State Bank Of India · NSE:SBIN
State Bank Of India — FY2021 Earnings Presentation
52 slides from State Bank Of India's earnings presentation, May 21, 2021
Slide 1: FY21 Analyst Presentation
FY21 Analyst Presentation 21.05.2021
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward-looking statements. These statements are based on Management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety o
Slide 3: Contents
Contents 1 Macro Economic Indicators 2 Outcomes in a Pandemic Year 3 Performance Highlights 4 Financial Performance 5 Capital Adequacy & Asset Quality 6 Digital Journey 7 Financial Inclusion & Sustainability 8 Subsidiaries, Group Financials & Balance Sheet
Slide 4: Macro-Economic Indicators
Macro-Economic Indicators High Frequency Activity Indicators Significant decline in cost of borrowing for corporates 5.39 2.20 ➢ Many of the high frequency indicators are showing 2.30 5.50 5.23 2.10 1.93 1.89 improved economic activity in Mar 21/ Apr 21, though it is 1.90 5.00 because of lower base
Slide 5: Outcomes in a Pandemic Year
Outcomes in a Pandemic Year 5
Slide 6: FY21- Outcomes in a pandemic year (1/4)
FY21- Outcomes in a pandemic year (1/4) Outcomes in a year marred by pandemic demonstrate the resilience… Fresh slippages Net Interest Income Operating Profit Rs 28,564 cr Up by 12.9% Rs 71,554 cr [Rs 49,647 cr] [up 11.0%] [Rs 68,133 cr] Driven by our long-term value drivers: • Strong liability fran
Slide 7: FY21- Outcomes in a pandemic year (2/4)
FY21- Outcomes in a pandemic year (2/4) Asset Quality Fresh slippages, in Rs cr Personal Retail Slippages, in Rs cr 70,000 2.50% 2.16% 7,000 0.80% 0.70% 60,000 2.00% 0.70% 6,000 50,000 0.60% 5,000 1.50% 40,000 1.18% 0.44% 0.50% 4,000 0.40% 30,000 49,647 1.00% 3,000 20,000 4,507 0.30% 28,564 2,000 3,
Slide 8: FY21- Outcomes in a pandemic year (3/4)
FY21- Outcomes in a pandemic year (3/4) Net Interest Income Net Interest Income, in Rs cr 1,10,710 98,085 12.87% 88,349 YoY 11.02% YoY 18.03% YoY FY19 FY20 FY21 NII up 12.9% YoY for FY21, even as deposits growth outpaced credit growth, due to better resources and asset quality management 8
Slide 9: FY21- Outcomes in a pandemic year (4/4)
FY21- Outcomes in a pandemic year (4/4) Operating Profit Operating Profit, in Rs cr Recovery from Advances Under Collection Account, in Rs cr 10,297 71,554 9,250 68,133 8,345 55,436 11.32% 5.02% YoY 10.84% 22.90% YoY 56.47% YoY -6.85% YoY YoY YoY FY19 FY20 FY21 FY19 FY20 FY21 Operating profit up 5.0
Slide 10: Performance Highlights
Performance Highlights
Slide 11: Key trends in FY21
Key trends in FY21 Personal Retail credit growth at 16% YoY – at Rs 8.7 lakh cr it is 40% of domestic advances Rapid scale up in new product lines, while gaining market share in traditional products Liability franchise continues to strengthen – CASA growth at 16.73% YoY Market share gains in liabili
Slide 12: Key Indicators
Key Indicators Current Account Savings Account For the YoY Rs. in Crores 27.36% 14.79% Growth 13,70,082 FY20 FY21 2,76,892 11,93,566 2,17,415 Net Interest Income 98,085 1,10,710 12.87% Net Interest Margin – 3.19 3.26 7 bps Profit & Domestic (%) Loss Mar 20 Mar 21 Mar 20 Mar 21 Operating Profit 68,13
Slide 13: Credit offtake trend continues to improve
Credit offtake trend continues to improve Month-wise YoY Growth Sanctions Disbursements Mar-21, Mar-21, 93% 96% Dec-20, Home Loan Jan-21, 23% 0% Dec-20, Feb-21, Jan-21, Feb-21, -8% 25% 0% 9% Sanctions Disbursements Mar-21, 92% Mar-21, 98% Auto Loan Jan-21, 21% Feb-21, Dec-20, 10% 3% Dec-20, Feb-21,
Slide 14: Credit Growth
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Mar – 2020 Mar - 2021 • Strong growth in personal retail, driven by home loans, Xpress credit and gold loans • Growth in corporate segment remains subdued, expected to pick up in H2FY21 P
Slide 15: Credit Growth: Retail Personal Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Retail Personal Banking As on Mar 2021 Leadership across all segments Personal Retail Portfolio of Rs 8.7 lakh crore NPA ratio at 0.80% As a % of Dom. Adv. Mar 20: 36.19 Mar 21: 39.89 Per
