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 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 Quarter C Financial Year 26 results of the bank. I also extend a very warm welcome to all the people who are assessing the event. to our live webcast. We have with us on the stage our Chairman Sir Sri C.S. Satti, our Managing Director Corporate Banking and Subsidiaries Sri Ashwini Kumar Tiwari, our Managing Director International Banking, Global Markets and Technology Sri Rana Ashutosh Kumar Singh, Our Managing Director, Retail, Business and Operations, Sri Ram Mohan Rao Amara. Our Managing Director, Risk Compliance and Sajji, Sri Ravi Ranjan. Our Deputy Managing Director, Finance, Sri Anindya Sundarapal. 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, Chief General Managers and other senior officials of the circles and various offices are connected through our live webcast. To carry forward the proceedings, I request our Chairman Sir to give a summary of the Bank's Quarter 3 Financial Year 26 performance and the strategic initiatives undertaken. We shall thereafter straight away go to question and answer session. However, before I request 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 for his opening remarks. Chairman Sir, please.

Thank you. Good evening, ladies and gentlemen. Thank you for joining us for today's analyst meet following the announcement of the bank's Q3 FI26 results. At SBI, we have remained consistently focused on strengthening the fundamentals that create sustainable value for all stakeholders. Our performance in the third quarter of FY26 reflects continuity, consistency, and the enduring strength of our franchise. I will begin with a brief overview of the global and domestic economic environment, followed by an update on the bank's performance. Despite heightened geopolitical tensions and elevated global uncertainty, the Indian economy remains well positioned, supported by strong macroeconomic fundamentals and a benign inflation environment. Global growth is projected at around 3.3% in 2025-26. while India continues to outperform with real GDP growth expected at about 7.4% in FY26. India's potential growth remains close to 7% with the FY27 growth projected in the range of 6.8 to 7.2%. Growth is expected to remain resilient in FY27. The union budget reinforces the government's commitment to inclusive and accelerated growth under the vision of Vixit Bharat 2047 with a proposed capital expenditure of 12.2 trillion rupees providing strong support to infrastructure and investment. On the external front, services exports are expected to remain resilient while the merchandise exports should benefit from the recently concluded and prospective trade agreements, although geopolitical risk and global market volatility remain key downside risks. The Indian financial system continues to remain strong and resilient with robust capital, liquidity, asset quality and profitability across banks and NBFCs. Alongside the numbers, we are strengthening the structural drivers of sustainable profitability. Productivity, capital efficiency, and risk-adjusted growth commensurate with SBI's scale. Our long-term ambition is aligned with Vixit Bharat 2047, and our strategy is anchored around a long-term horizon with continuous investments in people, processes, products, and technology. The new Yono represents a fundamental redesign of our digital operating model through Yonoization of the bank. Beyond acquisition, the focus is on lowering cost to serve, enhancing customer value and improving lifetime value. Scaling Yono from 10 crore registered users to 20 crore over the next 2 to 3 years is expected to support operating leverage and ROEA sustainability. Chakra, our centre of excellence for sunrise sectors, institutionalises our ability to support prudent capital allocation in emerging segments. We have initiated, as I mentioned last time, a process simplification and a phased deployment of nearly 10,000 Seva Sarathis, our floor coordinators at high footfall branches for migrating routine transactions to digital channels. Collectively, these initiatives support consistent performance across cycles with growth that is profitable, well capitalized and prudently risk managed. On the performance front, I am happy to share that the bank has declared the highest ever quarterly net profit of 21,028 crore and total business has cost 103 trillion rupees, reflecting customers' continued trust in us. The net profit is up by 24.49% year-on-year, driven by higher operating profitability and lower credit costs at 0.29%. The operating profit is 32,862 crore rupees, up 39.54% year-on-year. The net interest income is 45,190 crores, up 9% year-on-year, while the domestic name stands at 3.12% for the quarter. Bank's total deposits growth has remained healthy with 9.02% year-on-year along with current account existing growth in double digits at 10%, 10.32%, with CASA ratio at 39.13% despite very competitive market environment. Retail sum deposits have grown by a robust 14.54%. Deposits of foreign offices have also grown well at 8.32% on year-on-year basis. The credit growth was up 15.14% year-on-year as on December 25, which was driven by all the segments resisting growth. The domestic credit deposit ratio was at 72.98% at the end of Q3, an improvement of 404 basis point year-on-year. All the components of RAM, retail, agriculture and SMA have witnessed robust growth. The corporate credit has seen a rebound and has grown by 13.37%. The asset quality continues to be industry leading with gross NPAs at 1.57% improving by 50 basis point and net NPA at 0.39% improving by 14 basis point. Notably, the PCR was up 88 basis point year on year to 75.54%. The NPAs continues to be at its lowest level in our over two decades, which demonstrates the quality of our loan portfolio. disciplined credit practices, underwriting capability and sustained recoveries. The bank remains well capitalized and the capital adequacy ratio has improved by 101 basis point year on year and stands at 14.04%, which is well above the regulatory minimum requirements. Further, our subsidiaries continue to demonstrate consistent performance and strengthen value for all our stakeholders with their expansion of digital channel, innovative products, and enhanced customer experience. At Digital Front, we have continued to make steady and meaningful progress. We see digital transformation as a continuous journey of evolution, and Yono remains central to this journey. With over 9.65 crore registered customers and registrations for our new Yono crossing the 3 crore mark within a short period of one month since its launch. Reflecting strong and sustained adoption, digital channels are now firmly embedded in our customers' behaviour. While we are encouraged by our performance in Q3, we remain mindful of structural shifts in the financial system, particularly the increasing financialization of household savings. Over time, this trend will gradually reshape bank balance sheets towards more diversified and market-based funding, supported by greater innovation and deeper integration of digital platforms. At SBI, we are proactively adapting by strengthening our liability franchise, increasing our share of current accounts, and leveraging Yono to enhance customer acquisition and retention. Our strategy is forward-looking, focused on technology and analytics to remain competitive and future-ready. We remain sharply focused on efficiency and return metrics, with our ROE consistently greater than 1% and ROE at 20.68% at the end of Q3. SBI is among the very few global financial institutions capable of sustaining a ROA of over 1% at this scale, with an advances book of approximately 47 trillion rupees. Investments of about 17 trillion rupees, deposits of around 57 trillion, and a balance sheet size of nearly 72 trillion rupees. Our strong asset quality reflects disciplined, risk-adjusted lending and portfolio resilience, while robust internal capital generation supports future CET1 accretion and long-term growth. Our people remain central to this journey, supported through focused training, continuous upskilling and an inclusive work culture, ensuring a skilled and motivated workforce in a rapidly evolving banking landscape. To conclude, I would like to thank all of you once again for your continued support and engagement with the bank. Our priorities remain firmly aligned with supporting India's economic growth while creating long-term sustainable value for all stakeholders. My team and I will now be happy to take your questions. Thank you.

Thank you, Chairman, 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 question 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.