Quarterly Results Q1FY

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1 Quarterly Results Q1FY

2 Highlights SBI Stand-alone Balance Sheet June-09 Mar-10 June-10 June-09 Mar-10 June-10 Advances growth () 22.79% 16.94% 20.74% CASA ratio 38.45% 46.67% 47.51% Advances market share 16.43% 16.28% 16.55% CA growth (YoY) 18.56% 18.98% 12.53% Deposits growth () 35.99% 8.36% 6.78% SB growth (YoY) 23.99% 29.75% 33.85% Demand deposits market share 15.35% 17.51% 16.24% Growth in CASA () 22.70% 26.76% 28.93% Deposits market share 17.43% 16.31% 16.14% CASA Ratio is up by 906 bps 1

3 Highlights Q1FY11 vs Q1FY10 Rs crores, SBI Standalone, except for group net profit Q1 FY 10 Q1 FY 11 % growth Q1 FY 10 Mar10 Q1FY 11 Net profit (group) 2759 Net profit (standalone) 2330 Net interest income Net interest margin Cost to income ratio 2.30% 57.25% 2.66% 3.18% 52.59% 44.20% Other income Other income to operating income ratio 41.53% 38.74% 33.56% Fee income ROA 0.92% 0.88% 1.07% Operating income ROE 15.88% 14.04% 17.09% Operating cost COD 6.16% 5.80% 5.27% Operating profit Loan loss provision YOA 10.01% 9.66% 9.30% NIM up by 88 bps & C/I down by 1305 bps 2

4 Advances growth has picked up and market share has increased by 12 bps Advances Rs crore Market share (domestic) Percent 20.74% p.a. 12 bps June 09 Mar 10 June 10 June 09 Mar 10 June 10 As on last reporting Friday of the quarter Growth driven by large corporate and retail sector. Non fund based business (BG & LC) has grown by 27%. Market share of retail loans has increased to 23.74% in June 10 from 19.95% in June 09. 3

5 Loan book is well diversified Across segments Within corporate segment, advances are spread across many industries 1 1 As on last reporting Friday 4

6 Composition of advances growth (1/7) Rs crores June 10 over June 09 Largecorporate 34.72% 24% growth in Fee Income (). 48% growth in Fee Income from Project Finance. Over 84% of the exposure to borrowers has been rated. Advances growth during Q1FY11 is Rs.7,220 crores as against Rs.2,098 crores in Q1FY10. June 09 Mar10 June10 54 loans aggregating Rs.14,798 crores (FB+NFB) sanctioned (new + enhancements) during Q1FY11. Sanctions under Infrastructure finances increased to Rs.6,235 crores in Q1FY11 as against Rs. 5,979 crores in Q1FY10. 5

7 Composition of advances growth (2/7) Rs crores Mid- Corporate June 10 over June % June 09 Mar 10 June 10 Upturn seen in Textiles, Iron & Steel, Auto, Infrastructure, Gems & Jewellery. Fee Income grew by 34%. Decline in advances during Q1FY11 restricted to Rs.1,594 crores as against a negative growth of Rs.6,912 crores in Q1FY new loans aggregating Rs. 7,791 crores (FB+NFB) sanctioned during the quarter. Robust growth in Precious Metals Business driven by 176% growth in sale of Gold and 62% growth in Metal Gold Loans. 6

8 Composition of advances growth (3/7) Rs crores International June 10 over June % June 09 Mar 10 June 10 USD 1 bn mobilised successfully overseas in July 10, with oversubscription of 4.5 times vide Standalone rule 144A regulations bond issue. Tapped US market for the first time. 8 new branches opened during the quarter, taking the total to 150 foreign offices in 32 countries Number of ATMs outside India is 89 38% growth in Net profit of Foreign Offices Growth in remittance business is 61.69% from Rs.8,343 crores in Q1FY10 to Rs. 13,490 crores in Q1FY11. Market share in remittance business is 29.68% (March 10). Fee income has grown by 21.34% from Rs.177 crores in Q1FY10 to Rs.215 crore in Q1FY11 7

