AUGUST, Dear All,

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1 Dear All, SBI Life's New Business Premium for FY upto July 2011 has grown by 4% when compared to last year (FY upto July 2010) and we continue to be a leader in the Private Life Insurance Space in India. However, the proportion of Single Premium business is still on the higher side. Therefore, we have to increase the regular premium business in our portfolio. In this issue of Competition Update we bring to you the updates for the month and latest industry business analysis. Also we bring to you the competitive analysis of our low ticket size ULIP plan - Saral Maha Anand with similar plan of major competitors and the reasons that makes it a better plan for the customers. Please do continue to write in with your feedback and/or queries to innovation@sbilife.co.in. For Internal Circulation Only

2 INDIAN LIFE INSURANCE (Upto July 11)» Industry s Total New Business Premium for FY Up to July 11 (Rs. 26,794 Crs) dropped by 22% when compared to FY Up to July10 (Rs. 34,249 Crs)» LIC which commands 72% of the industry s share has shown a degrowth of 21% with (Rs. 19,407 Crs from Rs. 24,431 Crs) 4% -44% -18% -8% -39% Premium in Rs. Crore 2,000 1,500 1, ,991 1,599 1,539 1,121 1, SBI Life ICICI HDFC Max Bajaj YTD FY YTD FY Rank (Private Market) FY Up to July 11 (% Private share) FTM July 11 (% Private share) 1st 2nd 3rd 4th 5th SBI Life Rs. 1,599 Crs (21.65%) SBI Life Rs. 710 Crs (29.03%) ICICI Prudential Rs. 1,121 Crs (15.17%) ICICI Prudential Rs. 301 Crs (12.29%) HDFC Standard Rs. 828 Crs (11.20%) HDFC Standard Rs. 270 Crs (11.02%) Max New York Rs. 551 Crs (7.46%) Bajaj Allianz Rs. 165 Crs (6.74%) Bajaj Allianz Rs. 543 Crs (7.35%) Max New York Rs. 143 Crs (5.85%)

3 SBI LIFE PERFORMANCE ANALYSIS Individual New Business Upto July 11 (YOY Growth) Group New Business Upto July 11 (YOY Growth) 46% % % 31% 13% % 116% 435 9% % % 74% 29 53% % % 37% 3213% 34% 137% 33% 23% SBI Life ICICI HDFC Max Bajaj 699(-19%) 678(-57%) 654(-26%) 505(-10%) 373(-52%) SBI Life ICICI HDFC Bajaj Kotak 901(32%) 443(3%) 174(30%) 171(57%) 103(29%) Individual RP Individual SP Group RP Group SP Individual New Business Performance Upto July 11 Vs Up to July 10 SBI Life stands 1st among private players in Individual New Business despite showing a degrowth of 19% Regular Premium registered a degrowth of 46%, whereas, the Single Premium grew at 67% Group New Business Performance Up to July 11 Vs Up to July 10 SBI Life ranks No.1 amongst private players for Group New Business, which shows a growth of 32% Regular Premium Business has shown a drop of 74%, but Single Premium Business grew at 53% April May June July YTD FTM Crs 443 Crs 348 Crs 563 Crs 1,539 Crs FTM Crs 394 Crs 298 Crs 710 Crs 1,599 Crs Growth 6.25% % % 26.13% 3.91%

4 FUND PERFORMANCE - SBI LIFE Vs MAJOR COMPETITORS (as on 29th July 11) ULIP Funds Performance 1 Y CAGR (Compound Annual Growth Rate)* ULIP Funds Performance 2 Y CAGR (Compound Annual Growth Rate)* 3.8% 0.1% 0.9% 7.3% 1.4% 6.4% 5.7% 4.7% 7.2% 3.4% 3.2% 3.3% 2.5% 4.2% 1.2% 13.0% 10.0% 14.3% 13.9% 6.8% 6.6% 5.6% 5.6% 7.5% 3.8% 7.0% 7.7% 10.8% 8.4% 8.4% Equity Fund Bond Fund Balanced Fund Equity Fund Bond Fund Balanced Fund SBIL ICICI Pru HDFC Standard Bajaj LIC SBIL ICICI Pru HDFC Standard Bajaj LIC ULIP Funds Performance 3 Y CAGR (Compound Annual Growth Rate)* NAV Guarantee Fund Performance - Highest NAV* 17.4% 16.6% 19.9% 22.5% 18.1% 16.0% 12.7% 15.1% 17.1% 15.3% 13.8% 16.0% 19.1% 14.9% 22.7% Flexi Protect 92% Flexi Protect II 31% Platinum+ Fund I 29% Platinum+ Fund II 82% Wealth Plus 11% Max Gain 15% NAV Guarantee Fund 18% Pinnacle 24% Equity Fund Bond Fund Balanced Fund SBI Life Birla LIC Bajaj Reliance I-Pru SBIL ICICI Pru HDFC Standard Bajaj LIC SBI Life funds have performed competitively in the market, with SBI Life FlexiProtect being the best performing NAV Guarantee Fund in the market, despite existing market conditions Invest in other funds available with SBI Life by choosing from the comprehensive range of SBIL Unit Linked Plans * All NAVs taken as on 29th July 11