Slide 16: Credit Growth: Diversified Loan Portfolio
Deposit Asset Net Interest Non-Interest Operating Credit Credit Growth Growth Quality Income Income Expenses Costs Diversified Loan Portfolio Rs. in Crores High quality asset book Industry mix Corporate Rating mix Outstanding as on 31st Mar 21 Mar 21 Fund Based O/S Sectors Amount % Share YOY Gr % In
Slide 17: Deposit Growth
Credit Asset Net Interest Non-Interest Operating Growth Deposit Growth Quality Income Income Expenses Provisions Mar 2020 Mar 2021 CA, 6.96% CA, 7.75% 68% of new savings accounts opened through YONO in Q4FY21 SA, TD, SA, TD, 38.20% 54.84% 38.38% 53.87% CASA: 45.16% CASA: 46.13% Particulars, In Rs cr
Slide 18: Asset Quality: Slippages and Restructuring
Credit Deposit Net Interest Non-Interest Operating Provisions Growth Growth Asset Quality Income Income Expenses Rs. in Crores Slippages and Restructuring As at Q3FY21 As at Q4FY21 Slippages in H1FY21 6,393 Reported Slippages in H1FY21 6,393 Total slippages Slippages in Q3FY21* 237 Reported Slippage
Slide 19: Net Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Net Interest Margins Yield on Investments 3.29 3.31 3.26 3.19 3.24 7.19 6.55 6.47 6.42 3.01 3.07 3.09 3.04 6.32 2.97 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Liquidity 1.18 1.13 1.15 1.13 1.10
Slide 20: Non-Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses FY21 • Uptick in fee income, 7.4% YoY growth in Q4FY21, compared to 4.9% YoY decline in 9MFY21 Profit/ Loss on sale of investments, 13.87% Forex income, 5.54% Fee income, 54.07% Misc.inco
Slide 21: Non-Interest Income: Treasury Operations
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Treasury Operations Mar 20 Mar 21 Others, 9.0% Others, 11.3% Corporate Bonds, Corporate G-Sec and T Bill, 24.0% G-Sec and T Bill, Bonds, 23.7% 42.2% 43.8% SDLs, SDLs, 9.3% CP, 9.8% CP, 13
Slide 22: Operating Expenses
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses FY21 Other employee • Costs well controlled, continued focus on income provisions, 7.2% drivers to lower cost to income ratio Salary, 36.7% Overheads, 38.4% • Effective cost control measu
Slide 23: Provisions
Credit Deposit Asset Net Interest Non-Interest Operating Growth Growth Quality Income Income Expenses Provisions • Credit costs at 1.12% for FY21 • PCR (excl AUCA) at 70.88%, legacy book well provided • Net NPA at Rs 36,810 cr, ~0.5 times of FY21 operating profit, Non NPA provisions at Rs 25,376 cr
Slide 24: Sustainable RoE – A perspective
Sustainable RoE – A perspective Mean RoA (FY00 – FY15) – 0.84 ROA ( in %) At variance to long term trends 0.99 1.01 1.04 0.94 0.89 0.97 0.86 0.84 0.88 0.88 0.75 0.73 0.68 0.48 0.71 0.65 0.57 0.46 0.38 0.02 -0.06 -0.19 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY
Slide 25: Financial Performance
Financial Performance
Slide 26: Financials – At a Glance
Financials – At a Glance Quarter ended Year Ended Growth (%) Q4FY21 Q4FY21 FY21 over Particulars, In Rs cr Q4FY20 Q3FY21 Q4FY21 FY20 FY21 over over FY20 Q3FY21 Q4FY20 Interest Income 62,681 66,734 65,102 2,57,324 2,65,151 -2.45 3.86 3.04 Interest Expenses 39,914 37,915 38,035 1,59,239 1,54,441 0.32
Slide 27: Total Income
Total Income Quarter ended Year Ended Growth (%) Q4FY21 Q4FY21 FY21 over Particulars, In Rs cr Q4FY20 Q3FY21 Q4FY21 FY20 FY21 over over FY20 Q3FY21 Q4FY20 Interest on Loans 42,580 43,737 40,214 1,79,749 1,71,429 -8.06 -5.56 -4.63 Interest on Resources 18,265 21,120 21,743 71,125 84,126 2.95 19.04 18
Slide 28: Fee Income Break Up
Fee Income Break Up Quarter ended Year Ended Growth (%) Q4FY21 Q4FY21 FY21 over Particulars, In Rs cr Q4FY20 Q3FY21 Q4FY21 FY20 FY21 over over FY20 Q3FY21 Q4FY20 Loan Processing Charges 1,924 1,142 2,085 4,426 5,348 82.54 8.34 20.81 Commission on Govt. Business 914 843 972 3,742 3,618 15.31 6.33 -3.
