State Bank Of India · NSE:SBIN
State Bank Of India — Q2 2021 Earnings Presentation
47 slides from State Bank Of India's earnings presentation, Nov 4, 2020
Slide 1: Q2FY21 Analyst Presentation
Q2FY21 Analyst Presentation 04.11.2020
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 Performance Highlights 2 Financial Performance 3 Business 4 Capital Adequacy & Asset Quality 5 Digital Journey 6 Financial Inclusion & Sustainability 7 Subsidiaries, Group Financials & Balance Sheet
Slide 4: Macro-Economic Indicators
Macro-Economic Indicators High Frequency Indicators Activity Levels Most HFIs (Apple Mobility, PMI manufacturing and Most companies commenting that their activity levels services, petrol consumption and Air quality) all showing are 70-80% of pre-COVID levels. Our assessment also improved economi
Slide 5: Key trends in Q2FY21
Key trends in Q2FY21 CREDIT GROWTH ASSET QUALITY NIM Credit growth in Retail back to Asset quality outcomes better Domestic NIMs up by 12 bps pre-COVID 19 levels than expectations YoY/ 10 bps QoQ to 3.34% Disbursements and sanctions Collection Efficiency (excl. Sufficient liquidity (cred
Slide 6: Key Indicators
Key Indicators For the quarter Rs. in Crores YoY Growth CASA Q2FY20 Q1FY21 Q2FY21 8.55% 16.28% Net Interest Income 24,600 26,642 28,181 14.56% 13,14,950 Net Interest Margin – 2,12,057 3.22 3.24 3.34 12 bps Domestic (%) 1,95,349 11,30,822 Profit & Operating Profit 18,199 18,061 16,460 -9.56% Loss (in
Slide 7: SBI – An institution, a legacy, a commitment
SBI – An institution, a legacy, a commitment An institution – with unmatched scale and commitment to sustainable profitability Sustaining a strong liability franchise and a profitable business model through economic cycles A scalable lending business Lowest RWA/ Total assets in industry at ~51
Slide 8: SBI: Evolving, transforming and creating value (1/2)
SBI: Evolving, transforming and creating value (1/2) The Bank has identified structural changes, harnessed opportunities and evolved continually Retail Portfolio 7,47,589 FY-08 – FY-20 CAGR: 20% 6,47,844 5,46,594 4,81,386 3,26,988 Retail 2,37,446 2,72,276 2,09,302 Lending 1,64,576 1,81,554 1,34,711
Slide 9: SBI: Evolving, transforming and creating value (2/2)
SBI: Evolving, transforming and creating value (2/2) The Bank has identified structural changes, harnessed opportunities and evolved continually Recovery from Advances Under Collection (In Rs cr) Industry best Stressed assets 9,250 resolution group Specialized 8,345 Created in-house and fine Str
Slide 10: Sustainable RoE – A perspective
Sustainable RoE – A perspective Mean RoA (FY00 – FY15) – 0.84 ROA ( in %) At variance to long term 0.99 1.01 1.04 trends 0.94 0.89 0.97 0.86 0.84 0.88 0.88 0.75 0.73 0.68 0.71 0.65 0.57 0.46 0.38 0.02 -0.06 -0.19 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY
Slide 11: A perspective on Capital
A perspective on Capital Effective cost of liabilities is significantly lower than the private sector peers Deposits make 83% of liabilities, at an average cost of 4.35% SBI’s AT 1 and Tier 2 instruments trade at much lower yields than peers; SBI’s AT1 issue in Sep-20 revived the AT1 market (Gol
Slide 12: Credit offtake trend continues to improve
