State Bank Of India · NSE:SBIN
State Bank Of India — Q2 FY2023 Earnings Presentation
53 slides from State Bank Of India's earnings presentation, Nov 5, 2022
Slide 1: Exchange filing cover letter for analyst presentation
The Listing Department, The Listing Department, BSE Limited, National Stock Exchange of India Limited, Phiroje Jeejeebhoy Towers, Exchange Plaza, 5th Floor, 25th Floor, Dalal Street, Plot No.: C / 1, ‘G’ Block, Mumbai – 400001. Bandra Kurla Complex, Bandra (East), Mumbai – 400051. BSE SCRIP Code: 50
Slide 2: Quarterly Q2FY23 Analyst Presentation
QUARTERLY Q2FY23 Analyst Presentation 05.11.2022
Slide 3: 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 4: Contents
Contents 1 Macro Economic Indicators 2 Performance Highlights 3 Financial Performance 4 Capital Adequacy & Asset Quality 5 Digital Journey 6 Financial Inclusion & Sustainability 7 Subsidiaries, Group Financials & Balance Sheet
Slide 5: Macro-Economic Indicators
Macro-Economic Indicators ASCB's Credit Growth at 9-Year High (%) High Frequency Activity Indicators 17.6 17.9 18.0 ➢ In FY23, credit growth has gained further traction and reached 9-year 16.0 high growth of 17.9% (YoY) as on 07 Oct 2022 14.0 ➢ Vehicle sales, petroleum consumption, railway passenger
Slide 6: Performance Highlights
Performance Highlights
Slide 7: Key trends in Q2FY23
Key trends in Q2FY23 Credit growth continues – ~20% YoY Strong growth across all segments REH Advances cross Rs. 6 lakh crores Improving profit metrics – Highest ever quarterly profit at Rs. 13,265 crores ROA at 1.04% for the quarter improved by 38 bps YoY Domestic NIM at 3.55% for the quarter impro
Slide 8: Key Indicators
Key Indicators Rs. in Crores CASA Term Deposits Quarter Ended YoY 5.35% 12.43% Rs. in Crores Growth Q2FY22 Q1FY23 Q2FY23 17,97,752 22,30,260 17,06,387 19,83,642 Net Interest Income 31,184 31,196 35,183 12.83% Profit & Net Interest Margin – 3.50 3.23 3.55 5 bps Loss Domestic (%) (Rs. in Sep 21 Sep 22
Slide 9: Credit Growth
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Sep 2021 Sep 2022 • Robust growth in Corporate Credit Retail Pers., • Strong growth in Retail Personal, driven by Retail Pers., 41.9% Home Loans, Xpress Credit and other loans 42.2% • Gro
Slide 10: Retail Personal Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Retail Personal Banking As on Sep 2022 Leadership across all segments Retail Personal Portfolio of Rs 10.7 lakh crore 3 - year CAGR at ~16% As a % of Dom. Adv. Sep 21: 41.9 Sep 22: 42.2 P
Slide 11: Diversified Loan Portfolio
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Diversified Loan Portfolio Rs. in Crores High quality asset book Industry mix Corporate Rating mix Outstanding as on 30th Sep 22 Fund Based O/S Sectors Amount % Share YOY Gr % Infrastruct
Slide 12: International Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions International Banking (Rs. in Crores) Gross Advances: Healthy Credit Growth Break up of Loan Portfolio Loan Portfolio across Geographies 9% 4,87,681 3% 3% 26% 4,49,816 4% 30.8% 33.4% 4,11
Slide 13: Deposit Growth
Credit Asset Net Interest Non-Interest Operating Growth Deposit Growth Quality Income Income Expenses Provisions Sep 2021 Sep 2022 CA, CA, 6.8% 5.8% SA, SA, TD, 38.9% TD, 39.4% 53.8% 55.3% CASA: 46.24% CASA: 44.63% Rs. in Crores Particulars Sep 2021 Sep 2022 YoY Growth (%) Current Account Deposits (
Slide 14: Slippages and Restructuring
Credit Deposit Net Interest Non-Interest Operating Provisions Growth Growth Asset Quality Income Income Expenses Slippages and Restructuring Rs. in Crores Slippages Restructuring 4,176 As on As on Restructuring 1.0 Mar 22 Sep 22 Retail Personal 3,010 2,843 Corporate 3,016 1,274 2,399 SME 4,840 4,061
