At SBI, we are building a sound culture of risk adjusted profit based as well as customer-centric budgeting. The exercise of running our business based on risk adjusted return is intended to guide us towards return maximisation, risk mitigation and capital conservation. This transformation is a pre-requisite to weather the challenges surrounding the banking sector, with efficiency and profitability parameters remaining under pressure.

We have re-organised our budgeting process by setting targets on key parameters, with granular roadmaps. Our efficiency parameters for the medium term include improving Return on Assets; Return on Equity; Cost to Income Ratio; Net Interest Margins (NIMs); and Credit to Deposit ratio, among others. Business units are similarly expected to target Returns on Risk weighted assets.

With defined strategies in place, it will be our endeavour to report positive outcomes for each of these parameters over the medium term.