State Bank of India · NSE:SBIN
State Bank of India — Q1 FY2011 Earnings Presentation
40 slides from State Bank of India's earnings presentation, 2010
Slide 1: Quarterly Results Q1FY 2010-11
Quarterly Results Q1FY 2010-11 0
Slide 2: Highlights – SBI Stand-alone Balance Sheet
Highlights – SBI Stand-alone Balance Sheet June-09 Mar-10 June-10 June-09 Mar-10 June-10 Advances 22.79% 16.94% 20.74% CASA ratio 38.45% 46.67% 47.51% growth (YOY) Advances CA growth 16.43% 16.28% 16.55% 18.56% 18.98% 12.53% market share (YoY) Deposits SB growth 35.99% 8.36% 6.78% 23.99% 29.75% 33.8
Slide 3: Highlights – Q1FY11 vs Q1FY10
Highlights – Q1FY11 vs Q1FY10 Rs crores, SBI Standalone, except for group net profit Q1 FY 10 Q1 FY 11 % growth Q1 FY 10 Mar10 Q1FY 11 Net profit (group) 2759 3365 21.99 Net interest 2.30% 2.66% 3.18% margin Net profit (standalone) 2330 2914 25.05 Cost to income 57.25% 52.59% 44.20% ratio Net intere
Slide 4: Advances growth has picked up and market share has increased by 12 bps
Advances growth has picked up and market share has increased by 12 bps Advances Market share (domestic) Rs crore Percent 20.74% p.a. 12 bps YOY YOY June 09 Mar 10 June 10 June 09 Mar 10 June 10 As on last reporting Friday of the quarter Growth driven by large corporate and retail sector. Non fund ba
Slide 5: Loan book is well diversified
Loan book is well diversified Within corporate segment, advances Across segments are spread across many industries1 1 As on last reporting Friday 4
Slide 6: Composition of advances growth (1/7)
Composition of advances growth (1/7) Rs crores June 10 over June 09 Large- • 24% growth in Fee Income (YOY). corporate • 48% growth in Fee Income from Project 34.72% Finance. YOY • Over 84% of the exposure to borrowers has been rated. • Advances growth during Q1FY11 is Rs.7,220 crores as against Rs.
Slide 7: Composition of advances growth (2/7)
Composition of advances growth (2/7) Rs crores June 10 over June 09 • Upturn seen in Textiles, Iron & Steel, Auto, Mid- 14.30% YOY Infrastructure, Gems & Jewellery. Corporate • Fee Income grew by 34% YOY. • Decline in advances during Q1FY11 restricted to Rs.1,594 crores as against a negative growth
Slide 8: Composition of advances growth (3/7)
Composition of advances growth (3/7) Rs crores June 10 over June 09 • USD 1 bn mobilised successfully overseas in Inter- 22.07% July 10, with oversubscription of 4.5 times national YOY vide Standalone rule 144A regulations bond issue. Tapped US market for the first time. • 8 new branches opened duri
Slide 9: Composition of advances growth (4/7)
Composition of advances growth (4/7) Rs crores June 10 over June 09 SME 14.72% • New tie-ups with Volvo YOY Equipments Ltd. and Escorts Equipments Ltd. for equipment finance and Hindustan Motors for vehicle finance. • New range of power products launched • Relationship concept introduced for Medium
Slide 10: Composition of advances growth (5/7)
Composition of advances growth (5/7) Rs crores June10 over June 09 Agri • Disbursement of Rs.7,892 crs in Q1FY11 loans as against Rs.5,630 crs in Q1FY10. 15.98% • 2.89 lac new farmers financed during Q1 YOY FY11. • Produce Marketing Loans (PML) for direct lending to farmers at 8.5% (fixed). • Financ
Slide 11: Composition of advances growth (6/7)
