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.

Hello. Hello, sir. This is Manish Oswal from Nirmalbank Securities. So my question on our slippages during the quarter. So we have seen some uptick. It's largely sizzling nature or election or heatwave impacted retail collection during the quarter.

As far as the slippage in the first quarter is concerned, I would actually split them into two or three reasons. One, of course, These are the aging provisions on the standard assets. Our book is growing. So that is one of the reasons. The second reason is some kind of slippages which are seen in the unsecured personnel and that was essentially on account of some delayed credit which we had seen in some of the states on account of the delayed credit of the salary. But when we look at the slippage ratio in the previous years also in the quarter one, In the year 22, it was at 1.38%. Quarter 1 of 23-24, it was at 0.94%. And now it is at 0.84%. So actually it is lower in terms of the percentage point. And out of the 7,900 crore slippages also which have been seen as on 30th June, almost 1,600 crore have already been pulled back. So this is the kind of a scenario. And I actually don't really worry much about it. We are in a position to have a decent quality. There is nothing wrong with the underwriting. It's only essentially seasonal, I would say. Part of it is seen even in agriculture also, but that is invariably seen in the first quarter.

The second question on the, given the current macroeconomic scenario, so we have seen the 15% loan growth and 8% deposit growth. So... How do you see the deposit increase in the bank in the rest of the current financial year? And do you see the further cost of deposit to increase for the bank?

See, as far as even now also we are at about 68% kind of a CD ratio. So deposit growth in absolute number is one aspect. Cost at which it is raised is the other aspect which we cannot ignore. Though our cost of deposit has gone up by about 45 basis point but our name compression has happened only to the extent of 11 basis point. So that's a very clear reflection that it has been a very judicious strategy on the part of the bank to be very mindful in terms of the cost at which the deposits are being raised. Having said that I would also like to mention that we are very mindful about the depositors interest and that is the reason why in some of the buckets we have increased the interest rates but that is essentially to ensure that the franchise value stays intact. So that is what our philosophy has been. 15% growth in terms of loan book and 8% growth in deposit. We do not have any liquidity challenge for the simple reason that we have got a excess liquidity, excess SLR to that in about 3.7 trillion. Another aspect which I would like to highlight is that we are opening almost about 60,000 odd savings bank account daily And out of this, about 40,000 accounts are getting, 34 to 40,000 accounts are getting opened through Juno. Another data point which I must share with you is our, the savings account balance used to be about 12 trillion in March 20 and it has moved to about 17 trillion now. So, and incidentally, our savings bank deposit has outstanding balance in savings bank accounts are three times of the next highest, next largest bank. So this is something which I want to highlight in terms of the franchise. Apart from that, for current account also, we are taking various initiative. 60 odd transaction banking hubs we have already created and we are having 500 odd relationship managers only for mobilizing current account and that to form the trade, commerce, industry, hospitals, nursing homes, etc., etc., And this initiative which we took about almost about a year back, I'm sure it will start yielding results. It may not be seen at the end of the month or end of the quarter, but during the period, if at all we look at the daily average balance, we get to see much better outcome of this. So we are quite cognizant of the kind of situation which is obtaining on ground. And it's very natural on the part of the depositors also to look at the multiple sets But even when they are investing into those assets also, the channelizing source remains bank only. So I think with the kind of add-ons which we are offering, I don't envisage any challenge to our franchise.

Small clarification on when you said balances is 3x of next largest bank, you are talking about PSU largest bank or the private?

Anybody, private sector also. Thank you.

When I say next largest. Yes please. So on the savings bank, our market share is 26.27 percent. In 2004, it used to be 20.2 percent. In 2014, it used to be 22.3 percent. So we have always gained market share while others have lost.

In fact, we are leveraging analytics to understand the behavior of the savings bank account also. So a lot of work is being done and I am sure It will ensure that we stay ahead of the curve.

Yes, sir. Yes, sir. Hi. So first of all, congratulations on a very successful career at SBI. We really will miss interacting with you from the next quarter. And we wish you all the best. Thank you so, so much for all the learnings. Thank you so much, sir. Thank you. So I had a couple of questions. The first question is that just in terms of margins, what is your outlook given that first of all there's a deposit challenge for the sector and then if rates are cut, there'll be some pressure, though not as much for you because you have a higher MCLR linkage. But in terms of guidance on margins and also if there was any one-off, I mean if there was any interest on tax refunds this quarter or it was… Nothing.