Slide 15: Net Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Net Interest Margins Yield on Investments in % 3.33 3.35 3.36 3.39 3.23 3.17 6.29 3.09 3.11 3.12 6.16 3.02 6.07 6.05 6.05 1.44 1.32 1.06 1.06 1.07 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-2
Slide 16: Non-Interest Income: Fee Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Rs. in Crores Fee Income Loan Processing Charges Commission on Govt. Business 10.21% 22.88% 13.38% 1,289 1,058 1,049 933 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Cross Selling Remittance, Collection,
Slide 17: Non-Interest Income: Treasury Operations
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Sep 21 Sep 22 Treasury Operations SDLs, Corporate 11.2% Corporate Bonds, Bonds, SDLs, 25.0% Others, 20.7% 10.3% Others, 12.3% 10.9% CP, 8.4% CP, 5.0% G-Sec and G-Sec and T Bill, T Bill, 4
Slide 18: Cost to Assets – among the best in the industry
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses H1FY23 • Focus continues on improving income streams with control on costs Overheads, 43.0% Retiral benefits & other provisions, 14.4% Salary, 42.6% Cost to Assets – among the best in the
Slide 19: Provisions
Credit Deposit Asset Net Interest Non-Interest Operating Growth Growth Quality Income Income Expenses Provisions • Credit costs at 0.28% for Q2FY23 • PCR at 77.93%, legacy book well provided • Non NPA provisions at Rs 29,809 crores, ~126% of Net NPA at end of Q2FY23 Available Buffer, Rs in Crores Pr
Slide 20: Sustainable RoE / RoA – A perspective
Sustainable RoE / RoA – A perspective Mean RoE (FY00 – FY15) – 15.2 ROE (in %) At variance to long term trends 18.2 18.1 18.2 18.1 17.8 15.9 16.1 13.9 16.0 15.5 16.1 14.2 15.1 11.2 9.9 14.0 12.8 7.7 11.9 10.5 7.7 0.5 -1.1 -3.8 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY1
Slide 21: Financial Performance
Financial Performance
Slide 22: Financials – At a Glance
Financials – At a Glance Quarter ended Half Year Ended Growth (%) Q2FY23 Q2FY23 H1FY23 Particulars, Rs in Crores Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 over over over Q1FY23 Q2FY22 H1FY22 Interest Income 69,481 72,676 79,860 1,35,046 1,52,536 9.88 14.94 12.95 Interest Expenses 38,298 41,480 44,676 76,22
Slide 23: Total Income
Total Income Quarter ended Half Year Ended Growth (%) Q2FY23 Q2FY23 H1FY23 Particulars, Rs in Crores Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 over over over Q1FY23 Q2FY22 H1FY22 Interest on Loans 42,317 46,474 52,383 83,460 98,856 12.72 23.79 18.45 Interest on Resources 22,306 23,618 24,405 43,711 48,023
Slide 24: Fee Income Break Up
Fee Income Break Up Quarter ended Half Year Ended Growth (%) Q2FY23 Q2FY23 H1FY23 Particulars, Rs in Crores Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 over over over Q1FY23 Q2FY22 H1FY22 Loan Processing Charges 1,049 1,312 1,289 1,837 2,601 -1.76 22.88 41.55 Commission on Govt. Business 933 1,022 1,058 1,82
Slide 25: Total Expenses
Total Expenses Quarter ended Half Year Ended Growth (%) Q2FY23 Q2FY23 H1FY23 Particulars, Rs in Crores Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 over over over Q1FY23 Q2FY22 H1FY22 Interest on Deposits 35,183 37,300 39,340 69,976 76,640 5.47 11.82 9.52 Interest on Borrowings 1,675 2,737 3,871 3,425 6,608 4
Slide 26: Overheads
Overheads Half Year Quarter ended Growth (%) Ended Q2FY23 Q2FY23 H1FY23 Particulars, Rs in Crores Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 over over over Q1FY23 Q2FY22 H1FY22 Rent, Taxes and Lighting 1,354 1,186 1,436 2,439 2,623 21.04 6.05 7.54 Depreciation 811 837 806 1,607 1,643 -3.63 -0.62 2.23 Printi
Slide 27: Provisions & Profit
Provisions & Profit Quarter ended Half Year Ended Growth (%) Q2FY23 Q2FY23 H1FY23 Particulars, Rs in Crores Q2FY22 Q1FY23 Q2FY23 H1FY22 H1FY23 over over over Q1FY23 Q2FY22 H1FY22 Operating Profit 18,079 12,753 21,120 37,054 33,873 65.61 16.82 -8.59 Loan Loss 2,699 4,268 2,011 7,729 6,279 -52.89 -25.
