State Bank Of India · NSE:SBIN
State Bank Of India — Q3 FY2021 Earnings Presentation
50 slides from State Bank Of India's earnings presentation, Feb 4, 2021
Slide 1: Exchange filing cover letter
SBI 04.02.2021 cc/s&B/s K12020-21 I 604 The Executive Director The Managing Director BSE Ltd., Phirojee JeejeebhoY National Stock Exchange of lndia Ltd' Towers 25th Floor Exchange Plaza,Sth Floor, Plot No. C/l, Dalal Street, G-Block, Bandra-Kurla ComPlex, Mumbai-400001 Bandra (East), Mumbai - 400051
Slide 2: Press Release Q3FY21 Results Highlights
Press Release Q3FY21 RESULTS Highlights • Bank registered a Net Profit of Rs. 5,196 Crores in Q3FY21 as compared to Rs.4,574 Crores in Q2FY21, an increase of 13.60% sequentially. Year on year Net Profit has come down by 6.93%. • Bank registered an Operating Profit of Rs. 17,333 Crores in Q3FY21 as c
Slide 3: Key Summary of Q3FY21 Results
Key Summary of Q3FY21 Results QoQ In Rs Crores Q3FY20 Q2FY21 Q3FY21 YoY % 9MFY20 9MFY21 YoY % % Profit & Loss Interest Income* 67,692 66,814 66,734 -1.41 -0.12 1,94,642 2,00,049 2.78 Interest Expenses 39,913 38,633 37,915 -5.01 -1.86 1,19,324 1,16,406 -2.45 Net Interest Income 27,779 28,181 28,820 3
Slide 4: Q3FY21 Analyst Presentation
Q3FY21 Analyst Presentation 04.02.2021
Slide 5: 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 6: 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 7: Macro-Economic Indicators
Macro-Economic Indicators High Frequency Activity Indicators Significant decline in cost of borrowing for corporates 5.39 ➢ Many of the high frequency indicators are showing 1.93 2.10 5.50 5.23 1.89 1.90 improved economic activity, with the Dec 2020 level 1.70 5.00 above the Pre-Covid level observed
Slide 8: Key trends in Q3FY21
Key trends in Q3FY21 Retail credit growth – back to pre Covid-19 levels at 15.47% YoY Personal gold loan book at Rs 17,492 cr, up four times in six months; Xpress credit up 35.7% YoY- demonstrates the strength of SBI franchise and the ability to scale up rapidly in select product lines Liability fra
Slide 9: Key Indicators
Key Indicators Current Account Savings Account For the quarter YoY Rs. in Crores 11.33% 15.99% Q3FY20 Q2FY21 Q3FY21 Growth 2,10,563 13,35,861 Net Interest Income * 27,779 28,181 28,820 3.75% 1,89,129 11,51,701 Net Interest Margin – 3.59 3.34 3.34 -25 bps Profit & Domestic (%) Loss Operating Profit *
Slide 10: Credit offtake trend continues to improve
Credit offtake trend continues to improve Month-wise YoY Growth Sanctions Disbursements Sep-20, Dec-20, Dec-20, 29% 25% 23% Oct-20, Home Loan -1% Sep-20, 12% Nov-20, 7% Oct-20, Nov-20, 8% 2% Sanctions Disbursements Nov-20, 64% Nov-20, Auto Loan Sep-20, 87% Sep-20, 29% 27% Dec-20, 3% Dec-20, Oct-20,
Slide 11: Asset Quality trends
Asset Quality trends Rs. in Crores Assessment of Slippages and Restructuring As at Q2FY21 As at Q3FY21 Slippages in H1FY21 6,393 Slippages in H1FY21 - 6,393 Proforma Slippages in Q2FY21** 14,388 Slippages in Q3FY21* 237 Restructuring requests received in Oct 2020 6,495 Proforma Slippages for 9MFY21*
Slide 12: Provisions - details
Provisions - details As on Dec 2020 Total Outstanding Provisions Particulars (in Rs. Crore) (in Rs. Crore) Upto During Upto During Total Total Q2FY21 Q3FY21 Q2FY21 Q3FY21 Estimated proforma slippage till Q3FY21, but for Hon. SC interim order on deferment of asset 14,388 2,073 16,461 3,194 2,071 5,26
Slide 13: Sustainable RoE – A perspective