9 Composition of advances growth (4/7) Rs crores SME June 10 over June % June 09 Mar 10 June 10 New tie-ups with Volvo Equipments Ltd. and Escorts Equipments Ltd. for equipment finance and Hindustan Motors for vehicle finance. New range of power products launched Relationship concept introduced for Medium Enterprises 21,463 applications amounting to Rs.289 crores received under SME OTS scheme valid till 31/07/10. 8

10 Composition of advances growth (5/7) Rs crores June10 over June 09 Agri loans Disbursement of Rs.7,892 crs in Q1FY11 as against Rs.5,630 crs in Q1FY % 2.89 lac new farmers financed during Q1 FY11. Produce Marketing Loans (PML) for direct lending to farmers at 8.5% (fixed). Financing Floriculture (Pushpa Ulhas) piloted in Bangalore, Hyderabad and Mumbai. Organic farming piloted for 5 circles. June 09 Mar 10 June 10 Initiatives taken under Bonding with Farmers: Farmers Meet, Farmers Club, SBI Ka Apna Gaon etc. 9

11 Composition of advances growth (6/7) Rs crores Home loans Average ticket size (Rs lacs) Market share (ASCB) Distribution Metro Urban June 10 over June 09 June % 29.83% Mar % June %* 37% 38% 38% 36% 34% 34% CNBC Award 2010 for Most Preferred Home Loan Provider for the fifth time loans amounting to Rs.6,915 crores sanctioned in Q1FY11 (Rs. 6,042 crores in Q1FY10). Highest absolute growth in Q1 amongst peer level banks / NBFCs (YTD growth Rs. 3,476 crores in Q1FY11 as against Rs. 3,450 crores in Q1FY10). 95% of the borrowers are 1st time buyers. Disbursed Rs. 4,660 crs in Q1FY11 as against Rs.4,350 crores in Q1FY10. Prudent Loan To Value (LTV) ratio of 61%. Semi urban Rural * As on March % 20% 20% 7% 7% 7% SBI continues to be no. 1 in retail lending in India 10

12 Composition of advances growth (7/7) Rs crores Edu loans Average ticket size (Rs lacs) Market share (%) Auto loans Average ticket size (Rs lacs) Market share (%) June 10 over June 09 June10 over June % June 09 Mar 10 June % 25% 25% June % Mar10 June % 16.8% 16.82% Average TAT for sanction of loans is 4 days. 13,118 loans sanctioned during Q1FY11. Scholar loan institutes increased from 61 to 100 during the current academic year. 20 NITs included. Rs crores sanctioned under SBI scholar scheme in Q1FY11. Average TAT for sanction of loans is 2 days. An average number of 22,000 loans are sanctioned every month. 7,049 loans amounting to Rs.429 crores disbursed under SBI Advantage car loan scheme. Total disbursement in Q1FY11 is Rs.1,303 crs. 11

13 Interest Income has risen as loan book growth offset decline in PLR Yield on advances Percent Interest Income during Rs crore Interest income on advances Q1 FY 2010 Q2 Q3 Q4 FY2011 Q1 Q1FY11 vs. Q1FY10 12,357 12,669 12,639 12,967 13, % Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 June10 PLR 12.25% 11.75% 11.75% 11.75% 11.75% 11.75% Interest income on resource operations Sundry interest income Total interest income 4,988 4,917 4,674 4, % % 17,473 17,776 17,779 17,966 18, % PLR reduced by 50 bps on More than 85% of the incremental lending during the quarter has been below PLR. Base Rate at 7.50% implemented wef 1 st July During Q1 FY10, PLR lower by 50 bps impacting interest income by Rs.426 crores. Interest on resource operations lower due to hike in CRR by 100 bps over June 09 and reduction in surplus liquidity. 12