There was nothing on that account. So this is actually a pure play interest. Yeah. So I think as far as the guidance on the NIMS are concerned, our effort and endeavor is to keep it in at this level. But yes, of course, we all operate in the overall macro and yes, of course, effort and endeavours will certainly be there to maintain the NIM even if it moves I don't think it should have any significant change in the numbers that's what my read is and it has to be as I mentioned that you know when we have increased our term deposit rates which happened almost 6 months back and into the 1 to 2 year bucket which we have done So it has a overall impact in terms of the cost of deposits but nevertheless we could pass on part of it to a greater extent and that is the reason why the cost of deposits have gone up about 45 basis points but the NIMS have only dropped about 11 basis points. So this is going to be the, this is likely to be the trajectory in the days to come to

Got it. And sir, just in terms of CET1, what is the contribution from the new investment norms to CET1 for the quarter?

That was actually I think 4,600.

So the net impact on the reserves is 3,673.

3,673. So basically without profit, the CET1 has... Decline, right? Despite new norms, new investment norms.

No, that was done as on 31st March. No, no. It is 1st of April.

As on 30th June, the net impact is 3,600 positive on the 7th month.

3,000. Yeah. Okay, sir. Okay. Thank you so much.

Sir, compliment from my side also, sir. In spite of so many pressures and various changes by the RBI in the regulations, two, three such things have come in last... three, four months, six months, the bank has performed very well. But still, sir, my question is on, because generally we compare with the immediate last quarter and, of course, the March quarter was better. But still, in the other interest income, I think if we compare from the last quarter, we have gone down by almost about by 6,000 crores.

See, the point is that last quarter... See, this revision in the investment norms. So whatever profit was there, it was not through the other income route. It was all through the balance sheet route, AFS reserves which have been created in the balance sheet. So that was actually about 4,600 odd crores, isn't it? 3,600. No, it's a net of. There was some other impact also. So that is something which is one of the reasons. But other than that, sorry?

Profit and sale and reinvestment of the... It is actually mainly on account of that.

This quarter we had less gain than last year first quarter. That is the main reason. Secondly, the provisions have inched up a little because of you see the increase in loan loss provision due to aging and also taxes also have increased. That's the reason.

So like on every... And non-interest income, non-interest income actually at times there is an income tax refund also in the last quarter. All those things are not... Actually comparing with the year end, first quarter with the year end is not a comparison of apple to apple. That has to be... That is what I would recommend.

That's what only I want to be reassured because in the first this quarter there was some other problems also. The election duties and the usual transfers and other things because on every front like right from the loan processing fees to the commission, to the government commission, to the cross-selling, in everything there is a substantial decline. So now going forward, are we going to be on the track, except that because of the regulations, when the changes are there, that may not be there. And secondly, some trading gains which are there, which many of the other banks have also made, that in any case has to come as a profit, because now Now, because of the change, instead of the treasury income, now it comes in the NIM, where it has not been reflected so much. So, overall, the treasury operation itself, whether it has been affected negatively, whether we are on the same path, because we were making very handsome gains from the treasury.

No, all those gains will be through the balance sheet. Yeah, I'll just respond to treasury gains, of course. We do continue to have the trading profits as the yields go down, whatever is there in the HFT portfolio and a bit of AFS. And 5% of HTM also we can trade. That opportunity will continue to be there. But as far as MTM gains are concerned, I think they are not going to be reflected in the P&L. They will be directly going to the reserves. I think this is what we need to understand. But we have a good amount of opportunity in terms of trading gains, not only from the fixed income securities. I think on the equity side also, we've been doing very well. I can assure you that the treasury income will continue to be robust.

So my second question is on the guidance, I mean the note which is going on from RBI on the deposit source through the digital media and the increase in the provision rather double than this. Have we assessed the impact of that on our bank and how many basis point it will impact our capital adequacy as well as the loss because of the blockage of that funds?

This is actually premature to really share this in an open forum like this but as of now we have got our own observations on these provisions which we have shared with RBI which we will be sharing with RBI now and also will also be reaching out to IBA and to the Government of India describing its overall impact. So at a material point of time, let us see whether this consultation paper actually gets converted into the regulation.

The last one in this round, sir, is the gap is known between deposit and the credit growth which we are having, where our credit growth is intact. And the deposit is a pressure everywhere in the entire banking circle.

Deposit also could be 12%. No issues. But at what rate? That is more important. So that is the reason that when we have got the liquidity available through alternate channels, it makes a lot of sense that we should use that as against raising deposit at high cost.

Anything on capital account in future? You have raised already but going forward. Now whether the time has come at this price that you think of Really strengthening the entire CRA?

We keep on reviewing the situations, but as of now, with the current capital and with the kind of liquidity which we have, we can easily grow our book to the extent of 6.5 to 7 trillion. Board has already approved it.

Raising 10,000 crores worth of tier 1 and 15,000 tier 2.

25,000 crore approval has already been given for tier 1 and tier 2. Thank you, sir. I'll again come back if time permits. Thank you.

