State Bank of India

Namaste everyone and good evening ladies and gentlemen. My name is Sanjay Kapoor and I am the General Manager of Performance Planning and Review Department of the Bank. On behalf of State Bank of India, I am delighted to welcome the analysts, the investors, the colleagues and everyone present here today on the occasion of declaration of the financial results of the bank for quarter one of financial year 25. I also extend a very warm welcome to all the people who are accessing the event through our live webcast. We have with us on this stage Chairman Shri Dinesh Khara at the centre. Our Managing Director, International Banking, Global Markets and Technology, Shri C.S. Setti. Our Managing Director, Corporate Banking and Subsidiaries, Shri Ashwini Kumar Tiwari. Our Managing Director, Retail Business and Operations, Shri Vinay M. Tonsey. Our Deputy Managing Director of Finance, Srimati Saloni Narayan. Our Deputy Managing Directors heading various verticals and Managing Directors of our subsidiaries are seated in the front rows of this hall. We are also joined by the Chief General Managers of different verticals and business groups. So to carry forward the proceedings, I'll request our Chairman Sir to give a brief summary of the Bank's quarter 1 FY25 performance and the strategic initiatives undertaken. We shall thereafter straightaway go to the question and answer session. However, before I hand over to the Chairman, sir, I would like to read out the safe harbour statement. Certain statements in today's presentation may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to variety of factors. Thank you. Now I would request Chairman sir to make his opening remarks. Sir.

Good evening friends. Thank you very much for taking out time and joining us for this NLS meet post-announcement of the quarter one financial year 25 results of the bank. At the outset, I would like to thank all our stakeholders including our customers, shareholders, employees, and all concerned for the support and helping us in creating sustainable value not only for the bank but also for the economy as a whole. I will first start with a brief description of the present global and domestic economic scenario and will then discuss the bank's performance. In the last few months, the global economic activity appears to be strengthening across advanced economies. and emerging market economies. Global trade is gathering momentum. Inflation is approaching targets, but the pace of disinflation has somewhat slowed down. Central banks are closely monitoring the growth trajectories, employment and labor markets, and price trends. With US Fed expected to have a 25 basis point rate cut in September 24, there is a huge I would say this is very positive for the global economy and it augurs very well. As far as domestic economy is concerned, the second quarter of financial year 2025 has begun with gaining growth momentum. The benign monsoon pattern and its accelerated distribution of late should smoothen the inflationary expectations in the medium run. Latest numbers show that the schedule commercial bank credit growth was around 14% while the deposit grew at about 11%. For the third consecutive year till now, the credit growth has been higher than the deposit growth. New investment announcements which are around 10 trillion during 2021 has improved to about 37 trillion in last two years. Major industries where new announcements have been made include non-renewable energy, real estate including housing, electronics, renewable, basic metal, inorganic chemicals, etc. Union budget announcements are positive for the markets. The thrust to the consumption revival, PM Sureghar, Mufti Bechli Yoishnab, PMAY Urban, MSME and start-up agriculture and boost to the infrastructure throws up considerable opportunities for the banks. As far as we at State Bank are concerned, we have once again delivered excellent numbers. I am happy to share that our net profit for the quarter 1 of financial year 25 is at 17,035 crores and shows an increase of about 0.90 percent over quarter 1 of financial year Operating profit at about 26,449 crores has increased by 4.55% YOY. Bank continues to report ROE of greater than 1%, which is at 1.10% for quarter 1 of financial year 25. The ROE of the bank for the quarter 1 of financial year 25 is at 20.98%. The cost to income ratio of the bank is at 49.42% for the first quarter of financial year 25. and shows an improvement of 95 basis point over Q1 FY24. Net interest income for Q1 FY25 has increased by 5.71% by OI on the back of the improvement in yields and continuing credit off-take. Operating expenses have increased marginally by 0.65% by OI. We believe sustaining our profitability at this level highlight the resilience of the underlying value drivers of the bank. As far as deposits are concerned, our deposits have grown by 8.18% by OI and TUM deposits have grown by 12.20% by OI. CASA deposits have grown by 2.59% by OI and we have taken several steps to strengthen our liability franchise. I am pleased to share that the credit growth continues to be robust. Across all the segments, our domestic advances grew at 15.55% and the retail agri and MSME advances have crossed the number of 21 trillion during first quarter of financial year 25. Out of the above, the retail personal advances constitute about 13.7 trillion. Agri advances at 3.09 trillion and SME advances at 4.43 trillion. They are growing at 13.60%, 17.06% and 19.87% respectively. The corporate segment is also showing healthy growth of almost 16 percent by OI. Our foreign offices have continued to perform well with advances growing at 14.41 percent and deposit growing at 10.48 percent. Our liquidity position is comfortable with the liquidity coverage ratio being about 129 percent as on 30th June 24, which is well above the regulatory benchmark. The domestic CD ratio is at 69.28 percent indicating a question to grow our credit portfolio. I am happy to share that the progress we are making in the digital banking. Almost 8 crore customers have been registered in Yono, driving the digital agenda of the bank. 63% of the regular savings bank accounts were opened through Yono in Q1 of financial year 25. Yono Binance has gained significant traction with more than 29 lakh users having registered till now. We are also leveraging analytics with significant readiness of 25,438 crore underwritten during the first quarter of financial year 25. As regard asset quality, our gross NP ratio has improved by 55 basis point YOY and stands at 2.21% as at June 24 and continues to be at its lowest level in more than 10 years. Our net NP ratio has also improved by 14 basis point YOY and stands at 0.57%. Slippage ratio for quarter 1 of financial year 25 has improved by 10 basis point by OI and stands at 0.84%. We have a well-provided stress book with PCR including OCA standing at 91.76% and PCR excluding OCA standing at 74.41%. The bank remains well capitalized and we have sufficient headroom to take care of the normal business growth requirements. Our capital adequacy ratio stands at 13.86% with CET1 ratio at 10.25% without considering the plowback of the profit. Both the ratios are well above the regulatory requirement. Our subsidiaries are also consistently performing well and continue to create significant value for all the stakeholders and most importantly for our customers. We will continue to nurture these subsidiaries and see them creating value for their own as well as the shareholders and the customers of the bank. To conclude, I would like to thank you all once again for all your support to the bank. The bank will pursue its own progress, contribute to the progress and growth of the economy. We remain committed to rewarding 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.

Thank you, Chairman, sir, for the presentation. We now invite questions from the audience. And for the benefit of all, we request you to kindly mention your name and company before asking their questions. To accommodate all the questions, we request you to restrict your questions to maximum two at a time. Also, please restrict your questions to the financial results only, and no questions be asked about specific accounts, please. In case you have additional questions, the same can be asked at the end. We will now proceed with the question and answer session. And the first question is here.