State Bank Of India · NSE:SBIN

State Bank Of India — Q1 FY2016 Earnings Presentation

46 slides from State Bank Of India's earnings presentation, 2015

  1. Slide 1: Quarterly Results Q1FY16

    ay. ntactless Card State Bank . ‘ =a 5 eS) Self Passboo Printing M Quarterly Results QIFY16

  2. 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 results may differ materially from those included in these statements due to a variety of

  3. Slide 3: Agenda

    Agenda Our 6 Key Objectives Our Approach to Achieving Objectives Our Q1 Performance State Bank of India 3

  4. Slide 4: Our Key Objectives: A Quick View

    Our 6 Key Objectives: A Quick View 1 Improving Asset Improving end- to- end credit process for Quality sustained improvement in Asset Quality 2 Cost Rationalization Focus on Operating Expenses Risk as an integral part of decision making 3 Risk Management Risk based budgeting Offering innovative, cut

  5. Slide 5: Agenda

    Agenda Our 6 Key Objectives Our Approach to Achieving Objectives Our Q1 Performance State Bank of India 5

  6. Slide 6: Improving Asset Quality: Reactive to Proactive

    1 Improving Asset Quality: Reactive to Proactive Three Pronged Strategy Initiatives Maintain high entry level standards for new customer acquisition Cash Flow based financing Encourage growth of risk-mitigated products Sourcing Project Vijay for enhanced SME customer engagement Financing Agri supply

  7. Slide 7: Cost Rationalisation

    2 Cost Rationalisation Optimizing Expenses Initiatives Space Audit Network Optimization Rent Roll out of 250 sbi INTOUCH Branches Centralisation of lease rentals and renewals Migration to Tech Channels 72% through all tech channels, of which 41% through digital Stationery Web based outsourced soluti

  8. Slide 8: Risk Management

    3 Risk Management Key Initiatives Impact Risk based budgeting of business units Risk Based Budgeting Two key parameters : Return on Credit RWA & introduced Credit RWA to TLAs Reference point for optimum allocation of RAROC capital to increase returns (ROE/ROA) Dynamic Internal rating Ongoing review/

  9. Slide 9: Unleashing the Power of Digital

    4 Unleashing the Power of Digital Key initiatives Services Online Loan against Shares & FDs Cutting edge digital SBI – e forex products Contact less Debit Cards Strategic partnerships Amazon PayPal Snapdeal Ola cabs Others in Process Payments SBI M- cash Xpress Collect Card Fx Out SBI Buddy – e-wall

  10. Slide 10: Improving Customer Delivery

    5 Improving Customer Delivery Key Initiatives Services OCAS (Online Customer Acquisition Solution) CEEP (Customer Experience Excellence Programme) TATkal for expeditious home loan processing Revamping Corporate Salary Package Simplifying Delivery Remote RM concept for servicing high value customers

  11. Slide 11: Repositioning Human Resources

    6 Repositioning Human Resources Key Initiatives Impact New Career Development • Aligning Performance Evaluation and incentives with Business System (CDS) Objectives and Employee Aspirations • Efficient allocation of human resources towards customer facing Manpower Planning roles Talent Management &

  12. Slide 12: SBI well positioned across the entire GDP value chain

    SBI well positioned across the entire GDP value chain Pan India (K2K) positioning with an universal appeal 3.5 lakh+ Touch Points Consumption 28.6 crore+ Active Customer Base #1 in all retail loans Financial Inclusion/PMJDY accounts 7.81 crores Leading term loan (35% of total credit) lender for larg

  13. Slide 13: Agenda

    Agenda Our 6 Key Objectives Our Approach to Achieving Objectives Our Q1 Performance State Bank of India 13