Slide 28: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality
Slide 29: Well-Capitalized Bank with Adequate Liquidity
Well-Capitalized Bank with Adequate Liquidity Capital Ratios (%) 13.35% 13.43% 13.51% 2.39 2.33 2.28 12.1 1.26 1.43 1.59 8.6 11.02 11.15 11.12 9.76 9.72 9.53 Sep-21 Jun-22 Sep-22 Min regulatory Total CET-1 AT-1 Tier-2 Min regulatory CET1 ratio Capital ratio RWA to Total Assets (%) Sep 21 Jun 22 Sep
Slide 30: Asset Quality (1/4)
Asset Quality (1/4) Gross NPA, Rs in Crores Net NPA, Rs in Crores 1,23,942 1,20,029 1,13,272 1,12,023 37,119 34,540 1,06,804 27,966 28,258 23,572 Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Cumulative for the Period (%) Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Gross NPA Ratio 4.9
Slide 31: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q2FY22 Q3FY22 Q4FY22 FY22 Q1FY23 Q2FY23 Opening Level of Gross NPAs 1,34,259 1,23,942 1,20,029 1,26,389 1,12,023 1,13,272 Total Reductions 14,609 6,493 11,612 41,142 8,866 8,909 of which : Recovery + Upgradation 7,407 2,306 6,756 21,437 5,208 5,207
Slide 32: 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 20 Mar 21 Mar 22 Sep 22 Opening Level of GNPA + AUCA 3,09,755 3,16,684 3,00,496 2,85,358 Gross Addition (Increase in O/s + Slippages) 54,510 29,332 26,776 12,556 Total GNPA + AUCA + Additions 3,64,26
Slide 33: Asset Quality (4/4)
Asset Quality (4/4) Rs. in Crores Slippages SMA 1 & SMA 2 Accounts with exposure above Rs. 5 crore: CRILC data 8,497 19,842 6,983 6,690 1,921 1,814 12,139 2,351 4,167 9,740 3,544 1,599 555 6,576 5,169 4,339 2,399 2,989 2,568 H1FY22 H1FY23 Q1FY23 Q2FY23 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 SMA1 SMA2 32
Slide 34: Digital Journey
Digital Journey
Slide 35: Accelerating digital agenda (1/5)
Accelerating digital agenda (1/5) YONO 2.0 – Key objectives ▪ YONO 2.0 envisions to ▪ Build the next generation of YONO as an omnichannel platform ▪ Develop Leaner and modular architecture and streamlined journeys ▪ Deeply integrate next-generation technologies like Advanced Analytics, IoT, AI/ML, B
Slide 36: Accelerating digital agenda (2/5)
Accelerating digital agenda (2/5) YONO – Our flagship digital offering Digital Banking PABL Journey digitization Online Market Place “Create seamless omni- “Integrated banking solution “Improve productivity and “Increase customer channel customer for corporate financial reduce cost” engagement” expe
Slide 37: Accelerating digital agenda (3/5)
Accelerating digital agenda (3/5) YONO – Key trends this year for YONO YONO Loans (Disbursement for YTD Savings Accounts opened through YONO Krishi Products Sep ‘22 and YTD Sep ‘21) YONO (YTD Sep ‘22 and YTD Sep ‘21) PAPL (Disbursement) SB Account Opening through KCC Reviewed through YONO YONO 7,921
Slide 38: Accelerating digital agenda (4/5)
Accelerating digital agenda (4/5) YONO Business journeys for superior user experience Journey (Since) Value (₹ in crores) 5 YB CINB (11.02.2022) ₹ 1,05,50,802 YB Payments (22.07.2022) ₹ 46,884 ✓ Value: ₹ 2,28,154 crores (since Nov 2019) 4 Import LC ✓ Before YB: Digital 7.19%; After YB 63% yonobusine
Slide 39: Accelerating digital agenda (5/5)
Accelerating digital agenda (5/5) 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 26.22% 13.69% 30.24% 23.61% 22.13% Presence across mu
Slide 40: Analytics – Functions
Analytics – Functions AI Currently New Ventures Used in Portfolio Analytics • Shift of focus from Product to Customer-Engagement Orientation • Customer Engagement & Segmentation Analysis conducted Marketing • Data Driven Branch Cohort/ Performance Analysis • Micro-Market Analysis Operational Efficie