Credit offtake trend continues to improve Month-wise YoY Growth Sanctions Disbursements Mar-20, Jun-20, Jun-20, -10% Sep-20, Mar-20, -9% Home Loan -29% 29% -32% Sep-20, 12% May-20, May-20, -53% -55% Apr-20, Apr-20, -91% -87% Sanctions Disbursements Jun-20, 8% Jun-20, Sep-20, Sep-20, 7% 29% 27% Auto
Slide 13: Asset Quality trends
Asset Quality trends Rs. in Crores Assessment of Slippages and Restructuring Reported Slippages in H1FY21 6,393 Additional Proforma Slippages in Q2FY21* 14,388 Restructuring requests received in Oct 2020 6,495 Additional expected restructuring till Dec 2020 # ~13,000 Estimated Slippages in H2FY21 ~
Slide 14: Provisions - details
Provisions - details As on Sept 2020 Total Provisions Particulars Outstanding (in Rs. Crore) (in Rs. Crore) Provisions made upto Q1FY21 COVID provision made upto Q1FY21 on SMA accounts as on 13,349 3,008 29.02.2020, which paid less than two EMIs Provisions made in Q2FY21 Estimated slippage in Q2FY21
Slide 15: Financial Performance
Financial Performance
Slide 16: Financials – At a Glance
Financials – At a Glance Rs. in Crores Quarter Ended Half Year Ended Growth (%) Q2FY21 Q2FY21 H1FY21 Q2FY20 Q1FY21 Q2FY21 H1FY20 H1FY21 over over over Q1FY21 Q2FY20 H1FY20 Interest Income 64,312 66,500 66,814 1,26,950 1,33,314 0.47 3.89 5.01 Interest Expenses 39,712 39,859 38,633 79,411 78,491 -3.08
Slide 17: Total Income
Total Income Rs. in Crores Quarter Ended Half Year Ended Growth (%) Q2FY21 Q2FY21 H1FY21 Q2FY20 Q1FY21 Q2FY21 H1FY20 H1FY21 over over over Q1FY21 Q2FY20 H1FY20 Interest on Loans 45,242 44,101 43,378 89,106 87,479 -1.64 -4.12 -1.83 Interest on Resources 17,546 20,500 20,763 34,891 41,262 1.28 18.33 1
Slide 18: Fee Income Break Up
Fee Income Break Up Rs. in Crores Quarter Ended Half Year Ended Growth (%) Q2FY21 Q2FY21 H1FY21 Q2FY20 Q1FY21 Q2FY21 H1FY20 H1FY21 over over over Q1FY21 Q2FY20 H1FY20 Loan Processing Charges 766 825 1,296 1,383 2,121 57.14 69.32 53.42 Commission on Govt. Business 893 863 939 1,856 1,803 8.83 5.24 -2
Slide 19: Total Expenses
Total Expenses Rs. in Crores Quarter Ended Half Year Ended Growth (%) Q2FY21 Q2FY21 H1FY21 Q2FY20 Q1FY21 Q2FY21 H1FY20 H1FY21 over over over Q1FY21 Q2FY20 H1FY20 Interest on Deposits 36,746 36,839 35,849 73,049 72,688 -2.69 -2.44 -0.49 Interest on Borrowings 1,712 1,722 1,429 3,945 3,151 -17.05 -16.
Slide 20: Overheads
Overheads Rs. in Crores Quarter Ended Half Year Ended Growth (%) Q2FY21 Q2FY21 H1FY21 Q2FY20 Q1FY21 Q2FY21 H1FY20 H1FY21 over over over Q1FY21 Q2FY20 H1FY20 Rent, Taxes and Lighting 1,361 1,052 1,308 2,542 2,360 24.25 -3.91 -7.14 Depreciation 809 820 820 1,588 1,640 0.05 1.42 3.29 Printing and Stati
Slide 21: Provisions & Profit
Provisions & Profit Rs. in Crores Quarter Ended Half Year Ended Growth (%) Q2FY21 Q2FY21 H1FY21 Q2FY20 Q1FY21 Q2FY21 H1FY20 H1FY21 over over over Q1FY21 Q2FY20 H1FY20 Operating Profit 18,199 18,061 16,460 31,445 34,521 -8.87 -9.56 9.78 Loan Loss 11,041 9,420 5,619 22,689 15,040 -40.35 -49.10 -33.71
Slide 22: Key Financial Ratios
Key Financial Ratios In % Yield on Advances Cost of Deposits 8.69 8.91 8.72 8.35 8.22 5.02 4.97 4.94 4.48 4.35 3.59 3.51 2.52 2.46 2.34 3.29 2.37 2.20 1.78 1.60 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Domestic Foreign Offices Domestic Foreign Offices YoY: MCLR 115 bps
Slide 23: Business
Business
Slide 24: Strong Liability Franchise
