State Bank of India

Good evening, ladies and gentlemen. My name is Hemant Kumar. I'm deputy general manager in performance planning and review department of the bank. On the occasion of declaration of the financial results of the bank for third quarter of FY20, it gives me immense pleasure to welcome the analysts, investors, and our colleagues present in this hall. I also extend a warm welcome to the analysts, investors, and colleagues who have joined us for this presentation through live webcast. We have with us on the stage our chairman, Sri Rajneesh Kumar, Managing Director Retail and Digital Banking, Sri Parveen Kumar Gupta. Managing Director Global Banking and Subsidiaries, Sri Dinesh Kumar Kharap. Managing Director Commercial Clients Group and IT, Sri Arjit Vasu. Our new Managing Director in Charge of Stress Assets, Sri C.S. Sethi. And our DMD and Chief Financial Officer, Sri Prasanth Kumar. Our Deputy Managing Directors heading various verticals and Managing Directors of our subsidiaries are seated in the first row of this hall. We are also joined by the chief general managers of different verticals and business groups of the bank. To carry forward the proceedings, I request Chairman Sir to give a brief summary of the bank's Q3 performance. We shall thereafter straight away go to question and answer session. However, before I hand over to Chairman Sir, I would like to read out the safe harbor statement. 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. Now I would request Chairman Sir to make his opening remarks.

Good evening to all of you and a very warm welcome. I think presentations have all been loaded and are available with all of you. So a very strong operating performance, you can see. And there will be many questions I know around that. Exceptions, SRST, Rewan housing. But that is all part of the game when you are in the bank and the banking industry. So otherwise also, if we remove all the exceptions, the bank's performance is very consistent. So that is the first thing which I would like the analyst community to note that we are very consistent in terms of the performance, whether it is NII, whether it is name. The profit, of course, dependent always on what is the tax rate and what are the loan loss provision. Asset quality, consistent improvement quarter after quarter. Gross NPA, quarter after quarter, they have been coming down. Net NPAs are coming down. Provision coverage ratio is consistently going up. I don't think that there has been a quarter where we have not increased our provision coverage ratio, whatever be the circumstances. So this is about, I am not repeating the numbers. The one thing which we have given in our press note as well as to the stock exchange that the reversal of DTA as far as the DTA related to the loan loss and that 1300 crore we have provided and that is why otherwise the profit would be around 7000 crore. So that is one important point to be noted and in the current quarter which is now March 20, we will be to the revised corporate tax rate which is 25%. So whatever performance comes hereafter that will be with the revised tax rate. This is highest ever profit but I believe that if it goes well, so this will not remain highest ever. We can probably show better performance than what it is. And on the business front, I don't have any concern as far as the deposit growth is concerned. CASA percentage, you may say that it has come down, but the fact is that even on term deposits, SBI's rates are one of the lowest, but still, the rate of growth for term deposit is higher than the Current and savings account. So that's why CASA percentage has come down. Our loan growth has been very good as far as the retail is concerned. And international banking book has also grown by 16%. So only corporate credit which has been much discussed and is being discussed everywhere. There the growth is negative till date. But hopefully that reversal also should happen going forward because our sanction pipeline is fairly good. And the underutilization of working capital limits. I am hoping that as the demand picks up in the economy, that reversal will also happen. In terms of the leadership on the technology front, UNO has been doing very well. And as we speak, we have crossed more than 1.8 crore registration. Now, 90% transactions of the bank happen outside the branch. It's a different matter that even that 9% still our branches are crowded. And 63% of savings accounts are opened through UNO, which is digital onboarding. Multiple products, 34 plus products are available. The personal PAPL loan book has crossed 10,000 crore. And number of transactions which are happening on UNO platform, whether it is Yono Cash, that is cardless withdrawal from ATM, more than 100,000 transactions now. And whatever facilities we have provided on Yono, they are being effectively used, all features. So, which is a very encouraging sign that it is not just the number of registration is increasing, but the actual usage of the features is also increasing. on continuous increase and still the impact on the cost to income ratio. It has not yet come, but it will come. I am very confident about it. As we realign all of our branch processes, that productivity gain will be visible. And financial inclusion, again, bank has done phenomenal job in the area of financial inclusion. Number of accounts, DVT, number of transactions, the social security schemes, performance. So everywhere there is a growth and a good growth. And finally the performance of the subsidiary, all of them. It is continuously improving. All of them, as I said, that they are Either leader or on course to become leader. SBI mutual fund, I think, number one, number two? Number two today, but number one very shortly. So SBI, general again, it is one of the fastest growing private sector. SBI Life, its illicit company, its results, they all have been before you. So whichever subsidiary you take, they all are doing very well. So all business segments, all subsidiaries, the costs, I would say other than one cost which is relating to the retirement benefits, all other costs are very much under control and well within whatever was budgeted for. HR, we have not put a slide, but even on the HR front, the kind of initiatives bank has taken to recruit talent as well as to upgrade the skills of the people, the reorganization of the credit verticals, as well as now a major shift or major reorganization which is happening in what we call our retail and digital banking group. A massive reorganization is planned, which will happen from 1st of May. And again, we believe that it will do many things. One would be definitely a visible improvement in the customer service. And second is the capability to compete in the micro markets as well as the what we call the retail segment markets. So many of these things they don't come in the presentation. That is an internal reorganization, internal process. But its benefit are going to be immense. So these are some of my opening observations and then all your questions I will answer other than yes. So please, floor is open.

Thank you, Chairman, for the opening remarks. We now invite questions from the audience. For the benefit of all, we request you to kindly mention your name and company before posing the questions. Further, we also request you to restrict your questions to maximum two at a time so that all the questions can be accommodated. In case you have additional questions, the same can be asked at the end. And the first question would be from...