Composition of advances growth (6/7) Rs crores June 10 over June 09 Home • CNBC Award 2010 for Most Preferred loans 29.83% Home Loan Provider for the fifth time. YOY • 66988 loans amounting to Rs.6,915 crores sanctioned in Q1FY11 (Rs. 6,042 crores in Q1FY10). • Highest absolute growth in Q1 amongst
Slide 12: Composition of advances growth (7/7)
Composition of advances growth (7/7) Rs crores June 10 over June 09 June10 over June 09 30.75% Edu YOY • Average TAT for sanction of loans is 4 days. loans • 13,118 loans sanctioned during Q1FY11. • Scholar loan institutes increased from 61 to 100 during the current academic year. 20 Mar 10 June10 A
Slide 13: Interest Income has risen as loan book growth offset decline in PLR
Interest Income has risen as loan book growth offset decline in PLR Yield on advances Interest Income during Percent Rs crore FY 2010 FY2011 Q1FY11 vs. Q1 Q2 Q3 Q4 Q1 Q1FY10 Interest 12,357 12,669 12,639 12,967 13,422 8.62% income on advances Interest 4,988 4,917 4,674 4,670 4610 -7.57% income on re
Slide 14: Domestic deposit growth is lower at 5.05% due to shedding of high cost bulk deposits
Domestic deposit growth is lower at 5.05% due to shedding of high cost bulk deposits; CASA up by a robust 29 % Deposits Domestic Deposits Rs. Crores CASA Rs. ratio Crores Percent CASA Foreign deposits 5.05% 6.78% Retail TD Domestic deposits YOY YOY 815297 732428 764717 769412 Bulk TD 47.37% 804116 Y
Slide 15: CASA and CD ratios continue to improve
CASA and CD ratios continue to improve CASA ratio Percent CASA Ratio RUSU CASA Ratio CD ratio Percent ASCB CD ratio 72.32% 69.80% 72.22% 73.28% Incremental CD ratio during Q1FY11 was as high as 233%. Note: Domestic deposits exclude Interbank deposits 14
Slide 16: Cost of deposits has fallen
Cost of deposits has fallen Cost of deposits Interest expense Percent Rs crore FY 2010 FY2011 Q1FY11 vs. Q1 Q2 Q3 Q4 Q1 Q1FY10 11,436 11,156 10,445 10,297 10,080 -11.85% Interest paid on deposits Interest 330 310 299 288 357 8.16% expense on borrowings Sundry 682 701 719 659 711 4.26% interest expen
Slide 17: NII and NIM continue to improve
NII and NIM continue to improve NIINIM Cumulative NIM Percent 2.82 2.96 3.18 2.30 2.55 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 2.30% 2.43% 2.56% 2.66% 3.18% NII YOY Growth of NII 7,304 6,316 6,721 5,609 Rs crore 5,025 Q1FY 10 Q2FY 10 Q3FY 10 Q4FY 10 Q1 FY11 4.30% 2.82% 9.69% 38.81% 45.35% NIM up seq
Slide 18: Surplus liquidity has declined and so has negative carry
Surplus liquidity has declined and so has negative carry One year TD rate Negative Carry % Quarter wise average surplus liquidity (Rs Crore) 8.10 7.0 6.50 6.00 6.00 6.00 Quarter wise Negative Carry (Rs Crore) -3.28% -3.34% -3.20% -2.80% -2.48% -1.83% 17
Slide 19: Fee income up by 29.41% YOY, one of the highest among peers
Fee income up by 29.41% YOY, one of the highest among peers xx y-o-y growth Rs crores Q1 FY11 vs. Q1 FY10 3.40% 29.41% Excluding Profit on Sale of Investments, growth in other income at 23%. 3690 3569 Jun 09 Jun 10 2410 1862 -75.54% 6.83% 5.33% 34.32% 709 470 503 358 377 173 169 227 Total Other Fee
Slide 20: Lower Operating costs backed by overheads control
