SPA SECURITIES LTD.
STATE BANK OF INDIA : Public Issue of Lower Tier-II Bonds (Tranche I)

A COMPARITIVE SUMMARY AMONGST INVESTMENT OPTION.

TERM SHEET OF THE CURRENT ISSUE.
A COMPARATIVE SUMMARY AMONGST INVESTMENT OPTION
(AVAILABLE IN PSU/ BANK CATEGORY FOR RETAIL INVESTOR)
INSTRUMENT
TRADING & LISTING
PREMATURE
WITHDRAWL
FIXED DEPOSIT/ TERM DEPOSIT
RATED , LISTED, TRADEABLE lower
tier II BOND
Current Public Issue of SBI RATED
, LISTED, TRADEABLE lower tier II
Bonds
Non- tradable & Unlisted
Tradable &
exchange
stock
Tradable & listed on stock
exchange post closure and
allotment of the public issue.
Allowed with loss of interest
Can be sold in the market at the
then prevailing market rates
Can be sold in the market at the
then prevailing market rates
Listed
on
ISSUER
SBI**
PNB
REC^
IDFC^
SBI ^^
CREDIT RATING
AAA #
AAA#
AAA by CRISIL,
ICRA
AAA by ICRA &
FITCH
“CARE AAA” by CARE and “AAA/
STABLE” by CRISIL
TENURE
* 1000 days
* 1000 days
10 years
15 years
10 years
15 years
CALL OPTION
N.A.
N.A.
None
At the end of
10 th year
After 5 years
After 10 years
RATE OF INTEREST
/ COUPON RATE
9.25%
9.15%
9.20%
9.35%
9.75%
9.95%
*In case of term deposit tenure has been considered earning maximum rate of interest for general public stated on the
respective Banks website have been considered for comparison.
^ Recently concluded issue in primary markets/ structured deal through private placement.
# Issuer credit rating
^^ Only retail option offered in the public issue of SBI bonds Tranche I has been considered offering maximum interest.
**Premature Payment of Term Deposits: Interest to be paid on premature withdrawal of term deposits at 1.00% below
the rate applicable for the period deposit has remained with the Bank, or 1.00% below the contracted rate, whichever is
lower
SPA SECURITIES LTD.
OTHER SALIENT FEATURES of STATE BANK OF INDIA : Public Issue of Lower Tier-II Bonds (Tranche I)

Interest on Refunds
Interest on any refund of subscription amount paid by an Applicant will be paid separately by the Bank @ 7% p.a. on
the amount refunded to Allottees and @ 4% p.a. on the amount refunded to Non-allottees (“Refund Interest”).

Interest on Application Money
Interest on Application money will be paid @ 9.75 p.a. for Retail Applicants and @ 9.30% p.a. for Non-retail
Applicants for Series 3 Lower Tier II Bonds and @ 9.95 p.a. for Retail Applicants and @ 9.45% p.a. for Non-retail
Applicants for Series 4 Lower Tier II Bonds.

Tax Deduction at Source
Interest on Application money together with Refund Interest shall be paid with respect to the value of Bonds Allotted,
subject to deduction of income tax at source under the Income Tax Act, as applicable, if it exceeds the prescribed
limit of Rs. 10,000, in any Fiscal Year to any Applicant.

Basis of Allotment
Allocation for the Series Bonds shall be made on a first come first served basis based on the date of Application in
accordance with reservation for each Category as set out on page 17 of this Tranche 1 Prospectus. In case any
Category is under subscribed, the unsubscribed portion of the reservation for such Category will be allocated first to
Retail Applicant Category, second to HNI Category and then to the Non-Individual Category, upto Rs. 20,000
million.