  14. Slide 14: Performance Highlights

    Performance Highlights SOLO Net Profit Q1FY16 SOLO YOY (%) over Q1FY15 Rs. 3,692 crores Net Profit 10.25 (Rs.3,349 crores) Operating Profit 4.72 10.25% Non Interest Income 19.66 GROUP Rs.4,714 crores Fee Income 12.86 (Rs.4,448 crores) Gross NPA Ratio -61 bps 5.97% Net NPA Ratio - 42 bps Figures in b

  15. Slide 15: NII and Operating Profit

    NII and Operating Profit Q1FY16 Rs in Crores Q1FY16 Q4FY15 Q1FY15 Over Q1FY15 (%) Interest Income 39,643 40,101 36,487 8.65 Other Income 5,088 8,515 4,252 19.66 Total Income 44,731 48,616 40,739 9.80 Interest Expenses 25,911 25,389 23,235 11.52 Net Interest Income 13,732 14,712 13,252 3.62 Operating

  16. Slide 16: Net Profit - a Snapshot

    Net Profit - a Snapshot Q1FY16 Rs in Crores Q1FY16 Q4FY15 Q1FY15 over Q1FY15(%) Operating Profit 9,202 12,409 8,788 4.72 Total Provisions 5,510 8,667 5,439 1.31 Loan Loss 3,359 4,635 3,903 -13.96 Standard Assets 396 1,829 77 415.70 Investment Depreciation 180 -84 -552 132.62 Other Provisions 65 212

  17. Slide 17: Components of Interest Income/Expenses

    Components of Interest Income/Expenses Q1FY16 Rs in Crores Q1FY16 Q4FY15 Q1FY15 over Q1FY15(%) Interest on Loans 28,582 28,269 27,560 3.71 Interest on Resources 10,254 9,635 8,266 24.04 Other Interest income 808 2,198 661 22.14 Total Interest Income 39,643 40,101 36,487 8.65 Interest on Deposits 24,

  18. Slide 18: Components of Other Income

    Components of Other Income Q1FY16 Rs in Crores Q1FY16 Q4FY15 Q1FY15 over Q1FY15(%) Fee Income 3,202 4,901 2,837 12.86 Profit/Loss on Sale of 872 1,659 587 48.67 Investments Forex Income 489 535 433 12.86 Dividend Income 32 616 20 63.46 Misc Income 492 804 375 31.20 of which: 430 870 421 2.11 Recover

  19. Slide 19: Components of Fee Income

    Components of Fee Income Q1FY16 Rs in Crores Q1FY16 Q4FY15 Q1FY15 over Q1FY15(%) Fee Income 3,202 4,901 2,837 12.86 of which : 381 1,027 355 7.27 Loan Processing Charges Commission on Govt. Business 571 476 528 8.17 Commission on LC/BG 768 842 675 13.90 Transaction Fees 801 1,636 707 13.36 Cross Sel

  20. Slide 20: Components of Operating Expenses

    Components of Operating Expenses Q1FY16 Rs in Crores Q1FY16 Q4FY15 Q1FY15 over Q1FY15(%) Staff Expenses 5,906 6,567 5,565 6.14 of which : Salary 4,756 5,166 4,661 2.04 Contribution for Employees 1,151 1,401 904 27.32 Overheads 3,712 4,251 3,152 17.75 of which: Rent, Taxes and Lighting 854 911 758 12

  21. Slide 21: Key Performance Indicators: Performance Ratios

    Key Performance Indicators: Performance Ratios Earning Per Share (Rs) Book Value(Rs) 19.52 160.84 162.54 17.94 150.30 17.55 Jun 14 Mar 15 Jun 15 Jun 14 Mar 15 Jun 15 ROA (%) ROE(%) 0.74 0.72 12.30 0.68 11.94 11.17 Jun 14 Mar 15 Jun 15 Jun 14 Mar 15 Jun 15 State Bank of India 21