Strong Liability Franchise Domestic Deposits Sep 19 Sep 20 CA, 6.65% CA, 6.30% SA, SA, 38.48% TD, 39.09% 54.87% TD, 54.61% CASA: 45.13% CASA: 45.39% Rs. in Crores Sep 19 Sep 20 YoY Growth (%) Current Account 1,95,349 2,12,057 8.55 Saving Bank 11,30,822 13,14,950 16.28 CASA 13,26,171 15,27,007 15.14
Slide 25: Diversified Loan Portfolio
Diversified Loan Portfolio Domestic Advances Sep 19 Sep 20 Retail Pers., Retail Pers., 35.56% 38.10% Agri, 10.50% Agri, 10.24% SME, Corporates, SME, Corporates, 14.21% 39.73% 13.45% 38.21% Retail: 60.27% Retail: 61.79% Rs. in Crores Sep 19 Sep 20 YoY Growth (%) Retail Personal 6,85,570 7,85,345 14.5
Slide 26: Retail Per Banking
Retail Per Banking Leadership across all segments As on Sep 2020 Personal Retail Portfolio of Rs 7.9 lakh crore NPA ratio at 0.83% As a % of Dom. Adv. Sep 19: 35.56 Sep 20: 38.10 Personal Home Auto Xpress Other P Gold Loans Loans Credit Seg Loans Loans O/S, 4,68,382 71,631 1,59,701 11,509 74,122 In
Slide 27: Diversified Loan Portfolio
Diversified Loan Portfolio High quality asset book with lower exposure to under stress sectors Rs. in Crores Corporate Rating mix Industry mix Outstanding as on 30th Sep 20 Sep 20 Fund Based O/S Sectors Amount % Share YOY Gr % Infrastructure 3,13,711 15.22 -1.09 32% of which: Power 1,91,240 9.28 -3.
Slide 28: Treasury Operations
Treasury Operations Sep 19 AFS Book Sep 20 Corporate Others, 6.6% Others, 6.1% Bonds, 18.6% Corporate Bonds, 16.7% SDLs, 9.2% SDLs, 11.9% G-Sec and T G-Sec and T Bill, Bill, 55.8% CP, 13.5% 52.1% CP, 9.4% Modified Duration: 2.12 Modified Duration: 1.88 Break up of Domestic Investments (%) Total Inve
Slide 29: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality
Slide 30: SBI remains a well-capitalized bank with adequate liquidity
SBI remains a well-capitalized bank with adequate liquidity Capital ratios (%) 14.72% 13.59% 13.40% 13.06% 2.82 Tier 2 levels in FY21E 2.28 2.06 2.05 1.23 1.21 1.41 Tier 2 capital in CAR is 1.23 expected to come down to ~2% levels by March 21 11.31 11.00 11.35 11.90 on account of redemption 10.08 9.
Slide 31: Asset Quality (1/4)
Asset Quality (1/4) Rs. in Crores Gross NPA Net NPA 1,61,636 1,59,661 1,49,092 1,29,661 1,25,863 59,939 58,249 51,871 42,704 36,451 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Cumulative for the Period Sep 19 Dec 19 Mar 20 June 20 Sep 20 Gross NPA Ratio (%) 7.19 6.94 6.15 5
Slide 32: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q2FY20 Q3FY20 Q4FY20 FY20 Q1FY21 Q2FY21 Opening Level of Gross NPAs 1,68,494 1,61,636 1,59,661 1,72,750 1,49,092 1,29,661 Total Reductions 15,984 22,073 18,860 78,168 23,341 6,883 of which : Recovery + Upgradation 3,931 13,553 2,528 25,781 3,608 4,
Slide 33: 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-18 Mar-19 Mar-20 Sep 20 Opening Level of GNPA + AUCA 2,52,066 3,27,653 3,09,755 3,16,684 Gross Addition (Increase in O/s + Slippages) 1,00,287 39,740 54,510 6,995 Total GNPA + AUCA + Additions 3,52,3
Slide 34: Asset Quality (4/4)
Asset Quality (4/4) As on Sep 20 Fresh Q1FY20 Q2FY20 Q1FY21 Q2FY21* H1FY20 H1FY21* SMA 1 & SMA 2 Slippages Accounts with exposure above Rs. 5 cr: CRILC data 18,313** Corporate 5,354 3,239 213 1,019 8,593 1,232 SME 3,964 1,522 990 5,078 5,486 6,068 7,631 11,986 AGRI 4,239 3,078 468 9,045 7,317 9,513
Slide 35: Digital Journey
Digital Journey .
