State Bank Of India · NSE:SBIN
State Bank Of India — Q3 2023 Earnings Presentation
54 slides from State Bank Of India's earnings presentation, Feb 3, 2023
Slide 1: Q3FY23 Analyst Presentation
QUARTERLY Q3FY23 Analyst Presentation 03.02.2023
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 Performance Highlights 3 Financial Performance 4 Capital Adequacy & Asset Quality 5 Digital Journey 6 Financial Inclusion & Sustainability 7 Subsidiaries, Group Financials & Balance Sheet
Slide 4: Macro-Economic Indicators Remain Buoyant
Macro-Economic Indicators Remain Buoyant ASCBs 9M Incremental Credit Growth Doubles in FY23 Mega Budget Push for Bank Credit compared to FY22 (Rs Lakh crore) ➢ GST revenue continues to remain robust, with 15% higher 7.4 6.7 revenues in Q3FY23 compared to the same period last year. ➢ Exports of goods
Slide 5: Performance Highlights
Performance Highlights
Slide 6: Key trends in Q3FY23
Key trends in Q3FY23 Credit growth continues – ~18% YoY Robust growth across all segments Retail Personal Advances (excl. REH) crosses Rs. 5 lakh crores Improving profit metrics – Highest ever quarterly profit at Rs. 14,205 crores ROA at 1.08% for the quarter improved by 37 bps YoY Domestic NIM at 3
Slide 7: Key Indicators
Key Indicators Rs. in Crores CASA Term Deposits Quarter Ended YoY 5.88% 11.38% Rs. in Crores Growth Q3FY22 Q2FY23 Q3FY23 22,47,472 17,00,688 18,00,677 20,17,823 Net Interest Income 30,687 35,183 38,069 24.05% Profit & Net Interest Margin – 3.40 3.55 3.69 29 bps Loss Domestic (%) (Rs. in Dec 21 Dec 2
Slide 8: Credit Growth
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Dec 2021 Dec 2022 Retail Pers., Retail Pers., 42.0% 42.5% Agri, 9.8% Agri, 9.3% Corporate, Corporate, 35.0% 34.6% SME, SME, 13.6% 13.2% Rs. in Crores Segment Dec 2021 Dec 2022 YoY Growth
Slide 9: 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 Dec 2022 Leadership across all segments Retail Personal Portfolio of Rs 11.2 lakh crore 3 - year CAGR at ~16% As a % of Dom. Adv. Dec 21: 42.0 Dec 22: 42.5 P
Slide 10: Credit Growth: 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 31st Dec 22 Fund Based O/S Sectors Amount % Share YOY Gr % Infrastruct
Slide 11: Credit Growth: 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 7% 4,87,681 4,86,360 3% 3% 26% 5% 27.7% 33.7% 4% 4
Slide 12: Deposit Growth
Credit Asset Net Interest Non-Interest Operating Growth Deposit Growth Quality Income Income Expenses Provisions Dec 2021 Dec 2022 CA, CA, 6.1% 5.6% SA, SA, TD, 38.9% TD, 39.6% 54.3% 55.5% CASA: 45.74% CASA: 44.48% Rs. in Crores Particulars Dec 2021 Dec 2022 YoY Growth (%) Current Account Deposits (
Slide 13: Asset Quality: 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 As on As on 22,176 Restructuring 1.0 Mar 22 Dec 22 Retail Personal 3,010 2,761 15,236 Corporate 3,016 1,301 SME 4,840 3,6
Slide 14: 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 % 3.49 3.35 3.36 3.39 3.23 6.40 3.29 6.29 3.11 3.12 3.17 3.02 6.16 6.05 6.07 1.67 1.44 1.32 1.06 1.07 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-2
Slide 15: 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 10.28% 31.92% 7.05% 3,634 3,067 2,865 2,755 9MFY22 9MFY23 9MFY22 9MFY23 Cross Selling Remittance, Collection,
Slide 16: Non-Interest Income: Treasury Operations
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Dec 21 Dec 22 Treasury Operations Corporate SDLs, Corporate Bonds, 11.1% Bonds, SDLs, 25.7% 23.5% Others, Others, 10.1% 12.7% 11.2% CP, 5.3% CP, 4.5% G-Sec and G-Sec and T Bill, T Bill, 4