Sir, my name is Manoj Alim Chanani. At the outset, Chairman, I would like to congratulate you for setting the path to profitability for SBI during your career, one lakh crore mark, and your very motivating speech to staff. Fantastic work by all the staff in improving their productivity and efficiency, number one. Number two, sharpest mind, CFO, you are among the sharpest minds in finance in the business in the country. We observed that in the last meeting also. And here I'm sure she would be making immense contribution on the board. Number three, a couple of questions. Your deposits. Everybody is struggling for CASA and savings account CASA. Even private sector bank, we are struggling for one-one account or savings. It's not easy. Your foreign branches have today deposit growth is over 10%. It's not easy. Over 10%. And hats off to all the team, in fact, and your foreign subsidiaries director. It's really wonderful. It's not easy. And now a couple of questions. I hope you are keeping your eyes on the ball as always, seeing the market cap of IDBI, divestment decisions, and lots of foreign interest, how it has multiplied. And we are stakeholders in Yes Bank. today, which has huge potential. And we look forward to insights from you, the further developments of what is happening. I would like to share insight. Today, Reliance Power and Infra AGM was there. They are going to make good payments out of their FCCP fundraise to JC Flowers. And ultimately, Yes Bank and SBI would also benefit. SBI was also directly, so a lot of performance will come further also. So your insights on that, how we can improve that. And also on some of our subsidiaries, how it can create value, particularly SBI card. Your general insurance is doing a fantastic job. Life is doing a fantastic job. Mutual fund, number one, . So it's not easy to cross the 10 lakh crores, right? So specifically, you can mention about that. We look forward to the maximum extension you can get so you can deliver all the targets and set the inspiring tone for the next chairman and MD. But we get confidence of very good hands and further interaction with you and contribution to Vichit Bharat Amritka. Thanks.

Thank you very much. Well, as far as Yes Bank, it's premature for me to comment. We are also watching very closely the developments which are happening over there. As far as our other subsidies are concerned, they have certainly created significant value for themselves, for their shareholders, and also by virtue of being the manufacturer of the product in their respective area, they have created value for our customers as well. So internally we have got a philosophy how to leverage power of one. And that's a new paradigm which we have set for ourselves. And I'm sure even this initiative will yield value and you will get to see even significant enhancement in value in the days to come from this initiative as well.

One more point we mentioned about fundraise. You talked about the resolution of tier 1 and tier 2, 10,000 plus 15 and today our premier channel is talking about 1000 and 2000 rupees stock when all the previous chairmen were shouting at the top of their voice including Arundhati Bhattacharya, Rajneesh on discount to book value and doing it. So this is not easy. You have achieved it. So based on what is the market perception which you and your team have created, even 1000 rupees is undervalued. So when you do your tier one fundraise, It should not be because we need 10,000 crores just to achieve the target. Our intrinsic value is much more, but do it during your time so we can get much highest value so the current shareholder's value doesn't get diluted, we get rewarded. And many of us and our clients are long-term investors.

Yeah, we have plowed back about 1.14 trillion in last three years. So that is something which is giving us the natural lever for growth. And I believe that this is best of the strategy when it comes to giving the muscles for growth to the bank. And I'm quite confident that this strategy has proven its value. I'm sure it will continue to be useful strategy and will continue to create value for the shareholders. 1.14 trillion in three years is something which I think is never in the past.

No other chairman has done it.

I will not say that. It's a team. It's a team which always works.

It's a team. That's why I said sharpest brains in the country. We are proud of you, madam. Contributing to women power, Rikshit Bharat. And thanks and all the best to your team. I hope many of your team members, they look at the broadcast, they give me feedback that you mentioned this and they get inspired by higher levels of performance, which you and... No, we have been talking about this number in the boardroom, by the way.

Hi, sir. This is Jay Mundra from ICICI Securities. Congratulations on a steady performance, 1.1% ROA. So my question is, you know, on this CET1, so the new norms you mentioned that they have contributed around 3600 crores to the reserves. That is like 10 basis point of the RWA, 10 basis point CET1. I think two quarters back, we had sort of estimated that these new norms will give around 50 basis point of increment in the CET1. I mean, this is what, you know, SBI had published two quarters back that, you know, the new norm should ideally give 50 basis point increment in the CET1. So, have we, I mean, is that all done or maybe some of the value from Yes Bank or NSC, etc., that are yet to be, you know, finalized or this number is final?

No, I think Yes Bank and NSC, etc., that has not been done. It has not come into this.

So... Just to supplement what Gemma is saying, this 50 basis point estimate is on how we are going to allocate the portfolio among the HTM, AFS and HFT. So we have decided that to take the opportunities of adding some duration to the HTM portfolio because HTM is unlimited now. So much of the SDLs which we have procured, we put in the HTM. So that's the reason you don't see much of valuation gains going into the AFS reserve. So the 50 basis point is based on certain assumption that in how I'm going to structure the portfolio. So we would like to continue this current portfolio model which means that you know the AFS reserve gains as on 30th June almost frozen. I can tell you that.