Lower Operating costs backed by overheads control x YOY Growth Q1FY10 6036 x Operating Expense YOY growth Q1FY11 4920 50.95% 4859 -1.23% 2444 1508 Overheads 1785 33.70% 3259 18.36% Salary 1128 45.65% 2964 2827 1451 -51.06% Contribution for Employees 2035 366.69% 1623 765 263.07% 96 447 Q1FY09 Q1 FY1
Slide 21: Operating income growth remains robust at 28% YOY
Operating income growth remains robust at 28% YOY NII Fee Income Other Non-interest income Q1FY11 vs. Q1FY10 Operating income Rs crores 11230 10994 9134 9682 8594 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Non interest income/operating 42% 39% 35% 40% 34% income Cost / Income ratio 57.25% 47.07% 52.30% 53.7
Slide 22: Alternate channel usage has increased rapidly
Alternate channel usage has increased rapidly June 09 March 10 June 10 • No of ATMs for group 13877 21485 21751 ATMs • No of ATMs for SBI 10978 16369 16584 • Hits per day 336 286 271 • Number 428 554 590 Debit Card (lacs) • Market share (for SBI) (%) 29.24 30.47 30.54* • Market share (for group) (%)
Slide 23: Asset Quality remains steady
Asset Quality remains steady Rs crores Gross NPA Net NPA Asset quality 2.79% 1.55% 2.99% 1.73% 3.11% 1.88% 3.05% 1.72% 3.14% 1.70% June 09 Sep 09 Dec 09 Mar 10 June 10 -396* 2058 1485 674 1290 Growth in NPAs during the quarter Out of the Total Standard Assets of Rs. 16,796 crores restructured under
Slide 24: Movement of NPAs during Q1FY11 (1/2)
Movement of NPAs during Q1FY11 (1/2) Q4FY10 Q1FY11 Net increase in NPAs by Opening stock of NPAs 15,714 19,535 Rs.1290 crores in Q1FY11 Corporate 102 Fresh slippage 11,843 4,081 International -43 Up gradation + recovery 6,031 2,164 SME 183 Write off 1,991 627 Agriculture 683 Closing NPAs 19,535 20,8
Slide 25: Movement of NPAs during Q1FY11 (2/2)
Movement of NPAs during Q1FY11 (2/2) Net increase in NPAs Rs.1,290 crs in Q1FY11 to reach a total of Rs.20,825 crs as on June 10 Particulars Corporates IBG SME AGRI Retail Corporate 6,958 Cash Recovery 286 49 242 145 192 International 1,656 Upgradation 161 16 467 171 435 Write off 0 0 223 284 120 SM
Slide 26: Details of Standard Assets Restructured
Details of Standard Assets Restructured Rs. In crores Under RBI Scheme FY 08-09 10777 Q1FY10 6019 FY 09-10 6019 Total 16796 Slippage during Q1FY11 158 Slippage upto June 10 1774 % of slippages 10.56 25
Slide 27: Details of asset-wise provisioning
Details of asset-wise provisioning Rs crores 30-06-2009 31-03-2010 30-06-2010 Asset Category NPAs Provision % NPAs Provision % NPAs Provision % Substandard 6,989 1,080 15.45 8,066 1,251 15.51 8,542 1,358 15.90 Doubtful 6,539 4,046 61.87 8,672 4,617 53.24 9,649 5,759 59.68 Loss 1,790 1,790 100.00 2,7
Slide 28: The Bank continues to be remain well capitalized
The Bank continues to be remain well capitalized Percent Capital adequacy ratio – Basel I Tier 1 Tier 2 13.1% 12.5% 12.3% 12.2% 12.0% 3.4% 8.8% Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 12.0% Capital adequacy ratio – Basel II Tier 1 Tier 2 14.1% 14.1% 13.8% 13.4% 13.5% 3.7% 9.8% Jun 09 Sep 09 Dec 09 Mar 10
Slide 29: New Business Initiatives (1/2)
New Business Initiatives (1/2) • Mobile Banking Services offer multiple features, viz. fund transfer to accounts within the Bank and outside, account enquiry, mobile top up, bill payment, payment for goods purchased online, cheque book request, DEMAT account enquiry and payment of SBI Life premium.
