State Bank Of India · NSE:SBIN
State Bank Of India — Q2 FY18 Earnings Presentation
27 slides from State Bank Of India's earnings presentation, Nov 10, 2017
Slide 1: Chairman's Presentation Quarterly Results Q2FY18
Quarterly Results Q2FY18 Chairman’s Presentation 10.11.2017
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: Our Commitment to Stakeholders
Our Commitment to Stakeholders 3
Slide 4: SBI: Delivering value to stakeholders
SBI: Delivering value to stakeholders SBI: Delivering value across all stakeholders Shareholders Customers (16.84 lakhs) (4,210 lakhs) Maximising Customer ROA Satisfaction State Bank of India Delivering value to all Personal and stakeholders Sustainable Professional Growth Growth Employees The Commu
Slide 5: SBI: The next three years; framework for maximizing RoA
SBI: The next three years; framework for maximizing RoA RoA (NII + Other income) / Average Operating expenses / Average Assets Credit costs / Average Assets Assets Optimize capital allocation to business lines with high RoAs, focus areas to be retail, SME, Agri higher rated corporates and fee based
Slide 6: Enablers to maximize RoA: Operating Income (1/3)
Enablers to maximize RoA: Operating Income (1/3) RoA (NII + Other Income)/ Average Operating expenses / Average Credit costs / Average Assets Assets Assets • Maintaining credit market share,: Portfolio mix towards higher RoA products o Retail: Home loans, Express credit, Auto loans Credit Growth o S
Slide 7: Enablers to maximize RoA: Operating Expenses (2/3)
Enablers to maximize RoA: Operating Expenses (2/3) RoA (NII + Other income)/ Average Operating expenses / Credit costs / Average Assets Assets Average Assets • CDS- has stabilized, motivates employees to achieve KRAs Staff • Retirements at higher salary bracket Expenses and Productivity • Digitizati
Slide 8: Enablers to maximize RoA: Credit Costs (3/3)
Enablers to maximize RoA: Credit Costs (3/3) RoA (NII + Other income) / Average Operating expenses / Average Credit costs / Average Assets Assets Assets • Improvement in underwriting standards; early sanction review, loan review mechanism, early warning system, dynamic rating review etc. implemented
Slide 9: Scaling up Subsidiaries and discovering value
Scaling Focus up on Subsidiaries scaling upand Subsidiaries discovering and value FY17 PAT FY17 SUBSIDIARIES SBI's stake Leading RRBs FY17 ROE Networth (in Rs cr) (in Rs cr) SBI Life 62.1% 955 Mizoram RB 68.2% 123.5 SBI Cards 60% 390.4 Chhattisgarh Rajya GB 46.6% 869.2 SBI General 74% 152.7 LDRV 25.
Slide 10: Delivering value to Customers
Delivering value to Customers • Customer facing platforms and instruments to improve customer experience • Project Lotus being launched: Omni-channel experience for customers for banking and beyond banking services • Continued migration of transactions to digital channels, currently at 36% (up 1000b
Slide 11: IT Infrastructure and State of the Art Technology to Deliver Value
IT Infrastructure and State of the Art Technology to Deliver Value Platformization Tech Up-gradation API driven digital architecture Meghdoot 2.0: Biggest private cloud in IT Infrastructure: capacity to handle 23k+ APAC; futuristic cloud architecture for scale transactions per second; Account
Slide 12: Employees: making them future ready
Employees: making them future ready Employees: making them future ready Increased level of specialization Learning & Performance Development Management Employee growth • Succession Planning: identifying succession for future leaders of the Bank and developing strong pipeline for critical roles • Com
Slide 13: Our commitment to the society
Our commitment- continue to serve all sections of society at affordable price Our commitment to the society Financial Inclusion 1% of PAT set aside for CSR activities Rural Self Employment Training Cumulative 3% Institute RSETIs (Total Numbers: 151) (Since 2011) Healthcare 8% Education No of Trainin
Slide 14: Financial Performance
Financial Performance OSBI
Slide 15: Operating Performance