Secondly sir on unsecured express credit you know on a It has done fabulously well all this year, you know, despite COVID and everything. But this quarter, the GNPA have risen by around 20 basis point, right? 0.77 to point something. Is that a change in the direction of the GNPA? Because we have held this book so clean so far. Or you think this is just a temporary thing and you can pull back GNPA?

It's a temporary situation. And I was explaining that... In some of the states, there was a delayed credit of salary. That is one of the reasons why it has happened. But we have been in a position to pull back a significant portion of that because as and when the salary got credited, we could pull it back. We are actually strengthening our digital offering in the express credit space also. We call it a RTXC now. So that is something which we are now shifting this. So I think it's a transitory phase. We should be in a position to get out of this very soon.

lastly if you can give some color on this express credit now it has become a very you know significantly a big book what is the maybe the average ticket size and maybe you know how much is as you always mention how much is you know government or maybe category one employer in fact as far as the composition of the express credit is concerned it has remained the same there is no change in that but yes of course

We also are very mindful in terms of the RWA consumption in express credit. And that's why at the portfolio level, we are very mindful in terms of the area of growth considering the RWAs which are being consumed. So you would have observed that our RWA consumption is just about 53 basis point, 53%. So that is something we also, I mean, a lot is being talked about ROA But that ROA has to be seen in terms of our RWAs also. And if at all we will look at the average ticket size of the excess credit. It is actually at 7.18 lakh. And also our yield is perhaps one thing which has to be seen in the context of the RWA. That is why we are really looking at all opportunities where all we can grow. and how best we can consume the RWAs. That is something which is on the top of our mind.

And the penetration in these accounts is just 27.20%.

That I think as far as opportunity is concerned, there is no doubt of opportunity. There is ample opportunity which exists. We have to take a call. Shall we or shall we not grow considering the RWA consumption?

Lastly, sir, if you have the number handy for the mix of loans by benchmark, you know, how much is repo rate linked and MCLR and... Yes, yes. Fixed rate, etc. Thank you.

No, I think this number is very much there. MCLR is about 36% and EBLR is about 27%.

27% and fixed rate is 20%. And T-bills plus others are 14%.

Thanks a lot, sir. And all the very best. Thank you. Thank you very much.

Sushil Choksi, India Security. Congratulations for a stable result and best wishes to you and your future. Thank you. Sir, hearing your opening remark and Fed and the current weak outlook from the global markets, I think specifically the money markets in India should have a bumper harvest in the next two quarters. What's the outlook at SBI and specific to our book?

Well, as far as that bumper harvest is concerned, we will have to wait and watch how things really evolve at a macro level. There are multiple factors at play. It is not merely the interest rate at a Fed level. There are multiple other factors also at play. That is something which we will have to wait and watch. So I think as far as SBI is concerned, we have seen a decent growth in SBI. the international book also, about 14% kind of a growth. Lower interest rate in US will certainly, but of late, you know, when it comes to the global economies also, there is a lot of decoupling which has happened. It's not that US Fed reduces interest rate, everybody else starts falling. We have actually seen that Bank of England reduced first, Australia also reduced it. US Fed all this while was saying that they will not reduce and suddenly a commentary has come that they might reduce. Japan has increased. So I mean the trends are very different which very clearly means that each of the economy is probably evaluating the situations obtaining in their respective geographies and are accordingly operating. So all the central banks are not in sync. That is one aspect. But nevertheless, since we are operating in 29 geographies and we are in a position to evaluate the opportunities in each of these geographies, we will be having our strategies tailor-made to suit the respective geographies, keeping the overall policy for the bank in mind.

Sir, again to your opening remark of India's growth story, There's no better person to give us a guide where private capex and green shoots, will it be visible in the next quarter or accelerated growth? What kind of information you are gathering and the discussions on borrowing the industry is having with you?

So I would reflect it in the sense that if at all we look at our proposals in pipeline, which is sanctions plus also the one which are awaiting disbursement, Proposal pending for sanctions and including disbursements, it is at about 4.62 trillion. And a significant portion of that to the extent of about 66% would be from the private sector. The other indicator which I can perhaps share with you is when it comes to the private sector commitment, it used to be somewhere around 10 trillion odd, now it has moved to somewhere around 37 trillion. So that is a very clear reflection of... their positive perception of the economy. And on the top of it, the government has the major lead in terms of pushing the growth. The kind of budgetary announcements which they have made, I'm sure it will also show up in terms of the growth trajectory of Indian economy. So these are some of the indicators which I can share with you. And we have already seen, as our SME book is concerned, there's a 20% growth. In case of agriculture book also the growth is to that you know about 16-17%. And with this kind of numbers there is it's a very clear reflection of what's happening in the real economy. So these are some of the encouraging numbers and corporate book particularly mid-corporate. Mid-corporate are showing very promising trends and we have seen almost 16% kind of a growth in the mid-corporate as well. So that's That's the sense which I can share with you as far as the economic opportunities in the Indian economy are concerned.

