STATE BANK OF INDIA LOCAL HEAD OFFICE BHOPAL

ABOUT FINANCIAL INCLUSION SBI’S PERCEPTION ABOUT FINANCIAL INCLUSION Apart from being a Socio-regulatory imperative, Financial Inclusion is an opportunity too There is tremendous business potential in hitherto untapped Bottom of the Pyramid populace For us it is a new found vehicle to take Brand SBI to newer areas without investing into a brick and Mortar setup

COVERAGE OF VILLAGES IN MP Mandated Villages Population Category No. of Villages allotted Villages Covered No. of CSPs appointed Villages having population 5000 to 10000+ in Under banked and Unbanked Districts 29 Villages having Population 2000 + ( FIP , Phase-I) 745 742 + 3 Branches Villages having population 1600 to 2000 ( FIP , Phase-II) 504 389 Shadow Area Villages 3257 2648 530 Total Mandated Villages 4535 3926 1690+ Non-FIP Centers No. of Centers Covered No. of CSPs appointed 1347 1068

BUSINESS PERFORMANCE Small Accounts Opened through Kiosk Channel ( Nos. in Lacs) No. of Accounts as on 31.03.2011 No. of Accounts as on 31.03.2012 No. of Accounts as on 31.03.2013 No. of Accounts as on 30.06.2013 Accounts opened during FY 2012-13 Accounts opened during April to June-13 5.80 7.79 18.24 23.17 10.45 4.93 Deposits in Small Accounts opened through BCs ( Amount in Crores) Deposits as on 31.03.2011 Deposits as on 31.03.2012 Deposits as on 31.03.2013 Deposits as on 30.06.2013 Growth during FY 2012-13 Growth during April to June-13 6.11 26.55 75.12 82.53 48.57 7.41 Transactions through Kiosks Total Transactions during 2012-13 Transactions during the QTR April –June 2013 No. ( In Lacs) Amount ( In Crores) 21.23 482.94 8.30 208.98

BUSINESS PERFORMANCE As on 30th JUNE 2013 Flexi RD, FD, Personal Accidental Insurance( PAI) and SBI FI RuPay Debit Card Flexi RD FD PAI SBI FI RuPay Debit Card No Amount ( Lacs) 19917 30.15 1080 69.15 8401 48384 Performance of Urban Kiosks Up to June 2013 During Q-1 of FY 2013-14 No. of CSPs No. of A/Cs opened No of FD opened NO of Flexi RD opened Withdrawal Transactions ( No.) Deposit Transactions Remittance Transactions 481 84308 69 511 17712 16089 9905

PROBLEMS FACED Lack of faith among the people to accept Kiosk as a legitimate Banking avenue Profitability of Kiosk operations to keep the Kiosk Operators gainfully deployed Skill gaps among various Stakeholders including BCs and CSPs Non availability of trained and skilled personnel to run the kiosks Poor IT infrastructure and poor connectivity

Affirmative Intervention by Government of Madhya Pradesh Provision of dedicated space at Gram Panchayat Premises with Data Connectivity Helped KO to save OPEX on account of rental, power and data usage thereby bringing early break even Inculcated the feeling among the Clientele that the Kiosk is running under the aegis of an Institutional set up ( Bridging the trust deficit) Engagement of KOs for disbursing Government Funds Engaging KO as a Single Window for payment of all the schemes of State Government in the allotted area through the Accounts opened by him has helped KO to earn assured commission thus bringing sustained profitability

STRATEGIES ADOPTED MARKETING STRATEGIES Allocation of Business Targets to Kiosk Operators followed by performance review Inputs on Marketing Strategies and Business Orientation provided to Kiosk Operators Sensitized Kiosk Operators to sell other products like Flexi RD, FD and sourcing of loans to augment revenues Broad range of Services offered through BCs to achieve early break-even level for BC operations Regular review meetings with Officials of Corporate BCs

STRATEGIES ADOPTED OPERATIONAL STRATEGIES Allowing all Corporate BCs to work throughout the State to bring the element of competition Series of Meetings and Workshops organized on locale to sensitize all the functionaries. These seminars were attended in large number by the Branch staff, BCs, CSPs and Controllers Frequent Kiosk Inspections by Bank Officials/BC Officials Deployment of dedicated Staff at Zonal/Regional levels Discussions during internal meetings

HOW WE PROCEEDED Mandated Financial Inclusion: ( The First Priority) Coverage of Villages mandated under Financial Inclusion Plan by DFS Coverage of Shadow Area Villages mandated by MP Government Ensuring provision of banking Facilities in Pilot Districts for successful implementation of DBT Taking SBI to Uncharted Territories – Opening of Kiosks at those places where SBI had no presence Additional Business Generation without opening B&M Branches Kiosk to supplement mainstream Business Activities - Opening of Banking Kiosk in the catchment of existing Branch as an Extended Arm to absorb low ticket footfalls Migration of No-Frill Accounts from Branches to Kiosks

SUCCESS STORY -1 CSP – KOCHEWAHI ( District-Balaghat) DATE OF COMMENCEMENT- 26th MARCH 2011 NAME OF KO- SUNIL SHARMA NAME OF THE LINK BRANCH – SBI LANJI ACCOUNTS OPENED – 16014 DEPOSITS MOBIISED- Rs 69.00 Lacs TRANSACTION DONE ( DURING FY 13-14) - 6606 AMOUNT OF TRANSACTION ( DURING FY 13-14)- Rs 1.51 Crores COMMISSION EARNED IN JUNE 13 – 39247/- Kochewahi became a success immediately after its launch in March 2011. People have found the Kiosk geographically more convenient in this LWE affected area. The kiosk provides seamless banking services. Manning of Kiosk by an educated local personnel added to the confidence and comfort of the rural people. The Kiosk operator enjoys equal trust and reputation as the Bank staff among his customers.

SUCCESS STORY -2 CSP- VILLAGE IMLAWADA ( DT: VIDISHA) DATE OF COMMENCEMENT- 29TH MARCH 2011 NAME OF KO- SURENDRA PRATAP SINGH NAME OF THE LINK BRANCH – SBI ATARI KHEJDA ACCOUNTS OPENED – 4168 DEPOSITS MOBIISED- Rs 3.00 Lacs TRANSACTION DONE ( DURING FY 13-14) - 5866 AMOUNT OF TRANSACTION ( DURING FY 13-14)- Rs 1.59 Crores COMMISSION EARNED IN JUNE 13 – 38009/- The Kiosk has come as a boon to the rural people living in the Village. The Kiosk receives an average footfall of more than 100 customers everyday mainly comprising beneficiaries of various Public Welfare and Capacity Building programs.

SUCCESS STORY -3 CSP- BARGHAT (Distrcit-Seoni) DATE OF COMMENCEMENT- 29 SEPT 2010 NAME OF KO- N S RAJPOOT NAME OF THE LINK BRANCH – Barghat ACCOUNTS OPENED – 14188 DEPOSITS MOBIISED- Rs 37 Lacs TRANSACTION DONE ( DURING FY 13-14) -1302 AMOUNT OF TRANSACTION ( DURING FY 13-14)- Rs 43.00 Lacs COMMISSION EARNED IN JUNE-13 – Rs 39593/- Barghat is a small village located 20 KMs from Seoni District Headquarter. The Kiosk has accounts of beneficiaries of various Government Schemes ( like JSY , MNREGA etc.).

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