State Bank of India

Good evening, ladies and gentlemen. I am Paman 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 26 reserves 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. 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 Saji, Sri Ravi Ranjan. Our Deputy Managing Director, Finance, Sri Anindya Sundar Pal. 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 financial year 26 performance and the strategic initiatives undertaken. We shall thereafter straight away go to questions and answer session. However, before I request 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 a variety of factors. Thank you. Now I would request Chairman Sir for his opening remarks. Chairman Sir please.

Good evening, ladies and gentlemen. Thank you for joining us for today's analyst meet following our Q4 and FY26 results. At the outset, I would like to state that our FY26 performance reflects a consistency born out of a calibrated multi-year shift in how we run the bank. We have focused on strengthening our core fundamentals of asset quality, capital, operating efficiency, and franchise depth. The result is a balance sheet that is performing, robust and resilient. Let me briefly touch upon the environment we are operating in. The global economy remains in a phase of elevated uncertainty with growth projected by the IMF for 3.1% in 26 and 3.2% in 27. India, however, continues to outperform. with FY27 growth projected at 6.9% by the RBI, supported by domestic demand and macro stability. That said, geopolitical developments and climate-related disruptions remain key risks. Inflation is expected at 3.8% in the near term, with a full-year estimate of 4.6%, with some upward bias on account of energy price movements and weather-related uncertainties. From a banking system perspective, credit growth for scheduled commercial banks accelerated to 16% in financial year 26, while deposits grew at 13.6%. The momentum is continuing in the current financial year and we expect credit growth at 13 to 14% and deposits at 11 to 12% for FY27 for the system. Asset quality continues to remain strong and capital buffer is comfortable. However, beyond these metrics, The operating landscape is being reshaped by deeper structural shifts. Technology risk is now becoming a systemic risk. The emergence of advanced AI models capable of identifying and exploiting vulnerabilities at scale has fundamentally changed the cybersecurity paradigm. The industry is therefore moving towards coordinated, system-wide resilience frameworks in partnership with the regulators, the government and other key stakeholders. At the same time, the regulatory approach to risk is becoming more forward-looking. The transition to expected credit loss-based provisioning from April 2027 is a significant step in that direction, and we are confident of a smooth transition. In this environment, our approach is focused not merely on growth, but on improving the quality of our growth by making it more durable, capital efficient, and more resilient across cycles. This is being executed through a set of aligned actions. We are simplifying the bank at scale through Project Surrell, which I mentioned earlier with you, our operations process re-engineering initiative. The larger objective is to simplify the customer journey and release capacity within the system to focus more on relationship building and business growth. Second, we are building a more digital native intelligence-led organization through Analytics 2.0, Data and AI are becoming central to decision-making across credit, risk, and customer engagement. Third, we are strengthening our liability franchise. As savings increasingly shift towards market-linked instruments, we are deepening customer engagement through Yono, expanding ecosystem partnerships, and creating relevant offerings for diverse segments. Our balance sheet strategy is moving from volume-led expansion to a value-accretive growth with a sharper focus on granularity, product competitiveness, and risk-adjusted returns. We are also expanding into new growth areas, including startups, alternative investments ecosystems, and global trade to keep our portfolio diversified and futurity. Against this backdrop, let me now highlight the bank's cue for a 526 performance. Driven by strong operating profitability and improved asset quality, I am glad to share that the bank has surpassed Key milestones this financial year. Net profit reached a record high at 80,032 crores, up 12.88% year-on-year, supported by 11.25% year-on-year growth in operating profit, the domestic NIM at 3.03%, supporting our guidance to maintain NIM above 3%. As total business crosses the 109 trillion mark, this performance showcases our strengthening market position and sustained customer trust. Our domestic business has grown by more than 11 trillion rupees on year-on-year basis. Our balance sheet size has crossed 76 trillion rupees. We achieved resilient deposit growth of 11.03% year-on-year by about 6 trillion rupees driven by strong inflows in retail term deposits, which grew by 14.77%, and a double-digit savings account growth at 10.6%. Despite competitive environment, a 39.46% CASA ratio, which is an improvement of 33 basis point quarter on quarter, sustains our low-cost funding advantage, reinforced by 12.7% growth in foreign deposits. The credit growth has been robust and was up 16.87% year-on-year as of March 26, which was driven by all the segments registering double-digit growth. The domestic credit deposit ratio was 73.08% at the end of FY26, an improvement of 3.37 basis points year-on-year. All the components of RAM have witnessed sound growth. The corporate credit growth momentum continues and grew by 14.83%. Our foreign offices have continued to perform well with growth advances at 20% year-on-year. In dollar terms, it is 8%. The asset quality continues to be industry leading with gross NPAs at 1.49%, improving by 33 basis points and net NPA at 0.39%, further improving by 8 basis points on year-on-year basis. The PCR was at 74.36%. The sustained two-decadal low in NPAs validate our rigorous underwriting capability, disciplined credit practices and effective credit risk management. Strengthening our capital position, our CIR has improved by 115 basis points year-on-year and stands at 15.4%, which is well above the regulatory requirements. The bank has enough headroom to address future credit growth requirements. Further, our subsidiaries are demonstrating consistent performance and are driving stakeholder value through digital expansion, product innovation and improved customer experience. We will continue to nurture these subsidiaries and see them creating value for their own shareholders as well as the shareholders of SBI. At SBI, digital transformation remains a continuous journey, where Yono is a central to our strategy. The strong adoption of a new Yono, crossing 4 crore registration within 3 months of launch, and bringing total users about 10 crores, confirms that digital-first banking is now deeply embedded in customer behavior. 66% of new savings accounts originating on Yono platform in FY26 demonstrates our successful transition to a digital-first institution. Our FY26 performance reflects both a strong foundation and the strategic repositioning. In an environment of intensifying liability competition, evolving customer expectations, and rapid technological change, we are reshaping our balance sheets strengthening liabilities, embedding AI and analytics into our operating model, and diversifying funding sources and growth ecosystems. Our focus remains firmly on delivering consistent risk-adjusted returns supported by disciplined underwriting, strong asset quality, and robust internal capital generation. Our emphasis has always been on efficiency and return metrics. With our ROA consistently greater than 1%, and ROE at 18.5% at the end of Q4 of 526. Our ability to maintain an ROE greater than 1% at scale puts us in a top league of global financial institutions with an advances book of more than 49 trillion rupees, investments about 18 trillion rupees, deposits of more than 59 trillion, and a balance sheet size of nearly 76 trillion. Most importantly, we are empowering our people with continuous training and inclusive culture to build a motivated, future-ready workforce in this dynamic environment. To conclude, we see SBI's journey as a closely aligned with India's long-term economic transformation. As the country progresses towards the vision of Vixit Barrage 2047, we believe SBI has a unique role to play as a key enabler. Thank you once again for your continued engagement and support. My team and I will now be happy to take your questions.

