State Bank of India · NSE:SBIN
State Bank of India — Q2 FY2014 Earnings Presentation
41 slides from State Bank of India's earnings presentation, November 2013
Slide 1: Quarterly Results Q2FY14
i ip Sate Bark of ee GY = GANKER TO every INDIAN t Quarterly Results Q2FY14
Slide 2: NII and Operating Profit (1/2)
NII and Operating Profit (1/2) Rs. In Crores Q2FY14 Q2FY13 YOY % H1 FY14 H1 FY13 YOY % Interest Income 33922 29607 14.58 65640 58529 12.15 Other Income 3278 3347 -2.06 7752 6840 13.34 Total Income 37200 32954 12.89 73392 65369 12.27 Interest Expenses 21671 18633 16.30 41877 36431 14.95 Net Interest
Slide 3: Net Profit - a Snapshot (2/2)
Net Profit - a Snapshot (2/2) Rs. In Crores Q2FY14 Q2FY13 YOY % H1 FY14 H1FY13 YOY % Operating Profit 6312 7354 -14.17 13863 15530 -10.74 Total Provisions 3937 3696 6.53 8247 8120 1.55 -Income Tax 908 1870 -51.45 2353 3839 -38.72 -Loan Loss 2646 1837 43.99 4911 4627 6.13 -Investment Depr. 8 -260 540
Slide 4: Profitability: Domestic & Foreign Offices (1/2)
Profitability : Domestic & Foreign Offices (1/2) Indian Offices Foreign Offices Rs. In Crores Q2FY14 Q2FY13 YOY % Q2FY14 Q2FY13 YOY % Interest Income 32106 28002 14.65 1816 1605 13.18 Other Income 2865 2991 -4.20 413 356 15.99 Total Income 34971 30993 12.84 2229 1961 13.69 Interest Expenses 20713 17
Slide 5: Profitability: Domestic & Foreign Offices (2/2)
Profitability :Domestic & Foreign Offices (2/2) Indian Offices Foreign Offices Rs. In Crores Q2FY14 Q2FY13 YOY % Q2FY14 Q2FY13 YOY % Operating Profit 5310 6546 -18.89 1002 808 24.10 Total Provisions 3774 3518 7.28 163 178 -8.43 -Income Tax 648 1714 -62.17 260 156 66.66 -Loan Loss 2537 1812 39.93 109
Slide 6: Profitability: Domestic & Foreign Offices (1/2)
Profitability : Domestic & Foreign Offices (1/2) Indian Offices Foreign Offices Rs. In Crores H1FY14 H1FY13 YOY % H1FY14 H1FY13 YOY % Interest Income 62135 55307 12.34 3505 3222 8.80 Other Income 7086 6200 14.29 666 640 4.11 Total Income 69221 61507 12.54 4171 3862 8.02 Interest Expenses 40013 34671
Slide 7: Profitability: Domestic & Foreign Offices (2/2)
Profitability :Domestic & Foreign Offices (2/2) Indian Offices Foreign Offices Rs. In Crores H1FY14 H1FY13 YOY % H1FY14 H1FY13 YOY % Operating Profit 12072 13878 -13.02 1791 1652 8.42 Total Provisions 7304 7663 -4.68 943 458 105.94 -Income Tax 2007 3511 -42.84 346 328 5.38 -Loan Loss 4686 4512 3.87
Slide 8: Components of Interest Income/Expenses
Components of Interest Income/Expenses Rs. In Crores Q2FY14 Q2FY13 YOY % H1FY14 H1FY13 YOY % Interest on Loans 25379 22538 12.60 49225 44673 10.19 Interest on Resources 8243 6833 20.64 15717 13363 17.62 Other Sundry Interest 300 236 27.19 698 494 41.43 Total Interest Income 33922 29607 14.58 65640 5
Slide 9: Components of Other Income
Components of Other Income Rs. In Crores Q2FY14 Q2FY13 YOY % H1FY14 H1FY13 YOY % Fee Income 2615 2449 6.76 5173 5052 2.40 Profit/loss on Sale of 236 230 2.64 1437 451 218.63 Investments of which: Domestic 149 178 -15.94 1287 384 235.69 Foreign 87 52 66.99 150 67 123.97 Forex Income 150 320 -53.23 53
Slide 10: Components of Fee Income
Components of Fee Income Rs. In Crores Q2FY14 Q2FY13 YOY % H1FY14 H1FY13 YOY % Loan Processing Charges 541 602 -10.15 949 1053 -9.82 Commission on Govt. Busi. 418 436 -4.09 845 930 -9.13 Commission on LC/BG 686 605 13.36 1320 1259 4.91 Transaction Fees 537 473 13.48 1092 1001 9.06 Commission on Coll
Slide 11: Operating Expenses
Operating Expenses Rs. In Crores Q2FY14 Q2FY13 YOY % H1FY14 H1FY13 YOY % Salary 4536 3579 26.74 8852 7035 25.83 Provision for 1283 701 82.91 2506 1382 81.29 superannuation benefits of which : Pension 1054 505 108.62 2057 986 108.54 Gratuity 229 210 8.86 449 410 9.56 Total Staff Expenses 5819 4280 35