  22. Slide 22: Key Performance Indicators: Performance Ratios

    Key Performance Indicators: Performance Ratios Yield on Advances (%) Cost of Deposits (%) 10.50 10.55 10.33 6.39 6.34 6.35 Jun 14 Mar 15 Jun 15 Jun 14 Mar 15 Jun 15 Domestic NIM (%) Whole Bank NIM (%) 3.54 3.54 3.13 3.16 3.29 2.99 Jun 14 Mar 15 Jun 15 Jun 14 Mar 15 Jun 15 State Bank of India 22

  23. Slide 23: Retail Deposits Drive Growth

    Retail Deposits Drive Growth Rs in Crores (% YOY growth) 88,618 87,754 FOs (1) 8,89,032 TD (18) 7,52,029 96,845 CA (8 ) 89,710 CASA CASA 41.70% SB ( 10) 5,39,050 4,89,422 43.51% Jun 15 Jun 14 Total 16,13,545 YOY Gr 13.72% 14,18,915 Market 16.54% 17.16% Share State Bank of India 23

  24. Slide 24: Diversified Exposure Across Sectors

    Diversified Exposure Across Sectors Rs in Crores Share % Share % 36,268 3 (% YOY growth) 32,312 2 Misc (12 ) 19 2,50,950 2,23,758 18 FOs (12 ) 21 2,80,114 2,42,480 20 Retail (16) 9 1,15,813 1,18,380 10 Agri ( -2) 13 1,74,591 1,73,010 14 SME (1 ) 15 2,00,035 2,16,087 18 MCG ( -7) 20 2,55,964 2,26,261

  25. Slide 25: Diversified Exposure Across Industry

    Diversified Exposure Across Industry Rs in Crores Jun 15 Mar 15 Jun 14 Jun 15 Product / Segment % % YOY Gr YTD Gr Level % Share Level Level % % Share Share Infrastructure 1,71,914 16.18 1,77,253 16.10 1,53,136 15.18 12.26 -3.01 Iron & Steel 75,761 7.13 80,610 7.32 67,266 6.67 12.63 -6.02 Textiles 40

  26. Slide 26: Retail Advances

    Retail Advances Rs in Crores Distribution of Retail Loans(%) Distribution of Home Loans(%) Above 25 Other Per. 28 24.2 22.7 Rs.30 lacs 5.5 Education 6.2 11.9 11.6 Auto 72 Upto Rs.30 75 58.4 Home 59.5 lacs Jun 15 Jun 14 Jun 15 Jun 14 Total 2,80,114 2,42,480 Total 1,63,678 1,44,210 Level Home Auto Edu

  27. Slide 27: SME Advances

    SME Advances Rs in Crores Jun 15 Jun 14 29,404 29,533 10,886 10,631 8,931 9,933 8,072 4,695 5,088 1,042 ABL Bills Dealer Finance CGTMSE OD Dealer Level ABL Bills CGTMSE OD B/S Fin Total Finance Jun 14 1,042 29,533 8,072 9,933 5,088 1,19,342 1,73,010 Mar 15 7,408 30,914 10,745 10,482 4,886 1,17,038 1

  28. Slide 28: Agri Advances

    Agri Advances Rs. in Crores Agri Segmental Advances Jun 15 Jun 14 94,765 92,351 19,458 5,306 15,595 4,117 1,336 1,265 Crop production Farm Mechanization Horticulture Other Agri Term Loan Investment/ Collateralized by Gold Crop / Production Agri Level Allied Credit out of A & B (A) (B) Amt. Share % T

  29. Slide 29: Capital Adequacy

    Capital Adequacy Rs in Crores Basel III CAR% 12.51% 12.44% 12.33% 12.00% 12.00% 3.19% 2.72% 2.70% 2.40% 2.38% Tier II # 9.32% 9.72% 9.63% 9.60% 9.62% Tier I Mar 13 Mar 14 Jun 14 Mar 15 Jun 15 RWA 10,05,640 11,26,863 11,28,605 12,20,552 12,44,708 # CET1 = 9.59 % State Bank of India 29