Sustainable RoE – A perspective Mean RoA (FY00 – FY15) – 0.84 ROA ( in %) At variance to long term trends 0.99 1.01 1.04 0.94 0.89 0.97 0.86 0.84 0.88 0.88 0.75 0.73 0.68 0.71 0.65 0.45 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 FY
Slide 14: Financial Performance
Financial Performance 11
Slide 15: Financials – At a Glance
Financials – At a Glance Rs. in Crores Quarter Ended Nine Months Ended Growth (%) Q3FY21 Q3FY21 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 over over over Q2FY21 Q3FY20 9MFY20 Interest Income 67,692 66,814 66,734 1,94,642 2,00,049 -0.12 -1.41 2.78 Interest Expenses 39,913 38,633 37,915 1,19,324 1,16,4
Slide 16: Total Income
Total Income Rs. in Crores Quarter Ended Nine Months Ended Growth (%) Q3FY21 Q3FY21 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 over over over Q2FY21 Q3FY20 9MFY20 Interest on Loans 48,063 43,378 43,737 1,37,169 1,31,215 0.83 -9.00 -4.34 Interest on Resources 17,968 20,763 21,120 52,860 62,383 1.72 17
Slide 17: Fee Income Break Up
Fee Income Break Up Rs. in Crores Quarter Ended Nine Months Ended Growth (%) Q3FY21 Q3FY21 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 over over over Q2FY21 Q3FY20 9MFY20 Loan Processing Charges 1,120 1,296 1,142 2,502 3,263 -11.90 1.97 30.40 Commission on Govt. Business 972 939 843 2,828 2,646 -10.29
Slide 18: Total Expenses
Total Expenses Rs. in Crores Quarter Ended Nine Months Ended Growth (%) Q3FY21 Q3FY21 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 over over over Q2FY21 Q3FY20 9MFY20 Interest on Deposits 37,182 35,849 35,121 1,10,231 1,07,809 -2.03 -5.54 -2.20 Interest on Borrowings 1,521 1,429 1,119 5,467 4,270 -21.6
Slide 19: Overheads
Overheads Rs. in Crores Nine Months Quarter Ended Growth (%) Ended Q3FY21 Q3FY21 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 over over over Q2FY21 Q3FY20 9MFY20 Rent, Taxes and Lighting 1,322 1,308 1,354 3,864 3,714 3.51 2.37 -3.89 Depreciation 815 820 845 2,403 2,486 3.06 3.75 3.44 Printing and Stati
Slide 20: Provisions & Profit
Provisions & Profit Rs. in Crores Quarter Ended Nine Months Ended Growth (%) Q3FY21 Q3FY21 9MFY21 Q3FY20 Q2FY21 Q3FY21 9MFY20 9MFY21 over over over Q2FY21 Q3FY20 9MFY20 Operating Profit 18,223 16,460 17,333 49,667 51,854 5.31 -4.88 4.40 Loan Loss 8,193 5,619 2,290 30,882 17,330 -59.24 -72.04 -43.88
Slide 21: Key Financial Ratios
Key Financial Ratios In % Yield on Advances Cost of Deposits 8.91 8.72 4.94 8.35 8.22 8.16 4.97 4.48 4.35 4.26 3.51 3.29 2.46 2.34 2.37 2.20 2.08 1.78 1.60 1.46 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Domestic Foreign Offices Domestic Foreign Offices YoY: MCLR 90 bps,
Slide 22: Business
Business 19
Slide 23: Strong Liability Franchise
Strong Liability Franchise Domestic Deposits Dec 19 Dec 20 CA, 6.31% CA, 6.15% SA, SA, 38.41% TD, 39.00% 55.28% TD, 54.85% CASA: 44.72% CASA: 45.15% Rs. in Crores Dec 19 Dec 20 YoY Growth (%) Current Account 1,89,129 2,10,563 11.33 Saving Bank 11,51,701 13,35,861 15.99 CASA 13,40,830 15,46,424 15.33
Slide 24: Diversified Loan Portfolio
Diversified Loan Portfolio Domestic Advances Dec 19 Dec 20 Retail Pers., Retail Pers., 36.38% 39.08% Agri, 10.61% Agri, 10.05% SME, Corporates, SME, Corporates, 14.05% 38.96% 13.81% 37.06% Retail: 61.04% Retail: 62.94% Rs. in Crores Dec 19 Dec 20 YoY Growth (%) Retail Personal 7,19,766 8,31,134 15.4
Slide 25: Retail Personal Banking
