Annual Report: 2023
The 31st Annual Report 2022-2023 of SBI Funds Management Limited (SBIFM) presents the audited accounts for the year ended March 31, 2023. The company is a joint venture between State Bank of India and AMUNDI.
Financial Performance (Standalone and Consolidated):
The financial highlights compare the reporting year (2022-23) to the previous year (2021-22) in ₹ in lakh.
| Particulars | Standalone (2022-23) | Standalone (2021-22) | Consolidated (2022-23) | Consolidated (2021-22) | | :-------------------- | :------------------- | :------------------- | :--------------------- | :--------------------- | | Total Income | 2,41,186 | 1,99,562 | 2,41,257 | 2,00,014 | | Profit before tax | 1,77,289 | 1,42,731 | 1,77,087 | 142,910 | | Profit for the period | 1,33,120 | 1,07,065 | 1,33,972 | 108,237 |
Dividend: An interim dividend of ₹3.50 per equity share (Face Value ₹1 each) was declared on March 27, 2023, compared to ₹3 per equity share in the previous year. No final dividend was declared.
General Reserves: ₹500 lakh was transferred from the Statement of Profit and Loss to the General Reserve.
Capital Structure: 4,18,641 shares (Face Value ₹1 each) were allotted to employees under the Employees Stock Options Scheme. As of March 31, 2023, the outstanding equity shares' paid-up value was ₹5037.24 Lakh (₹5,033.05 Lakh on March 31, 2022). The company's net worth increased to ₹4,76,846 lakh on a standalone basis as of March 31, 2023, compared to ₹3,57,096 lakh the previous year.
Subsidiary Review: SBI Funds Management (International) Private Limited, a wholly-owned subsidiary in Mauritius, provides investment management services to SBI Resurgent India Opportunities Fund (SBI RIOF) and SBI India Opportunities Fund (SBI IOF). The subsidiary declared and paid a dividend of ₹547.96 Lakh (USD 6.65 Lakh), versus ₹114.53 Lakh (USD 1.50 Lakh) in the prior year.
Associate Company: The company holds a 20% stake in SBI Pension Funds Private Limited, which manages pension funds for government and private sector employees.
Management Discussion and Analysis - Business Environment:
Industry & Regulatory Developments:
Business Performance:
Other Business Parameters: Business parameters of the Portfolio Management/Advisory services, Alternate Investment Funds and Offshore Funds are:
| Particulars | 2022-23 (₹ in Crore) | 2021-22 (₹ in Crore) | | :------------------------------------------------------------- | :------------------- | :------------------- | | Portfolio Management/Advisory Services (including Retail business) | 11,73,031 | 9,99,003 | | Alternate Investment Fund | 481 | 271 | | SBI Resurgent India Opportunities Fund (Off- Shore Fund) | 317 | 325 |
Overall Performance: The company was managing total assets of about ₹18,81,441 Crores as on March 31, 2023. Profit after Tax (PAT) increased to ₹1,331 Crs, with a 24% growth.
Distribution Network: The Company works with over 99,000 empaneled distributors in 278 locations across India and 1 overseas Point of Presence in Dubai.
Awards and Recognition: SBI Mutual Fund received accolades for investment performance.
Investor Education: The company focused on investor awareness and education initiatives, utilizing easy-to-understand narratives in local languages across various media, including articles and videos.
Digital Initiatives: New features were launched for UPI Autopay and IMPS facility. The website and InvesTap app were revamped with multilingual capabilities. The WhatsApp experience was also revamped.
Future Plans: SBI Funds Management will continue to focus on business development, cost optimization, and investing in alternates and technology. New funds through innovation, especially on thematic and passive investments will be added. Deepening market penetration in Tier II & beyond cities is planned. Growing the alternative business and launching newer strategies is part of the plan.
Liquidation and Distribution of Assets of Franklin Templeton Mutual Fund: SBIFM was appointed by the Supreme Court to liquidate and distribute assets of six Franklin Templeton Mutual Fund schemes. As of March 31st, 2023, ₹17867 crores worth of securities have been liquidated, with ₹659 crores liquidated in FY23. Total disbursements to FTMF unitholders is ₹26932 crores, including ₹833 crores in FY23.
Corporate Social Responsibility (CSR): The company works towards social welfare, assisting socially & economically disadvantaged groups. CSR activities are undertaken through registered Trusts / Society / Foundations / NGOs / Charitable Institutions. During the year, the CSR Committee met twice. The Annual Report on CSR activities is included as Annexure II.
Other Key Points:
No change in the nature of the business during the year.
There have been no material changes and commitments affecting the financial position of the Company between the end of FY 2023 and the date of the report.
The company has a Risk Management Policy in place, covering various risks.
Information Security measures include cyber security awareness and training.
Internal financial controls are adequate and operating effectively.
There are no Loans or Guarantees given outside of normal commercial activity.
The Company has neither accepted deposits from the public.
Related party transactions are on arm's length basis.
A detailed policy on Prevention of Sexual Harassment ('POSH') is implemented. No cases were received during the year.
There were changes in the Board of Directors during the year.
Details of Committee of Directors including Audit committee, Risk Management Committee and Technology Committee are mentioned.
All independent directors have submitted requisite declarations confirming they meet independence criteria.
No meetings of IPO Committee of Directors were held during the year under review.
SBI mutual fund launched 26 New Fund Offers during the year
SBI MF has now has products available across all the open-ended SEBI defined categories.
We have also introduced the concept of Net Promoter Score (NPS) in FY23
Details of all directors and their meeting attendance are provided
Details of vigilence cases are also provided.
The Company has complied with applicable Secretarial Standards during the year.
Auditors for the company are M/s. Borkar and Muzumdar.
Employees relations remained cordial during the year.
The summary does not include the full financial statements contained within the PDF, but it does include information extracted from those statements.
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