State Bank of India PRESS RELEASE H1FY

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Nathan Newman
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SBI STAND ALONE RESULTS HIGHLIGHTS State Bank of India PRESS RELEASE H1FY 2011-12 Net Profit of the Bank is up by 12.36% YOY from Rs.2501 crores in Q2 FY11 to Rs.2810 crores in Q2FY12.

1 SBI STAND ALONE RESULTS HIGHLIGHTS State Bank of India PRESS RELEASE H1FY Net Profit of the Bank is up by 12.36% YOY from Rs.2501 crores in Q2 FY11 to Rs.2810 crores in Q2FY12. Sequentially it has increased from Rs.1584 crores in Q1FY12 to Rs.2810 crores in Q2FY12, a growth of 77.48%. Operating Profit recorded a YOY growth of 17.58% in Q2FY12 over Q2FY11, while sequentially it is up by 3.20%. Net Interest Margin has reached the highest level of 3.70%, up from 3.30% as at the end of Sep 10. The Bank has registered an all time high NIM of 3.79% during Q2FY12 (3.43% in Q2FY11). Domestic NIM has crossed 4% during Q2FY12 to reach 4.07%. PROFITABILITY Q2FY12 OVER Q2FY11 Interest income up by 31.09% YOY driven by growth in Interest Income on Advances of 35.72% as advances have grown by 16.93% and average PLR/Base Rate is up by 249/224 bps from Q2 FY11. Sequentially, interest income on advances is up by 8.39%. Interest from resource operations is up by 20.60% mainly due to increase in Interest income on investments, which has gone up by 21.83%. Interest expenses up by 32.94% YOY, contributed by increase in interest expenses on deposits by 32.48%. Sequentially, interest expenses on deposits are up by 8.31%. NII has increased by 28.43%% YOY and 7.45% sequentially. Non Interest Income has declined by 14.43% due to drop in profit on sale of investments and dividend income, while forex income is up by Rs.172 crores, recording a growth of 55.71% YOY.

2 2 Fee income is lower by 11.70% mainly on account of bulk upfront fees received from some large corporate deals last year and lower cross sell income. Operating Expenses have increased by only 10.62% due to containment of staff expenses growth at 6.49% despite increase in DA payment by 40.49% YOY. Total provisions increased by Rs. 808 crores (20.96%) YOY mainly on account of higher loan loss provisions. H1FY12 OVER H1FY11 Interest Income on Advances is higher by 35.86%, both due to growth in advances and average PLR going up by 217 bps from Sep 10. Interest from resource operations is up by 20.81% (Rs.1,976 crores) mainly due to increase in Interest income on investments by 22.15%. Interest paid on deposits is up by 29.56% both due to 13.78% growth in deposits and increase in savings and term deposits interest rates. Non Interest Income has declined by 9.53% primarily due to decline in profit on sale of investments and dividend income. Fee income is lower by 2.27%, due to lower upfront fees and cross sell income. Payment to employees is higher by 39.81% YOY due to write back of excess wage revision provision of Rs crores during H1FY11. Excluding this write-back, growth in payment to employees would be 12.92%. Total provisions have gone up by 45.89% due to: Increase in Investment depreciation from Rs.133 crores in H1FY11 to Rs.1506 crores in H1FY12, as increase of Rs.1373 crores. Loan loss provisions are up by Rs.1807 crores, 46.38% YOY.

