MUMBAI:
State Bank of India has announced the financial results of the first quarter during the year 2018-19 which registered a financial loss of Rs 7,718 crore
Financial Performance
1. Q4FY18 OVER Q4FY17
*The Bank incurred a net loss of Rs. 7,718 Cr during the Quarter.
Bank’s net loss is attributable to:
*Lower Trading Income and significant MTM losses due to hardening of bond yields
*Incremental Provision during the quarter for NPAs.
*Higher provisioning on account of Wage Revision and enhancement in Gratuity ceiling.
*Bank has not availed the benefit of RBI dispensation with regard to amortization of MTM losses.
*Operating Profit declined by 8.24% from Rs. 17,309 Cr in Q4FY17 to Rs. 15,883 Cr in Q4FY18.
*Net Interest Income declined by 5.18% from Rs. 21,065 Cr in Q4FY17 to Rs. 19,974 Cr in Q4FY18, contributed mainly by reduction in MCLR & Base Rate and increase in NPAs.
*Interest Expenses on Deposits was down by 6.28% YoY from Rs. 35,431 Cr in Q4FY17 to Rs. 33,206 Cr in Q4FY18 despite a growth in Deposits by 4.68% YoY.
*Non-Interest Income improved by 2.23% from Rs. 12,222 Cr in Q4FY17 to Rs. 12,495 Cr in Q4FY18, driven mainly by higher fee income and recovery in written off accounts.
*Fee Income is up from Rs. 7,434 Cr in Q4FY17 to Rs. 8,430 Cr in Q4FY18, a YoY growth of 13.40% with significant contribution from Cross Sell income which registered a growth of 65.83% during the period.
*Recovery in Written-Off Accounts registered a robust growth of 21.18%.
*Increase in Staff Expenses was contained at 3.82% from Rs. 8,914 Cr in Q4FY17 to Rs. 9,254 Cr in Q4FY18, despite higher provisions for wage revisions and gratuity.
*Increase in Overhead Expenses was contained at 3.79% from Rs. 7,064 Cr in Q4FY17 to Rs. 7,332 Cr in Q4FY18.
*Increase in Operating Expenses was contained at 3.80% YoY.
2. FY18 OVER FY17
*Operating Profit remained flat with a growth of 0.08% from Rs. 59,461 Cr in FY17 to Rs. 59,511 Cr in FY18.
*Net Interest Income remained flat at Rs. 74,854 Cr in FY18 vis-à-vis Rs. 75,199 Cr in FY17.
*Interest Expenses on Deposits declined by 2.27% from Rs. 1,38,883 Cr in FY17 to Rs. 1,35,726 Cr in FY18, despite a growth in deposits by 4.68%.
*Non-Interest Income grew by 4.61% from Rs. 42,637 Cr in FY17 to Rs. 44,601 Cr in FY18.
*Fee Income was up by 10.51% from Rs. 21,389 Cr in FY17 to Rs. 23,636 Cr in FY18.
*Staff Expenses lower by 2.34% YoY from Rs. 33,975 Cr in FY17 to Rs. 33,179 Cr in FY18, mainly due to reduction in staff strength by 15,762.
*Overheads increased by 9.69% YoY, largely due to increase in DICGC insurance premium paid on deposits and expenses incurred on tech developments.
*Increase in Operating Expenses was thus contained at 2.69% from Rs. 58,375 Cr in FY17 to Rs. 59,943 Cr in FY18.
*Due to increase in provisions for NPAs and Mark to Market on investment portfolio, the Bank incurred a net loss of Rs. 6,547 Cr in FY18.
3. DEPOSITS
*Deposits at the whole Bank level registered a growth of 4.68% YoY from Rs. 25,85,320 Cr as on Mar 17 to Rs. 27,06,343 Cr as on Mar 18.
*Domestic CASA Deposits registered a growth of 7.21% YoY from Rs. 11,07,434 Cr as on Mar 17 to Rs. 11,87,294 Cr as on Mar 18.
*Domestic Term Deposits grew by 1.84% YoY from Rs. 13,86,527 Cr as on Mar 17 to Rs. 14,12,099 Cr as on Mar 18.
*CASA Ratio further improved by 128 bps from 44.40% as on Mar 17 to 45.68% as on Mar 18.
4. ADVANCES
*Gross Advances at the whole Bank level registered a growth of 4.91% YoY from Rs. 19,52,507 Cr as on Mar 17 to Rs. 20,48,387 Cr as on Mar 18.
