidity statements to assess the liquidity needs of the Bank on an ongoing basis.

The Bank has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory requirements. Retail deposits constitute major portion of total funding sources, which are well diversified. Management is of the view that the Bank has sufficient liquidity cover to meet its likely future commitments.

ii) Consolidated LCR

The RBI through a supplementary guideline issued on 31^st March 2015 had stipulated the implementation of LCR at a consolidated level from January 1, 2016 and accordingly, LCR has been computed at Group level. The entities covered in the Group LCR are SBI and seven Overseas Banking Subsidiaries - Commercial Indo Bank LLC, Moscow, Nepal SBI Bank Ltd., State Bank of India (California), SBI Canada Bank, State Bank of India (Mauritius) Ltd, PT Bank SBI Indonesia and State Bank of India (UK) Ltd. SBI Group LCR comes to 148.30% as on 31^st March 2023 based on average of three months January, February and March 2023, which is above the minimum regulatory requirement of 100%.

The Group has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory requirements. Retail deposits constitute major portion of total funding sources, and such funding sources are well diversified. Management is of the view that the Bank has sufficient liquidity cover to meet its likely future short-term requirements.

c) Net Stable Funding Ratio:

i) Standalone Net Stable Funding Ratio:

Net Stable Funding Ratio (NSFR) guidelines ensure reduction in funding risk over a longer time horizon by requiring banks to fund their activities with sufficiently stable sources of funding in order to mitigate the risk of future funding stress. The NSFR is defined as the amount of Available Stable Funding relative to the amount of Required Stable Funding.

Bank's NSFR comes to 114.80% as at the end of the quarter Q4 (FY 2022-23) and is above the minimum regulatory requirement of 100% set out in the RBI guidelines effective from 1^st October 2021. As on 31^st March 2023, the Available Stable Funding (ASF) position stood at '40,59,290 Crore and Required Stable Funding (RSF) position stood at '35,35,834 Crore. There was an increase in the values of total ASF and RSF as on 31^st March 2023 over 31^st December 2022. ASF is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered for the NSFR. RSF of a specific institution is a function of the liquidity characteristics and residual maturities of the various assets held by that institution as well as those of its Off-Balance Sheet (OBS) exposures.

Liquidity Management in the Bank is driven by Bank's ALM Policy and regulatory prescriptions. The Domestic and International Treasuries are reporting to the Asset Liability Management Committee (ALCO). ALCO has been empowered by the Bank's Board to formulate the funding strategies to ensure that the funding sources are well diversified and is consistent with the operational requirements of the Bank. All major decisions of ALCO are being reported to the Bank's Board periodically. In addition to daily/monthly LCR reporting, Bank prepares daily Structural Liquidity Statements to assess the liquidity needs of the Bank on an ongoing basis.

The Bank has been maintaining HQLA mainly in the form of SLR investments over and above the mandatory requirements. Retail deposits constitute major portion of total funding sources, which are well diversified. Management is of the view that the Bank has got sufficient liquidity to meet its immediate/likely future shortterm requirements.

ii) Consolidated Net Stable Funding Ratio

The RBI guidelines stipulated the implementation of NSFR at a consolidated level from December 2021 quarter and accordingly, NSFR has been computed at Group level.

The entities covered in the Group NSFR are SBI and seven Overseas Banking Subsidiaries. Commercial Indo Bank LLC, Moscow, Nepal SBI Bank Ltd., State Bank of India (California), SBI Canada Bank, State Bank of India (Mauritius) Ltd, PT Bank SBI Indonesia and State Bank of India (UK) Ltd.

SBI Group NSFR comes to 115.03% as on 31^st March 2023 which is above the minimum regulatory requirement of 100%.