5 SBI LIFE SARAL MAHA ANAND Vs COMPETITORS Product Name Policy Term (PPT) Min /Max Annual Premium (Rs.) Prem. Payment Mode Riders Guaranteed Additions Death Benefit Maturity Benefit Premium Allocation Charge Policy Admin. Charge Commission SBIL - Saral Maha Anand 10/15/20 Years Min : 15,000/- Max : 29,000/- Y 1 : 6% Y 2 5: 2.75% Y 6-10 : 2% Y 11 onwards : 1% Bajaj - Assured Protection Insurance Plan 10/15/20 Years (7 Y Policy Term) Min : 15,000/- Max : 24,000/- Max : No limit Max : No limit Y/HF/Q/M 1 Rider Yearly Only 6 Rider Yearly Only 3 Riders as plan options Y/HY/SP Not Available Y/HY/Q/M/SP 3 Rider Upto 30% of Annualised Premium Not Available Not Available Not Available Not Available Higher of Sum Assured and Higher of Sum Assured and Sum Assured plus Higher of Sum Assured and Sum Assured plus Y 1 : 6.25% ; Y 2-5 : 3.75% Y 1: 10% ; Y 2-5: 6% ; Y 1 : 6.7% ; Y 2-4: 4% Y 1: 7% ; Y 2-4: 6% Y 6-10 : 3.00% Y 6-9: 1% ; Y 1 7 : 4% Y 5 onwards: 3.50% Y 5-10: 5.5% ; Y 11 + : Nil Y 10 onwards : Nil Y 8 onwards : 1% SP : 2% Y 6+ : 5% ; SP : 2% Rs /- pm During PPT: 2% AP for 1st 5 Y 0.25% pm of AP increase by RP/LPPT: 1.8% of FYP pa ; & inflating at 5% p.a. ; After 5% pa 5% pa PPT: 50% of prevailing PAC, (Max: Rs. 500 Pm) SP :1.20% SP for 1st 10 Y inflating at 5% p.a SP : Rs. 40/- pm Y 1: 5% ; Y 2 onwards : 2% HDFC ProGrowth Super II IndiaFirst Smart Save Reliance Classic Life Years RP & LPPT (7/10 Y): 15/20/25 Y ; SP: 15 Y 15 to 30 Years Min : RP: 12,000; SP: 45,000/- Min : RP: 20,000; LPPT: Rs. 15,000/- SP: 50,000/- Min : Rs 15,000/- Max : No limit Y 1 : 6%; Y 2 onwards : 0.5% Additional Commission of 4.5% in 4th Y Y 1: 5% ; Y 2: 3% Y 3-4: 2% Y 5 onwards : 1% SP : 2% Y 1: 6% Y 2 + : 2% SP : 1% SARAL MAHA ANAND Minimum premium of just Rs. 2,000 per month Simple joining process; no medical examination Guaranteed Addition of up to 30% of Annualised Premium Option to avail additional Rider Benefit under SBI Life - Accidental Death Benefit Linked Rider 4 Fund Options to get market related returns as per your risk appetite Liquidity through Partial Withdrawals along with flexibility through Switching and Premium Redirection

6 SBI LIFE SARAL MAHA ANAND Vs COMPETITORS Charge Comparison for Rs. 20,000/- Annual Premium & 15 Year Term Rs. 19,320 Rs. 13,250 Rs. 14,884 6,000 7,284 12,120 7,250 7,600 7,200 Rs. 16,600 16,600 Rs. 19,204 7,764 11,440 SBIL Bajaj HDFC Reliance IndiaFirst Policy Administration Charge Premium Allocation Charge Comparison for Rs. 20,000/- Annual Premium & 15 Year Term for a 30 Y old male 576, , , , , , , , , ,592 SBIL Bajaj HDFC Reliance 10% Saral Maha Anand.the best plan for me as it fulfills all my requirements while giving me enough flexibility along with HIGHER RETURNS at low cost IRR Comparison for Rs 20,000/-Annual Premium, Rs 2,00,000 L Sum Assured & 15 Y Term for a 30 Y old male* SBIL Bajaj HDFC Reliance* IndiaFirst 6% 3.89% 3.49% 3.32% 3.33% 3.41% 10% 7.80% 7.44% 7.30% 7.32% 7.41% * Sum Assured is Rs 2,00,000 except for IndiaFirst which has Sum Assured as Rs 3,15,000 Watch out this space for continuous competition updates & analysis along with comparisons of our products with market offerings.