Reservation and Application size for each Category
Particulars
Retail Applicant
HNI
Reservation for each Category
(to be read with Basis of
Allotment as stated in the
Prospectus/ offer document)
25% of Rs. 20,000 million
Minimum Application
In Multiples of
50% of Rs. 20,000 million. In
addition the Bank has the option to
retain all valid Applications from
Retail Applicants upto the Residual
Shelf Limit.
Rs. 10,000
Rs. 10,000
NII, Corporate, QIB
(“Non-individual”)
25% of Rs. 20,000 million
Rs. 5,10,000
Rs. 10,000
Rs. 10,000
Rs. 10,000
Maximum Application
Rs. 500,000
Rs. 250,00,00,000
Rs. 250,00,00,000
SPA SECURITIES LTD.
TERM SHEET : STATE BANK OF INDIA
PUBLIC ISSUE BY THE STATE BANK OF INDIA (“BANK” OR “ISSUER”) OF LOWER TIER II BONDS (THE “BONDS”) NOT EXCEEDING AN AGGREGATE
AMOUNT OF RS. 100,000 MILLION (THE “SHELF LIMIT”) BY WAY OF ISSUANCE OF BONDS IN ONE OR MORE TRANCHES (EACH A “TRANCHE ISSUE”,
AND TOGETHER ALL TRANCHE ISSUES UPTO THE SHELF LIMIT, THE “ISSUE”). THIS TRANCHE ISSUE BY THE ISSUER IS OF SERIES 3 LOWER TIER II
BONDS AND SERIES 4 LOWER TIER II BONDS AGGREGATING TO RS. 10,000 MILLION WITH AN OPTION TO RETAIN OVER-SUBSCRIPTION UP TO RS.
10,000 MILLION FOR ISSUANCE OF ADDITIONAL BONDS, IN AGGREGATE UP TO A TOTAL OF RS. 20,000 MILLION, WITH A RETAIL OVERSUBSCRIPTION OPTION AS SET OUT BELOW (THE “TRANCHE 1 ISSUE”)
Series
Series 3 Lower Tier II Bonds
Series 4 Lower Tier II Bonds
Tranche 1 Issue Opens
Monday, February 21, 2011
Tranche 1 Issue Closes
Monday, February 28, 2011
State Bank of India
Issuer
Listing
NSE and BSE
Issuance & Trading
Compulsorily in dematerialized form
One Bond
Market Lot/ Trading Lot
NSDL and CDSL
Depositories
Unsecured
Security
“CARE AAA” by CARE and “AAA/ STABLE” by CRISIL
Rating
Frequency of Interest payment
Annual
Annual
Face Value per Bond
Rs. 10,000/Rs. 10,000/Coupon (%) p.a
1) For Retail Applicants
9.75% p.a.
9.95% p.a.
2) For Non Retail Applicants
9.30% p.a.
9.45% p.a.
Effective yield p.a
1) For Retail Applicants
9.75% p.a.
9.95% p.a.
2) For Non Retail Applicants
9.30% p.a.
9.45% p.a.
Tenure
10 years
15 years
Redemption Date
10 years from deemed date of allotment
15 years from deemed date of allotment
(These Series Bonds are not redeemable
(These Series Bonds are not redeemable at
at the option of the Bondholders or
the option of the Bondholders or without
without the prior consent of RBI.)
the prior consent of RBI.)
Redemption Amt (Rs/bond)
Rs.10,000/Rs.10,000/Put Option
No
No
Call Option
The Bank has a “call option” in an
The Bank has a “call option” in an amount
amount of the principal amount
of the principal amount outstanding of
outstanding of the Series 3 Lower Tier
the Series 4 Lower Tier II Bonds after 10
II Bonds after 5 (five) years following
(ten)years following the Deemed Date of
the Deemed Date of Allotment being
Allotment being the payment date falling
the payment date falling 5 (five)years
10 (ten)years and one day after the
and one day after the Deemed Date of
Deemed Date of Allotment of the Series
Allotment of the Series 3 Lower Tier II
4 Lower Tier II Bonds, and subject to the
Bonds, and subject to the prior
prior approval of RBI.
approval of RBI.
Registrar
Datamatics Financial Services Limited
Who can apply?
 Public financial institutions, statutory corporations, commercial banks, cooperative banks
and regional rural banks;
 Provident, superannuation and gratuity funds;
 Pesnsion funds
 Mutual funds;
 The National Investment Fund set up by resolution no. F. No. 2/3/2005-DDII dated
November 23, 2005 of the Government of India published in the Gazette of India;
 Resident Indian individuals - in their own names or in the names of their minor children as
natural/legal guardians in single or joint names (but not exceeding three);
 Hindu Undivided Families through the Karta;
 Companies, bodies corporate and societies registered under the Applicable Laws in India
and authorised to invest in the Bonds;
 Public/private trusts (charitable/religious or otherwise) authorised to invest in the Bonds;
 Scientific and/or industrial research organisations authorised to invest in the Bonds;
SPA SECURITIES LTD.
 Partnership firms through a Partner; and
 Associations of persons.
FIIs, NRIs and OCBs are not permitted to apply in this Tranche 1 Issue.
Retail Applicant
Individual Applicants who have applied for the Series Bonds for an