Slide 29: Total Expenses
Total Expenses Quarter ended Year Ended Growth (%) Q4FY21 Q4FY21 FY21 over Particulars, In Rs cr Q4FY20 Q3FY21 Q4FY21 FY20 FY21 over over FY20 Q3FY21 Q4FY20 Interest on Deposits 37,168 35,121 34,626 1,47,399 1,42,435 -1.41 -6.84 -3.37 Interest on Borrowings 1,424 1,119 1,860 6,891 6,130 66.17 30.57
Slide 30: Overheads
Overheads Quarter ended Year Ended Growth (%) Q4FY21 Q4FY21 FY21 Particulars, In Rs cr Q4FY20 Q3FY21 Q4FY21 FY20 FY21 over over over Q3FY21 Q4FY20 FY20 Rent, Taxes and Lighting 1,475 1,354 1,539 5,339 5,253 13.72 4.35 -1.61 Depreciation 901 845 832 3,304 3,318 -1.59 -7.66 0.42 Printing and Stationer
Slide 31: Provisions & Profit
Provisions & Profit Quarter ended Year Ended Growth (%) Q4FY21 Q4FY21 FY21 over Particulars, In Rs cr Q4FY20 Q3FY21 Q4FY21 FY20 FY21 over over FY20 Q3FY21 Q4FY20 Operating Profit 18,465 17,333 19,700 68,133 71,554 13.66 6.69 5.02 Loan Loss 11,894 2,290 9,914 42,776 27,244 332.86 -16.64 -36.31 Standa
Slide 32: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality
Slide 33: Well-capitalized bank with adequate liquidity
Well-capitalized bank with adequate liquidity Capital ratios (%) 13.06% 13.74% 12.72% 11.475 2.30 2.07 2.06 1.23 1.42 1.03 7.975 11.00 11.44 10.65 10.02 9.62 9.77 Mar-19 Mar-20 Mar-21 CET-1 AT-1 Tier-2 Min regulatory CET1 ratio Min regulatory Total Capital ratio RWA to Total Assets (%) Mar 19 Mar 20
Slide 34: Asset Quality (1/4)
Asset Quality (1/4) Gross NPA, in Rs cr Net NPA, in Rs cr 1,49,092 1,40,251 1,29,661 1,33,705 14,388 1,26,389 51,871 16,461 42,704 47,644 42,797 11,193 36,810 13,765 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Reported NPA Proforma NPA Cumulative for the Period (%) Mar 20 J
Slide 35: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q4FY20 FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Opening Level of Gross NPAs 1,59,661 1,72,750 1,49,092 1,29,661 1,25,863 1,17,244 1,49,092 Total Reductions 18,860 78,168 23,341 6,883 8,906 12,905 52,035 of which : Recovery + Upgradation 2,528 25,781 3
Slide 36: Movement of NPAs and AUCA (3/4)
Movement of NPAs and AUCA (3/4) Rs. In Crores Movement of NPAs (incl. Advances under Collection) Mar 18 Mar 19 Mar 20 Mar 21 Opening Level of GNPA + AUCA 2,52,066 3,27,653 3,09,755 3,16,684 Gross Addition (Increase in O/s + Slippages) 1,00,287 39,740 54,510 29,332 Total GNPA + AUCA + Additions 3,52,
Slide 37: Asset Quality (4/4)
Asset Quality (4/4) As on Mar 21 Fresh SMA 1 & SMA 2 Q4FY20 FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21* FY 21 Accounts with exposure above Rs. 5 cr: CRILC data Slippages Corporate 1,561 19,621 213 981 0 6,558 7,752 17,946** SME 227 7,291 990 -251 0 4,897 5,636 11,986 11,519** 12,546 3,389 AGRI 5,238 15,520 46
Slide 38: Digital Journey
Digital Journey
Slide 39: Accelerating digital agenda (1/2)
Accelerating digital agenda (1/2) YONO – Our flagship digital offering Digital Channel – Achieving disproportionate growth in share of New Initiatives Gone live: Q4 business (Performance in Q4FY21) ~37.09 Mn cumulative registrations YONO Quick Pay - YONO Global- YONO Receive Money new launch in 3, (
Slide 40: Accelerating digital agenda (2/2): Q4FY21 Highlights
Accelerating digital agenda (2/2) : Q4FY21 Highlights YONO – Our flagship digital offering Account opening Digital Lending (PAPL) 1.89 Mn + ~2.84 lac SB accounts opened through YONO No of New PAPL A/c opened ~28,288 avg. daily accounts opened INR 5,271.57 Cr PAPL disbursement 93.10 % Migration* Cros