3 TOTAL BUSINESS GROWTH OF Rs. 2,35,214 CRORES (YOY) 3 Deposits are up by Rs. 1,17,826 crores & advances by Rs.1,17,388 crores. DEPOSITS Deposits of the Bank went up from Rs.8,55,345 crores in Sep 10 to Rs. 9,73,171 crores in Sep 11 recording a YOY growth of 13.78%, driven by CASA growth of 13.57%, while term deposits are up by 13.54%. CASA ratio remained stable at 48%. Savings Bank deposits grew by Rs.48,459 crores (15.94%) YOY, while year to date they are up by Rs.29,014 crore. ADVANCES Gross Advances up by Rs.1,17,388 crores, a YOY growth of 16.93% from Rs.6,93,224 crores in Sep 10 to Rs.8,10,612 crores in Sep 11. Credit Deposit Ratio (Domestic) is higher at 75.81% as at the end of Sep 11 from 74.70% at the end of Sep 10, an increase of 111 bps. Large Corporate advances have grown from Rs.93,679 crores in Sep 10 to Rs.1,13,305 crores in Sep 11 registering a growth of 20.95%. Mid-Corporate Advances up from Rs.1,42,716 crores to Rs.1,61,285 thereby registering a growth of 13.01% YOY. Retail advances have increased from Rs.1,49,537 crores in Sep 10 to Rs.1,68,761 crores in Sep 11, a growth of 12.86%. The main contributors are: Home loans grew by 16.53% YOY from a level of Rs.79,275 crores in Sep 10 to Rs.92,383 crores in Sep 11. Auto Loans up by 25.13% YOY and Education Loans grew by 15.64% from Sep 10 to Sep 11. SME Advances of the Bank are up by 20.74% from a level of Rs. 1,04,387 crores in Sep 10 to Rs.1,26,041 crores as at the end of Sep 11. Agri advances increased from Rs.82,018 crores to Rs.95,833 crores, thereby registering a growth of 16.84% YOY.

4 4 International advances went up by 18.86% from Rs.1,05,476 crores in Sep 10 to Rs.1,25,364 crores in Sep 11. Details of Profit and Loss account are as follows: Rs. In Crores Growth (%) Q2 H1 Q2 H1 Q2FY12 Q2FY11 H1FY12 H1FY11 Q2FY12 Q1FY12 Interest on Advances Int. on Resources Operations Other Interest Income Total Interest income Total Interest Expenses Net Interest Income Non-Interest Income Operating Income Staff Expenses of which : Payment to Employees Contribution for Employees head Expenses Operating Expenses Operating Profit Total Provisions Income Tax Loan Loss Investment Depreciation Standard Assets Other Provisions Net Profit ASSET QUALITY: (%) Gross NPA Net NPA PCR June Sep Mar June Sep On the back of continued stress in Corporate, SME and Agri sectors, annualized slippage ratio remained elevated at 3.68%.

5 5 KEY FINANCIAL RATIOS: Although Return on Assets (ROA) is lower at 0.69% in Sep 11 as compared to 0.97% in Sep 10, sequentially it is up from 0.50% in June 2011 by 19 bps. Cost to income ratio is stable at 45.66% sequentially but improved from 47.60% in March 11 and 45.96% in September 11. Average Cost of Deposits is up by 58 bps to 5.83% as on Sep 11 from 5.25% as on Sep 10 and by 57 bps from 5.26% as on March 11. Yield on Advances up by 128 bps to 10.78% as on Sep 11 from 9.50% as on Sep 10 and by 122 bps from 9.56% as on March 11. Consequently, interest spreads have increased by 70 and 65 bps respectively from 4.25% in Sep 10 and 4.30% in March 11 to 4.95% in Sep 11. As per Basel II, CRAR of the Bank is at 11.40% (Tier I: 7.47%) as at the end of Sep 2011, compared to 12.48% (Tier I: 8.90%) at the end of Sep 10. Performance of Associates and Subsidiaries: Operating Profit of Associate Banks increased by Rs.219 crores (6.57%) to reach a level of Rs crore as on Sep 11 as against Rs crore in Sep SBI Cards & Payment Services Pvt. Ltd recorded a Net Profit of Rs crores in H1FY12 as compared to Rs.7.60 crores in Sep 10 and Rs.7.10 crore in FY11. SBI Life Posted a profit after tax of Rs.200 croress as on =========================================================

State Bank of India PRESS RELEASE Q1FY Operating Profit recorded a YOY growth of 18.06% Q1FY11, while sequentially it is up by 19.12%.

SBI STAND ALONE RESULTS HIGHLIGHTS State Bank of India PRESS RELEASE Q1FY 2011-12 Operating Profit recorded a YOY growth of 18.06% Q1FY11, while sequentially it is up by 19.12%. in Q1FY12 over Net Profit