State Bank of India

Ladies and gentlemen, good day and welcome to SBI Q4 Meet hosted by State Bank of India. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing card and zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Pawan Kedia, General Manager, Performance Planning and Review from State Bank of India. Thank you and over to you, sir.

Thank you. Good evening, ladies and gentlemen. I am Pawan Kedia, General Manager, Performance Planning and Review. On behalf of the top management of SBI, I extend a warm welcome to all joining us today on SBI Q4 FY21 Turning Conference Call. On the call today, we have with us our chairman, Mr. Dinesh Kumar Khara, Mr. C.S. Shakti, Managing Director, Retail and Digital Banking, Mr. Aswani Bhatia, Managing Director, Corporate Banking and Global Markets, Mr. Swaminathan J., Managing Director, Risk, Compliance and Stress Assets Resolution Group, Mr. Aswani Diwari, Managing Director, International Banking, Technology and Subsidy, Mr. Alok Chaudhary, Deputy Managing Director, Finance, and Mr. Charanji Tatra, Chief Financial Officer. Before I request our Chairman to give a brief summary of the Bank's Q4 FY21 performance and the strategic initiative undertaken, I would like to read out the safe forward 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 outcome may differ materially from those included in these statements due to a variety of factors. Thank you. Now I request our chairman, sir, to make his opening remarks.

Thank you. Thank you very much, Mohan. Good evening, ladies and gentlemen. Thank you for joining this conference call. I want to start by thanking the support of all our stakeholders during these challenging times. Our employees have worked tirelessly to support our customers. We also appreciate the support of our customers. In financial year 21, the bank has delivered a ROE of almost 10% with a slippage ratio of 1.18%. The net NPA is at 36,810 crores, which is 0.5 times of our financial year 21 operating profit. In addition to a PCR of 70.88%, the bank has additional provision of 25,376 crores at the end of financial year 21. I would like to highlight that the bank has delivered almost a 10% ROE in a year when the credit deposit ratio is at a cyclical low. And when the incremental credit deposit ratio was only 26% due to various one-off factors. The bank has demonstrated its resilience in this challenging period. In the long term, the commitment of the management remains to demonstrate that this institution can deliver sustainable ROE of 15%. While challenges remain due to the COVID-19 and its resultant impact, we believe that the bank can weather the disruptions and come out stronger. We won't give a timeline for our ROE target in the current uncertain environment. However, we remain confident that the bank has enablers in place to deliver 15% sustainable ROE over the long term. In our view, the recent past from 16 to 20 is only a small period for a bank of our heritage of more than 215 years. We believe with the efforts of our team, we have put up that the period behind us should be a history now. We have used that period to further insulate the bank against visible and invisible risk, further strengthen our processes, and have put in place long-term value drivers like digital banking and stress assess resolution skill sets. We remain well capitalized with a CET ratio of 10.02%. Given the dynamics of our business, our competitive positioning, and our value drivers, we believe our current capital and future internal accruals will be sufficient in helping us achieve our long-term growth and return targets. Further, we remain conscious that the cost of equity is a value driver of our bank and we intend to minimize the same to maximize the value of our existing long-term shareholders. We have supported the bank in very challenging periods. We believe at our scale and the resultant complexities, we have been successful in balancing the requirement of all the stakeholders. Concluding my opening remarks, I would like to thank you all for the support to this institution. We remain committed to reward your trust in us with superior sustainable returns over the long term. My team and I are now open to taking your questions. Thank you very much.