Annual Results FY17 Chairman’s Presentation 19.05.2017
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 results may differ materially from those included in these statements due to a variety of factors. All financial and other information in these slides, other than financial and other information for specific subsidiaries where specifically mentioned, is on an unconsolidated basis for SBI only unless specifically stated to be on a consolidated basis for SBI Group. Please also refer to the statement of unconsolidated, consolidated and segmental results required by Indian regulations that has, along with these slides, been filed with the stock exchanges in India 2
India’s National Champion, Now Among Global Top Fifty Banks Unbroken Record of Profits & Dividends for over 100 Years Among top 50 Banks ~4x the 2nd Largest Indian Globally in Terms of Total Bank in Assets and Business size Tier 1 Capital 1 2 2nd Largest Sustainability Footprint Globally Report an - 24k+ Branches 6 3 and 59k+ ATMs, integral part Serving ~420 mn of Annual Customers as on Report Mar-2017 5 4 SBI online is Market Leader in World’s 5 th Most Home and Auto Visited Bank Loan Segments website 3
Performance 4
Sustained Operating Performance In Rs Crores Q4FY16 YoY Q4FY17 Interest on loans up by 2.12% while Interest on Deposits Net Interest 18,071 15,401 17.33% contained at 8.61% even as Deposits grew by 18.14% YoY Income Excluding all one time items in both years, growth is Non* -2.43% 10,327 10,585 10.93% YoY Interest Income Cost to Income Ratio down by 138 bps at 47.75% Operating 4.89% 12,372 11,794 during FY17 Expenses All round performance drives profitability Operating 16,026 14,192 12.93% Profit PCR increased by 526 bps, while Net NPA down by 10 Loan Loss -9.44% 10,993 12,139 bps sequentially Provision Profit more than doubled despite 2.19% increase in Total Profit 122.72% Provisions 2,815 1,264 After Tax *Retail Fee Income up by 10.96% Domestic and Whole Bank NIM stable at 3.11% and 2.84% respectively 5
Sustained Operating Performance In Rs Crores FY 16 YoY FY 17 Interest on Loans up by 3.32% while Interest on Deposits Net Interest 61,860 57,195 8.16% contained at 6.81% even as Deposits grew by 18.14% YoY Income Excluding all one time items in both years, growth is Non* 27.35% 35,461 27,845 22.50% YoY Interest Income Cost to Income Ratio down by 138 bps at 47.75% Operating 11.23% 46,473 41,782 during FY17 Expenses SBI crosses milestone of Rs 50K crore annual Operating 50,848 43,258 17.55% Operating Profit Profit PCR increased by 526 bps, while Net NPA down by 10 Loan Loss 19.50% 32,247 26,984 bps YoY Provision Net Profit up despite Total Provisions going up by 21.19% Profit 5.36% 10,484 9,951 After Tax *Retail Fee Income up by 13.41% Domestic and Whole Bank NIM stable at 3.11% and 2.84% respectively 6
Consistent Growth in Cross Sell Income Cross Sell CAGR FY 17 Income FY 13 FY 14 FY 15 FY 16 FY 17 No. of customers (%) (in lakhs) (in Rs. crs) Life 144.0 159.5 244.6 337.2 464.6 34.0% MF 52 MF 33.9 28.1 70.0 62.3 181.1 52.1% General 23.3 40.9 56.6 73.1 107.0 46.4% Life 89 Other 7.4 6.3 17.1 16.5 23.9 34.1% General 219 Total 208.5 234.9 388.3 489.0 776.6 38.9% • Share of Cross Sell Income to Non Interest Income (ex-treasury) to increase significantly from the current 3% • Project Impact (CRM) being implemented to leverage data analytics for customised sales • Project Lotus to provide omni-channel experience for customers on a single digital platform • Number of Wealth Management centres to increase significantly from 9 to 14 during FY18 • 42 cr existing customers to be actively targeted for greater wallet share • Digitization of internal processes to facilitate redeployment of staff to sales 7
AUCA Recovery Rs. In Crores 4,500 21.6% 3,477 21.2% 2,859 3,000 52.9% 2,359 1,543 1,500 - 2014 2015 2016 2017 Recovery from Written off accounts • Initiatives taken to Scale Up o High value AUCA accounts adopted for recovery by top executives of Stressed Asset Management Group o Schemes for One Time Settlement for SME and Agri Term loans gaining traction. o 74,946 cases for resolution of NPA / AUCA being actively pursued. 8