14 Domestic deposit growth is lower at 5.05% due to shedding of high cost bulk deposits; CASA up by a robust 29 % Deposits Rs. Crores Foreign deposits Domestic deposits % % Domestic Deposits Rs. CASA Crores ratio Percent 5.05% CASA Retail TD Bulk TD 29% % 10% -51% SB Deposits have grown by 33.85% in Q1FY11 as against 23.99% during Q1FY10. Absolute growth is Rs crs and Rs crs in Q1FY lacs SB accounts have been opened in Q1FY11 taking the total number to crs. CA Deposits have grown by 12.53% in Q1FY11; absolute growth is Rs. 7982crs lacs CA opened in Q1FY11 taking the total number to lacs. 13

15 CASA and CD ratios continue to improve CASA ratio Percent CASA Ratio RUSU CASA Ratio CD ratio Percent ASCB CD ratio 72.32% 69.80% 72.22% 73.28% Incremental CD ratio during Q1FY11 was as high as 233%. Note: Domestic deposits exclude Interbank deposits 14

16 Cost of deposits has fallen Cost of deposits Percent Interest expense Rs crore Q1 FY 2010 Q2 Q3 Q4 FY2011 Q1 Q1FY11 vs. Q1FY10 Interest paid on deposits 11,436 11,156 10,445 10,297 10, % Interest expense on borrowings % Sundry interest expense % Total interest expense 12,448 12,167 11,463 11,244 11, % Sequential decline in Cost of deposits due to shedding of bulk deposits and increase in CASA. Q1FY11 interest paid on deposits lower than Q4FY10 despite switch in calculation method of SB interest to daily product basis which has added around Rs. 300 crores to the interest outgo during Q1FY11. 15

17 NII and NIM continue to improve NIINIM Cumulative NIM Percent Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY % 2.43% 2.56% 2.66% 3.18% NII Rs crore Growth of NII 5,025 5,609 6,316 6,721 7,304 Q1FY 10 Q2FY 10 Q3FY 10 Q4FY 10 Q1 FY % 2.82% 9.69% 38.81% 45.35% NIM up sequentially despite change in SB interest calculation method. NII is highest in Q1FY11 since last 12 quarters. 16

18 Surplus liquidity has declined and so has negative carry One year TD rate Negative Carry % Quarter wise average surplus liquidity (Rs Crore) Quarter wise Negative Carry (Rs Crore) -3.28% -3.34% -3.20% -2.80% -2.48% -1.83% 17

19 Fee income up by 29.41%, one of the highest among peers Rs crores Q1 FY11 vs. Q1 FY10 xx y-o-y growth 3.40% 29.41% Excluding Profit on Sale of Investments, growth in other income at 23% Jun 09 Jun % 6.83% 5.33% 34.32% Total Other Income Fee Income Profit on Sale of Investments Forex Income Dividend Misc. Other Income Fee Income continues to record robust growth driven by growth in Loan Processing, NFB business, Income from Tech products, Cross selling and Govt. business. Growth in Misc. Other income driven by 42% growth in recovery from written off accounts. 18

20 Lower Operating costs backed by overheads control x Growth Q1FY % 33.70% % % x Operating Expense growth Q1FY % 18.36% % % Overheads Salary Contribution for Employees Q1FY09 Q1 FY10 Q4 FY10 Q1 FY11 Salary for Q1FY10 includes Rs.627 crores of wage revision arrears pertaining to prior period, salary for Q1FY11 includes Rs.845 crores write-back of excess wage revision provision. A provision of Rs.1,100 crs made during Q1FY11 on account of gratuity as against estimated acturial requirement of Rs.2,200 crs for the whole year. 19

21 Operating income growth remains robust at 28% NII Fee Income Other Non-interest income Q1FY11 vs. Q1FY10 Operating income Rs crores Non interest income/operating income Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 42% 39% 35% 40% 34% Cost / Income ratio 57.25% 47.07% 52.30% 53.75% 44.20% 20