Slide 41: Analytics – Quarter in Review
Analytics – Quarter in Review Advances Through Analytical Leads ~₹43,910 Cr. ~₹19,740 Cr. CAGR : ~80% | YoY Growth: ~120% ~₹13,600 Cr. HY-1 FY21 HY-1 FY22 HY-1 FY23 Personal ~₹33,404 Cr. JV Product Sales MSME Besides this, significant value ~₹ 54 Cr. ~₹ 4,564 Cr. created through Income Leakage (Fees
Slide 42: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability
Slide 43: Financial Inclusion
Financial Inclusion As on Sep 2022 No. of BC outlets Transactions in BC Deposits in FI Channel Market Leader Channel Social Security 60,000 3,137 Schemes (PSBs) 1,80,000 26.65 27.61 30.00 2,777 3,000 42.35 40.12 50,000 25.00 2,500 20.00 31.43 40,000 1,20,000 2,000 70,786 66,757 1,34,892 15.00 1,63,1
Slide 44: Contributing to Society
Contributing to Society Through Pan India Presence under CSR • SBI Asha Scholarship program (Phase I)- An initiative to provide financial assistance of Rs. 15,000 • 182 members supported for livelihood activities like each to 125 meritorious students (75 girls and 50 agriculture, livestock, entrepre
Slide 45: SBI's ESG Snapshot
SBI’s ESG Snapshot SBI’s CRISIL ✓ Responsible finance at the core. Lines ESG RISK of credits availed from World Bank, KfW ASSESSMENT etc. being used to fund projects with ESG – an positive environmental & social impacts. integral part A SBI placed in “Strong of Bank’s Category” Business ✓ A “Climate
Slide 46: SBI's Sustainability Framework
SBI’s Sustainability Framework Financial Inclusion Responsible Digital Agenda People Practices & Carbon Neutrality Journey Investment Community Building SHG Bank Linkage Internal Commitment Green Bonds & Loan YONO – Green Banking Training and Development SBI adjudged as one of To achieve carbon neut
Slide 47: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet
Slide 48: SBI and its Subsidiaries - Leveraging Synergies (1/2)
SBI and its Subsidiaries - Leveraging Synergies (1/2) Rs. in Crores As on Sep 2022 H1FY22 H1FY23 H1FY22# H1FY23# PAT (₹ in cr) 470 640 PAT (₹ in cr) 650 1153 ROE (in %) 8.8 10.7 ROE (in %) 19.4 27.4 Total New Gross Written Value of New CIF (In Lakh) Spends Receivables Business Premium Premium Busine
Slide 49: SBI and its Subsidiaries - Leveraging Synergies (2/2)
SBI and its Subsidiaries - Leveraging Synergies (2/2) Rs. in Crores As on Sep 2022 H1FY22# H1FY23# H1FY22 H1FY23 PAT (₹ in cr) 504 628 PAT (₹ in cr) 127 116 ROE (in %) 32.2 29.8 ROE (in %) 9.2 8.0 Performance Highlights Gross Written AUM • SBIFML is leading the mutual fund industry with a huge Premi
Slide 50: Regional Rural Banks
Regional Rural Banks Sponsored by SBI Rs. in Crores Performance Highlights for H1FY23 14 RRBs operating in 13 States & 1 UT Network of 4,732 branches in 221 districts • Deposits at Rs.1,10,766 crores 3.27% YoY • Gross NPA 99 bps YoY at 5.40% • CASA 160 bps YoY at 54.53% • Net Profit of Rs.824 cr
Slide 51: SBI Group Financials – H1FY23
SBI Group Financials – H1FY23 Rs. in Crores Growth Half Year Ended Half Year Ended (%) H1FY22 H1FY23 YoY H1FY22 H1FY23 Interest Earned 1,41,989 1,61,244 13.56 ROA (%) 0.66 0.81 Non-Interest Income 52,421 48,063 -8.31 Total Income 1,94,410 2,09,307 7.66 Interest Expended 76,887 87,163 13.37 ROE (%) 1
Slide 52: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Sep 21 Sep 22 Sep 21 Sep 22 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,67,508 3,04,020 13.65 2,91,572 3,32,231 13.94 Minority Interest 10,448 12,160 16.38 Deposits 38,09,630 41,90,255 9.99 38,44,76
Slide 53: Thank You
Thank You
State Bank of India — Q2 FY2023 Earnings Presentation on 6ix