Portfolio Management and Custodial Services (PM & CS) Section

State Bank of India (SBI) is the only Public Sector Bank to receive approval from Reserve Bank of India (RBI) to provide Portfolio Management Service and has been offering this service since 1995. SBI is also registered with the Securities and Exchange Board of India (SEBI) as a Portfolio Manager. The registration with SEBI is current and is valid till 31st January 2016. SBI is also registered with SEBI as a custodian.

The Bank provides portfolio management services to an array of retirement funds in the country consistently giving superlative returns. The Portfolio Management Services section, with an AUM of over 2,79,000 crores has consistently outperformed private sector peers in generating returns for the Employees Provident Fund Organisation (EPFO) funds. For the last three years, State Bank of India has been consistently adjudged by CRISIL as the best fund manager for EPFO.

The PMS Section, Global Markets offers discretionary Portfolio Management Services to various retirement benefit funds. Investment on behalf of RRBs sponsored by State Bank of India is also done for maintenance of their Statutory Liquidity Ratio (SLR) requirements since 2003.

The PMS section undertakes investment of funds on behalf of the clients in terms of investment pattern followed by the respective provident/pension fund trusts and in accordance with the guidelines prescribed by the Ministry of Finance, Government of India.

Fund Managementis carried out with the primary objective of generating optimum yields for the client by investing in a judicious mix of various securities like Central Government Securities, State Development Loans, Corporate Bonds (PSU and Private), Fixed Deposits, Money Market Instruments and equity (if permitted by the Client).The three pillars of investment strategy adopted by the PMS section are:

(i) Safety,   (ii)  Yield, and   (iii)  Liquidity

 


Custodial Services

Custodial servicesare provided by the Bank through our Securities Services Branch (SSB), Mumbai. All the securities purchased, except Bank Fixed Deposits, are held in Dematerialized form by the Branch and reconciled and accounted for on a regular basis. A memorandum for reconciliation of CSGL and SGL accounts is put up to the Audit Committee of the Board (ACB) at quarterly intervals. The settlement of all investments is also carried out by the SSB.There is a clear functional separation of trading and back office functions relating to Bank’s own investment accounts and PMS clients' accounts as per regulatory requirements.


Our Clients

State Bank of India is rendering Portfolio Management Services (PMS) to the following clients :

Sr. No. Client Managing Since

1

Central Board of Trustees, Employees’ Provident Fund Organization (EPFO)

1995

2

3

Delhi Vidyut Board Employees’ Terminal Benefit Trust (DVBETBF)

Coal Mines Provident Fund Organization (CMPFO)

2002

2007

4

5

6

State Bank of India Employees’ Pension Fund (SBIE Pension Fund)

Imperial Bank of India Employees’ Pension and Guarantee Fund (IBIEPGF)

Vishakhapatnam Port Trust Employees’ General Provident Fund Trust (VPTEGPFT)

2009

2009

2010

7

State Bank of India Employees’ Gratuity Fund (SBIE Gratuity Fund)

2011

8

9

State Bank of India Employees’ Provident Fund (SBIE Provident Fund)

Kendriya Vidyalaya Sangathan (KVS) 2011

2011

2011

10

11

Seamen’s Provident Fund Organization (SPFO)

Regional Rural Banks sponsored by the State Bank of India

2012

2003


Highlights

Custodial servicesare provided by the Bank through our Securities Services Branch (SSB), Mumbai. All the securities purchased, except Bank Fixed Deposits, are held in Dematerialized form by the Branch and reconciled and accounted for on a regular basis. A memorandum for reconciliation of CSGL and SGL accounts is put up to the Audit Committee of the Board (ACB) at quarterly intervals. The settlement of all investments is also carried out by the SSB.There is a clear functional separation of trading and back office functions relating to Bank’s own investment accounts and PMS clients' accounts as per regulatory requirements.

  • State Bank of India has been reappointed as one of the four fund managers of the Employees’ Provident Fund Organization (EPFO) with increase in share of corpus of funds to 35% from 20% in the previous arrangement. EPFO is the largest client of PMS section in terms of Assets Under Management (AUM). The other fund managers appointed by EPFO are HSBC AMC, ICICI Securities PD, and Reliance AMC. Among the four fund managers of EPFO, SBI has consistently given the best return during the current assignment w.e.f. 01st November 2011. CRISIL the consultant appointed by EPFO has adjudged SBI PMS as the best fund manager for the last three successive years.

  • State Bank of India has been appointed as the sole fund manager of Coal Mines Provident Fund Organization (CMPFO). The PMS section has been managing the Pension Fund, Deposit Linked Insurance Fund and Administrative Charges Fund of the Coal Mines Provident Fund Organization (CMPFO) since 2007. The largest fund of CMPFO, i.e., the Provident Fund, was being managed by ICICI Securities Primary Dealership Limited. The management of Provident Fund of CMPFO has also been taken over by SBI PMS w.e.f. January 2012.


  • The SBI PMS section is also the Portfolio Manager for superannuation funds of State Bank of India. The following superannuation funds of SBI are managed by PMS section

    • State Bank of India Employees’ Pension Fund

    • IBI Employees’ Pension and Guarantee Fund

    • State Bank of India Employees’ Provident Fund


    • State Bank of India Employees’ Gratuity Fund

  • On the basis of our excellent performance, the following clients have extended the term of agreement for Portfolio Management during the last one year :

    • Coal Mines Provident Fund Organization (CMPFO),

    • Kendriya Vidyalaya Sangathan (KVS), and

    • Seamen’s Provident Fund Organization (SPFO).


    • Vishakhapatnam Port Trust Employees’ General Provident Fund Trust (VPTEGPFT)