22 Alternate channel usage has increased rapidly No of ATMs for group June March June ATMs No of ATMs for SBI Hits per day Number Debit Card (lacs) Market share (for SBI) (%) * Market share (for group) (%) * Internet Banking (lacs) No of accounts No of transactions ** POS Transaction (lacs) Mobile banking Contact centre % of total transactions on alternate channels % net of non eligible transactions No of transactions Registered mobile users No of transaction(financial) *Estimates based on May 2010 figures of RBI website **During Q4FY ,060 29,002 2,18,434 No of registered customers 1,66,550 4,93,463 5,86, ** 4,29,242** ,17,377 6,76,

23 Asset Quality remains steady Rs crores Asset quality 2.79% 1.55% 2.99% 1.73% 3.11% 1.88% 3.05% 1.72% Gross NPA 3.14% 1.70% Net NPA June 09 Sep 09 Dec 09 Mar 10 June * Growth in NPAs during the quarter Out of the Total Standard Assets of Rs. 16,796 crores restructured under RBI dispensation, Rs. 1,774 crores have slipped into NPA category up to June 2010 (additional Rs.158 crores in Q1FY11) Slippage ratio is 10.56%. *Decrease of Rs.1,651 crores due to upgradation of Ratnagiri Gas & Power (Dabhol) 22

24 Movement of NPAs during Q1FY11 (1/2) Q4FY10 Q1FY11 Opening stock of NPAs Fresh slippage Up gradation + recovery Write off 15,714 19,535 11,843 4,081 6,031 2,164 1, Net increase in NPAs by Rs.1290 crores in Q1FY11 Corporate 102 International -43 SME 183 Agriculture 683 Closing NPAs 19,535 20,825 Retail 365 Provision Coverage Ratio (PCR) including AUCA to 60.70% as on June 10 as against 59.23% as on March

25 Movement of NPAs during Q1FY11 (2/2) Particulars Corporates IBG SME AGRI Retail Cash Recovery Upgradation Write off Gross Reduction Fresh Slippages ,115 1,283 1,112 Net increase Net increase in NPAs Rs.1,290 crs in Q1FY11 to reach a total of Rs.20,825 crs as on June 10 Corporate 6,958 International 1,656 SME 4,694 Agriculture 3,004 Retail 4,513 Total 20,825 24

26 Details of Standard Assets Restructured Rs. In crores Under RBI Scheme FY Q1FY FY Total Slippage during Q1FY Slippage upto June % of slippages

27 Details of asset-wise provisioning Rs crores Asset Category NPAs Provision % NPAs Provision % NPAs Provision % Substandard 6,989 1, ,066 1, ,542 1, Doubtful 6,539 4, ,672 4, ,649 5, Loss 1,790 1, ,797 2, ,634 26, Whole Bank 15,318 6, ,535 8, ,825 9, Advances under Collection 6,888 6, ,127 7, ,354 7, Whole Bank incl. AUCA 22,206 13, ,662 15, ,179 17, PCR

28 The Bank continues to be remain well capitalized Percent Capital adequacy ratio Basel I 13.1% 12.5% 12.3% 12.0% Tier 1 Tier % 3.4% 8.8% 12.0% Jun 09 Sep 09 Dec 09 Mar 10 Capital adequacy ratio Basel II 14.1% 13.4% 14.1% 13.8% Tier 1 Jun 10 Tier % 3.7% 9.8% Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 27

29 New Business Initiatives (1/2) Mobile Banking Services offer multiple features, viz. fund transfer to accounts within the Bank and outside, account enquiry, mobile top up, bill payment, payment for goods purchased online, cheque book request, DEMAT account enquiry and payment of SBI Life premium. Payment Services Group formed to bring all payment related activities under one umbrella, viz. remittances, clearing, ez-pay Card, Gift Cards, SBI Vishwa Yatra Cards, Debit Cards RTGS/NEFT etc. for increasing fee income of the Bank. Under Merchant Acquiring Business, the Bank now has tie-ups with four Groups- Future Group, Military canteen, Regional Pass Port Seva Kendra, and Bangalore Metro Project. Bank plans to deploy 1.50 lac POS terminals during FY2011. Financial Planning and Advisory Services launched in FY10, now made available in 924 branches through Relationship Managers / Customer Relations Executives. AUM of Rs.104 crs as at the end of June 2010 projected to increase to Rs.900 crs by the end of the current FY. 28

