State Bank of India

Good evening, ladies and gentlemen. 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 the analysts, investors, colleagues and everyone present here today on the occasion of the declaration of the quarter one financial year 26 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 Sri Vinayam Tonsey. Our Managing Director, Risk Compliance and Saji, Srirana Ashutosh Kumar Singh. Our Managing Director, International Banking, Global Markets and Technology, Sriram Mohan Rao Amara. Our Deputy Managing Director, 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 Chief General Managers of different verticals, business groups. To carry forward the proceedings, I request our Chairman Sir to give a summary of the Bank's quarter 1 financial year 26 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 hour 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.

It gives me great pleasure to present the results for the first quarter of FI 2026, another milestone in State Bank of India's journey as the nation's largest and most trusted financial institution. The global macroeconomic environment has remained fluid since June till now amidst geopolitical tensions and tariff policy uncertainties that have increased. Central banks in many advanced economies kept policy rates unchanged as the last mile of disinflation turned out to be stickier than expected while also awaiting clarity on the trade tariff front and its implications for inflation. Domestic economic activity held up in June with high frequency indicators pointing to mixed signals of improving prospects of Karif agricultural season and continuation of strong momentum in the services sector on one hand and deceleration of tax collections, industrial activity and vehicle sales on the other. RBI estimate GDP for FI26 at 6.5% and inflation at around 3.1%. The MPC in its latest meeting, as you all are aware, has kept the repo rate unchanged at 5.5% and maintained a neutral stance. We close the quarter with a 22.17% share of domestic deposits and 19.24% share of system-wide advances, reinforcing our position at the heart of India's banking system. Even more encouraging, we added 14 basis points of incremental loan market share year on year, led primarily by high return on risk weighted asset segments such as retail mortgages and secured small business credit. So why are customers choosing us in greater numbers when choice has never been wider? The answer lies in a various virtuous combination of value, brand, reach and fairness. Low to zero fee structures on everyday products, transparent pricing of floating rate loans, and the reassurance of our blue-chip balance sheet continue to attract new depositors while deepening existing relationships. Our omni-channel reach with 22,981 branches and 90 million users on our digital platform, you know, puts the bank in the pocket of customers wherever they are. Above all, we have maintained an uncompromising stance on charging what is fair, never what the market can be pushed to bear. In an era of rising rate volatility, customers recognize and reward that stance. Second, our performance is powered by people. Attrition remained below 1% during Q1 FY26. Banking here is viewed, quite literally, as a career for life, supported by clear growth paths and the sector's most extensive learning ecosystem. Our ambition is not merely to grow, but to grow profitably and sustainably. We reaffirm our structural targets of return on equity above 15% and return on assets of 1% through the cycle. The first quarter delivered an ROE of 19.7% and ROE of 1.14%, underscoring the resilience of our franchise even as funding costs normalized. Coming to the results for Q1-FI26, the net profit for Q1-FI26 stands at 19,160 crores, up by 12.48% year-on-year. At the end of first quarter, our whole bank credit growth was 11.61% year on year, with the domestic credit growth at 11.06%. Deposit growth at 11.66% year on year, while the CD ratio domestic was 68.88%. Operating expenses has decreased by 21.92% during the quarter, with containment in overheads which decreased by 37.98%. Our net NPA ratio has also declined by 10 basis points year-on-year and stands at 0.47%. Slippage ratio has improved by 9 basis points year-on-year and stands at 0.75%. PCR was 74.49%. The results for Q1-FI26 demonstrate the bank's ability to operate profitably at scale due to our substantial core strengths. These advantages stem from our institutional framework, which is guided by continuous improvement in processes and a commitment to fairness for all stakeholders, as I mentioned earlier. To keep our bank future ready and be ahead of the curve in partnering India's journey of Vixit Bharat and to realize the vision of reimagining the entire gamut of operational processes, preparation of a time-bound roadmap and facilitating the smooth transformation An initiative has been launched under SBI's operations process re-engineering project called SURL. It is a transformative step to reshape the retail operational processes across the bank. The way SBI serves its customers enhance employee satisfaction, productivity and resources optimization. The objective of Project SURL is to simplify, automate, centralize, and outsource various operational activities of the bank, encompassing retail operations, centralized processing centers supporting retail operations, liabilities, third-party relationships, and retail loan collections. Aided by modern technological tools like AI to improve productivity and resilience, while ensuring best-in-class customer service and employee enablement. Looking ahead, we expect credit expansion to outpace both nominal GDP and industry growth, driven by calibrated exposure to consumption-linked retail loans, government CapEx pipeline and green energy projects. A disciplined, risk-adjusted lens on every incremental rupee of credit, combined with our unrivaled, low-cost deposit base, gives us confidence in maintaining healthy spreads without sacrificing asset quality. In closing, allow me to reiterate what defines State Bank of India. We combine scale with agility, innovation with prudence, and growth with inclusivity. Our dominant market share is the by-product, not the driver of an operating philosophy that places the customer first. the employee at the center, the shareholder as a partner, and the nation as a beneficiary. As we advance into FY2026, we remain steadfast in our promise to deliver superior returns, best-in-class service, and uncompromising governance. Together, with your continued trust, we will keep creating value for every stakeholder in the SBI ecosystem. My team and I are now open to take 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 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 sessions, please.