So if you ignore the Q1 behavioral pattern of consumers, specifically led by election and the heat wave, which many banks are identifying, and maybe reality partially also, or the staff was deployed for election, based on your own bank and subsidiaries, because you have the largest consumer base, How are you seeing the pattern, the growth in consumer retail business on the demand side as well as on the repayment schedules?

Well, when it comes to unsecured, particularly if at all we have to see the unsecured book of SBA card, yes, they had some pains in the past, but of late they have provided it adequately. So I don't think so that considering the kind of balance sheet size they have, it is not a reflection of the economy overall. I would actually say that our book which is more reflection for the economy and there the kind of quality which you have seen, the kind of trajectory which is available. I think as far as the retail is concerned, we don't see any challenge. We expect that we have seen the retail book growing at the rate of 16%. for past couple of years. We expect that it might tinker a bit, but that would be not essentially on account of the demand. It would be more in terms of our considered choice to grow into that or not to grow into that, considering the RWA issues. But nevertheless, there's adequate demand which we're seeing. When it comes to mortgage book, there's adequate demand. When it comes to car loans, there's adequate demand. We are growing very well. So I think on the consumer side, These are some of the factors which you have to keep in mind. When it comes to personal loan, pension loan, etc., there is adequate demand. So I don't see any reason why it should slow down going forward. And particularly if at all economy has to grow at 7, 7.5, retail will continue to be a major growth pillar.

Most of the banks are struggling where CASA and deposits are concerned. This is a hypothetical question whether you may answer or not. Let's assume that we get 675, 680 on GSEC and there is adequate demand at 99.5% where if not AAA, AA and infrastructure projects are concerned. Will you monetize excess SLR towards deployment in infrastructure?

We have already done that. We have already done that because our yield on investment was about 7.2. And when it comes to our Elon advances, it is at 8.86. So this movement which has happened in the corporate book has essentially come from the treasury. We have unbound our position and supported the corporate book.

And last question, your infrastructure has been at a super fine rate and may even get better. Will that support credit growth from your perspective when you are able to... We are tapping all possible...

channels for supporting the growth. Our infrastructure bond is now at about 60,000 crore which is the highest in the industry. Our infrastructure book is at about 3 trillion. So we have got ample scope to really ramp up this particular source of funding. We have already opened our CD program which is at about 50,000 crore. So we are tapping all multiple channels to see that how best we can have the balanced portfolio of raising resources and funding the growth which we are envisaging to come.

Congratulations team SBI and best wishes to yourself and the team for future.

Thank you. Thank you very much.

Hello. Sir, I have a follow-up question on the recent risk we have seen in the cyber side. So how we are taking the action or measures to improve our cyber risk in our banking operations. And last three, four years, how much you lost in a cyber risk perspective for the bank?

As far as loss is concerned, we have not lost anything. The other piece is that how are we geared up. I would only say that for ensuring that we should stay secure as far as cyber is concerned, We have to run on the treadmill every day and we are doing that. I assure you that. Some event which happened in case of CH, that was a one-off essentially because CH was more like a platform. They are offering themselves as a platform for multiple entities and it was a standalone VLAN kind of issue which had not impacted the CH operations. But yes, of course, as a precautionary measure as prescribed by NPCI and RBI, Everything was subject to greater scrutiny and independent scrutiny by an agency and they have given a clean sheet. So that very clearly means that the best of the practices are at play. But yes, of course, as I mentioned, to ensure that we should secure from the cyber angle, we have to run on the treadmill every day and we must do at least 10,000 steps every day. We are doing that.

And the last question on the economy outlook, we have a 7% for the current year and credit growth in the system is looking very good. So in banking, the general saying is that the good times create the new risk to the balance sheet. So last time you had indicated that some of the project-powered lending, some players are not factoring the project risk while censoring those loans and we saw the RBI action on that. So, if I ask you, top three risks which you visualize for F25 or the medium term for the banking sector being a leader, what will be those risks, it will be great to hear from you.

See, there would be, as far as the risk are concerned, there is no end to the list of the risk. But the prudence lies in our ability to recognize them and put in place the mitigants. So that is something which we are doing and price risk in case of such kind of long term projects is always there but yes of course we have got the sector consultant when we are doing the sensitivity analysis we factor in such kind of risk and also give the shock accordingly and see that what is the resilience of the project And also some of the learnings from the past in terms of execution is something which we have already factored in. And when it comes to the product itself, we have factored in such learnings at a product level itself so that we should not fall prey to any of such risk. And on the top of it, as far as the structure is concerned, we have strengthened our structure adequately to ensure that we should ward off any such risk.