Available stable funding (ASF) is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered by the NSFR, which extends to one year. The Required stable funding (RSF) of a specific group is a function of the liquidity characteristics and residual maturities of the various assets held by that group as well as those of its Off-Balance Sheet (OBS) exposures.

i. Securities of a face value of '2,19,371.58 Crore (Previous Year '2,14,612.86 Crore) are kept as margin with Clearing Corporation of India Limited (CCIL)/NSCCL/MCX/ NSEIL/BSE towards Securities Settlement.

ii. State Bank Operations Support Services Pvt. Ltd. has been incorporated on 26^th July 2022 as a wholly-owned subsidiary. The Company provides operation support services for Agriculture/MSME and other Micro Loans including activities permissible to business correspondents, to the Bank which will help to improve the customer connect and business focus of the branches of Bank. Amount invested is '10.00 Crore.

iii. During the year ended 31^st March 2023, Bank has acquired additional 13.82% ('67.84 Crore) stake in SBI Global Factors Limited making it as wholly-owned subsidiary of Bank.

iv. During the year ended 31^st March 2023, Bank has acquired additional 40.00% stake in Commercial Indo Bank LLC, Moscow making it as wholly-owned subsidiary of Bank. Amount invested during the year is '121.44 Crore.

v. During the year ended 31^st March 2023, Bank has infused an additional capital of '530.49 Crore in PT Bank SBI Indonesia, a subsidiary. Consequently, Bank's stake has increased from 99.34% to 99.56%.

vi. During the year ended 31^st March 2023, Bank's stake in Jio Payments Bank Ltd., a joint venture, has reduced from 30.00% to 23.02% as Bank did not participate in the right issue of equity shares offered by the Company.

vii. During the year ended 31^st March 2023, Yes Bank Ltd., an associate, has allotted 369,61,55,702 equity shares on preferential basis to other investors. Consequently, Bank's stake has reduced from 30.00% to 26.14%.

viii. During the year ended 31^st March 2023, Bank invested an additional investment of '1.14 Crore (of which '0.14 Crore towards premium) in PSB Alliance Pvt. Ltd. (formerly CORDEx India Pvt. Ltd.) through private placement. Bank's stake in the Company is 8.33%.

Excess Provision amounting to '2,628.41 Crore (Previous Year '429.92 Crore) on sale of NPAs to Securitisation Company (SC)/Reconstruction Company (RC) has been accounted for in the Profit & Loss Account.

During the year ended 31^st March 2023, investment made in Security Receipts (SRs) was '322.69 Crore. The Security Receipts are provided for and hence the book value is nil across various categories of Ratings assigned to Security Receipts by the Credit Rating Agencies as on 31^st March 2023.

Provision held on the security receipts as on 31^st March 2023 is '7,009.38 Crore (as on 31^st March 2022 the same was '7,859.04 Crore.)

ii) The bank has not transferred any Special Mention Account and loan not in default.

Purchase of Loans:

iii) The Bank has not acquired any stressed loan.

iv) The Bank has purchased homogeneous assets from NBFCs/ HFCs/ MFIs which are not in default under Direct Assignment Route covered under Transfer of Loan Exposure. The Bank purchased secured home loans and secured & unsecured SME and ABU loans.

c) Risk Exposure in Derivatives Qualitative Risk Exposure

i) The Bank currently deals in over the counter (OTC) interest rate and currency derivatives as also in Interest Rate Futures and Exchange Traded Currency Derivatives.

Interest Rate Derivatives dealt by the Bank are rupee interest rate swaps, foreign currency interest rate swaps and forward rate agreements, cap, floor and collars.

Currency derivatives dealt by the Bank are currency swaps, rupee dollar options and cross-currency options.

The Bank also deals in Non-deliverable Options and Non-deliverable Forwards as permitted by RBI.

The products are offered to the Bank's customers to hedge their exposures and the Bank also enters into derivatives contracts to cover off such exposures. Derivatives are used by the Bank both for trading as well as hedging balance sheet items.

The Bank also runs option position in USD/INR, which is managed through various types of loss limits and Greek limits.

ii) Derivative transactions carry market risk i.e. the probable loss the Bank may incur as a result of adverse movements in interest rates/exchange rates and credit risk i.e. the probable loss the Bank may incur if the counterparties fail to meet their obligations. The Bank's "Policy for Derivatives" approved by the Board prescribes the market risk parameters (Greek limits, Loss Limits, cut-loss triggers, open position limits, duration, modified duration, PV01 etc.) as well as customer eligibility criteria (credit rating, tenure of relationship, limits and customer appropriateness and suitability of policy (CAS) etc.) for entering into derivative transactions. Credit risk is controlled by entering into derivative transactions only with counterparties satisfying the criteria prescribed in the Policy. Appropriate limits are set for the counterparties taking into account their ability to honour obligations and the Bank enters into ISDA agreement with each counterparty.