Slide 17: Cost to Assets - among the best in the industry
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses 9MFY23 • Focus continues on improving income streams with control on costs Overheads, 41.7% Retiral benefits & other provisions, 17.3% Salary, 41.0% Cost to Assets – among the best in the
Slide 18: Provisions
Credit Deposit Asset Net Interest Non-Interest Operating Growth Growth Quality Income Income Expenses Provisions • Credit costs at 0.21% for Q3FY23 • PCR at 76.12%, legacy book well provided • Non NPA provisions at Rs 33,809 crores, ~144% of Net NPA at end of Q3FY23 Available Buffer, Rs in Crores Pr
Slide 19: 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 18.6 15.9 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 20: Financial Performance
Financial Performance
Slide 21: Financials - At a Glance
Financials – At a Glance Quarter ended Nine Months Ended Growth (%) Q3FY23 Q3FY23 9MFY23 Particulars, Rs in Crores Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 over over over Q2FY23 Q3FY22 9MFY22 Interest Income 69,678 79,860 86,616 2,04,724 2,39,152 8.46 24.31 16.82 Interest Expenses 38,991 44,676 48,547 1,1
Slide 22: Total Income
Total Income Nine Months Quarter ended Growth (%) Ended Q3FY23 Q3FY23 9MFY23 Particulars, Rs in Crores Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 over over over Q2FY23 Q3FY22 9MFY22 Interest on Loans 43,753 52,383 58,865 1,27,213 1,57,721 12.37 34.54 23.98 Interest on Resources 22,781 24,405 25,258 66,492 7
Slide 23: Fee Income Break Up
Fee Income Break Up Nine Months Quarter ended Growth (%) Ended Q3FY23 Q3FY23 9MFY23 Particulars, Rs in Crores Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 over over over Q2FY23 Q3FY22 9MFY22 Loan Processing Charges 917 1,289 1,033 2,755 3,634 -19.82 12.62 31.92 Commission on Govt. Business 1,043 1,058 988 2,8
Slide 24: Total Expenses
Total Expenses Nine Months Quarter ended Growth (%) Ended Q3FY23 Q3FY23 9MFY23 Particulars, Rs in Crores Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 over over over Q2FY23 Q3FY22 9MFY22 Interest on Deposits 35,510 39,340 41,432 1,05,485 1,18,072 5.32 16.68 11.93 Interest on Borrowings 2,058 3,871 5,437 5,483
Slide 25: Overheads
Overheads Nine Months Quarter ended Growth (%) Ended Q3FY23 Q3FY23 9MFY23 Particulars, Rs in Crores Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 over over over Q2FY23 Q3FY22 9MFY22 Rent, Taxes and Lighting 1,357 1,436 1,435 3,795 4,057 -0.10 5.75 6.90 Depreciation 820 806 797 2,427 2,440 -1.08 -2.70 0.56 Prin
Slide 26: Provisions & Profit
Provisions & Profit Nine Months Quarter ended Growth (%) Ended Q3FY23 Q3FY23 9MFY23 Particulars, Rs in Crores Q3FY22 Q2FY23 Q3FY23 9MFY22 9MFY23 over over over Q2FY23 Q3FY22 9MFY22 Operating Profit 18,522 21,120 25,219 55,576 59,092 19.41 36.16 6.33 Loan Loss 3,096 2,011 1,586 10,825 7,865 -21.11 -4
Slide 27: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality
Slide 28: Well-Capitalized Bank with Adequate Liquidity
Well-Capitalized Bank with Adequate Liquidity Capital Ratios (%) 13.23% 13.51% 13.27% 2.39 2.47 2.32 12.1 1.53 1.59 1.54 8.6 10.91 11.12 10.80 9.38 9.53 9.26 Dec-21 Sep-22 Dec-22 Min regulatory Total CET-1 AT-1 Tier-2 Min regulatory CET1 ratio Capital ratio RWA to Total Assets (%) Dec 21 Sep 22 Dec
Slide 29: Asset Quality (1/4)
Asset Quality (1/4) Gross NPA, Rs in Crores Net NPA, Rs in Crores 1,20,029 1,12,023 1,13,272 1,06,804 98,347 34,540 27,966 28,258 23,572 23,484 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Cumulative for the Period (%) Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Gross NPA Ratio 4.50
