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.