30 New Business Initiatives (2/2) SBI now has 3,060 branches which are demat enabled. As on 30 th June 10, we have 2.41 lac Demat accounts. Commercial operations started in our newly opened subsidiaries, SBI SG Global Securities Services Pvt. Ltd. (Custodial services with AUC : Rs.28,901 crs) and SBI General Insurance Ltd. Fund raising under SBI Macquarie Infrastructure Fund for the domestic leg is nearing completion. Commitments aggregating approximately Rs. 1,400 crores received so far. The JVA for India Oman Fund has been signed on 14/7/2010. All approvals in place for this General Purpose Fund for USD 100 mn. 29

31 Social Transformation through Financial Inclusion (1/2) Sl. No Particulars June 09 Mar 10 June 10 1 Coverage of unbanked villages 58,000 1,04,000 1,07,000 2 SBI Tiny Cards lacs lacs lacs 3 Rural & Semi Urban branches : (a) No of branches 7,834 8,390 8,442 (b) Average business per branch crs crs crs 4 No Frills Accounts (millions) Around 19 million households have been covered so far under SLBC project of 100% financial inclusion in identified villages. Plan of opening 18 lac new SBI Tiny card accounts through BC/CSPs during the year. 30

32 Social Transformation through Financial Inclusion (2/2) For financial inclusion in metro/urban areas, SBI has set up a specialised microfinance branch in Dharavi slum area of Mumbai. Account with just Re.1 for urban poor - launched the facility in Hyderabad with installation of 20 Kiosks (CSPs) in association with Geosansar (Bank s BC) lac SHGs have been credit-linked with cumulative credit of Rs.11,990 crs Cell Phone based Channel for Financial Inclusion launched in Delhi and Patna Circles Internet based Kiosk Channel launched in 9 Circles, and 410 kiosks Outlets have been set up till June Signed an MoU with UIDAI project as a Registrar, the first bank to have signed such an MoU. Reliance Dairy Food Limited has been appointed as our National BF taking the total of such BFs to 3. Overall, we have engaged 7,667 BFs as on

33 Socio-Economic and Environmental Initiatives Clean/ Green environment Youth Others Adopted a Green Banking Policy and several measures undertaken like switching over to energy efficient lighting system, installation of energy savers, efficient water management systems, waste disposal,tree plantation and more. Paperless Banking launched in 51 branches on July 1, Fund cum Authorisation Model for Social Sector Flagship Schemes like National Literacy Mission of HRD Ministry is at the implementation stage and SBI has signed an MoU with HRD Ministry to partner them in 20 States Continuing with R & D initiatives, the Bank has set up a SBI Chair for Public Leadership in the Indian School of Business, Hyderabad in addition to the existing India Observatory and I.G.Patel Chair at the Asia Research Centre of London School of Economics, in participation with RBI. SBI is participating in a joint field pilot with UIDAI for Financial Inclusion for deployment of micro ATMs conforming to UID standards. 32

34 Performance Highlights of Associate Banks (1/2) Bank Rs in Crores OPERATING PROFIT NET PROFIT Upto Upto Q1FY11 Q1 FY10 Growth (%) Q1FY11 Q1 FY10 Growth (%) SBBJ SBH SBIr SBM SBP SBT Total Net Interest Income registered a healthy increase of 52.22% to reach a level of Rs crores in June Net Interest Margin improved by 39 bps over March 2010 (2.81%) and by 81 bps over June 2009 (2.39%) to reach 3.20% in June Net Profit declined marginally by Rs.3.73 crores (from Rs crores in June-09 to Rs crores as on June-10) mainly on account of higher provisioning for NPAs. 33

