State Bank of India

I am Pawan Kumar, General Manager, Performance Planning and Review Department of the Bank. On behalf of State Bank of India, I am delighted to welcome Tenali's investors, colleagues and everyone present here today on the occasion of the declaration of the financial year 2025 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 Sri C.S. Shetty at the centre, our Managing Director Corporate Banking and Subsidiaries Sri Ashwini Kumar Tiwari, Our Managing Director, Retail, Business and Operations, Shri Vinay M. Tonse. Our Managing Director, Risk Compliance and Sajji, Shri Rana Ashutosh Kumar Singh. Our Managing Director, International Banking, Global Markets and Technology, Shri Ram Mohan Rao Amara. Our Deputy Managing Director, Final, Shri Mati 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 chief general managers of different verticals and business groups. To carry forward the proceedings, I request our chairman sir to give a brief summary of the bank's financial year 2025 performance and the strategic initiatives undertaken. We shall thereafter straight away go to questions 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 a variety of factors. Thank you. Now I would request Chairman Sir to make his opening remarks. Chairman Sir please.

So good evening ladies and gentlemen. We thank you all for taking some time out to join this analyst meet. Post announcement of FI25 results of the bank. The financial results for FI25 highlight continuity. consistency, profitability and SBI's significant long-term strengths. At the outset, I would like to thank all of 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, SBI has remained focused on strengthening the key components that contribute to this sustainable value. We have prioritized our liability franchise, refined our processes, continue to improve our underwriting standards and aim 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. Escalation of trade and tariff tensions and the resultant financial market volatility have raised concerns regarding the weakening of global growth in the near term. As per IMF, the estimated global growth is projected to drop to 2.8% in 2025. And 3% in 2026 much below the historical that is 2000 to 2019 average of 3.7%. As per the WTO world merchandise trade volumes could expand marginally by around 1.7% in 2025. The dampening global economic outlook could impact India's economic growth through weaker external demand, even though the domestic growth engines, consumption and investment are relatively less susceptible to external headwinds. Prospects for the farm sector have been boosted by the forecast of an above-normal southwest monsoon for 2025, which could augment farm incomes and keep food prices under check. Given the exacerbated uncertainties due to recent trade tariffs, RBI has reduced its real GDP growth projection for FY26 by 20 basis points to 6.3% in the April policy. Separately, India's CPI headline inflation has now significantly moderated and we believe average CPI headline forecast for FY26 could stay below 4% now. During FY25, ASCB's credit growth declined to 11%, which was 20% last year, and deposits to 10.3%, which was 13.5% last year. Term deposit growth continued to outpace growth in savings deposits. Consequently, the share of term deposits in total deposits rose to about 62%. CASA declined to below 40%. Asset quality of SCBs improved further with their GNPA ratios declining to 14 year low of 2.4% in December 2024. CRER stood at 16.4% in December which was much higher than the regulatory minimum ratio. RBI has deployed a strategic mix of interventions, including open market operations, daily variable rate repo auctions and dollar rupee buy-sell swap auctions. These proactive measures have helped stabilize market liquidity conditions, ensuring financial resilience in an unpredictable global environment. Coming to SBI, once again, the results 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 a commitment to fairness for all stakeholders. The net profit for the year was Rs 70,901 crore, up 16.08% year-on-year. At the end of the year, our whole bank credit growth was 12% year-on-year, with domestic credit growth at 11.56%. Deposit growth was 9.48% year on year, while the CD ratio domestic was 69.71%. We maintained stellar asset quality with slippage ratio of 0.55%. Retail personal slippage ratio was at 0.48% and credit costs at 0.38%. PCR was at 74.42%. Some details about these numbers. The total deposits have grown by 9.48% to 53.82 trillion. As I mentioned, term deposits have witnessed robust growth. They have grown by 11.48% year on year. Our current account deposits have grown by 27% year on year. And CASA deposits have grown overall by 6.34%. And CASA ratio was close to 40%. Importantly, the current account growth has continued to remain strong for the bank during the year despite competitive market environment. The credit growth continues to be good across all segments. Our domestic advances have grown by 11.56% year on year, driven by 16.86% growth in SME, 14.29% in agriculture, 9% in corporate and 11.4% in retail personal segments. Our foreign offices' advances have grown by 14.84% year on year, The domestic credit deposit ratio is 69.71%, 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 FY25, as I mentioned earlier, was 0.55%, while the credit cost stood at 0.38%. Net MPA improved by 10 basis point. We have a well provided net and MPA book with PCR at 74%. The asset quality of the bank has continued to remain strong over the last 5 years which demonstrates The quality of our loan portfolio, the robustness of our underwriting processes, effective collection efficiency and the leadership of the bank across business lines. Our capital adequacy ratio is at 14.25% and the CET bond ratio is at 10.81% and are well above the regulatory requirements. Based on the current profitability and growth profile of the bank, we believe we have sufficient headroom to take care of business growth requirements. I am glad to share the progress we have made in digital banking which is an ongoing journey. More than 8.77 crore customers have been registered on the UNO with 64% of regular savings bank account opened through UNO technology in FY25. Our subsidiaries are consistently performing well. and continue to create significant value for all the stakeholders. We will continue to nurture these subsidies and maintain leadership position in the respective businesses. We are glad to advise that the bank continues to report ROE and ROE greater than 1% and 19% respectively at the end of FY25. A key point regarding these metrics is our operation at a substantial scale. We reported total assets worth 66.7 lakh crore, total advances at 42.2 lakh crore and total deposits amounting to 53 lakh crore. When we mention scale, it indicates the bank's extensive investment 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 FI25, We are also mindful of areas for further improvement and also challenges emerging from various developments taking place across the globe which may impact Indian economy. On the liabilities side, we continue to focus on increasing our share in current account while maintaining our leadership position in savings deposits by further strengthening our customer service and branch network. Although the bank's cost base is substantial, it highlights our commitment to compliance and efficient operations. We intend to reduce our cost-to-income ratio by concentrating on increasing income. The bank's ROE profile is currently higher than its credit growth, implying that see it even accrual in the future. From this strong position, our goal is to consistently achieve a ROE of over 15% through the business cycles. The board has granted approval to raise equity capital up to 25,000 crores. with the authorization being valid for a period of 12 months. This is an enabling resolution. Although we are open to capital raising, such plans will be contingent upon the business needs and market conditions. 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 take your questions. Thank you very much.

Thank you, Shamil sir. 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 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 now proceed with the question and answer session. Please.