State Bank of India

Good evening, ladies and gentlemen. I am Rohan Kumar Kheria, General Manager, Performance Planning and Registration. On behalf of the top management of SBI, I extend a warm welcome to all joining us today on SBI Q1 FY22 Earnings Contract Call. On the call today, we have with us Chairman Mr. Dinesh Kumar Khara, Mr. CSFC Managing Director, Retail and Digital Banking, Mr. Ashwini Bhatia, Managing Director, Corporate Banking and Global Markets. Mr. Swaminathan J, Managing Director, Risk, Compliance and Stress Asset Regulation Group. Mr. Ashwini Tiwari, Managing Director, International Banking, Technology and Security. Mr. Alok Tiwari, District Managing Director, Finance. Mr. Karanji Patra, Chief Financial Officer. Before I displace our chairman to give a brief summary of the branch C1FI 22 performance and the strategic initiative undertaken, 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. The financial outcome may differ materially from those included in these assessments due to a variety of factors. Thank you. Now I request our chairman to make his opening remarks. Thank you.

Thank you, Pawan. Good evening, everyone. Thank you for joining this conference call. Well, friends, the Q1 Financial Accounting True Results we have already declared and I would like to place on the court that it is quite a challenging quarter for all of us due to the second wave of COVID-19. I hope all of you and your loved ones are safe and healthy. I want to start by thanking the support of all our stakeholders during this challenging time. During the first and the second wave, our employees have attempted to provide basic services to our customers, open at risk to their own safety. As always, good night and delivered on its obligation to stakeholders, even in the face of the extreme challenges. This is an inherent aspect of the culture of the bank. The same could be possible due to focuses on processes and structure in which every employee of the bank is faced to make a difference. Having said that, I would also like to bring it to the notice of all that almost 74% of our employee base have already been vaccinated to ensure we should be efficient to tide over any future challenges which we might come across. When we look back at Q1 2022, considering the extreme challenges that all of us have faced, we are proud of our performance. As all of you already have our presentation, I would like to highlight a few key aspects of our performance. We have assessed the severity factor and its impact on the the performance has been essentially focused on YOY basis. Our slippage ratio in the quarter is 2.41%. This is because of the impact on collections. A significant amount of these slippages have come from the retail portfolio. This is essentially our particular fault. However, the good news is that in July 2021, we have been able to gain some ground and we are confident that we will be patient to pull back and see much better performance in the days and weeks going forward. In the context of challenges faced in quarter one, we believe these results are strong and comparable. All of you will notice that we have fared well on the tech quality through financial year 21 and now in quarter one of financial year 22 as well. In fact, the next book have now undergone two stress tests one during the first wave, and the second and the most recent wave. And through both these tests, we have delivered reasonably well on the first wave. Our net NPA level at the end of quarter one stands at 43,000 truckloads, with a provision coverage ratio of almost 66%. Additional provisions, including COVID provisions, not included in the figure, are 29,816 crores. To put the context to those numbers, our operating profit was 71,754 crores in financial year 21 and the same is 18,925 crores in quarter one financial year 22. We have been able to deliver this level of operating profit despite the relatively low credit deposit ratio. As far as the capital is concerned, our CET ratio as on June 2021 is 9.91%. Given our competitive position, with our values diverse, we believe our current capital and future internal exports will be adequate to support our long-term growth targets. Given the dynamic situation and the likelihood of a third wave, coupled with the increase of economic changes between enterprise and individuals, leading to reprioritization of obligations in time of adversity, we would like to refrain from giving any forward-looking guidance at this point of time. However, I think when I focused to achieve our long-term sustainable ROE target of 15%, challenges due to COVID-19 and its resultant impact are still very real. Do we believe that COVID-19 better disruptions can come out over the medium term? To ensure this will happen, we have a sharper focus on Juno, which is our flagship app. And we have seen a significant increase in number of people who have downloaded this app and the effective registration now exceeds 4 crores. And it is actually growing at a fast pace. To my mind, it has already reached 4.10 crores. As we have, our online banking channel has got customers already using this. Additional core customers coming through, you know, gives us a digestive leakage to ensure that we are efficient to reach out to our customers and offer them the services given in the most difficult circumstances. And in the current financial year also, We have successfully deferred to more than 400,000 govors of peers. We have purchased a loan with the help of Yono, which is M2 and Jesus. Going forward, we will be enhancing this capability by offering even the two-wheeler loans and also the recently introduced Kavach loan also has been made available to Yono. To conclude, once again, thank you for all your support. We remain committed to reward your trust in us. It's a big assessment of returns for the long term. My team and I are now open to reading your questions.

Thank you.