And one small data point, is there a large repayment telecom exposure during the quarter?

Whatever has been done, it is to the securest of the entities. Actually, there is a reduction.

Sir, I have a few follow-up questions. Firstly, that you had given a rough impact of ECL two years ago and now obviously the impact

Unfortunately, it has remained a consultation paper. I was looking at it. It should become a regulation. At least we can plough back some amount which we have been running with this.

Oh, so, but could you, because the governor has mentioned, right, that he'll finalize the guidelines soon and then... No problem.

We'll be better off.

Okay. But any rough impact last time you'd given an impact? So, it's much less...

No, see the point is that it is a PD and LGT and over the years we have seen that the asset quality has improved. The impact will actually get softened over the period. If at all it happens, it will be to our advantage.

Okay, means you will not have to make additional provisions?

No, we are continuing our old practices of making provisions. As a bank, we have always believed in ensuring that the balance sheet should stay absolutely healthy. There should not be any challenge. We actually go to our relationship manager to inquire what is your sense about the asset quality. If at all they have any discomfort, we rather make provision as against allowing them to have a discomfort.

So unless there is an asset quality event, basically your credit cost trajectory should remain like what you guided to now on an incremental basis every year. We are hopeful for that.

We are hopeful for that.

Okay, sir. Thank you. We have one last question here.

Sir. Both of you can ask.

No issues, we can ask.

No issues.

Time is, I'm at your disposal. Carry on.

Thank you, sir. RBI has been flagging that loan growth is exceeding deposit growth and I don't know why, but what is the solution that they are expecting from the bankers? Are they expecting slow down loans and repay borrowings? and make the ratio look mathematically better? Are they expecting you all to move loans into investments, make the ratio? At the end of the day, assets and liabilities will balance. I don't really understand what they're expecting. So if you could just share some insights, it would be good.

No, what is their mind, I will not be in a position to read that mind. But nevertheless, whatever my assessment of the situation, I can certainly share with you. As a regulator, it is incumbent on them to ensure that all entities – should stay afloat and do well. That is perhaps one of the areas. And you would have observed that there are some entities which have got credit deposit ratios much more than 100 percent. So naturally they have that in mind perhaps and also it is likely contagion impact on the system and that is the reason why they are really looking at it. But nevertheless I think More than the regulator as a financial sector player, it is incumbent and particularly the board and entities, it is incumbent on each one of us to ensure that we should practice prudent policies so that there are no shocks. And this is something which we believe, we practice and we will continue to practice.

Is there a glide path for the banking system? I don't think so.

I think it would be the self-control mechanism for each of the entity. They will have to decide whether they should have the loan growth, they should not have the loan growth. One of the entity has already offered to sell part of their asset book. All of you are aware, I need not really elaborate. So I think these are the kind of adjustment which people will be resorting to.

And secondly, just on Maruk's question, it's a technical question. Can you reassign NPL provisions into standard assets when you move to Indias?

So by my mind we have got some of the non-NPA provisions also which we are holding and also we have got some kind of allocated provisions where the provisions are not really required. So we have got various categories. Maybe it would be premature for us to really comment on it but nevertheless we will have it evaluated. If at all we cannot reassign we will have to in any case at the end of the year we will have to appropriate it towards the balance sheet.

we we cannot take it beyond the 31st march congratulations for where you have taken sbi under your watch two basic questions from my side one on the slippages of for the quarter could you also give us a break up how much of it has come from personal loans maybe I think I'll request Saloni to share with you. Sorry, just to clarify, because when you said some state governments had delayed payments, the probability that it would move straight to 90 DPD is a bit harsh to understand. So just trying to understand how can you see a slippage in one quarter? Yeah, please.

So the slippages that we see this time around, the P segment, that means the home loans as well as all the Other P-segment loans like unsecured and all put together is 3,000 crores. And out of which we have already pulled back a substantial amount because actually payments have been released as salaries also have been released. So that's not a concern.

As on date, that is the position that you... No, I think I would say that you have to read that situation. You compare our SMA-1, SMA-2 as on June 23.

Yeah.

And what is the SMA 1, SMA 2 as of June 24? From 9,300 crores, it has come down to 7,900 crores. Perfect.

Sir, the rest of the slippages, ma'am, if you could just give that answer.

SME and then you have agriculture and personnel all put together. There is a slippage of around… Can we get a break-up of that, ma'am? Yeah. SME is 2,000 crores. 3,000 roughly is retail loans. 5,000, the rest is agriculture, 200 crores is CCG, I mean large value account.