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 questions to 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.

Thank you. Yes sir, definitely compliments to you sir for such a robust business growth, very good asset quality and if you see on year on year, the highest operating profit and the net profit, net profit going beyond 80,000 crore. There is only a few concerns looking at the result on the face of it of this quarter where our operating profit also has gone down and the net profit also has gone down as compared to the last quarter. mainly dragged the profitability, dragged by the treasury operation, the loss in the trading, maybe a trading loss or a loss on the valuation of the treasury book, I think which is about 3500 crores and little bit increase in the overhead expenses in this quarter, which may be because of the last quarter, it has gone up by about 1500, 1700 crores, the overheads. So, Having said that our slippage has also gone up little bit in this quarter maybe 1000-1200 crores up in this quarter. So in this scenario now with the treasury outlook looking little better in the coming quarter and over it maybe one time because of the last quarter of the financial year can I can we have some idea of going forward where do we stand on the profitability front while the loan book is growing very well but you yourself said that we can look at still about 14 to 16 percent growth in the credit book so looking at this scenario now coming forward can we have the comfort of having If not good income from treasury, at least the losses are not there so that the overall profitability increases. And coupled with that, now with the ECL guidelines getting finalized, how are we prepared with that? Is there impact is going to be taken up in the coming quarter? Whether the numbers have been drawn? And what is our plans to take care of those provisions? Whether we now, as far as the business growth is concerned, with the emergency line of credit guarantee scheme coming up with 2,50,000 crores, 5,000 is for airlines separately. So, even business growth, you yourself have said in some of the interviews that 70-80,000 crores of prospects are there only through this line of credit, looking at your customer base. So, in all, Can you just give your views on the few points which I have raised?

Azmina Sahib, you said few points, is it? Okay. But very comprehensive assessment what you have done. First of all, I think a few questions which are in your mind, let me first answer them in terms of there seems to be some amount of maybe we were not communicated enough in our Q3. I believe I have gone through my transcript again in Q3 and this call. We made it very clear that our exit name is going to be 3%. And we also mentioned that in the Q3, December 15 repo rate cut will be having full impact in the Q4. And these things are something what we stated up front. What has not been known to all of us is the yield movement, which had definitely impacted the treasury income. But even then, what we realized that despite the sharp movement in the bond yields, because of our very low exposure to, you know, fair value portfolio, our hit has not been very significant. But you are comparing with the Q4 of the previous year, for instance, we have had 3,800 crores one-time gain on these security receipts. Apart from that, we had positive treasury gains in that quarter. I think overall, we all believe that we have given a good set of numbers for Q4 as well as full year. And we stuck to our guidance in terms of 1% ROA and 3% exit name. I do not think there was any surprise to us. But I think there is some assessment in terms of what analysts like you have done on the NII part. There are two reasons why the net interest income has got impacted. As I mentioned, one is the impact of 25 basis point rate cut, which is reflected in the EBLR portfolio, and five basis point cut, which we have done in MCLR, is fully factored in the Q4. And the EBLR book also has gone up. In fact, the composition of the floating rate loans slightly has increased. That also is a combination of factors which we had known. And that is the reason we always gave a guidance that when we talk about NIM, we are not talking about on the quarterly NIM numbers. It is a full year exit NIM, which we have given the guidance. And I hope that we broadly fulfill that. I think this is something what I wanted to clarify. And as for the treasury going forward, I think three, four questions which you asked, let me answer in the seriatim. One is three pages. Slippages of, you know, Q4 slippages is not a matter of concern. And we have, from these slippages, we pulled back almost 850 crores at this peak. That means there is no structural issue in terms of asset quality. Let me assure you on that.

So, there is no impact of waste station so far.

And these slippages have nothing to do with any stress in the system. It is seasonal. Most of the slippage have come from agriculture and some from SME. I will give further guidance as we speak in terms of slippages. But we are sticking to our credit cost guidance of 50 basis points. Even despite whatever happens on the registration conflict. We are confident that asset quality is holding up. Unless, of course, there is something dramatically happens in the system and MACOs will further get disturbed. As things stand now, we are sticking to our credit cost guidance of 50 basis points. Our credit growth guidance of 13 to 15%. And you mentioned about treasury income. And we believe that the yields will not create much pain going forward, even if assuming that the yield movement will be there. Our internal guidance, which has gone wrong earlier, we felt that the bond yield probably would be moving up to 6.75. There has been a sharp movement. But now also our residue holds a view that it would be in the range of 6.75 to 6.9, not beyond that, unless devastation, conflict or any other fiscal imbalances create a problem. ECL guidelines, before ECL guidelines, let me also talk about ECLGS, which is a proactive and preemptive measure in my view. A lot of people ask me, are there any customers who are coming and asking for ECLGS? Not yet. It will take about 8 to 9 days, 8 to 10 days for us to operationalize this guideline. And we are reaching out to customers in case of any need, they have this facility available. My assessment of 70,000 to 80,000 crores is the full limit which is available to MSMEs and other non-MSME customers. But our assessment also indicates that not more than 30, in the worst case, 30-40% people will be utilizing it. It could be more as the conflict goes further, but it is an excellent step from the government of India side to make this available in a proactive measure. ECL guidelines, we have made the models ready based on the draft guidelines. We are further tweaking the models based on the final guidelines. It would not be appropriate for me to give a number at this juncture. I think probably... After the end of June quarter, we will have much clarity in terms of what is the stock which is required to be taken care of.