Operating Performance Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY18 Q2FY18 Q2FY18 Q2FY18 Q1FY18 Q2FY17 H1FY18 H1FY17 over over over H1FY17 Q1FY18 Q2FY17 Interest Income 54,850 54,905 54,820 1,09,755 1,09,314 0.40 -0.10 0.05 Other Income 16,016 8,006 10,146 24,022 18,908 27.05 100.06
Slide 16: Provisions and Net Result
Provisions and Net Result Rs. in Crores Quarter ended Year Ended Growth (%) H1FY18 Q2FY18 Q2FY18 Q2FY18 Q1FY18 Q2FY17 H1FY18 H1FY17 over over over H1FY17 Q1FY18 Q2FY17 Operating Profit including Exceptional Item & one time 19,999 11,874 13,989 31,873 27,751 14.86 68.43 42.97 items Total Provisions 1
Slide 17: Details of Provisions
Details of Provisions Rs. in Crores Q2FY18 1. Loan Loss Provision: 16715 of which: a. As per IRAC Classification 9872 b. NCLT (1st List) Additional Provision as per RBI Norms 3835 c. NCLT (2nd List) Additional Provision as per RBI Norms 2141 d. Accelerated provision on other NPAs 867 2. Standard Ass
Slide 18: Key Performance Indicators: Performance Ratios
Key Performance Indicators : Performance Ratios Net Interest Margin (%) Yield & Costs (%) Yield on Advances Yield on Investments Domestic Merged Whole Bank Merged Foreign Cost of Funds Cost of Deposits 2.98 9.54 2.50 2.59 8.49 8.46 2.79 7.83 2.36 2.43 7.38 7.33 1.37 6.18 1.16 1.17 5.63 5.50 6.07 5.5
Slide 19: Sustained CASA growth driving liability franchise
Sustained CASA growth driving liability franchise Rs. in Crores YoY Growth (%) Sep 16 Sep 17 Sep 17 Over Sep 16 (SBI+e- ABs+BMB) Total Deposits 26,23,180 10.27 23,78,956 Foreign Offices 96,217 6.48 90,362 Domestic 25,26,963 10.42 22,88,593 Market Share Domestic 23.06% 28 bps 22.78% TD 13,92,980 2.99
Slide 20: Diversified Asset Portfolio
Diversified Asset Portfolio Rs. in Crores Sep 17 Sep 16 YOY % Large Corporate 363309 Mid Corporate 288758 SME 252464 Corporates and SME 904531 961310 -5.91 AGRI 191238 186806 2.37 Per Segment 504777 446517 13.05 Domestic Advances 1600546 1594633 0.37 IBG 291894 280082 4.22 Whole Bank Advances 189244
Slide 21: We Remain Well Capitalized
We Remain Well Capitalized 13.56% 13.94% Tier II 13.31% AT1 2.60% 3.09% 2.64% Tier I 0.72% CET1 0.61% 0.57% 10.96% 10.67% 10.85% 10.24% 10.06% 10.28% * SBI Solo Sep 17 Jun 17 Sep 16 * H1FY18 • Equity raised through QIP - Rs 15,000 cr in H1FY18 • AT1 bonds raised- Rs 2,000 crores in H1FY18 21
Slide 22: Asset Quality: Movement of NPAs
Asset Quality : Movement of NPAs Rs. in Crores H1FY18 Q2FY18 Q1FY18 FY17 H1FY17 Opening Level of Gross NPAs 177866 188068 177866 121973 121970 Less :Recovery 6856 2210 4646 10302 5131 Less: Up gradation 3147 1113 2034 21981 12809 Less :Transfer to AUCA 22434 9258 13176 27757 12461 Add: Increase in O
Slide 23: Asset Quality: Gross NPAs - Segment wise
Asset Quality : Gross NPAs - Segment wise Rs. in Crores 01-04-2017 30-09-2016 Sep 17 Jun 17 Sector Merged Merged NPA Ratio % NPA Ratio % NPA Ratio % NPA Ratio % Agri 18982 9.93 17988 9.51 12191 6.37 12041 6.45 Per Segment 7096 1.41 7632 1.56 3717 0.77 4819 1.08 SME 27540 10.91 30426 11.86 Large Corp
Slide 24: Asset Quality: Impaired Assets
Asset Quality : Impaired Assets Rs. in Crores Sep 17 June 17 Gross Advances 1892440 1886666 Gross NPAs 186115 188068 Restructured Standard 34024 39337 Total Gross NPAs plus Restructured Std. 220139 227406 Gross NPA + Restructured Standard to Gross Advances (%) 11.63 12.05 Net NPA + Net Standard Rest
Slide 25: Corporate Watch List
Corporate Watch List Fund based Outstandings Rs. In Crores • 81% of Corporate Slippages in H1FY18 are from the Post Watch List (54% in Q2FY18) Merger Watch List • Remaining slippages across 55 smaller value accounts (36 in Q2FY18) 32,427 12,901 818 3152 24,444 10,424 3,503 602 21,288 3,137 2548 312
Slide 26: Progress on Resolutions and Recoveries
Progress on Resolutions Progress on and Recoveries Resolutions and Recoveries 38 cases involving SBI referred by RBI to be filed in NCLT before Dec 2017; 15 cases have been already admitted Bank has provided for first 12 cases referred to NCLT in accordance with RBI norms, PCR of 51% in the remainin
Slide 27: Thank You
Thank You