Slide 41: Analytics – Intelligence across every function
Analytics – Intelligence across every function Aspiration to use analytics across every function to improve outcomes Business booked through AI/ML models Leverage advanced analytics for deeper & better insights on data 28,809 18,802 Explore data potential for business development 4,507 Mar 19 Mar 20
Slide 42: Accelerating digital agenda: Digital Leadership across channels
Accelerating digital agenda Digital Leadership across channels Leadership across channels - Market share (As per latest available data) Mobile Banking Mobile Banking Debit card spends POS terminals ATMs No. of Transactions Transaction value 29.23% 13.19% 28.53% 25.83% 19.90% Presence across multiple
Slide 43: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability
Slide 44: Financial Inclusion
Financial Inclusion As on March 2021 Rising transactions in BC Channel No. of BC outlets 58.78 3,00,000 60 49.29 Enhance Dec 19 59,693 50 Improve 39.75 2,40,000 market 40 delivery Mar 19 57,467 1,80,000 share 30 Mar 20 61,102 1,20,000 2,27,469 2,52,470 20 1,73,381 Sep-20 66,508 60,000 10 Generate hi
Slide 45: SBI ESG: Portfolio, Ratings and Framework
SBI ESG: Portfolio, Ratings and Framework ✓ Responsible finance integral aspect of Bank’s strategy MSCI ✓ ESG is integrated in our lending decisions; key criteria for go / no-go ESG RATINGS A ESG – an decisions integral ✓ Climate risk included as a risk factor in part of our key risk assessments wit
Slide 46: COVID-19: Relief Initiatives & Capacity Building
COVID-19: Relief Initiatives & Capacity Building 1 335 ventilators distributed to government hospitals, various Bank premises converted to quarantine centres across the country Supported distribution of 6,85,665 food packets and cooked meals to vulnerable women, migrant 2 workers, daily wage earners
Slide 47: Environmental, Social & Governance (ESG) Practices
Environmental, Social & Governance (ESG) Practices Enabling e-learning Sustainability Awareness Workforce An online tutorial on Sustainability - “ASTITVA” To impart learning in a safe and Diversity launched for employees. Almost 95% of secure environment, trainings eligible employees have completed
Slide 48: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet
Slide 49: SBI Subsidiaries – Significant value created across financial services
SBI Subsidiaries – Significant value created across financial services Listed Subsidiaries and Investments Value per share of SBI Subsidiaries - listed FY21 - PAT (in Rs. Crore) FY21 - RoE (in %) SBI Stake (in %) (Rs) # SBI Card 985 16.6 69.4 75.7 SBI Life 1,456 15.21 55.5 60.3 Other select listed N
Slide 50: SBI Group Financials – FY21
SBI Group Financials – FY21 Rs. In crores Growth Rs. In crores Year Ended Year Ended (%) FY20 FY21 YoY FY20 FY21 Interest Earned 2,69,852 2,78,115 3.06 ROA (%) 0.49 0.50 Non-Interest Income* 98,159 1,07,222 9.23 Total Income 3,68,011 3,85,338 4.71 ROE (%) 9.86 10.07 Interest Expended 1,61,124 1,56,0
Slide 51: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Mar 20 Mar 21 Mar 20 Mar 21 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,31,115 2,52,983 9.46 2,50,168 2,74,669 9.79 Minority Interest 7,944 9,626 21.17 Deposits 32,41,621 36,81,277 13.56 32,74,161 3
Slide 52: Thank You
Thank You