  30. Slide 30: Non Performing Assets

    Non Performing Assets Rs in Crores 4.95% 4.90% 4.25% 4.29% 4.75% Gross NPA 51,189 61,605 60,434 56,725 56,421 Mar 13 Mar 14 Jun 14 Mar 15 Jun 15 2.57% 2.66% 2.12% 2.24% 2.10% Net NPA 31,096 31,884 21,956 27,591 28,669 Mar 13 Mar 14 Jun 14 Mar 15 Jun 15 * PCR % 66.58 62.86 62.68 69.13 69.49 * Provisi

  31. Slide 31: Gross NPAs by Sector

    Gross NPAs by Sector Rs in Crores Break-up of Gross NPAs Sector-wise Gross NPAs to Total Gross NPAs % Jun 15 Mar 15 Jun 14 Sector NPA Ratio % NPA Ratio NPA Ratio% Large Corp 1.8 2.6 2.4 % Intl. 4.5 4.6 6.0 Retail 5.8 4.5 5.8 Large 1,026 0.40 1,510 0.54 1,441 0.64 Corporate 19.2 18.8 19.7 Agri. Mid 2

  32. Slide 32: Movement of NPAs

    Movement of NPAs Rs in Crores Q1FY16 Q4FY15 Q1FY15 Opening Level of Gross NPAs 56,725 61,991 61,605 Less :Recovery 1,209 4,485 3,185 Less: Upgradation 1,494 676 1,362 Less :Write-off 4,919 4,874 6,556 Add: Fresh Slippages 7,318 4,769 9,932 Net Increase -304 -5,266 -1,171 Closing Level of Gross NPAs

  33. Slide 33: Details of Restructured Assets

    Details of Restructured Assets Rs in Crores Q1FY16 Particulars Std. NPA Total 1 Restructured Accounts as on 01.04.2015 55,843 15,386 71,229 2 Fresh Restructuring + Increase in O/S 3,936 2,076 6,012 3 Upgradation to Restructured Standard category 193 -193 0 Restructured Standard Advances upgraded to

  34. Slide 34: Movement of Impaired Assets

    Movement of Impaired Assets Rs in Crores Jun 15 Mar 15 Dec 14 Sep 14 Jun 14 1. Gross Advances 13,13,735 13,35,424 12,65,483 12,42,638 12,32,288 2. Gross NPAs 56,421 56,725 61,991 60,712 60,434 3. Net NPAs 28,669 27,591 34,469 32,997 31,884 4. Restructured Standard 55,954 55,843 46,542 43,962 42,236

  35. Slide 35: We Touch Lives

    We Touch LivesH Touch Points Customer Base Debit card Branches holders 16,377 20.8 crores Fin. Total Touch Group Total CSPs Inclusion/ INB Points ATMs Customers 59,516 Jan Dhan 2.3 crores 3.5 lacs 55,768 28.6 crores 7.8 crores POS Mobile 2.2 lacs 1.6 crores State Bank of India 35

  36. Slide 36: Enormous Physical Footprints

    Enormous Physical Footprints POS Transactions Mobile Banking Internet Banking (in Lacs) Transactions (in Lacs) Transactions (in Crores) 174 118 28.22 238 18.82 49 154 13.31 130 Jun 13 Jun 14 Jun 15 Jun 13 Jun 14 Jun 15 Jun 13 Jun 14 Jun 15 Debit Card spends Contact Centres ATM Transactions Avg no of

  37. Slide 37: Financial Inclusion

    Financial Inclusion Financial Inclusion Accounts ( in Crores) Financial Inclusion Deposits 7.81 7.28 (Rs. in Crores) 3.33 3.86 4415 5125 3.53 3.95 3.76 3.95 2.03 2182 2234 1048 Mar '13 Mar '14 Mar '15 Jun '14 Jun '15 Mar '13 Mar '14 Mar '15 Jun '14 Jun '15 PMJDY Pre-Jan Dhan Transactions through BC