Slide 36: YONO: Landmark journey over last 4 years
YONO: Landmark journey over last 4 years with significant potential to drive further impact Jul 2020 Jul 2019 Mar 2019 Nov 2017 ~ Rs 200 cr Aug 2016 YONO achieving contributed to YONO Cash breakeven Quarterly PBT MVP launch with Launched. Conceptualised 29 journeys 2 crs downloads with 4 pillars cro
Slide 37: Accelerating digital agenda (1/3)
Accelerating digital agenda (1/3) YONO – Our flagship digital offering Digital Channel – Achieving disproportionate growth in share of New Journeys Gone live: Q2 business (Performance in Q2 FY21) ~28.5 Mn cumulative registrations Online KCC Review YONO (~4.6 Mn during Q2FY21) Adoption ~64,000 daily
Slide 38: Accelerating digital agenda (2/3)
Accelerating digital agenda (2/3) YONO – Our flagship digital offering Account opening Digital Lending (PAPL) ~3.23 lac ~1.4 Mn + No of New PAPL A/c opened SB accounts opened through YONO ~INR 5118.01 Cr ~21,000+ daily accounts opened PAPL disbursement Cross Sell YONO Krishi Key Performance Highligh
Slide 39: Accelerating digital agenda (3/3)
Accelerating digital agenda (3/3) Digital 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 29.69% 13.28% 28.05% 21.30% 20.58% Presence across multiple channels and payment a
Slide 40: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability
Slide 41: Financial Inclusion & Micro Markets
Financial Inclusion & Micro Markets As on Sep 2020 New Financial Inclusion & Micro Market (FI&MM) vertical created to focus on FI customers Rising transactions in BC Channel 1,50,000 25.36 31.50 21.32 23.93 No. of BC outlets 30 1,30,000 18.43 20 1,10,000 10 Sep-18 57,906 90,000 Enhance Improve 70,00
Slide 42: Environmental, Social, Governance (ESG) Practices
Environmental, Social, Governance (ESG) Practices Bank to implement Environment and Availed Green Term Loan of USD Social Management System 50 million (in addition to an (ESMS) under USD 177.33 mn line existing portfolio of USD 800 of credit from KfW for the Solar million Green Bonds) for Green
Slide 43: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet
Slide 44: SBI and its Subsidiaries
SBI and its Subsidiaries Leveraging Synergies As on Sep 20 • Strong growth in Renewal Premium of 29%. • Private market leadership Rank 1 in Total New Business Premium • Rank 1st in QAAUM with Market Share of 15.27%. (NBP) with 24.5% share • AUM at Rs.421K Crores. • Group New Business Premium increas
Slide 45: SBI Group Financials – H1FY21
SBI Group Financials – H1FY21 Rs. In crores Year Ended Growth Rs. In crores Year Ended (%) H1FY20 H1FY21 YoY H1FY20 H1FY21 Interest Earned 1,32,951 1,39,983 5.29 ROA (%) 0.32 0.46 Non-Interest Income* 42,866 44,742 4.38 Total Income 1,75,817 1,84,725 5.07 ROE (%) 6.69 9.45 Interest Expended 80,244 7
Slide 46: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Sep 19 Sep 20 Sep 19 Sep 20 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,25,183 2,44,829 8.72 2,39,788 2,65,402 10.68 Minority Interest 6,970 8,913 27.87 Deposits 30,33,396 34,70,462 14.41 30,64,307
Slide 47: Thank You
Thank You