But approximately, you have about 29,000, 30,000 crore per already.

So, Admiral, sir, I don't want to hazard, I guess, at this juncture. Let us stick to that. We are not going to give any number at this time. But one thing I want to make it very clear, as I made earlier also, that this transition is going to be smoothed. It is not going to impact our ability to fund credit growth. It will not be impacting our capital ratios as much. And I hope we will be smoothly transitioning in the next four years in terms of the ECL guidelines implementation. I hope I answered all your questions. Yes, sir. Thank you.

Hello, sir. Good morning. So, I had a couple of questions. Firstly, just on clarification in NII. we do not have any impact whatsoever of any forex translation or any forex laws. Because I remember years ago, in a COVID quarter, we had some NII issues relating to forex as well. So just wanted to clarify that.

No, it's a core NII, except that, you know, the usual interest and tax refund, which has come around 1,000 crores, which is added in NII. But it is partially offset because Some of the penal interest which used to be booked in part of interest has moved to penal charges. But that is just about 600 crores. It is purely the impact of EBLR and some of the floating rate loans on the corporate side.

Okay. So basically the interest on tax refund is 10 billion versus around 7 billion last quarter.

I think it was 800 crores.

Yeah, 7.7. 7.760. Correct. Yeah, 7.760. Okay. Okay. And then, sir, just in terms of margins, right, so what is your outlook on margins near term and longer term as well? Because this quarter we did see that NIMS, global NIMS in the quarter declined around 18 bits. So what is the outlook going ahead? Maybe first half and then, you know, longer term also.

But I would like to give guidance for the full year, Maru. And as I promised, I said that I will give first year, first quarter itself, the full year guidance. And we do not want to create confusion in terms of quarterly guidances. Because the quarterly, in a large book like ours, there is a seasonality, there is a, you know, momentum of credit growth. It is very difficult to give a guidance on the quarterly basis. We are still giving a guidance on an annual basis. We are sticking to our NIM of more than 3%.

For the full year. For the full year. Okay. Okay, sir. And if you could give the breakup of gross slippage for Q4-26 and Q3-26. So that's one question. And the other question I had is that what is your total Middle East portfolio? And what is the India-linked Middle East portfolio? Like some... Indians working abroad may have taken home loans, etc. So both, if you could give some sense of that.

So I'll answer the second question first. I think that answers many people's minds, you know, what is happening on the Middle East. See, the Middle East, we have two large offices, Bahrain and DIFC Dubai. But the other operations are very small, Bahrain retail operations and Dubai, we don't have any retail operations at all. So primarily, it is a wholesale book. And out of this, it is predominantly either a bank exposure or a sovereign exposure. And in both these cases, we do not see any concern on that. And we do not have any much direct exposure either to the medium enterprises or even corporates. So I do not see the great impact coming from the corporate side, wholesale book side. And the retail side where the people working in the GCC taking the housing loans, it is predominantly in Kerala. The rest of the country is not concentrated. But we have not seen any impact on the asset quality, particularly on the housing loans. They normally take housing loans. And a lot of people what we have realized is that they have not come to Kerala back. They are still staying put in the place where they are working. And There is no asset quality concern at this juncture. And because most of the GCC countries are coming to a normalcy, we had moved our people from the GCC countries to India to work from Mumbai. But all of them have gone back now, barring a few, one or two. So, which means that the things are stable. I think it will take some time. But I do not think it will lead to any concerns on the asset quality. The first question on the

I wanted the slippage breakdown, gross slippage.

No, no, gross slippage is anyway we don't ever give. It's always first quarter which gives the gross slippage and subsequently it is all net slippage. But there is absolutely no any predominant movement of any concern in the slippage.

And so what will be that India linked proportion of portfolio, the Kerala home loans?

Very small.

Thank you, sir. Thanks a lot.

You want to add anything, Ashutosh, on the... No, sir.

What you said is right, sir. So absolutely no concern at all for us. The branches we have in Dubai and Bari, like Sehman said, it's wholesale banking business mostly we do. And Telugu, it's mostly non-fundable business, guaranteed. We issue for Indian, essentially, the defense.

So the corporate book what we have is 90... 8% plus is either sovereign or banks or sovereign related exposures.

So we are not concerned about any corporate exposure in Middle East for these three branches.

Globally also exposure we have with India's drinker, total exposure will be 10-12 billion including trade finance and all. But we are not seeing any concern on that side.

Sir, hi. Jai Mundra from ICICI Securities. Sir, on your, this FI27 3% plus NIM guidance, that is domestic or the global one, just to clarify.

So, our guidance is generally domestic. We are not giving wholesale, I mean, full bank NIM either. Because, see, the overseas book is a different creature altogether. We are talking about domestic names.

And sir, within this, so let's say there are two parts. One is yield and one is cost of funding or cost of deposit. If I calculate this quarter, right, so yield on interest on advances, they have been flat. 0.4% increase, whereas advances have grown by 5% QOQ. In the last quarter also, they were 5%. So average basis also, they should be around 5%. So what explains the decline if I calculate this way the yield on advances? They have declined by around 30 basis point. One is of course the repo rate movement. But apart from that, is there anything else which could linger? Because hopefully the repo rate movement ends here, right? Correct. So what is your thought process on yield on advances going ahead? Would they be similar, stable and hence, you know, yeah. Yield advances probably would have some uptick.