iii) The Asset Liability Management Committee (ALCO) of the Bank oversees efficient management of these risks. The Bank's Market Risk Management Department (MRMD) identifies, measures, monitors market risk associated with derivative transactions, assists ALCO in controlling and managing these risks and reports compliance with policy prescriptions to the Risk Management Committee of the Board (RMCB) at regular intervals.

iv) The accounting policy for derivatives has been drawn-up in accordance with RBI guidelines, the details of which are presented under Schedule 17: Significant Accounting Policies (SAP).

v) Interest Rate Swaps are mainly used for hedging of the assets and liabilities.

vi) Majority of the swaps were done with First class counterparty banks.

vii) Derivative transactions comprise of swaps which are disclosed as contingent liabilities. The swaps are categorised as trading or hedging.

viii) Derivative deals are entered with only those interbank participants for whom counterparty exposure limits are sanctioned. Similarly, derivative deals entered with only those corporates for whom credit exposure limit is sanctioned. Collateral requirements for derivative transactions are laid down as a part of credit sanctions terms on a case by case basis. Such collateral requirements are determined based on usual credit appraisal process. The Bank retains the right to terminate transactions as a risk mitigation measure in certain cases.

@ Excludes swaps amounting to '2,027.92 Crore (Previous Year '2,003.56 Crore) entered with the Bank's own foreign offices.

# IRS/FRA amounting to '40,744.08 Crore (Previous Year '37,265.38 Crore) entered with the Bank's own Foreign offices are excluded.

* Excludes Currency Derivatives of '86.38 Crore (Previous Year '403.87 Crore) and NDF '5,286.71 Crore (Previous Year '4,693.25 Crore)

done with the Bank's Foreign offices.

- The outstanding notional amount of derivatives done between Global Markets Unit and International Banking Group as on 31^st March 2023 amounted to '40,744.08 Crore (Previous Year '44,366.06 Crore) and the derivatives done between SBI Foreign Offices as on 31^st March 2023 amounted to '2,027.92 Crore (Previous Year '34,018.38 Crore).

- The outstanding notional amount of interest rate derivatives which are not marked-to-market (MTM) where the underlying Assets/Liabilities are not marked-to-market as on 31^st March 2023 amounted to '1,16,255.32 Crore (Previous Year '98,921.35 Crore).

d) Credit Default Swaps

Bank has not entered any Credit Default Swap.

18.8 Disclosure relating to Securitisation

The bank has not securitised any standard assets.

18.9 Off-balance Sheet SPVs sponsored

The Bank has not floated any off Balance Sheet SPV.

The expected contribution to the Pension and Gratuity Fund for the next year is '2,200.00 Crore and '1,796.23 Crore respectively.

As the plan assets are marked to market on the basis of the yield curve derived from government securities, the expected rate of return has been kept the same as the discount rate.

The estimates of future salary growth, factored in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. Such estimates are very long-term and are not based on limited past experience/immediate future. Empirical evidence also suggests that in very long-term, consistent high salary growth rates are not possible. The said estimates and assumptions have been relied upon by the auditors.

With a view to further strengthen the Pension Fund, it was decided to upwardly revise some of the assumptions. 2) Employees' Provident Fund

Actuarial valuation carried out in respect of interest shortfall in the Provident Fund Trust of the Bank, as per Deterministic Approach shows "Nil" liability, hence no provision is made in FY2022-23.

There is a guaranteed return applicable to liability under SBI Employees Provident Fund which shall not be lower of either:

a) one half percent above the average standard rate (adjusted up or down to the interest one quarter per cent) quoted by the bank for new deposits fixed for twelve months in the preceding year (ending on the preceding 31^st day of March); or

b) three percent per annum, subject to approval of Executive Committee.

ii) Defined Contribution Plan:

The Bank has a Defined Contribution Pension Scheme (DCPS) applicable to all categories of officers and employees joining the Bank on or after 1^st August 2010. The Scheme is managed by NPS Trust under the aegis of the Pension Fund Regulatory and Development Authority. National Securities Depository Limited has been appointed as the Central Record Keeping Agency for the NPS. During FY 2022-23, the Bank has contributed '1,296.27 Crore (Previous Year '1,177.54 Crore).

