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. 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 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. 1025 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.
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 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 2010-11 2011-12 Growth (%) Q2 H1 Q2 H1 Q2FY12 Q2FY11 H1FY12 H1FY11 Q2FY12 Q1FY12 Interest on Advances 14581 28003 19789 38045 35.72 35.86 8.39 Int. on Resources Operations 4886 9496 5893 11473 20.60 20.81 5.60 Other Interest Income 341 761 285 647-16.30-15.05-20.93 Total Interest income 19808 38260 25967 50165 31.09 31.11 7.31 Total Interest Expenses 11693 22842 15545 30043 32.94 31.53 7.22 Net Interest Income 8115 15419 10422 20121 28.43 30.50 7.45 Non-Interest Income 4005 7695 3427 6961-14.43-9.53-3.03 Operating Income 12120 23114 13849 27083 14.27 17.17 4.65 Staff Expenses 3676 6750 3914 7632 6.49 13.07 5.30 of which : Payment to Employees 2855 4305 3055 6019 7.02 39.81 3.06 Contribution for Employees 821 2445 860 1613 4.66-34.03 14.11 head Expenses 2087 3873 2461 4734 17.88 22.25 8.20 Operating Expenses 5763 10622 6375 12366 10.62 16.42 6.40 Operating Profit 6357 12491 7474 14717 17.58 17.82 3.20 Total Provisions 3856 7076 4664 10323 20.96 45.89-17.58 Income Tax 1234 2903 1278 2780 3.58-4.22-14.89 Loan Loss 2162 3896 2921 5703 35.09 46.38 5.02 Investment Depreciation 432 133 458 1506 6.13 1028.33-56.27 Standard Assets 15 121 121 409 730.39 239.59-58.05 - Other Provisions 13 23-115 -76 1009.82-429.96-394.49 Net Profit 2501 5416 2810 4394 12.36-18.86 77.48 ASSET QUALITY: (%) Gross NPA Net NPA PCR June 10 3.14 1.70 60.70 Sep 10 3.35 1.70 62.78 Mar 11 3.28 1.63 64.95 June 11 3.52 1.61 67.25 Sep 11 4.19 2.04 63.50 On the back of continued stress in Corporate, SME and Agri sectors, annualized slippage ratio remained elevated at 3.68%.
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. 3555 crore as on Sep 11 as against Rs. 3336 crore in Sep 2010. SBI Cards & Payment Services Pvt. Ltd recorded a Net Profit of Rs.18.54 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 30.09.2011 =========================================================