What happened in the Q4, apart from the EBLR movement, see your EBLR plus floating rate loans in other than MCLR in corporate book was 43% previous year. It has moved to 49%. That movement also actually creates. So, assuming that our whole view is that the repo rate cut is unlikely this year. Repo rate movement is going to be stable. which means that whatever we see on the spreads will remain. And on the corporate side, we are seeing how we can change the asset mix and reduce the floating link to T-bill, essentially, and bring back the yields to normalcy. And much of the loans, we have already started moving to MCLR in the corporate side. All loans which are getting repriced or remanaged are renewed. Today, they are predominantly moving to MCLR. and reduce the floating T-bill rate linked loans. That gives us confidence. One is the repo rate being stable. There is no movement on the EBLR side. And the corporate book which moved significantly towards T-bill probably will be brought back to NCLR. Even without considering them also, we are confident that we will be achieving the 3% name. Because of the stability of whatever currently achieved.

And NCLR will not reprice downward, right?

It will not be repriced because they are not adjusting the interest rates on the deposits. Either reprice lower or reprice higher is unlikely.

So, sir, assuming there is no change in the card rate of the deposits, the cost of deposits should still decline, right?

So, there are two reasons why they will decline. One is, I think, we are focusing more on the CASA. CASA component will contribute to the reduction. If you see, even in Q4 also, we have contained the cost of resources. And the other thing is that we would like to, we have cut down significantly on our wholesale deposits, which are expensive. We will further be cutting down on the wholesale deposits, which gives us some relief on the cost of resources.

Right.

And secondly, sir, in LCR, if you can highlight what was the LCR during the quarter Q4 and, you know, after these guidelines which have come in from April 1st, how does that change? What is the LCR number you have?

Sir, for the quarter, it was 124. Something. 124 approximately.

That was average for the quarter.

That was the average for the quarter.

Because last quarter it was, I think, some 130.

Yeah, yeah. The liquidity is being consumed, right? You are growing at 17%. But the current guidelines will give us around 3 to 4% improvement in LCR.

And what would, I mean, this, let's say, 120, 124 becomes 127, 128. What would be your, let's say, floor and maybe the upper limit for LCR to operate in? Same.

For a bank of our size, we would like to have at least 10 to 15% over the regulatory minimum. Regulatory minimum is 100%. So, 115%, I think, is a good ratio to have. Today, we have, as we entered the year, around 125%. And in this quarter, again, it will move up further. So, but we would definitely need, if the credit growth continues, some moderation will happen in the LCRs. We would be comfortable around 115 to 120 percent.

Sure. And lastly, sir, if you have the number for AFS reserves, I mean, what was the movement in this quarter? What was in Q3, December end? And what is it at the March end?

You have the number?

We will give you that number.

Thank you, sir. Thank you, sir.

Hi, sir. Pritesh here from Dan Capital. Just a few questions. Yes. So, one is on the loan processing fees. It has been quite strong this quarter. Almost doubled, I think. What has been the reason for that? Because loan growth has been strong throughout the year, but suddenly this quarter we saw that growth.

What's your name again? Pritesh from Dan Capital. Pritesh, thank you very much for asking this question. I was just waiting for someone to ask this. Everybody is worried about NII. See, I think, I mean, rightfully, I'm not undermining that. The overall construct which we mentioned right in the beginning, I don't know, it sounded more English to you, but we really mean every word what you mentioned there. We are focusing on the relationship value. For instance, this processing fee is not only coming from retail operations. Retail operations of course have given a significant uptick in the processing fee. We have seen both in the large corporate, small corporate, MSMEs, everywhere we have readjusted our processing fee. It is not only readjusting the processing fee, not by way of increasing but reducing the concessions. We have promised them the good quality service and we started charging for the processing, the process efficiency. And today we have almost in the In the retail operations, we have had a growth of 50% in processing fee and the corporate book almost 30-35%. So, I think we are encouraging our field staff to be more proactive in terms of negotiating on that.

Sure, sir. Second question was on basically the GSEC yields have moved up but our investment yields are slightly lower. one would have expected that the yields for us also would have randomly moved up in the quarter. Is that that we have moved some of the securities and booked some gains and that's why the losses are slightly lower or any other?

Yeah, some trading has been done. If you see our trading profits have been good this quarter also. So that means you know that some of the switches we have participated in that which also add, you know, portfolio yield moderation has happened there.

So, basically the profitable securities have been sold and that is why.

I mean, it depends on what securities are asked by the RBI, right. Samshar, anything you want to add?

Yes, sir. Of course, if it is an amount that is 5% allowed.

Yes, 5% allowed.

So, if you want, we can give the figures. Please.

made in the entire year around 6,321. Sure.

So last question was on this basically there were news articles that lot of RBI has asked all companies to move their dollar buying and selling to our bank and also you know related effects related you know transactions to our bank. What is How is that going to benefit us? Any outlook on that?

I'm not aware of this.

Oh, okay.

Thanks. Excellent annual numbers and report numbers and excellent... very high pigment of income tax over 25,000 crores.