Retail Per Banking Leadership across all segments As on Dec 2020 Personal Retail Portfolio of Rs 8.3 lakh crore NPA ratio at 0.71% As a % of Dom. Adv. Dec 19: 36.37 Dec 20: 39.08 Personal Home Auto Xpress Other P Gold Loans Loans Credit Seg Loans Loans O/S, 4,84,453 75,937 1,77,366 17,492 75,886 In
Slide 26: 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 31st Dec 20 Dec 20 Fund Based O/S Sectors Amount % Share YOY Gr % Infrastructure 3,22,679 15.17 -1.57 32% 31% of which: Power 1,95,241 9.18
Slide 27: Treasury Operations
Treasury Operations Dec 19 AFS Book Dec 20 Corporate Others, 7.6% Others, 6.2% Bonds, 20.1% Corporate Bonds, 21.6% G-Sec and T Bill, 50.9% SDLs, 8.8% G-Sec and T Bill, SDLs, CP, 11.2% 53.7% 13.0% CP, 6.9% Modified Duration: 2.29 Modified Duration: 2.00 Yield on Investment: 7.27% Yield on Investment:
Slide 28: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality 25
Slide 29: SBI remains a well-capitalized bank with adequate liquidity
SBI remains a well-capitalized bank with adequate liquidity Capital ratios (%) 14.72% 14.50% 13.73% 13.06% 2.82 2.77 Tier 2 levels in FY21E 2.14 2.06 1.41 1.41 1.46 Tier 2 capital in CAR is 1.23 expected to come down to ~2% levels by March 21 11.59 11.00 11.90 11.73 on account of redemption 10.18 9.
Slide 30: Asset Quality (1/4)
Asset Quality (1/4) Rs. in Crores Without Proforma Slippages Gross NPA Cumulative for the Period (%) Dec 19 Mar 20 June 20 Sep 20 Dec 20 1,59,661 1,49,092 Gross NPA Ratio 6.94 6.15 5.44 5.28 4.77 1,29,661 Net NPA Ratio 2.65 2.23 1.86 1.59 1.23 1,25,863 1,17,244 PCR 81.73 83.62 86.32 88.19 90.21 PCR
Slide 31: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q3FY20 Q4FY20 FY20 Q1FY21 Q2FY21 Q3FY21 Opening Level of Gross NPAs 1,61,636 1,59,661 1,72,750 1,49,092 1,29,661 1,25,863 Total Reductions 22,073 18,860 78,168 23,341 6,883 8,906 of which : Recovery + Upgradation 13,553 2,528 25,781 3,608 4,038 5,6
Slide 32: 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 Dec 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 7,282 Total GNPA + AUCA + Additions 3,52,3
Slide 33: Asset Quality (4/4)
Asset Quality (4/4) As on Dec 20 9MFY21 SMA 1 & SMA 2 Fresh Q3FY21 9MFY20 (reported Accounts with exposure above Rs. 5 cr: CRILC data Q3FY20 Q1FY21 Q2FY21 Slippages (reported) (reported) +pro- forma) 17,946** Corporate 9,467 213 981 18,060 3,003 (1,809) SME 1,578 990 -251 7,064 4,453 12,546 11,986 (
Slide 34: Digital Journey
Digital Journey 31
Slide 35: 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: Q3 business (Performance in Q3FY21) ~32.77 Mn cumulative registrations 24*7 RTGS YONO (~4.2 Mn during Q3FY21) Adoption ~46,000 avg. daily reg
Slide 36: Accelerating digital agenda (2/3): Q3FY21 Highlights
Accelerating digital agenda (2/3) : Q3 FY 21 Highlights YONO – Our flagship digital offering Account opening Digital Lending (PAPL) 1.56 Mn + ~2.99 lac SB accounts opened through YONO No of New PAPL A/c opened ~22,373 avg. daily accounts opened INR 5,301 Cr 90.73 % Migration* PAPL disbursement Cross
Slide 37: 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 29.93% 13.41% 27.91% 24.71% 21.96% Presence across multiple channels and payment a
Slide 38: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability 35
Slide 39: Financial Inclusion & Micro Markets