Slide 30: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q3FY22 Q4FY22 FY22 Q1FY23 Q2FY23 Q3FY23 Opening Level of Gross NPAs 1,23,942 1,20,029 1,26,389 1,12,023 1,13,272 1,06,804 Total Reductions 6,493 11,612 41,142 8,866 8,909 11,667 of which : Recovery + Upgradation 2,306 6,756 21,437 5,208 5,207 1,643
Slide 31: 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 Dec 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 15,765 Total GNPA + AUCA + Additions 3,64,26
Slide 32: 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 22,176 6,983 1,921 15,236 1,814 4,747 4,167 9,740 3,544 1,688 1,599 555 6,576 5,169 3,098 2,989 3,059 2,399 2,568 9MFY22 9MFY23 Q1FY23 Q2FY23 Q3FY23 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Slide 33: Digital Journey
Digital Journey
Slide 34: Accelerating digital agenda (1/5)
Accelerating digital agenda (1/5) YONO: Driving digital agenda of the Bank Digital Banking PABL Journey digitization Online Market Place “Create seamless omni-channel “Integrated banking solution for “Improve productivity and “Increase customer customer experience” corporate financial needs” reduce
Slide 35: Accelerating digital agenda (2/5)
Accelerating digital agenda (2/5) YONO has shown growth across products and registrations YONO Registration New SB A/c Opened Pre-Approved PL Disbursed NPS Lakhs Lakhs 000’ Crores, ₹ Numbers 27,979 • YONO registrations have grown by 32.6 5.05 31.6 ~19% in the current FY, reaching 20.5 20.4 27.7 4.40
Slide 36: Future vision for YONO: Primary digital bank of choice
Accelerating digital agenda (3/5) Future vision for YONO: Become “Primary digital bank of choice” The focus of next generation of YONO shall be on Omnichannel experience across digital channels with “start anywhere, end anywhere” and automated drop-off management Integrations with FinTechs and MarTe
Slide 37: Accelerating digital agenda (4/5): YONO for Business
Accelerating digital agenda (4/5) YONO for Business: Growth metrics Data Upto 31.12.2022 Journey (Since) Value (₹ in Crs.) YB CINB (11.02.2022) ₹ 1,46,96,809 4 YB Payments (22.07.2022) ₹ 1,13,536 Forex Booking Value: ₹ 29,492 Crs. Txns: 29,792 (since Nov 2019) yonobusiness.sbi PABL Loans Value: ₹ 5,
Slide 38: Digital Leadership across channels
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 26.40% 14.91% 29.89% 23.32% 21.40% Presence across mu
Slide 39: Analytics - Value Addition Across Functions
Analytics – Value Addition Across Functions Customer Experience Customer Centricity • Marketing Channel & Time Preference • Targeted Loan Takeover • Personalized Marketing • Re-Activation of Inoperative Accounts • Instant Digital Lending 01 02 AI Based Underwriting Business Expansion • SME Lending •
Slide 40: Analytics - Quarter in Review
Analytics – Quarter in Review Advances Through Analytical Leads CAGR : ~78% | YoY Growth: ~77% ~₹69,550 Cr. ~₹39,395 Cr. ~₹22,023 Cr. PBBU ~₹50,106 Cr. 9MFY21 9MFY22 9MFY23 REHBU Asset + SMEBU ~₹2,823 Cr. Business ~₹9,457 Cr. JV Product In 9MFY23 Sales ~₹ 178.2 Cr. (Fees) ABU Besides this, significa
Slide 41: Analytics - Progress of Paradigm Shift
Analytics – Progress of Paradigm Shift Recent Accolades Won Best in Future of Intelligence Special Prize for Best AI & ML Bank IDC Future Enterprise Awards IBA Banking Technology Awards AI-Powered Digitization Next-Gen Technology Yono Registration Leads CRM API Integration 17.8 Lakh New Yono Registr
