State Bank of India

I am Pawan Kumar, General Manager, Performance Planning and Review Department of the Bank. On behalf of the State Bank of India, I am delighted to welcome the analysts, investors, colleagues, and everyone present here today on the occasion of the declaration of the financial year 25 results of the bank. I also extend a very warm welcome to all the people who are assessing the event through our live webcast. We have with us on the stage our Chairman Sir T. C. S. Sethi at the centre. Our Managing Director, Corporate Banking and Subsidiaries, Shri Ashwini Kumar Tiwari. Our Managing Director, Retail Business and Operations, Shri Vinay M. Tonse. Our Managing Director, Risk Compliance and Saji, Shri Rana Ashutosh Kumar Singh. Our Managing Director, International Banking, Global Markets and Technology, Sri Ram Mohan Rao Amara. Our Deputy Managing Director, Finance, Srimati Saluninarayan. 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 Chief General Managers of different verticals, business groups. To carry forward the proceedings, I request our Chairman Sir to give a brief summary of Bank's quarterly financial year 25 performance and the strategic initiatives undertaken. We shall thereafter straight away go to question and answer session. However, before I hand over to the Chairman Sir, I would like to read out the safe harbor 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. Chairman sir please.

Thank you. Thank you Pawan. Good evening ladies and gentlemen. Thank you for taking the time to join this analyst meet today, post-announcement of Q3 FI25 results of the bank. The results for the third quarter of FI25 highlight continuity, consistency and SBI significant long-term strengths. At the outset, I would like to thank all our stakeholders for their support and helping us in creating sustainable value, not only for the bank, but also for the economy as a whole. Over the years, SBA has remained focused on strengthening the key components that contribute to this sustainable value. We have prioritized our liability franchise, refined our processes, continued to improve our underwriting standards, and aimed to deliver value to all stakeholders, while positioning ourselves as a reliable financial services brand. I will first start with a brief description of the present global and domestic economic scenario and then discuss banks' performance. In 2025, global economy is being driven by a strong US economy, offsetting the weak Euro area and China. As per its latest assessment, the IMF projects global growth at 3.3% both in 2025 and 2026, below the historical average of 3.7%. The global inflation has continued to soften and is expected to approach inflation targets for most of the central banks, albeit with a different speed across geographies. However, on the downside, the impact of trade wars on global growth and in turn on inflation remains uncertain at this stage. While the new US administration's tariff decision is so far confined to North America and to some extent to China, The impression of full-scale tariff across all countries has so far not materialized. At the domestic level, India's economic growth is poised to rebound as domestic demand regains strength post the budget announcement, even as global uncertainties remain. CPI inflation has also eased to a four-month low of 5.2% in December 24 and will continue to decline as per forecast. As per the latest data, bank credit grew year-on-year by 11.5% and deposits year-on-year by 10.8%. Coming to SBI, the results for the third quarter for FI25 demonstrate the bank's ability to operate profitably at scale due to our substantial long-term strengths. These advantages stem from our institutionalized framework, which is guided by structured processes and commitment to fairness for all stakeholders. The net profit for the quarter was 16,891 crores, up 84% year-on-year. At the end of Q3 of 5-25, our whole bank credit growth was 13.49% year-on-year, with the domestic credit growth at 14.06%, while the CD ratio was 68.94%. Importantly, we maintained stellar asset quality, with a slippage ratio of 0.39%, Retail personnel slip rate ratio at 0.32% and credit cost at 0.24%. PCR maintained at robust level of 74.66%. As far as business is concerned, the total deposits have grown by 9.81% year-on-year to 52.29 trillion rupees. I think this is the first time we crossed 52 trillion. And term deposits have grown by 13.47% year-on-year. Our current account deposits have grown by 14.22% year on year and CASA overall grown by 4.46% year on year and with CASA ratio at 39.2%. Importantly, the current account growth has continued to remain strong for the bank over the last two quarters despite competitive market environment. And as far as credit is concerned, I am glad to share that the growth continues to be robust across all segments With all the major segments registering double digit growth, our domestic advances have grown by 14.06%, driven by more than 18% growth in SME, 15% in agriculture, 15% in corporate and 11.6% in retail personal segments. Our foreign offices advances have grown by 10.35% year on year. The domestic credit deposit ratio was at a healthy ratio of 68.94% at the end of Q3, indicating sufficient headroom to address future growth requirements of the economy. The bank continues to demonstrate industry-leading asset quality at this scale. The surplus ratio for Q3 FY25 was 0.39%, while the credit cost, as I mentioned earlier, stood at 0.24%. The net NPA ratio improved by 11 basis points year-on-year and stands at 0.53%. We have a well-provided NPA book with a PCR of 75%. The asset quality of the bank has continued to remain strong over the last five years, which demonstrates the quality of our loan portfolio, the robustness of our underwriting processes, and the leadership of the bank across business lines. Our capital adequacy ratio is at 13.03% without considering flowback of profits and is well above the regulatory requirement. If we include the profits for nine months, our CIR would be at 14.5% while the set one ratio will be 10.99%. So based on the current profitability and growth profile of the bank, we believe we have sufficient headroom to take care of business growth requirements. As far as digital is concerned, I am glad to share the progress we have made in digital banking, which is an ongoing journey. More than 8.5 crore customers have been registered on Yono, with 64% of our regular saving bank accounts opened through Yono in Q3 of 2025. So, as far as subsidy is concerned, we are consistently performing well and continue to create significant value for all the stakeholders. We will continue to nurture these subsidiaries and maintain leadership position in the respective businesses. We are glad to advise that the bank continues to report ROA and ROE greater than 1% and 20% respectively at the end of 9 months. A key point regarding these metrics is our operation at a substantial scale. I think in the last quarter also we did mention this. We reported total assets worth 66.21 lakh crores. total advances of 40.68 lakh crores and total deposits amounting to 52.29 lakh crores. When we mention scale, it indicates the bank's extensive investments in workforce, training, procedures and compliance to maintain this level. Sustaining our growth rates implies that our bank's infrastructure and personnel are equipped to support continued growth at this magnitude. SBI continues to be the leader in all the risk-adjusted profitable lending and liability pools in India. Consequently, SBI's ROA above 1% is derived from the scalable fundamentals of banking, a stable NIM, controlled operating expenses, and maintaining credit quality. While we are happy about the outcomes in Q3 of I-25, we are also mindful of areas for further improvement. On the liability side, we continue to focus on increasing our share in current account while maintaining our leadership position in savings deposit by further strengthening our customer outreach and branch network. Although the bank's cost base is substantial, it highlights our commitment to compliance and establishment expenses. The bank's ROE profile is currently higher than its credit growth, implying set one accrual in the future. From this strong position, our goal is to consistently achieve an ROE of over 15% through the business cycles. So wrapping up my initial comments, I express my gratitude for your ongoing support to the bank. As the bank advances its objectives, it also plays a role in driving the progress and economic development of the surrounding ecosystem. We are dedicated to upholding your confidence in us by delivering superior, sustainable returns over the long run. 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 for the benefit of all. We request you to kindly mention your name and company before asking the questions. To accommodate all the questions, we request you to restrict your questions to maximum two at a time. Also, kindly restrict your question 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 now proceed with the question and answer section.