August 25, 2010

Mumbai
CRISIL reaffirms ratings on STATE BANK OF INDIA

Lower Tier II Bonds Aggregating Rs.4.50 Billion@ AAA/Stable Upper Tier II

Bonds Aggregating Rs.5.50 Billion@ AAA/Stable Rs.1.65 Billion Tier I Perpetual

Bonds@ AAA/Stable Fixed Deposits Programme# FAAA/Stable Rs.50.00 Billion

Certificate of Deposits@ P1+ Lower Tier II Bonds Aggregating Rs.98.00 Billion

AAA/Stable (Reaffirmed) Upper Tier II Bonds Aggregating Rs.199.50 Billion

AAA/Stable (Reaffirmed) Tier I Perpetual Bonds Aggregating Rs.30.00 Billion

AAA/Stable (Reaffirmed) Rs.100.00 Billion Certificate of Deposits P1+ (Reaffirmed)

@Rated debt instruments of State Bank of Indore (SBoI) transferred to State Bank of
India (SBI) after SBoI’s merger with SBI

#The rating pertains only to SBoI’s fixed deposit programme rated by CRISIL, which
have been transferred to SBI following the merger of SBoI with SBI

CRISIL has reaffirmed its ratings on State Bank of India’s (SBI’s) debt
instruments at ‘AAA/FAAA/Stable/P1+’. The rating action follows completion
of the merger of SBI and its associate bank, State Bank of Indore (SBoI). As
per the notification issued by Government of India (GoI) on July 28, 2010, the
merger is effective from August 26, 2010.

For arriving at its ratings on SBI, CRISIL combines the business and financial
risk profiles of SBI and its subsidiaries, including associate banks, collectively
referred to as the SBI group. This is because the subsidiaries and associate
banks are an integral part of SBI’s growth strategy.

The ratings continue to reflect SBI’s dominant position in the Indian banking
industry, strong resource profile, and healthy capital position and earnings
profile. These rating strengths are partially offset by SBI’s average asset
quality with respect to its rating category.

Outlook: Stable
CRISIL believes that SBI will maintain its dominant position in the Indian
financial services sector over the medium term, and that the bank will remain
an institution of national importance, given its significance to India’s
economy and financial system. Furthermore, GoI’s ownership of SBI ensures
that the bank will continue to receive need-based distress support, though
the necessity for the same appears remote. The outlook may be revised to
‘Negative’ if the bank’s asset quality deteriorates steeply, or if there is a
sharp decline in its earnings profile.

About the Bank

SBI is the oldest and the largest bank in India. GoI owns 59.41 per cent of the
bank. SBI offers a wide range of banking products and services. The SBI
group had 17,337 branches, and 21,485 automated teller machines (ATMs),
as on March 31, 2010. SBI has branches across the globe; through its non-
banking subsidiaries, it offers a host of financial services such as merchant
banking, fund management, factoring, primary dealership, broking,
investment banking, credit cards, and life insurance.

On a standalone basis, SBI reported a profit after tax (PAT) of Rs.91.7 billion
for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of
Rs.91.2 billion in 2008-09. The SBI group reported a PAT of Rs.120.1 billion for
2009-10, against a PAT of Rs.111.7 billion for 2008-09. For the quarter ended
June 30, 2010, SBI, on a standalone basis, reported a PAT of Rs.29.1 billion
(Rs.23.3 billion for the corresponding period of the previous year) and the SBI
group reported a PAT of Rs.34.7 billion (Rs.28.5 billion).