B) Other Long-Term Employee Benefits

Amount of ' 20.57 Crore (Previous Year ' 115.51 Crore) is provided as per the actuarial valuation by the independent Actuary appointed by the Bank towards Other Long-Term Employee Benefits viz. Leave Travel and Home Travel Concession (Encashment/Availment), Silver Jubilee Award, Resettlement Expenses on Superannuation and Retirement Award and is included under the head "Payments to and Provisions for Employees" in Profit and Loss Account.

c) Accounting Standard - 17 "Segment Reporting"

1. Segment Identification

I. Primary (Business Segment)

The following are the primary segments of the Bank:- Treasury

- Corporate/Wholesale Banking

- Retail Banking

- Other Banking Business.

The present accounting and information system of the Bank does not support capturing and extraction of the data in respect of the above segments separately. However, based on the present internal, organisational and management reporting structure and the nature of their risk and returns, the data on the primary segments have been computed as under:

i) Treasury

The Treasury Segment includes the entire investment portfolio and trading in foreign exchange contracts and derivative contracts. The revenue of the treasury segment primarily consists of fees and gains or losses from trading operations and interest income on the investment portfolio.

ii) Corporate/Wholesale Banking

The Corporate/Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, Commercial Clients Group and Stressed Assets Resolution Group. These include providing loans and transaction services to corporate and institutional clients and further include non-treasury operations of foreign offices.

iii) Retail Banking

The Retail Banking Segment comprises of retail branches, which primarily includes Personal Banking activities including lending activities to corporate customers having banking relations with these branches. This segment also includes agency business and ATMs.

iv) Other Banking business

Segments not classified under (i) to (iii) above are classified under this primary segment.

II. Secondary (Geographical Segment)

i) Domestic Operations - Branches/Offices having operations in India

ii) Foreign Operations - Branches/Offices having operations outside India and offshore Banking units having operations in India

III. Pricing of Inter-segmental Transfers

The Retail Banking segment is the primary resource mobilising unit. The Corporate/Wholesale Banking and Treasury segments are recipient of funds from Retail Banking. Market related Funds Transfer Pricing (MRFTP) is followed under which a separate unit called Funding Centre has been created. The Funding Centre notionally buys funds that the business units raise in the form of deposits or borrowings and notionally sell funds to business units engaged in creating assets.

IV. Allocation of Expenses, Assets and Liabilities

Expenses incurred at Corporate Centre establishments directly attributable either to Corporate/Wholesale and Retail Banking Operations or to Treasury Operations segment, are allocated accordingly. Expenses not directly attributable are allocated on the basis of the ratio of number of employees in each segment/ratio of directly attributable expenses.

The Bank has certain common assets and liabilities, which cannot be attributed to any segment, and the same are treated as unallocated.

ii. Others

1. The Clearing Corporation of India Ltd.

2. Bank of Bhutan Ltd.

3. Yes Bank Ltd.

4. Investec Capital Services (India) Pvt. Ltd.

5. Jio Payments Bank Ltd. (w.e.f. 23^rd January 2023)

6. SBI Home Finance Ltd. (under liquidation)

D. Key Management Personnel of the Bank

1. Shri Dinesh Kumar Khara, Chairman

2. Shri Challa Sreenivasulu Setty, Managing Director (International Banking, Global Markets & Technology)

3. Shri Ashwani Bhatia, Managing Director (Corporate Banking & Global Markets) (up to 31^st May 2022)

4. Shri Swaminathan Janakiraman, Managing Director (Corporate Banking & Subsidiaries)

5. Shri Ashwini Kumar Tewari, Managing Director (Risk, Compliance & SARG)

6. Shri Alok Kumar Choudhary, Managing Director (Retail Business & Operations) (w.e.f. 07^th June 2022)

2. Parties with whom transactions were entered into during the year

No disclosure is required in respect of related parties, which are "State-controlled Enterprises" as per paragraph 9 of Accounting Standard (AS) 18. Further, in terms of paragraph 5 of AS 18, transactions in the nature of Banker-Customer relationship have not been disclosed including those with Key Management Personnel and relatives of Key Management Personnel.

g) Accounting Standard - 22 "Accounting for Taxes on Income"

a) Current Tax:-

During the year the Bank has debited to Profit & Loss Account '21,223.93 Crore (Previous Year '11,427.30 Crore) on account of current tax. The Current Tax in India has been calculated in accordance with the provisions of Income Tax Act, 1961 after taking appropriate relief for taxes paid in foreign jurisdictions.

b) Deferred Tax:-

During the year '4,250.74 Crore has been credited to Profit and Loss Account (Previous Year debit '318.57 Crore) on account of deferred tax.