35 Performance Highlights of Associate Banks (2/2) Bank DEPOSITS ADVANCES As at Upto Q1FY11 Q1 FY10 Growth (%) Q1FY11 Q1 FY10 Rs in Crores Growth (%) SBBJ 48,173 38, ,720 29, SBH 78,707 63, ,484 42, SBIr 28,798 28, ,215 21, SBM 39,489 33, ,602 26, SBP 64,431 61, ,098 41, SBT 51,777 43, ,946 32, Total 3,11,375 2,68, ,30,064 1,94, growth of CASA deposits is 26.19%. The ratio of CASA deposits to aggregate deposits improved to 31.29% in Jun-10 from 28.77% a year ago. Gross NPAs increased by Rs.900 crores during Q1FY11 to reach Rs.4898 crores. All ABs have formed Core Management Teams headed by senior officers for reviewing accountwise position at fortnightly intervals. SMAs are being closely monitored by Management Teams to prevent further slippages. Some of the large accounts which have turned NPAs recently have been referred to CDR for restructuring. 34

36 Highlights of Some Non Banking Subsidiaries (1/2) SBI Life SBI Life recorded a profit of Rs.114 Crores as against a profit of Rs.39 Crores as on June 09. growth of 192%. AUM of the company as on stood at Rs Crores. growth of 64% The company is ranked 2nd amongst the private Insurance companies under New Business Premium, as on June SBI Capital Markets Ltd The company has posted PAT of Rs Crores in Q1FY11 registering a growth of 93% after excluding provision of Rs Crores towards syndication fee sharing payable to SBI. Fee Based income increased by 91%. Ranked 1st in Rights Issues by Prime Data Base and 2nd in Public Issues for the half year ending Ranked 1st in Asia ex-japan Loans Mandated Arranger with 12.90% market share for the half year ending

37 Highlights of Some Non Banking Subsidiaries (2/2) SBI DFHI Trading Income as on was Rs Crores (highest in the last 3 years) compared to Rs.7.54 Crores in the corresponding period last year. SBI Cards & Payment Services Pvt. Ltd. Recorded a net profit of Rs.3.25 Crs as against a net loss of Rs Crs. as on June SBI Pension Fund Pvt Ltd AUM was Rs Crores as on , an increase of 134%. SBI Global Factors Ltd. Company continues to maintain 80% plus market share in factoring business of standalone factoring companies in India. 36

38 Recent Awards & Recognitions.. Awarded the strongest Banks in Asia Award 2010 for the Asia pacific region under The Asian Banker Excellence in Retail Financial Services Awards SBI awarded Visionaries of Financial Inclusion Year 2009 by Financial Information Network & Operations Ltd. (FINO). State Bank of India has been awarded the prestigious international award 'Innovation in Banking Technology Award ' for the 'Innovation in Eco-IT' category instituted by The Banker Magazine, London, for its project on Green ATM Installation. Only Indian bank to find a place in the Fortune Global 500 list Up from 363 last year to 282 this year. Rankings BY Banker :Only Indian bank among the top 100 banks in the world. 37

39 Recent Awards & Recognitions.. SBI s ranking has improved to 36 (2010) from 70 (2009) in the Brand Finance Global Banking 500 by Brand Finance Plc. Moved up in rankings from 219th spot last year to 150th spot this year in the Forbes 2000 list of largest companies in the world Ranks 32 in The Indian Express List of The Most Powerful Indians in Exemplary Leader Award at the Global HR Excellence Awards 2010 by World HRD Congress. The QFC Asian Banker Leadership Achievement Award for the Asia Pacific region for 2010 under The Asian Banker Excellence in Retail Financial Services Awards

40 THANK YOU 39

THE BANKER TO EVERY INDIAN. Quarterly Results Q1 FY 2012

THE BANKER TO EVERY INDIAN. Quarterly Results Q1 FY 2012 THE BANKER TO EVERY INDIAN Quarterly Results Q1 FY 2012 1 Rs. In Crores NII growth drives Profitability Parameter Q1 FY 11 Q4 FY 11 Q1 FY 12 YOY Growth % Interest Income 18452 21721 24197 31.14 Interest