Slide 12: Quarterly Movement in Income Parameters
Quarterly Movement in Income Parameters Rs. In crores 14000 Net Intt. (Sequential Growth %) Income (10) (1 ) (4) (6) 11519 11591 (-4) (-1) (2) (-1) 11512 12251 12000 (8) 11125 11154 11078 10974 10482 (20) 9700 9597 10000 (32) 8177 7791 7761 Operating 8000 7474 7354 7551 7242 7260 Profit (-15) (-10)
Slide 13: Movement in Net Interest Margin
Movement in Net Interest Margin ( in % ) Cumulative Domestic NIM 4.13 4.17 3.99 3.89 3.86 3.63 3.77 3.72 3.66 3.44 3.48 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 NIM Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar 13 Jun 13 Sep 13 Domestic 3.63 3.89 3.9
Slide 14: Domestic: Costs & Yields
Domestic : Costs & Yields ( in % ) Yield on Advances /Yield on Assets 12.00 Cost of Deposits Yield on Advances Cost of Deposits 11.50 11.05 10.86 10.87 10.50 11.00 10.75 10.54 9.50 10.05 10.18 8.50 10.00 7.50 6.50 9.00 5.50 5.95 6.24 6.30 6.31 6.29 6.25 6.32 4.50 8.00 3.50 Mar12 Jun12 Sep12 Dec12 Ma
Slide 15: Retail Deposits drive Growth
Retail Deposits drive Growth Rs. In Crores YTD Growth YTD Growth YOY Growth Level Sep 13* Sep 12* Sep-13 Sep 13 Sep-12 Sep-11 Amt. % Amt. % % Whole Bank 1292456 1133644 973171 89716 14.92 89997 17.25 14.01 Deposits Domestic Deposits 1207635 1059390 917289 77498 13.71 77176 15.71 13.99 Deposits at FO
Slide 16: Robust Growth in Customer Acquisition
Robust Growth in Customer Acquisition Number of New Accounts opened during Quarter In lacs Savings Bank Current Account 140.0 0.70 0.66 0.58 81.0 83.0 Q2FY13 Q1FY14 Q2FY14 Q2FY13 Q1FY14 Q2FY14 16
Slide 17: Diversified Exposure across Sectors
Diversified Exposure across Sectors Rs. In Crores (% YOY growth) 27974 2 Share % Misc (-5 ) 29304 189173 17 3 FOs (18) 17 159649 20 224168 Retail (17) 20 191760 11 121588 * Agri (12) 11 109033 * 157896 14 16 149896 SME (5 ) 219765 19 18 170391 MCG (29) 15 145967 CAG (36) 198763 17 Sep 12 Sep 13 Tota
Slide 18: Key Exposures: Domestic
Key Exposures: Domestic Rs. In crores Sep 13 Mar 13 Sep 12 Sep 13 Product / Segment Level % Share Level % Share Level % Share YOY Gr % Infrastructure 124681 13.12 114524 12.59 98534 12.37 26.54 Iron & Steel 64112 6.75 64067 7.04 49750 6.25 28.87 Textiles 43634 4.59 45766 5.03 38545 4.84 13.20 Petrol
Slide 19: Infrastructure Credit – Fund Based
Infrastructure Credit – Fund Based Share % Rs. In crores in Infra (% YOY growth) 20566 16 Other 14969 19040 (8) 12 19 21135 13085 Road & (14) 17 13 18541 Ports 19 Telecom (14) 68011 49 47868 Power (42) 55 100 Sep 12 Sep 13 100 98534 Total Infra (27) 124681 19
Slide 20: Retail Advances
Retail Advances Rs. In crores Distribution of Retail Loans(%) Distribution of Home Loans(%) Other Per. 19 Above 22 25 23 Rs.30 lacs 7 Education 7 11 12 Auto 81 Upto Rs.30 78 57 58 lacs Home Sep 12 Sep-13 Sep 12 Sep 13 Total 191760 224168 Total 108381 130034 Level Home Auto Edu Other Per. Total Sep 1
Slide 21: Agri Advances
Agri Advances (Rs. In crores) 90000 Break-up of Direct Agri 83819 15000 14576 Sep 12 Sep 13 13165 80000 10000 70000 67619 6425 5675 5470 5466 5000 60000 2112 1967 50000 0 Crop/Prod. Farm Mech Irrig. & Land SHGs Other Direct Devp. Crop / Investment/ Total Direct Out of which: Indirect Total Level Pro
Slide 22: CD Ratio & Market Share
CD Ratio & Market Share ( in % ) CD RATIO 82.4 80.5 78.6 78.5 79.2 78.8 SBI 77.8 76.3 76.7 75.8 76.6 ASCB 73.6 78.1 77.6 78.0 78.3 75.7 76.4 75.8 76.4 74.9 75.2 72.2 74.0 Mar 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Market Share ADVANCES DEPOSITS 16.76 16.91 16