Second question, on the credit cost again, for this kind of slippages, you have reported a fairly high credit cost of about 4,500, which also there is one... There are some standard set provisioning also, standard set provisioning has also taken place.

Aging provisions.

So there are Basically provisions due to slippage is 1940 crores which next quarter definitely should be much better. Provision due to ageing is 2473 crores which we have mentioned and the third is provision due to agriculture where we keep extra provision for agriculture where the limit is beyond 135% although they are all standard but as a prudent measure we keep this provision which comes to 106 crores. So total provision for this quarter is 4518.07 crores. Perfect ma'am. Thank you.

Sir the question firstly with respect to the express credit. So when we look at it one of your subsidiaries have highlighted a lot of over leveraging of the customer. So at any point in time we are also seeing within our express credit customers any kind of over leveraging few more facilities which they would have taken after we would have given them the PL?

No, see the point is that when it comes to express credit and when it comes to the card, the target segments are very different. In case of express credit, the target segment are the one who are availing salary, who are maintaining the salary accounts with us. When it comes to card, it's a very different universe. 50% of the cards are being sourced from the market 50% of the cards are being offered to the SBI customers. So the universe is very, very different. And that is the reason why perhaps the kind of trajectory of the stress in both the books cannot be compared.

But we have not seen any trend in terms of over-liberation.

Nothing like that.

And second, when... Sorry. Ticket size is also... Ticket size is also... Our ticket size is around 7.7.

7.1. 7.18. 7.18.

And secondly, when we look at it, still we are following either in line with the industry growth or lower than that. And now we have seen many of the private banks, one of the leading banks, growing much below the industry average. So when do we see maybe catch up on the growth? And now when we look at the rate differential in the deposits, that is also quite huge, almost like 40 basis points in the peak deposit rate, not in the short-term bucket. So would we be looking at raising the deposits, growing at a slightly better than industry average? Because there is a case which is being made that PSU Bank should ideally now start gaining the market share.

See the point is that I would be more than happy to grab the deposit provided the deposit is available at a cost which I would like to bear. If at all deposit is available at 8% and we have to do underwriting of the quality assets, no borrower would be willing to pay me 10%. That has to be kept in mind. So, if at all we have to underwrite the quality assets, we have to have a very sharp eye on the cost of our resources. We cannot take it away. When it comes to, you know, when it comes to the growth, growth has to be seen, not only in terms of number, but the quality of number also. So, I very firmly believe in this and we have practiced this in this bank and the outcomes are all before you.

One last data point, standalone LCR.

standalone LCA we are at 129 console is 129 or standalone standalone is also 129 standalone means only bank bank is 129 we don't consolidate LCA from the other entities sir the last one some data point sir we have been talking that yes you are making provisions for standard asset right from the covid and so many other and we are having lot of buffer

provisions. Can some ballpark some number that how much excess provision overall under all accounts beyond IREC norms?

In fact, you know, in a bank like ours, our DMD finance or CFO, they have got pockets which are not even known to the chairman. So I am not in a position to share with you that number. And I also encourage that she or he should have such pockets. Because we have to keep ourselves, largest bank of the country have to insulate itself from any of the rainy season. We don't want any challenge.

All right. Thank you. We have a few questions.

Yeah, I think, yeah, just one second, please.

Thanks for taking the question. And big thanks to you, sir, for outstanding leadership that you have provided at SPI in all these years. You took charge in a very difficult year. And you have ensured that SPI gets its due recognition. at least in terms of market value. In terms of size, always it was there. But in terms of market value, you have certainly played a very instrumental role. Big thanks to you, sir, for that. Thank you. Now a few questions. Firstly, on the credit growth, there has already been a lot of questions. But do you think that there can come a situation wherein the credit demand in the system, not from the SBI, SBI has already placed very well, CD ratio for SBI is less than 70, we know, that the credit demand from the system may remain unmet, Because this quarter we have seen a lot of moderation from the other banks, the growth numbers have seen a cut and RBI has been pushing on the CD ratios what we understand a lot more.

Well I think my sense is that the market has got the control features and if at all there is a demand, the demand would be at a price and if at all people are willing to pay that price, the demand can be met also. And fortunately, today the global markets are all integrated. So I think I don't see a challenge if at all there is a demand and if at all there is a risk appetite for that demand. My sense is that it should not be a challenge.

Okay, sir. And second set is on the OPEX. Now we have seen a very high OPEX in the past because of age provisioning that was going on and this quarter is a very sharp decline. So is this a sustainable number because the number that we are seeing this quarter is lower than what we like probably expected and so because even the cost income ratio has come below 50. So how should we look at it going further?