Slide 42: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability
Slide 43: Financial Inclusion
Financial Inclusion As on Dec 2022 Deposits in FI Channel Market Leader No. of BC outlets Transactions in BC Social Security Channel 3,251 Schemes (PSBs) 60,000 40.58 40.38 2,885 3,000 40.00 42.30 2,40,000 50,000 40.28 2,500 30.00 40,000 31.41 1,80,000 2,000 69,500 70,258 2,08,758 2,43,348 20.00 30,
Slide 44: Contributing to Society
Contributing to Society Through Pan India Presence under CSR • To boost Medical Research in the Country, Bank tied-up with • Installation of playgrounds and libraries completed in all 18 Indian Institute of Sciences (IISC), Bengaluru for setting up of schools in Ladakh under the ‘Transforming School
Slide 45: SBI's ESG Snapshot
SBI’s ESG Snapshot SBI’s Carbon Disclosure CDP score provides Project (CDP) Ratings snapshot of a company ESG Financing Framework has been developed to be used for Bank’s future bond / loan environmental issuance programmes under Green, Social or performance sustainable criteria. Framework is aligne
Slide 46: Commitment to ESG
Commitment to ESG Environment Social Governance EV Chargers Electric Mobility Board Level Committees • MoU with Tata Power for • 10 Electric vehicles donated to AIIMS, For better control and governance, Bank installation of 48 electric vehicle New Delhi for transportation of patients has following B
Slide 47: SBI's Policy Framework
SBI’s Policy Framework Sustainability and Business Responsibility Policy Climate Change Risk Business Continuity and Management Policy Operational resilience Policy Code of Ethics Renewable Energy Anti Bribery and Anti- Policy Corruption Policy Policy on KYC Standards, Fair Lending Practices AML and
Slide 48: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet
Slide 49: SBI and its Subsidiaries - Leveraging Synergies (1/2)
SBI and its Subsidiaries - Leveraging Synergies (1/2) Rs. in Crores As on Dec 2022 9MFY22 9MFY23 9MFY22# 9MFY23# PAT (₹ in cr) 834 944 PAT (₹ in cr) 1,035 1,662 ROE (in %) 10.3 10.4 ROE (in %) 20.0 25.5 Total New Gross Written Value of New CIF (In Lakh) Spends Receivables Business Premium Premium Bu
Slide 50: SBI and its Subsidiaries - Leveraging Synergies (2/2)
SBI and its Subsidiaries - Leveraging Synergies (2/2) Rs. in Crores As on Dec 2022 9MFY22# 9MFY23# 9MFY22 9MFY23 PAT (₹ in cr) 788 1,002 PAT (₹ in cr) 101 129 ROE (in %) 30.7 29.1 ROE (in %) 4.8 5.9 Performance Highlights Gross Written AUM • SBIFML is leading the mutual fund industry with a huge Pre
Slide 51: Regional Rural Banks
Regional Rural Banks Sponsored by SBI Rs. in Crores Performance Highlights for 9MFY23 14 RRBs operating in 13 States & 1 UT Network of 4,748 branches in 221 districts • Deposits at Rs.1,16,297 crores 6.59% YoY • Gross NPA 38 bps YoY at 5.13% • CASA 74 bps YoY at 53.98% • Net Profit of Rs.1,259 c
Slide 52: SBI Group Financials - 9MFY23
SBI Group Financials – 9MFY23 Rs. in Crores Growth Nine Months Ended Nine Months Ended (%) 9MFY22 9MFY23 YoY 9MFY22 9MFY23 Interest Earned 2,15,365 2,52,761 17.36 ROA (%) 0.69 0.90 Non-Interest Income 83,573 83,764 0.23 Total Income 2,98,938 3,36,526 12.57 Interest Expended 1,16,250 1,36,529 17.44 R
Slide 53: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Dec 21 Dec 22 Dec 21 Dec 22 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,75,890 3,20,311 16.10 3,00,973 3,50,084 16.32 Minority Interest 10,818 12,466 15.23 Deposits 38,47,794 42,13,557 9.51 38,82,80
Slide 54: Thank You
Thank You