Financial Inclusion & Micro Markets As on Dec 2020 New Financial Inclusion & Micro Market (FI&MM) vertical created to focus on FI customers Rising transactions in BC Channel 2,00,000 44.79 36.93 No. of BC outlets 1,80,000 1,60,000 28.49 40 30 1,40,000 20 Dec 19 59,693 Enhance 1,20,000 10 Improve 1,0
Slide 40: SBI ESG: Strategy
SBI ESG: Strategy ❖ Bank continues to align its business decisions and sustainability initiatives with the Sustainable Development Goals – eight products linked to UN SDGs ❖ Bank acknowledges that its activities have direct and indirect positive and negative impacts Constantly working to mitigate th
Slide 41: SBI ESG: Portfolio, Ratings and Framework
SBI ESG: Portfolio, Ratings and Framework ✓ ESG is integrated in our lending decisions; key criteria for go / no- go decisions MSCI ESG – an ✓ Climate risk included as a risk factor ESG RATINGS BB in key risk assessments within the Last updated: October 07, 2020 integral part Bank of our CCC B BB BB
Slide 42: SBI ESG: Short term goals, outcome and targets
SBI ESG: Short term goals, outcome and targets Short Term Goals SBI’s long term Outcomes and Targets for FY20 goals towards 2025 ✓ Increase alternate ✓ Share of alternate channel banking share by channel banking → 88% Social and 3% from previous year (FY19) to 91% (FY20) Relationship ✓ 5% of CSR spe
Slide 43: SBI ESG: Lines of credit from multilateral institutions and banks
SBI ESG: Lines of credit from multilateral institutions and banks Signed in Signed in Signed in Designed to Leverage Indo- complement German Solar Government’s Line of Credit from Line of Credit from Energy flagship Line of Credit from Partnership to affordable promote housing Focus on proliferation
Slide 44: SBI ESG: Green Bond Programme
SBI ESG: Green Bond Programme Permitted usage under Green Bond Framework, certified by Climate Bonds Initiative (CBI) Date of Issue Amount (in USD million) ▪ Renewable energy 30th July 2018 50 ▪ Low carbon buildings ▪ Projects to lower Industry and energy- 28th Sept 2018 650 intensive commercial tra
Slide 45: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet 42
Slide 46: SBI Subsidiaries – value unlocked in listed subsidiaries
SBI Subsidiaries – value unlocked in listed subsidiaries Valuation of listed subsidiaries of SBI SBI Subsidiaries Market Cap (in Rs. Crore) SBI Stake (in %) Value per share of SBI (Rs) SBI Card 93,672 69.4 72.8 SBI Life 86,735 55.5 53.9 Other select listed investments NA NA 13.7 Total Rs 140/ share
Slide 47: SBI Subsidiaries – significant value in unlisted subsidiaries
SBI Subsidiaries – significant value in unlisted subsidiaries SBIs stake Name of subsidiary Area of Operations Other key notables (in %) First AMC to cross Rs. 5 Lakh AUM in Jan 21 Asset Management under SEBI Largest ETF Fund House SBI Funds Management 62.93 (Mutual Fund) Regulations SBIMF – AAUM CA
Slide 48: SBI Group Financials – 9MFY21
SBI Group Financials – 9MFY21 Rs. In crores Growth Rs. In crores Nine Months Ended Nine Months Ended (%) 9MFY20 9MFY21 YoY 9MFY20 9MFY21 Interest Earned 2,03,976 2,10,083 2.99 ROA (%) 0.43 0.49 Non-Interest Income* 67,225 71,824 6.84 Total Income 2,71,201 2,81,907 3.95 ROE (%) 9.07 10.24 Interest Ex
Slide 49: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Dec 19 Dec 20 Dec 19 Dec 20 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,31,628 2,50,351 8.08 2,47,458 2,72,383 10.07 Minority Interest 7,367 9,424 27.92 Deposits 31,11,229 35,35,753 13.64 31,44,280
Slide 50: Thank You
Thank You
State Bank of India — Q3 FY2021 Earnings Presentation on 6ix