  38. Slide 38: Financial Inclusion in SBI (contd.)

    Financial Inclusion in SBI (contdH) Average Balance (Rs.) 69 Zero Bal. A/cs (%) F.I A/cs 656 PMJDY A/cs 618 606 55 56 54 53 49 517 Mar '13 Mar '14 Mar '15 Jun '15 Mar '13 Mar '14 Mar '15 Jun '15 Financial Literacy Social Security Schemes (Enrolment up to 09.08.2015) 117 RSETIs of our Bank conducted

  39. Slide 39: SBI on Social Media

    SBI on Social Media State Bank of India among the Top 10 Banks world-wide in the list of Power 100 Banks Using Social Media - Report by The Financial Brand • Total Videos Uploaded – 161 • Current Number of Subscribers - 8,621 • Current Number of views - 20,05,091 • Total No of Followers at present –

  40. Slide 40: Performance Highlights of Associate Banks- Net Profit

    Performance Highlights of Associate Banks- Net Profit Rs in Crores Q1FY16 Name Q1FY16 Q4FY15 Q1FY15 Over Q1FY15(%) SBBJ 271 280 215 26.11 SBH 251 446 227 10.66 SBM 94 136 75 25.81 SBP 140 126 136 3.52 SBT 81 192 50 62.54 Total ABs 838 1,180 702 19.31 SBI 3,692 3,742 3,349 10.25 State Bank of India 4

  41. Slide 41: Performance Highlights of Non-Banking Subsidiaries- Net Profit

    Performance Highlights of Non-Banking Subsidiaries- Net Profit Rs in Crores Q1FY16 Name Q1FY16 Q4FY15 Q1FY15 over Q1FY15(%) SBI Life Insurance Company Pvt. Ltd 202 205 241 -16.16 SBI Capital Markets Ltd 44 122 55 -17.76 SBI Funds Management P Ltd 46 48 39 17.54 SBI Cards & Payment Services P Ltd 62

  42. Slide 42: Performance Highlights of Non-Banking Subsidiaries

    Performance Highlights of ‘Non-Banking Subsidiaries’ SBI Life registered 42% growth in New Business Premium. Gross Written Premium grew by 32%. Market share of New Business Premium (private) grew to 14.6% from 12.9%. Assets Under Management grew by 18% to Rs. 72,785 crs. Focus on Retail. Average AUM

  43. Slide 43: Balance Sheet (Solo)

    Balance Sheet (Solo) Liabilities YOY (Rs in Crores) Jun-15 Mar-15 Jun-14 Growth (%) Capital 757 747 747 1.35 Reserves and Surplus 1,35,208 1,27,692 1,21,052 11.69 Deposits 16,13,545 15,76,793 14,18,915 13.72 Borrowings 2,06,661 2,05,150 1,87,328 10.32 Other Liabilities & Provisions 94,934 1,37,698 8

  44. Slide 44: Balance Sheet (Consolidated)

    Balance Sheet (Consolidated) Liabilities YOY (Rs in Crores) Jun 15 Mar-15 Jun-14 Growth (%) Capital 757 747 747 1.35 Reserves and Surplus 1,69,253 1,60,641 1,51,371 11.81 Minority Interest 5,794 5,497 5,020 15.41 Deposits 21,03,799 20,52,961 18,72,302 12.36 Borrowings 2,42,393 2,44,663 2,25,775 7.36

  45. Slide 45: Awards & Accolades

    Awards & Accolades Brand of the Year 2015 Socially Responsible Bank – Magna Awards ’15 Excellence & Leadership in CSR & Innovations in CSR Practices Golden Peacock Award for CSR Ranking Improved to 59 from 64 Best Bank (Public Sector) Excellence in Emerging Technologies for Large Enterprises Categor

  46. Slide 46: Thank You

    © garg SoF incl India are ST THE BANKER TO EVERY INDIAN Thank You State Bank of India 46

State Bank of India — Q1 FY2016 Earnings Presentation on 6ix