It's a backhand compliment, is it? It's a challenging year and despite that, over 25,000 crores in this type of environment is really wonderful. And a couple of important points. Now, everybody is looking at value unlocking and we have over 10% in essence of action. Deputy Chairman has said it should get listed soon. So how, what's the thought process on value unlocking? I see page number 55 which talks about total reserve and surplus 5,95,000 crores. Now we'll get valuation, fair market valuation on the balance sheet. Apparently this number will also go up. But in terms of... Business generation IRR would like to know what is the thought process if we can use some of the capital or value generated in the core banking business in short term or long term, ideally. So that would be very nice if you can share in detail. Second point is on market share of SBI. Today we are talking about 22, 22.5%. There has been some thought process and talks going on if one can increase market share gradually. So what is the thought process of the bank's board of increasing market share whether through rural banking or through district banking or branches and aligning with the government's objective if in how many years we can come to 25% market share and What is our core strategy on that? Also including globalization. I think it could be a great opportunity. That's it. I found the results better than expected because I've been present and looking at the transcript. Saw it as a knee-jerk reaction, but with your clarification and a lot of value unlocking, hopefully your direction towards that should help in creating greater value year to year. All the best to the board and the team. Thank you. Thank you for the compliment. Yeah, yeah, of course. But I wish I won 10% of NSC. Unfortunately, we don't. Within the group, we have around 7.3% holding. But bank itself would be keen on participating in the OFS. We have given our in principle consent to them. What kind of participation will happen, the board will determine. But as you mentioned, I think the moment NIC gets listed, the whole shareholding by SBI will be available as a reserve to us to mark to market. Currently, it is not marked to market in our books. Yes, I think several times you yourself have mentioned the hidden reserves what SBI has in terms of strategic investments. And this year, I think if NIC gets listed, that unlocking will happen. We are also seriously, as you are aware, we have embarked on listing SDI AMC and hopefully in this financial year we will be able to complete, which will result in capital augmentation, CET1. And this capital we would like, that is what I think gives us confidence that Going forward, two things which are required for supporting the credit growth in terms of capital is fully we are convinced that we have the capability. Even with the current position, we can fund almost 12 trillion credit growth. And the further recommendation will help us going forward. And enough liquidity in the system. And a large bank which has got 59 lakh crores, which will be probably in this month will be crossing 60 lakh crore deposits, growing at 11 to 12%. as I mentioned in my inaugural speech, it's a bank which is adding 11 lakh crore business every year, which is equivalent to several other banks. But we want to do it efficiently. The scale is kind of given, right? When you have 109 lakh crore business, the normal growth rate itself will add to your scale. So we want to use this capital efficiently. Efficiently where it is required and efficiently in terms of giving the return to the investors, shareholders, to the... So we are sticking to our... guidance through the cycles we would like to ensure 15% return on equity to our investors minimum. So your second question I think is very very important question that when you have such scale and such dominant market share how do you grow further and this is something what we deliberate very seriously in the board and we have now embarked I think I must have mentioned last quarter also that We want to increase the market share in every district. Today, fortunately, the data is available, market share data is available at the district level. So, it is, our strategy is that even if in a district you have a dominant market share of 60%, there are districts where SBI has a market share of 60%. But our guidance is that 1% increase in market share. Whichever is that, whether you have 10% market share or 60% market share. Every district we would like to grow 1%. I am very glad whenever I travel in the field, the lowest officer in the bank also is aware of market share. So we are trying to improve the market share in our district. I think this is a great strategic shift which is happening. And 25% is a little farther. But we would like to move 1% every year. That means, you know, four to five years. As I mentioned several times, we would like to be 25% in terms of the GDP of the country. Thanks for elaborate answer. If you can permit me, particularly on segments, I found gold loans. It was a focus area. Now we have besides 100% growth, we have a good critical mass of over 1 lakh gross as a thing. express credit also now initiative since a few years we have a good base now auto sector we found a little growth a little muted at eight and a half percent but hopefully with this peacemaking efforts mediation prices coming down oil prices hopefully you can tell us the growth can improve so can we look at also gold loans whether we can why don't we use the opportunity to increase our names through that because other gold loan players nbfcs are really uh you having serious rates and we seem to be doing a service but with the entry made if you can increase market share and increase names and also your thoughts on this increase in the rate growth in advances further through this verticals which we mentioned and your priority areas. That would be nice. You want to respond before I respond? So AFS result, somebody has asked. So this 31st March number is 5,136 crores. AFS result. They want to see the movement. Movement is December quarter, 8,151. So roughly 3,000 crore decline. AFS result. The reserve has gone down. Yeah. But it did not have much impact on the C to 1 ratio. Your question in terms of the gold loans, the gold loan market is highly diversified. The ticket size, what we look, for example, average ticket size of gold loan in our books is about 2.5 lakhs. These are price sensitive segment. They are not 20,000, 30,000 loan amount people who are willing to pay anything any rate of interest. These are price sensitive and gold owner also you must realize there is a very efficient equity product, return on equity product, ROE product because there is zero risk weight on that. So we would like to have a very strong growth but with very qualitative growth. For instance, our overall LTE is 52%. That means, you know, you have very safe lending there. And the yield is also not bad. I think 8.5 to 8.75 is something what we get on this. 9%. 9% is a good yield for a product which doesn't require any capital allocation at all. And with almost zero NPA. Thank you.

Thanks.

Hi, sir. This is Piran, engineer from CLSA. Just firstly, sorry to harp on the NIM question again, but we exited with NIMs of 2.9%. Our roadmap to 3% NIM would be driven by deposits. No, no.

We exited 3% domestic NIM. And our guidance always has been on the domestic NIM.

But, so, okay. Three was the full year NIM, right? Yes, full year NIM. The last quarter's NIM was 2.93%. No, no. It is in your PPT 2.9. Yeah, 2.9. So, the significant is 2.9. Yeah. So, for that to improve, is it going to be a yield driven thing or a cost of deposits driven thing?

So, as I mentioned, you know, you have 60% of fixed deposits. And fixed deposit growth is significant for us. 14%, 15% of the retail term deposit. We would like to have both levers used. One is Reduce further cost of resources. It may not be very significant, but reduction of cost of resources will happen in two ways. One is whether we can further augment our CASA in terms of absolute amount. And number two, reduce the wholesale deposits. It is expensive. But that moment will be very limited. I do not think there will be any significant pickup on that. You are right. I think it will more in terms of the yield and advances management. We would be looking at asset mix. And also increasing spreads wherever it is feasible, both on the corporate side as well as retail side.

Okay, thank you. Secondly, what percentage of our MCLR book is yet to reprice?

MCLR book, I think the five basis point which is done in December is reduced, right? That will take about three to four months, but that is not much great impact.

But the ones done in October, a lot of them would still be left, right?

Six months MCLR is predominant. So we have about 40% which is one year MCLR. Some part of that probably is left out. Otherwise, mostly it's priced.

Understood. And lastly, just on current account deposit growth, we were doing pretty well growing 20-25% until two, three quarters back. Now it's come down to single digits. Anything to read into it or is it just a period end number?