Slide 30: New Business Initiatives (2/2)
New Business Initiatives (2/2) • SBI now has 3,060 branches which are demat enabled. As on 30th June 10, we have 2.41 lac Demat accounts. • Commercial operations started in our newly opened subsidiaries, SBI – SG Global Securities Services Pvt. Ltd. (Custodial services with AUC : Rs.28,901 crs) and
Slide 31: Social Transformation through Financial Inclusion (1/2)
Social Transformation through Financial Inclusion (1/2) Sl. No Particulars June 09 Mar 10 June 10 1 Coverage of unbanked villages 58,000 1,04,000 1,07,000 2 SBI Tiny Cards 26.34 lacs 38.84 lacs 43.15 lacs 3 Rural & Semi Urban branches : (a) No of branches 7,834 8,390 8,442 (b) Average business per 4
Slide 32: Social Transformation through Financial Inclusion (2/2)
Social Transformation through Financial Inclusion (2/2) • For financial inclusion in metro/urban areas, SBI has set up a specialised microfinance branch in Dharavi slum area of Mumbai. • Account with just Re.1 for urban poor - launched the facility in Hyderabad with installation of 20 Kiosks (CSPs)
Slide 33: Socio-Economic and Environmental Initiatives
Socio-Economic and Environmental Initiatives Clean/ Adopted a Green Banking Policy and several measures undertaken Green like switching over to energy efficient lighting system, installation of environment energy savers, efficient water management systems, waste disposal ,tree plantation and more. P
Slide 34: Performance Highlights of Associate Banks (1/2)
Performance Highlights of Associate Banks (1/2) Rs in Crores OPERATING PROFIT NET PROFIT Bank Upto Upto YOY YOY Growth (%) Growth (%) Q1FY11 Q1 FY10 Q1FY11 Q1 FY10 SBBJ 290.54 215.34 34.92 103.14 147.30 -29.98 SBH 485.26 315.37 53.87 201.24 110.24 82.55 SBIr 180.78 138.52 30.51 18.09 77.35 -76.61 SB
Slide 35: Performance Highlights of Associate Banks (2/2)
Performance Highlights of Associate Banks (2/2) Rs in Crores DEPOSITS ADVANCES Bank As at Upto YOY YOY Q1FY11 Q1 FY10 Growth (%) Q1FY11 Q1 FY10 Growth (%) SBBJ 48,173 38,928 23.75 35,720 29,348 21.71 SBH 78,707 63,186 24.57 54,484 42,780 27.36 SBIr 28,798 28,146 2.31 23,215 21,176 9.63 SBM 39,489 33
Slide 36: Highlights of Some Non – Banking Subsidiaries (1/2)
Highlights of Some Non – Banking Subsidiaries (1/2) SBI Life • SBI Life recorded a profit of Rs.114 Crores as against a profit of Rs.39 Crores as on June 09. YOY growth of 192%. • AUM of the company as on 30.06.2010 stood at Rs.30082 Crores .YOY growth of 64% • The company is ranked 2nd amongst the
Slide 37: Highlights of Some Non – Banking Subsidiaries (2/2)
Highlights of Some Non – Banking Subsidiaries (2/2) SBI DFHI • Trading Income as on 30.06.10 was Rs. 16.19 Crores (highest in the last 3 years) compared to Rs.7.54 Crores in the corresponding period last year. SBI Cards & Payment Services Pvt. Ltd. • Recorded a net profit of Rs.3.25 Crs as against a
Slide 38: Recent Awards & Recognitions
Recent Awards & Recognitions ….. • Awarded the strongest Banks in Asia Award 2010 for the Asia pacific region under The Asian Banker Excellence in Retail Financial Services Awards 2010. • SBI awarded Visionaries of Financial Inclusion – Year 2009 by Financial Information Network & Operations Ltd. (F
Slide 39: Recent Awards & Recognitions
Recent Awards & Recognitions ….. • SBI’s ranking has improved to 36 (2010) from 70 (2009) in the Brand Finance Global Banking 500 by Brand Finance Plc. • Moved up in rankings from 219th spot last year to 150th spot this year in the Forbes 2000 list of largest companies in the world • Ranks 32 in The
Slide 40: THANK YOU
THANK YOU 39
State Bank of India — Q1 FY2011 Earnings Presentation on 6ix