*Personal Retail Advances grew by 13.55% YoY from Rs.4,81,386 Cr as on Mar 17 to Rs. 5,46,594 Cr as on Mar 18 with *Home loans growing by 13.26% from Rs. 2,76,454 Cr as on Mar 17 to Rs.3,13,106 Cr as on Mar 18.
*Agri Advances dipped by 1.58% YoY from Rs.1,91,265 Cr as on Mar 17 to Rs. 1,88,251 Cr as on Mar 18.
*Advances to Large and Mid-Corporates and SME registered a growth of 1.80% YoY.
*International Advances grew by 5.51% YoY from Rs. 2,86,219 Cr as on Mar 17 to Rs. 3,01,998 Cr as on Mar 18.
5. Asset Quality
*Gross NPA Ratio at 10.91% increased sequentially by 56 bps in Q4FY18.
*Net NPA Ratio at 5.73% increased sequentially by 12 bps in Q4FY18.
*Provision Coverage Ratio improved by 464 bps YoY from 61.53% as on Mar 17 to 66.17% as on Mar 18. Sequentially the same has increased by 25 bps.
*Provision Coverage Ratio without AUCA improved by 490 bps YoY from 45.48% to 50.38%. Sequentially the same has increased from 48.59% as on Dec 17 to 50.38% as on Mar 18.
*Provision Coverage Ratio on NCLT List 1 and List 2 at 56% and 75% respectively. Overall Provision Coverage Ratio on NCLT accounts is 63%.
Gross NPA (%) Net NPA (%) PCR (%) PCR(%) without AUCA
Mar 17 9.11 5.19 61.53 45.48
Dec 17 10.35 5.61 65.92 48.59
Mar 18 10.91 5.73 66.17 50.38
*Gross NPAs increased from Rs. 1,77,866 Cr as on Mar 17 to Rs. 2,23,427 Cr as on Mar 18, whereas Net NPA increased from Rs. 96,978 Cr to Rs. 1,10,855 Cr during the same period.
6. We remain well capitalized
*CET 1 Ratio improved by 27 bps YoY to 9.68% as on 31st March 18.
*Tier 1 Ratio improved by 31 bps YoY to 10.36% as on 31st March 18.
*Overall CAR remained at 12.60%, well above the regulatory requirements.
*During the year Rs. 15,000 Cr of equity raised through QIP and GOI infusion of Rs. 8,800 Cr. Rs. 2,000 Cr Tier 1 Capital raised by way of AT 1 bonds.
7. Strong Retail Franchise
*CASA deposits registered a sustained growth of 7.21% YoY in FY18.
*CASA Ratio up 128 bps YoY to 45.68% as on 31st Mar 18. Daily average CASA was at 44.29%.
*Retail Term Deposits grew by 3.15% YoY in FY18.
*Personal Retail Loan portfolio grew by 13.55% YoY driven mainly by 13.26% growth in Home Loans. Sequentially the portfolio grew by Rs 25,568 Cr during Q4FY18.
8. Dominance in Digital
*80% of total transactions through alternate channels, up by 500 bps YoY.
*Leadership position in Debit Card spends with 30.40% Market-share which has improved by 107 bps YoY.
*Leadership position in Merchant Acquiring Business with over 6.10 lakh customer touch points (POS) and 20.20% Market-Share.
*SBI Online is the 5th most popular online global financial site.
*YONO downloads at 43.70 lakhs with 14.90 lakhs registered users.
9 KEY FINANCIAL RATIOS
*CASA Ratio was at a healthy 45.68% as on Mar 18, up from 44.40% as on Mar 17 with daily average CASA Ratio at 44.29% as on Mar 18.
*Average Cost of Deposits declined by 54 bps YOY from 5.84% as on Mar 17 to 5.30 % as on Mar 18 and by 4 bps sequentially from 5.34% as on Dec 17.
*Average Yield on Advances declined by 104 bps from 9.32% as on Mar 17 to 8.28% as on Mar 18 and by 10 bps sequentially from 8.38% as on Dec 17.
*Net Interest Margin (Domestic) declined by 26 bps from 2.93% as on Mar 17 to 2.67% as on Mar 18, while sequentially it went up by 6 bps from 2.61% as on Dec 17.
*Cost to Income Ratio slipped by 64 bps from 49.54% in FY17 to 50.18% in FY18, while sequentially it went up by 34 bps.