Period end number of the previous year which has impacted. See, we had a period end moment in FY25, March 25. We had a significant current account moment because of the government funds release. Those things were not there. And it was a very large amount, almost 50,000 crores, which has come in the last few days of March 25. Despite that funds not being available, I think we have done phenomenally well in the current account. And as I mentioned somewhere earlier, we have had 21% decline in the government current account deposits in the last year. Whereas we completely pivoted towards non-governmental current account, where we had 23% growth rate in the current account. That is the number which you see, the year-end number for March 26th, in my view, is the best number ever could achieve by SDI. Because we had a double impact of, you know, the last minute flows which were not available this year. And the overall current account deposits from the government has fallen about 21%. Despite that, because of our strategies and current account, business account being open, 23% growth rate was there in the non-governmental account. I think this is a very good current account story for us.

Just to add, sir, if you permit.

So, one is the current new customer acquisition and more balances in current account. Apart from this detailed current account customer or business current account customer, they are also giving us opportunity to cross sale other financial banking products to them. They may be your prospective SME borrower also. So, this is the value which is essentially hidden, you can say we have yet to unlock. But in the process, I am unlocking. So, this is giving a deployed on the one side, focusing on retailer business customer for current account and also creating opportunity for other fee income plus maybe lending also in future.

Understood. Thank you. Sir, just lastly, one suggestion. Your slide 15 is pretty useful. Can you also include quarterly data points? Maybe put a slide 16 with the same information, but quarterly. It will be really useful for all analysts.

We will see. See, we didn't want to change the slides video.

Yeah, so now that we are entering.

To one onward, we will try to improve on that.

It will be very useful. Yes. Thank you.

Sir, here Anand from MK. Sir, other OPEX seems to be on a higher side on a quarter-on-quarter basis. There is a lot of bunching up of other OPEX which happens in the fourth quarter. This happened last year as well. Is there a way apart from any business acquisition cost to spread out the OPEX one? And how do you see the cost-to-income ratio shaping up in FY27? Any effort that you're taking to improve that? Because that's certainly on a higher side, given that we have a sizable corporate book, but still our cost-to-income ratio is about more than 50% despite being on a higher side. What are the efforts that we're going to take on that front?

See, our effort is to keep cost-to-income ratio contained below 50. I think this is the guidance which we have given. And we would have had probably ended the year with 48, 47%, but for the present income not supported. Otherwise, the costs have been contained, both in terms of bunching happens because of the payment psyche which comes through. It is not, you know, intentional, but I think by design, much of the overheads are booked during the last quarter. So, most of the expenses and income for Q4 has to be compared with Q4 only. Any other comparison will not work. So, I do not think at this moment we are not thinking about, but we will definitely have a look whether any of the expenses can be spread over the four quarters so that we will not have the punching issue.

Sir, on the Forex open positions which were basically asked to unwind, so that impact we have largely taken in the fourth quarter? Yes, sir, for that will happen in first quarter.

I did mention, I think, we said that the Q4 MTM impact what you see is about 100 crores and complete unwinding had happened on the 10th April which resulted in a net loss of 57 crores.

Okay, that's very small. And you've guided for a credit growth of about 13 to 15% for FY27. Yes. That's on a lower side versus what we had in this year. So, 13 to 15% chances, probability of that to be hitting the higher end of the guidance still is high.

I think as it stands, it looks good. Except that, you know, how this West Asia conflict, how much it lingers and... But if we do not factor in that at this moment, I think that in 215% seems to be a feasible option. See, at the same time, as I keep mentioning, the credit growth is a function of macros. We do not want to grow significantly higher than what macros can support. So, if we have 6.5, 6.9% GDP growth with 4% inflation and nominal GDP of Around 10.5 to 11%. We built around 3% over that. 3 to 4% max. If any of these numbers don't realize then we don't want to grow as much.

And sir, what's the broader outlook on the MSME space? Because that's the one which has been impacted the most because of the West Asia conflict. Any stress pool that we have identified? Do I know that basically we're going to do a lot of ECLGS, but that again will be construed as that we are supporting that customer. So any stress pool that we have identified, any incremental provisions that we're going to make? And that's why you're guiding for a 50 basis point credit cost in FY27? No, no.

50 basis point credit cost is something what we've been guiding for the last few years. We continue to do that. It is nothing to do with the vegetation conflict. But even if any some moment is there, we still are sticking to that guidance. Broad-based stress is not visible yet. There are clusters which are impacted definitely. For example, Morbi cluster which is being talked about because gas is not being affordable by them, so they are not producing. Small and medium enterprises, they are affected. We are working with them what kind of support they need. In fact last month we have asked them to take annual maintenance. That period is also over now. They have to come back to production but they have not come yet. But that is overall credit exposure to the whole cluster is very minimal. But they definitely need some support going forward. We will have to see what support we can give. Other than that, hydrocarbons, obviously the oil companies are impacted, but there are very strong balance sheets. I think there are no credit related issues with them. They may have their own T&L issues, but it will not translate to credit issue. I would like to just add a couple of points just around the way we have been mitigating the risk in the MSME portfolio. We have lost BRE, as we announced in several quarters back as well. This is giving good results. In fact, when we look at the delinquencies in a BRE versus non-BRE portfolio, BRE portfolio, the delinquencies are lower. That means underrating models are much more robust. Second data point is like in terms of CGTMSC eligible loans, like which can be covered under CGTMSC, in the absence of that we used to take, partly it used to be collateralized. We have shifted from predominantly CGTMSC, so coverage is almost 58% of the universe which is eligible for CGTMSC. So obviously our mitigation is much higher and recourse to the CGTMSC is much higher. I think these are helping us to get a better handle on the quality of the portfolio.

Hi, sir. Sir, Param here from Investech. Sir, question on your term deposit repricing. Term deposit repricing lower. Is it largely done or is there any... Some residual tail end, that's all, but mostly done.

Okay.

Sir, secondly, on your salary costs in this quarter, it is generally Q3 to Q4, we see an uptick. There is a PLI related payout, but this time it's not there. Is there some?

Yeah, there is, I think, classification change because the PLI, which is to be given on the base of the government PLI, it is still being debated. So we have not booked in the staff expenses, what you see in your presentation. It is in other provisions. So if you add, I think it's broadly in the similar way. So it's accounted for.