The Bank has a net DTA of '10,534.21 Crore (Previous Year net DTA of '6,244.72 Crore), which comprises of DTL of '0.01 Crore (Previous Year '2.56 Crore) included under 'Other Liabilities and Provisions' and Deferred

The Contingent Liabilities mentioned above are dependent upon the outcome of Court/arbitration/out of Court settlements, disposal of appeals, the amount being called up, terms of contractual obligations, devolvement and raising of demand by concerned parties, as the case may be.

Movement of provisions against Contingent Liabilities

18.15 Additional Disclosures

a) Payment to Micro, Small & Medium Enterprises under the Micro, Small & Medium Enterprises Development Act, 2006

There has been no reported cases of delayed payments of the principal amount or interest due thereon to Micro, Small & Medium Enterprises.

b) Letter of Comfort

The Bank has given Letter of Comfort to the Governor, Bank of Indonesia for its subsidiary Bank SBI Indonesia, a foreign Subsidiary. Letter of Comfort has been given to the Minister of Finance, Ottawa, Ontario, Canada for SBI Canada Bank, a foreign Subsidiary. The consolidated amount for this letter of comfort is '2054.25 Crore (USD 250 Mio) as at 31^st March 2023. (Previous Year '1,894.81 Crore).

c) Inter Office Accounts

Inter Office Accounts between branches, controlling offices, local head offices and corporate centre establishments are being reconciled on an ongoing basis and there is no material effect on the profit and loss account of the current year.

d) Counter Cyclical Provisioning Buffer (CCPB)

RBI vide Circular No. DOR.STR.REC.10/21.04.048/2021-22 dated 5^th May 2021 on 'Utilisation of Floating Provisions/ Counter Cyclical Provisioning Buffer' has allowed the banks, to utilise up to 100 percent of CCPB held by them as on 31^st December 2020, for making specific provisions for Non-Performing Assets (N PAs) as per the policy approved by the Bank's Board of Directors.

During the year, the Bank has not utilised the CCPB for making specific provision for NPAs.

e) Provision on accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC)

As per RBI letters no. DBR.No.BP.15199/21.04.048/2016-17 and DBR. No. BP. 1906/21.04.048/ 2017-18 dated 23^rd June 2017 and 28^th August 2017 respectively, for the accounts covered under the provisions of Insolvency and Bankruptcy Code (IBC), the bank is holding total provision of '3,935.48 Crore (100% of total outstanding) as on 31^st March 2023 (Previous Year '4,739.87 Crore {100% of total outstanding}).

f) Provision for Wage Revision

The Bank has made a provision of '2,490.00 Crore (total cumulative till 31^st March 2023 '2,490.00 Crore) for the year ended 31^st March 2023 towards arrears of wages due for revision w.e.f. 1^st November 2022)

g) Revaluation of Properties

During the year the Bank has revalued freehold immovable properties (earlier revalued in financial year 2019-2020) based on valuation reports obtained from external independent valuers and the closing balance of Revaluation Reserve as on 31^st March 2023 (net of amount transferred to General Reserve) is '27,756.26 Crore (Previous Year '23,377.87 Crore).

h) The COVID-19 pandemic across the globe resulted in decline in economic activities and movement in financial markets. In this situation, Bank geared up to meet the challenges and has been evaluating the situation on an ongoing basis and had proactively provided against the challenges of likely stress on the Bank's assets. Bank's management is not expecting any significant impact on Bank's liquidity or profitability.

i) The Central Board has declared a dividend of '11.30 per share @ 1130% for the year ended 31^st March 2023.

j) Previous year figures have been regrouped/reclassified, wherever necessary, to confirm to current year classification. In cases where disclosures have been made for the first time in terms of RBI guidelines/Accounting Standards, previous year's figures have not been mentioned.