Sustained CASA growth driving liability franchise Rs. In Crores YoY Growth (%) YoY Growth (%) Mar 16 Mar 17 Mar16 Over Mar 15 Mar 17 Over Mar 16 20,44,751 18.14 9.76 Total Deposits 17,30,722 Foreign Offices 91,451 5.29 -3.02 94,298 Domestic 19,53,300 19.36 10.03 16,36,425 Market Share Domestic 18.05% 38 bps 67 bps 17.67% TD 10,62,891 15.65 8.20 9,19,092 CA 1,47,123 9.62 8.36 1,35,768 SB 7,43,286 27.81 13.17 5,81,564 CASA 8,90,409 24.13 12.48 7,17,332 CASA Ratio 45.58% 96 bps 174 bps 43.84% Daily Average CASA Ratio – Mar 17: 43.49% 9
Diversified Asset Portfolio Rs. In Crores Mar 17 Mar 16 YOY Gr % 13,41,054 7.92 Domestic Advances 12,42,683 4,554 -78.87 Food Credit 21,555 13,36,500 12,21,128 9.45 Domestic Advances (Excluding Food Credit) 58,651 347.92 Comm. Paper (CP) 13,094 59,636 44.92 Corp. Bonds (CB) 41,152 14,54,787 14.07 Domestic Total (incl. CP & CB but excl. Food Credit) 12,75,374 2,86,219 7.27 Advances in Foreign Offices (A) 2,66,817 6,609 -64.27 FCNR-B Advances (B) 18,498 2,79,610 12.60 Foreign Offices Excl FCNR-B Loans (A-B) 2,48,319 Whole Bank Advances Incl CP & CB, Excl FCNR (B) Adv. 17,34,397 15,23,693 13.83 & Food Credit 10
Diversified Loan Portfolio Rs. In Crores YoY Growth (%) Mar 16 Mar 17 Mar 17 Over Mar 16 16,27,273 7.80 Total Advances 15,09,500 2,86,219 7.27 Foreign Offices 2,66,817 Domestic 13,41,054 7.92 12,42,683 Market Share Domestic 17.02% 65 bps 16.37% Large Corporate 3,41,990 3.59 3,30,136 Mid Corporate 2,42,947 0.21 2,42,443 SME 2,25,153 3.41 2,17,735 AGRI 1,34,725 7.45 1,25,381 Retail 3,96,239 21.18 3,26,988 11
We Remain Well Capitalized 13.73% 13.11% 13.12% Tier II 12.00% 3.08% AT1 2.76% 3.20% Tier I 2.40% 0.68% CET1 0.53% 0.11% 0.29% 10.65% 10.35% 9.97% 9.82% 9.81% 9.92% 9.60% 9.31% Mar 17 Dec 16 Mar 16 Mar 15 Major Contributors to Capital Retained Earnings Rs 8,379 Cr Capital infusion from GoI Rs. 5,681 Cr in FY17. Realisation from Non Core Assets / Strategic Investments Rs. 2,662 Cr (Rs.907 Cr in Q1FY17 & Rs.1,755 Cr in Q3FY17) AT1 Capital raised in FY17: Rs. 9,100 Cr 12
Asset Quality 13
Movement of NPAs Rs. In Crores FY17 Q4FY17 Q3FY17 FY16 Q4FY16 Opening Level of Gross NPAs 98,173 1,08,172 1,05,783 56,725 72,792 Less :Recovery 5,197 1,203 1,003 4,389 1,627 Less: Up-gradation 3,437 1,002 1,059 2,598 97 Less :Transfer to AUCA 20,570 3,992 5,906 15,763 3,208 Add: Increase in O/s 4,303 613 172 Add: Fresh Slippages 39,071 9,755 10,185 64,198 30,313 Gross Addition (Increase in O/s + Slippages) 43,374 10,368 10,357 64,198 30,313 Net Increase 14,170 4,171 2,389 41,448 25,381 Closing Level of Gross NPAs 1,12,343 1,12,343 1,08,172 98,173 98,173 Gross NPA Ratio (%) 6.90 6.90 7.23 6.50 6.50 Less: Cumulative Provisions 54,066 54,066 46,742 42,366 42,366 Net NPAs 58,277 58,277 61,430 55,807 55,807 Net NPA Ratio (%) 3.71 3.71 4.24 3.81 3.81 Provision Coverage Ratio (%) 65.95 65.95 62.87 60.69 60.69 Slippage Ratio (%) 2.59 2.58 2.70 4.81 9.08 Credit Cost (%) 2.14 2.91 1.92 2.02 3.64 14
Asset Quality : Impaired Assets Rs. In Crores Mar 17 Dec 16 Sep 16 June 16 Mar 16 16,27,273 14,97,164 14,81,832 14,63,690 15,09,500 Gross Advances 36,634 34,628 36,570 36,551 39,055 Restructured Standard Total Gross NPAs plus Restructured Std. 1,48,977 1,42,800 1,42,353 1,38,092 1,37,228 Gross NPA + Restructured Standard to 9.61 9.43 9.09 9.16 9.54 Gross Advances (%) Net NPA + Net Standard Restructured to 6.00 6.63 6.74 6.56 6.40 Net Advances (%) 13.32 12.56 15.82 8.17 22.02 Slippages from Restructured Book (%) Mar 17 Mar 17 4,281 5,910 SDR Stressed Standard Assets Provision 5,935 1,149 S4A Counter Cyclical Provision Buffer 15
Corporate Watch List Fund based Outstandings Rs. In Crores Total Corporate Slippages Post Watch list Slippages Merger Watch List 34,776 2.3% 1.6% 28,419 32,427 3,396 - 818 1,181 3152 807 (72%) 4,299 3,503 20,576 3,137 17,992 8,657 776 13,310 807 11,075 1,906 397 4,748 1,933 807 131 2,952 1,794 2,791 7,785 (70%) 11,688 10,742 9,618 5,435 7,389 Mar-16 Q3FY17 Q4FY17 Beginning April 1st Others Power Q4FY17 FY17 Construction, Roads and Engg. Iron & Steel Telecom Textile Oil & Gas 16 Watch list as a percentage of Advances
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