Accounted for. And sir, lastly, you will be saving on BICDC premium next year, right?

Don't ask me the number. I will lose my job.

What you paid this year.

Sorry, no. As per the regulation, we are not able to, we are not supposed to disclose that. We will get benefited definitely, but this is not a disclosable item. Okay, fair enough. Thank you so much.

Congratulations to team SBI for multiple milestones.

Thank you. Global transformation is a necessity for India led by war. Maybe business mixes are changing. I personally sense there is going to be a big capex boom in India led by energy. So we need renewable, we need nuclear energy. Data center needs lot of energy. The Middle East attacks on Amazon may divert lot of data centers to India.

The transmission line expansion needs big growth. Any kind of indication or lead time which you are already sensing because these ticket sizes will not touch base with a bank which is not of a size. And they will have to participate along with SBI to disperse the money.

And SBI caps will have a big role because I see lot of reports generated by them too.

be it hydrogen, renewable and multiple sectors?

So, I will answer that and I will also ask Nathanael to respond on that. Transmission, yes, I think is going to be one of the most important infrastructure which is going to be developed. Some of the projects are slightly large, as you mentioned. We have been having discussion with them. What kind of structures they will come out is not very clear yet. Whether there will be an SPV or it will be done by their own companies. there is a good opportunity coming up there apart from transmission we also see a lot of emerging sector I think last time also I mentioned we have started an initiative called chakra this is to support all sunrise sectors whether it is a green hydrogen or whether it is data centers whether it is a new renewable energy models which are emerging So, there are even small modular reactors which government has been talking about, semiconductors. These are all the activities and sectors probably which have greater potential for investment. But they need a separate kind of structure. It is not a pure vanilla loan which they require. They may require a mezzanine funding. They may require equity funding. So, we want to handle that kind of composite structures As far as transmission, Ashwin, you want to add something?

So, two, three things. For transmission, of course, what Sarah said, transmission, a lot of potential. But I would also point out to battery energy storage systems, we got a large number of proposals which we are processing. We also have the data center is another activity where we have got a large number of cases we are looking at. Some we have already done. And then there are others like pumped storage hydro, which is something which is starting to come to us. These are only one or two are live currently, but now a large number of people are coming because the latest tenders are all for round-the-clock power. It's not plain vanilla solar or hydro, etc. So, with that combination, either BSS or pumped storage hydro, combination along with solar wind is the new flavor. So, we are seeing a lot of activity and transmission clearly is is one thing which is the need of the hour because without adequate transmission, the curtailment in solar is quite high. So, I think we are supporting all of that as it goes forward. And lastly, smart metering. We have done quite a bit already, but still there are a lot of enough opportunities there.

Sir, when you highlighted a data center, are we funding GPUs or we will only do infrastructure?

Both. Yeah, both. Both.

So, we look at the... It comes with a package.

Package. We look at the clients which are there. Because... The way it is being presented here is more like a developer story because the developer creates the shell and ultimately the fit out is done by the ultimate user. And we are focusing largely on the hyposcaler model because that's where the demand is assured and there is no, the client, the quality is assured. So we've got quite a few of them and Mumbai especially has a lot of data centers coming up. We see a lot of potential in this area.

This means that hyperscale LRD business, ticket size, maybe 15-20 years kind of tickets and competitive. How is that visibility, sir? So, as far as infra, the Greenfield project is concerned, our ability to price is better.

My last question, SBI has, you know, two multiple retail salary accounts.

Touch points to customer concern on wallet share. How many products are we currently doing and what will be target? Do you have any PPC number? But the last number I know is about 4.5, 2.5 to 3. Around 3. Financial products. Financial products. So, I think 3 is ok. But our idea is to take it to 5. And There are customers who tell me that they take about 8 to 10 products, different products from SDI. So that means that there's a potential to go to 8 to 10. But we would be okay if we reach a PPC of 5. And the auto loans, what you have asked, essentially is a hook product. You can't make money on the auto loan itself, the dealer commissions and other things. But it brings many other product engagements.

But to reach five, I suppose we need a lot of transformation where human resources are concerned specifically on retail.

So, their branches are concerned connectivity. So, everything can't be digital. Yeah. So, how are we building up that capability? So, this is something what we mentioned that how do we use our manpower of the branches when large number of transactions have moved to alternate channels. We are redeploying some of the workforce into sales and train our workforce in the branches for upselling. So, this is something what is happening overall and that is how you see that for a large bank, you know, the diversified customer base, we have an average of three. It's a good number. So, this mutual fund and insurance business, are we tracking at each district level? Yeah. And branch level also.

Branch level. You know also deep integration with social media production.

So, we always face this tag of mis-selling and although we are the lowest. So I think all of that is being attempted in the right suitability.

Good luck for the year and thank you for answering all the questions. Thank you. Thank you, Chuksa. Sir, this is Mahesh from Kotak. So one question around the margins again. What is so different about this quarter in terms of the margins changing direction so sharply? Whereas if you look at the last two rate cuts which happened in March and June, the impact on the P&L was not that high. But this time around, you seem to be attributing the entire decline to that one particular variable.

No, I am not attributing only for that. I said that the way the composition moved, the overall EBLR and T-bill link pricing has to be looked at. This is what I said, the corporate book has moved to a floating rate. Whatever growth has happened in the last quarter is also predominantly came from the T-bill. which gives us confidence that we can do the asset mix change going forward. And we're trying to move every T-bill linked loan to an MCLR based loan.

So, just to clarify that one point, the T-bill increased last quarter, right, in terms of the price at which it was versus where it is today. That would have had a positive impact? No, no, no. T-bill portfolio has increased. But that portfolio would have had a natural upward repricing, right, during the quarter?