I think when it was not 50 I was being pushed to ensure that it should be below 50. Now I brought it to below 50. Now you are questioning why it is below 50. Anyhow I mean keep it aside just in the lighter way but the fact of the matter is that if you recall right from the very beginning our focus was that our income should grow because we have got certain cost rigidities and we cannot get rid of those cost rigidities. So I think that's a reality and last year of course we could not meet these numbers for the simple reason that we are required to make provisions for the wage increase. Now all that is behind us and I actually would say that this is the new normal. and we should be in a position to stick to this new normal. Rather, I would rather expect that it should incrementally, we might see it coming down a bit also.

Okay, great, sir. Thank you so much.

Thank you. Thank you.

Thank you.

Okay, there are some questions. I will just answer to those questions also. Mr. Anish Raj has got a question, how SBA is going to fight with the deposit crisis? I would only like to reiterate some of the points which I have already mentioned but nevertheless I will say that our focus on the digital as I mentioned that about 40,000 odd savings bank accounts are being opened daily whereas 60,000 savings bank accounts are opened daily. I mean total number of savings bank accounts are 60,000. Focus on activation of our inoperative account is we are leveraging analytics. Targeting sources of the quality salary package is something which we are already working on and also raising of the deposit interest rate and some of the select tenors is something which we are working. So this is, these are some of our initiative and we are quite confident it will start yielding results also very soon. Next question is from Mr. Kayatav Shah. Could you throw some light on the credit growth aspirations and the key components of the growth? We are hoping our credit to grow at 15%. I would expect the the broad-based growth in all the segments as far as the credit is concerned. Mr. Dipancho Khatri, any plan of merger of RRBs with the RBI? Any plans of list of SBI subsidies, companies like SBI General? As of now, there is no such plan, and as far as the RRBs are concerned, there is a need for some regulation. Till such time it comes, we really cannot go to the market for any listing. And as far as subsidies are concerned, It is little premature as of now to list any of our subsidiaries which are eligible for listing. Mr. Paveen K. Nagpal, given the 0.89% year-on-year growth in net profit and 4.55% increase in operating profit, what specific strategies or operational improvement contributed to this performance and how do we plan to sustain the growth moving forward? We have a sharp focus on the asset quality. GNP has improved from 2.76% to 2.22%. Improvement in cost of income ratio by 95 basis point leveraging technology to become future ready organization and also focusing on improving income. Mr. Parvez has asked a question. Guidance on NIM in the coming quarters and rate cut effects of NIM. Our target is to maintain NIM at the current level. There may be a variation to the extent of not more than 10 basis point plus or minus. Dhawalgada What steps is the bank taking in AGRI lending business to deliver much lower GNP in future? A special drive and a time-bound action plan for conducting regular recovery credit camps. Sandhya Shivar at the branches, cluster of branches have been initiated. All AGRI intensive RUSU branches are geared up for KCC, ACC and also for the renewal exercise and drive for actual recovery of NPA. We are also looking at the investment credit and our experience in the past is that higher value ticket size has got lower incidence of NPA and that is something which we are practicing on ground. Sanjana Faizdar from Nuwama comment on the lower growth in current account deposit this quarter. It's a general trend of funds that inflow during the last quarter of quarter four of the financial year outflow during subsequent quarters of the next financial year deserting in quarter on quarter negative growth. Negative YOY growth is on part of decline in the government account. Funding in good time, they are actually following just-in-time approach. In non-government accounts, it's a competition from the private sector bank. But however, we are also meeting that competition by offering all add-ons which are required. Doshi Dixit, our credit costs and slippages have gone up considerably after good performance in last three quarters. Can you explain why and will it remain elevated going forward? Do you expect stress in the book? Any update on stakes in Ingest Bank? So many questions in one. Credit cost has increased sequentially from 0.29 to 0.48 on account of the increase in aging provision by almost 907 crores and slippage provisions of about 340 crores. As on July 24, there is a pullback of around 20% against the slippages during the quarter one of 2025. Mr. C. Joshi, what should be the level of sustainable credit costs going ahead? What was the interest on IT refund this quarter? There was nil as far as IT refund was concerned. We expect the credit cost to be around 0.50 going forward. Do we have a CD ratio target? And if yes, when? Then what it is for this year and next year? We expect CD ratio to be around 70%. and it might go up to 72%. So with this, I finish off answering all the online questions also.

Thank you, sir. And I trust all the questions have now been addressed. We'll be happy to respond to others' questions in offline mode. Let me end the evening with thanking the chairman, sir, the top management team, the analysts, ladies and gentlemen. We thank you all for taking time out of your schedule and joining us for this event. To round off this evening, we request you all present here to join us for high tea, which is arranged just outside this hall. Thank you very much.

Thank you very much once again. All the very best to all of you. Thank you.