Slide 23: Capital Adequacy
Capital Adequacy Basel III (with Basel II Basel III Retained Profit) CAR% 12.92% 12.51% 11.85% 11.69% 12.09% 3.43% 3.19% Tier II 3.03% 2.96% 2.96% 9.49% 9.32% 8.82% #8.73% $ 9.13% Tier I Mar 13 Mar-13 Jun 13 Sep 13 Sep 13 RWA 1000944 1005640 1061660 1069661 1069661 # CET 1 = 8.58% $ CET 1 = 8.98% 23
Slide 24: Asset Quality
Asset Quality Sequentially , Gross and Net NPA Ratios both Rs. In crores / (%) are up by 8 bps. Gross NPAs 53458 51189 60891 64206 39676 47156 49202 (5.30%) (4.75%) (5.56%) (5.64%) (4.99%) (5.15%) (4.44%) Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Net NPAs 29990 32151 15819 20324 22615 25370 2
Slide 25: Gross NPAs by Sector
Gross NPAs by Sector Rs. In Crores Break-up of Gross NPAs Sector-wise Gross NPAs to Total Gross NPAs % Sep 13 Jun 13 Mar 13 Sector Ratio Ratio Ratio 5.2 4.7 2.0 NPA NPA NPA Large Corp % % % 5.5 Intl. 6.1 5.3 Retail 6.4 8.0 8.3 Large 3308 1.66 2879 1.70 1000 0.57 Corporate 19.6 20.9 19.8 Agri. Mid 23
Slide 26: Movement of NPAs (Quarter on Quarter) (1/2)
Movement of NPAs(Quarter on Quarter) (1/2) Rs. In Crores Q2FY14 Q1FY14 FY13 Opening Level of Gross NPAs 60891 51189 39676 Cash Recovery 1414 1397 4766 Up gradation 2383 1519 10119 Write off 1253 1148 5594 Fresh Slippages 8365 13766 31993 Net Increase 3315 9702 11513 Closing Level of Gross NPAs 64206
Slide 27: Sector-wise Movement of NPAs – Q2FY14 (2/2)
Sector-wise Movement of NPAs – Q2FY14 (2/2) Rs. In crores Q2FY14 Q1FY14 Particulars Large Mid. Large Mid. SME Agri Retail Intl. Total SME Agri Retail Intl. Total Corp. Corp Corp. Corp Cash 31 65 538 496 226 58 1414 6 226 564 312 217 72 1397 Recovery Up-gradation -- 1143 461 308 383 88 2383 21 39 639
Slide 28: Movement of Restructured Assets
Movement of Restructured Assets Amount In Crores Particulars Standard NPA Total Restructured Accounts as on 1st July, 2013 1 32963 11848 44811 (Opening position) Fresh Restructuring + Increase in O/S 2 8585 721 9306 during the current quarter Up gradation to restructured standard 3 92 -92 0 category
Slide 29: Movement of Impaired Assets
Movement of Impaired Assets Rs. In Crores Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 1. Gross Advances 893613 945819 956000 1009110 1078557 1095145 1139326 2. Gross NPAs 39676 47156 49202 53458 51189 60891 64206 3. Net NPAs 15819 20324 22615 25370 21956 29990 32151 4. Restructured Standard 163
Slide 30: Head Count
Head Count Staff Strength as on Mar 12 Sep 12 Mar 13 Sep 13 Officers 80404 79978 80796 79359 Assistants 95715 93447 109686 105945 Sub-staff 27788 26831 26388 25322 Watch & ward 11574 11260 11426 11480 Total 215481 211516 228296 222106 30
Slide 31: Branch Expansion
Branch Expansion March 12 Sep 12 March 13 Sep 13 2218 2232 2341 2417 Metro (15.7) (15.7) (15.8) (16.0) 2502 2523 2624 2745 Urban (17.8) (17.7) (17.7) (18.1) 3995 4027 4165 4222 Semi-Urban (28.3) (28.3) (28.1) (27.9) 5382 5448 5686 5759 Rural (38.2) (38.3) (38.4) (38.0) 14097 14127 14816 15143 Total
Slide 32: Expanding Footprint
Expanding Footprint CAGR : FY 11-13 Branches ATMs Internet banking Users * 5% 15143 32777 154 14816 44% 130 14097 16% 27175 13542 90 22141 63 20084 Mar 11 Mar 12 Mar 13 Sep 13 Mar 11 Mar 12 Mar 13 Sep 13 Mar 11 Mar 12 Mar 13 Sep 13 Point of sale transactions Mobile Banking Users* Debit Cards* (Durin
Slide 33: Financial Inclusion
Financial Inclusion CAGR : FY 11-13 Rural Branches Unbanked Villages BC Channel transactions # Covered 5759 27959 5% 5686 76% 149% 13033 20531 10072 5382 12931 5392 5138 2107 6599 Mar 11 Mar 12 Mar 13 Sep 13 Mar 11 Mar 12 Mar 13 Sep 13 Mar 11 Mar 12 Mar 13 Sep 13 No. of A/c’s through BC RSETIs – No.