You have to compare with MCLR versus T-bill, not the T-bill versus T-bill. So the one which is MCLR linked earlier has moved to T-bill and linked down the yield. T-bill there is a pick. Overall T-bill portfolio has had a good yield pickup. But if something is moving from MCLR to T-bill, then there is a dip in the earnings. But this was a choice you took in advance. It is not only choice. I think the choice, see it is also the composition of the users of the facilities. See, if you have seen, since you have asked that question, a little deep dive probably required. A lot of large, well-jetted corporates were accessing the market as more to banks. And most of their facilities were linked to people. They were not utilizing at all. They were not using at all. They were using, accessing the market, city and all. That has more to the bank. And this is the relationship value we have. While you all are looking at the NAI part, they are looking at the overall value of the relationship with the corporate, which is not evident in the NIM. True. It is evident in our ROA. Where do I get the ROA? Where do I get the fee-based income, what you are seeing, and the other income? It is because of the relationship with the corporate, when they come back to us, I cannot say that, you know, I will not give a committed people's rate, even if it means that there will be some softening of deals on that. This is what I was trying to explain. It is not purely on the 25 by say BLR, which anyway we have unanswered. What we have not factored in for a significant moment from the market to a bank.

So if I were to just simply draw the difference in the corporate sector and assume a large part of it was T-bill, I should be able to understand which portfolio took the T-bill portfolio. Meaning? If I were to just kind of, just trying to understand how long this impact will be.

No, no, these are all short term impacts only. Predominant book has been in the short term. There could be some medium-term loans also with a T-bill price, but in the current financial year itself, we would be able to move a large chunk into MCLR basis. There are two ways of handling this on the corporate side, particularly where we have very strong relationship. It is not only purely a small working group being drawn with them. Either you increase the spread over T-bill and say that, you know, this is what the spread I am looking for. If they are getting a better price, they move on. or move them to MCLR. So, these are the two strategies which we will be following this year.

And one last question, when we do the calculated yield on advances, the decline has been fairly sharp. Now, one of the reasons could be that the book was thrown towards the end of the quarter. Yes. If I were to just move into 1Q and 2Q, I know that you do not want to give a quarterly guidance.

It is trying to understand does it dip first and then starts moving higher or do you have visibility of how this I don't want to hazard I am still sticking to my 3% annual name but if you really ask me I don't think there will be any further dip. If it satisfies you.

We wanted that answer sir.

Thank you. Hi sir.

Hi sir. This is Nitin Agarwal from Motelal.

Yeah.

So one question again around the corporate loan growth. If I look like last two quarters, we have reported almost 15% growth in the corporate loan growth. While you talked about that, you are looking at things in totality in respect to ROA and ROE. But does this growth momentum, do you think that this will continue in the next coming quarters? Because it will continue to have a bearing on the margins also. We are expecting things to move up from here.

So the part movement also, as I mentioned, from market to bank. If the market improves, probably the reversal will happen. So, that is the reason our corporate guidance is 12 to 13 percent is what we are looking at. And our 13 to 15 percent will be primarily driven by the RAM, RAM growth.

Yeah. Due to paucity of time, we will now take up a few questions.

We want to ask something. Just one clarification on the ROA when we talked about 1% plus ROA that we look to maintain.

Yes.

As we now start providing for ECL, you talked about a 3-4 year transition journey. Will that guidance stay unchanged over those 3-4 years or you see some impact?

Yes, still seeing that 1% through the cycles. Okay. Sure, sir. Thank you so much.

Sir, we have a few questions coming in through the online webcast now. This will be addressed by the chairman, sir, now.

I think there is one question why Q3 profit is more than Q4. I think it is the other way around. Why the Q4 loss is having less profit than Q3? Mainly because the MTM loss of 4520 close in Q4 as against loss of 143 close only in Q3. This is question from Ingatesh Parrao. And question from Tamarish Sinha from Off Business. What is the guidance on net interest margin in NI for FY27? NI guidance we don't give, but NIM, as I said, our guidance for domestic name is to remain above 3%. And because Bertia, why was Q4 name so much lower? I think we have had enough discussion on this. If any further clarifications are required, we can have separately. Sunil Melwani, what are the sales bank is trying to take into its market share in Kasa? This is what I mentioned in terms of focusing on the district level improvement on the market share as well as a very strong campaign which we launched. I've seen good impact of that campaign is ABCD, all branches to contribute to deposits. I think this is also helping us in terms of mobilizing and as I mentioned, savings bank, we've witnessed a good growth of almost double digit, 10% growth and a very large base of savings bank. Mrudal from Senora Asset Management. What was MTM loss provided for treasury losses? So, the same passed by NI. There is an MTM loss of 4520 crores in Q4 as against 143 crores in Q3. The MTM is routed through other income, non-interest income. Rohan Mandora from Equiras. Your cumulative domestic yield in advances for 12 months is down 11 pace point. So what is the domestic yield for Q4 and what explains the sharp decline? I think again this also we have explained at length what led to this decline in yield. But essentially as I mentioned report rate curve 25 is burned and also shift in corporate credit composition. Siddharth Rajpurohit, our EBLR share is only 35% so there should have been only some 7 base point. I think we need to add both the EBLR book as well as the T-bill linked advances. So that is about 50. Currently, we have E-bill and T-bill about 49%. Whether the bank has made any amount of provision based on ECL? No, not yet. Siddharth, again, share of AAA in corporate weeks has risen by 400 base point. Does it have an impact on yield? Guidance on the share of AAA going forward? As I mentioned, some of the best well-rated companies have moved from the market to bank. While it had dramatically altered the composition of AA and AAA, it had impact on the yields as I mentioned earlier. Jeet from Ambit, please clarify off-balance sheet exposure like financial guarantee not required provisioning. Can we now assume that non-funded credit exposure disclosed in BIS will require provisioning in ECL norms? Provisioning on non-funded credit exposure shall be completed as per RBI guidelines effective from 1.4.27. I think they also attract provisioning. So, I think broadly we have answered the questions. You can go ahead now.

I trust all the questions have been addressed. We will be happy to respond to other questions in offline mode. Let me end the evening with thanking Chairman Sir, MD Sir, the MD Sir, top management team, senior officials of the circle and various offices connected through webcasts, analysts, investors, 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 so much.