aggregate amount not more than Rs. 500,000 in the Tranche Issue
(including HUFs applying through their Karta)
Bankers to the Issue and State Bank of India.
Refund Bank
Minimum Subscription for Tranche I Issue
If the Bank does not receive the minimum subscription of 75% of the base issue amount of this Tranche 1 Issue of Rs. 10,000 million,
i.e. Rs. 7,500 million, on or before the closure of this Tranche 1 Issue, the entire subscription amount shall be refunded to the
applicants within 15 days from the date of closure of this Tranche 1 Issue. If there is a delay in the refund of the subscription amount
by more than 8 (eight) days after the Bank becomes liable to pay the same, the Bank will pay interest for the period of delay, at rates
prescribed under subsections (2) and (2A) of Section 73 of the Companies Act.
Interest on Refunds
Interest on any refund of subscription amount paid by an Applicant will be paid separately by the Bank @ 7% p.a. on the amount
refunded to Allottees and @ 4% p.a. on the amount refunded to Non-allottees (“Refund Interest”). The Refund Interest shall be paid
along with the refund of application money whether in case of total refund to Non-allotees or partial refund to Allotees, as the case
maybe. The interest shall be payable from the third working day following the date of receipt of the Application Form excluding the
date of receipt of such Application Form and shall be payable until one day prior to the Deemed Date of Allotment.
Interest on Application Money
Interest on Application money will be paid @ 9.75 p.a. for Retail Applicants and @ 9.30% p.a. for Non-retail Applicants for Series 3
Lower Tier II Bonds and @ 9.95 p.a. for Retail Applicants and @ 9.45% p.a. for Non-retail Applicants for Series 4 Lower Tier II Bonds
separately by the Bank to allottees and the same should not be deducted from the amount on application. The interest shall be
payable from the third working day following the date of receipt of the Application Form excluding the date of receipt of such
Application Form and shall be payable until one day prior to the Deemed Date of Allotment.
Tax Deduction at Source
Interest on Application money together with Refund Interest shall be paid with respect to the value of Bonds Allotted, subject to
deduction of income tax at source under the Income Tax Act, as applicable, if it exceeds the prescribed limit of Rs. 10,000, in any
Fiscal Year to any Applicant. The interest warrant will be dispatched along with the letter(s) of Allotment at the sole risk of the
Applicant, to the sole/first Applicant.
Basis of Allotment
Allocation for the Series Bonds shall be made on a first come first served basis based on the date of Application in accordance with
reservation for each Category as set out on page 17 of this Tranche 1 Prospectus. In case any Category is under subscribed, the
unsubscribed portion of the reservation for such Category will be allocated first to Retail Applicant Category, second to HNI
Category and then to the Non-Individual Category, upto Rs. 20,000 million. In such an event of undersubscription, Series Bonds are
allocated to another Category, interest on such Series Bonds will be as per the interest rate specified for such Applicants. In case of
over subscription under the Retail Applicant Category, over-subscription will be retained upto the Residual Shelf Limit, at the
option of the Bank. In case of over subscription under the Retail Applicant Category beyond the Residual Shelf Limit, the HNI
Category and the Non-Individual Category, Applications received on the day of such over-subscription in respect of such Category,
will be allotted on a pro rata basis, in consultation with the DSE / Lead Managers.
______________________________________________________________________________________________________
CAVEAT: This broad comparative is made considering the retail application for longest tenure. Reasonable caution has been taken to make the
comparison however, investor/ prospective investor/s should take their own independent decision while making investment and consult their
tax consultant/ advisors and under no circumstance SPA Securities Ltd. or its associate companies or its employees or its directors shall be held
responsible in any manner what-so-ever.