Slide 34: Performance Highlights of Associate Banks
Performance Highlights of Associate Banks ( Rs. In crores) SBBJ 155 12.30 169 15.24 SBH 163 8.54 214 13.17 SBM 30 3.07 145 14.54 SBP 14 1.02 138 10.73 SBT 55 5.36 136 14.60 Total 417 6.38 802 13.48 SBI 2375 9.96 3658 17.95 34
Slide 35: Performance Highlights of Non-Banking Subsidiaries
Performance Highlights of Non-Banking Subsidiaries ( Rs. In crores) Q2FY14 Q2FY13 Name PAT ROE % PAT ROE % SBI Life Insurance 219 28 158 26 Company P Ltd SBI Capital Markets Ltd 58 22 96 40 SBI Funds Management P 42 40 15 18 Ltd SBI Cards & Payment 76 51 28 32 Services P Ltd Total (all Subsidiaries/
Slide 36: Highlights of Non-Banking Subsidiaries
Highlights of Non-Banking Subsidiaries 143 PAT 322 432 PAT 38 Rs.432 Cr. 200 Rs.143 Cr. 19 34%YOY Sep 11 Sep 12 Sep 13 275%YOY Sep 11 Sep 12 Sep 13 No.1 amongst Private Life Insurers in New Net NPA is Zero. Business Premium No. 1 Mandated Lead Arranger (MLA) in Asia ex-Japan Loans - Bloomberg. PAT 7
Slide 37: SBI Solo and Group Financials – H1FY14
SBI Solo and Group Financials –H1FY14 Rs. In crores Solo Consolidated H1FY14 H1 FY13 YOY Growth H1FY14 H1 FY13 YOY Growth ROA 0.69% 1.07% -38 bps 0.67% 1.00% -33 bps ROE 11.77% 18.18% -641 bps 12.18% 18.28% -610 bps Earning Per Share (Rs.) 164.21 220.84 -25.64% 215.52 281.66 -23.48% Expenses Ratio 5
Slide 38: Balance Sheet Size (Solo)
Balance Sheet Size (Solo) Rs. In crores YOY Growth LIABILITIES Sep 13 Mar 13 Sep 12 (%) Capital 684 684 671 1.94% Reserves and Surpluses 107453 98200 91347 17.63% Deposits 1292456 1202740 1133644 14.01% Borrowings 188937 169183 142818 32.29% Other Liabilities & Provisions 86299 95455 71581 20.56% To
Slide 39: Balance Sheet Size (Consolidated)
Balance Sheet Size (Consolidated) Rs. In crores YOY Growth LIABILITIES Sep 13 Mar 13 Sep 12 (%) Capital 684 684 671 1.94 Reserves and Surpluses 135750 124349 115755 17.27 Minority Interest 4794 4254 4032 18.89 Deposits 1731410 1627403 1522607 13.71 Borrowings 227215 203723 174195 30.44 Other Liabili
Slide 40: Some Recent Awards
Recent Recognition & Awards - 2013 (1/2) Some Recent Awards….. Best Bank in “ Electronic Payments Systems”, “ Use of Technology for Financial Inclusion” and “Customer Management & Business Intelligence”. Winner in the “Ethical Company Banking” sector at India’s Most Ethical Companies Awards. Winner
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State Bank of India — Q2 FY2014 Earnings Presentation on 6ix