5 Point Analysis of SBI Bank | Lower Slippages, Stable Asset Quality helps SBI Bank to post 67% rise in Net Profit | Q2 FY22 Result & Conference Call Highlights

Management:

Mr. Dinesh Kumar Khara - chairman, state bank of India

Mr. C.S. Setty - managing director (retail & digital banking)

Mr. Ashwani Bhatia - managing director (corporate banking and global markets)

Mr. Swaminathan J - managing director (risk, compliance, and stressed asset resolution group)

Mr. Ashwini Tewari - managing director (international banking, technology, and subsidiaries)

Mr. Alok Kumar Choudhary - deputy managing director (finance)

Mrs. S. Uma Shanmukhi - chief general manager (financial control)

Mr. Charanjit Attra - chief financial officer

Mr. Pawan Kumar Kedia – general manager (performance, planning & review)

Q2FY22 performance:

Retail book at 9 lakh Crores, largest in the country and is growing at a 3 year CAGR of 16%.

27,500 Savings Bank account on a daily basis, through YONO in the Q2 FY22.

Bank to continue to focus on increasing the share in current accounts, while maintaining its leadership position in savings deposit.

Banks aspiration from current position of strength is to consistently deliver a ROE of 15% through various business and economic cycles.

Personal Retail credit growth at 15% YoY at 9.04 lakh crores.

CASA growth at 11.75% YoY. CASA at 17.06 Lakh crores.

The net NPA is at 37,119 crores in Q2 FY22, Net NPA ratio at 1.52% in Q2 FY22.

In addition to a PCR of 70.05%, the bank has the additional provision of 27,820 crores at the end of Q2 FY22, additional COVID related contingency provisions at 6,181 crores.

CET ratio in FY21 was 10.37% in Q2 FY22.

For Q2 FY22- Slippages at Rs 4,176cr,

NII increased from Rs 28,181 crores to Rs 31,184 crores; YoY growth was 10.65%.

Net Interest Margin Domestic (%) increased from 3.34% to Rs 3.50%; YoY growth was 16 bps.

Operating profit grew from Rs 16,460 crores to Rs 18,079 crores; YoY growth was 10%.

Net profit grew from Rs 14,488 cr to Rs 20,410 cr; YoY growth was 41%.

PAT grew from Rs 4,574 crores in Q2 FY21 to Rs 7,627 crores in Q2 FY22 ; YoY growth was 67%.

ROA in H1 FY22 was 0.61% which was 0.48% in FY21.

ROE in H1 FY22 was 13.2% which was 9.9% in FY21.

Deposits:

Total deposits grew from Rs 34,70,462 in Q2FY21 to Rs 38,09,630 crores in Q2FY22; YoY growth was 9.77%.

Term deposits grew from Rs 18,37,128 crores in Q2FY21 to Rs 19,83,642 cr in FY21; YoY growth was 12.23%.

CASA growth at 16.73% YoY; It grew from Rs 14,10,981 cr in FY20 to Rs 16,46,974 cr in FY21.

Current account grew from Rs 2,17,415 cr in FY20 to Rs 1,76,892 cr in FY21; YoY growth was 27.36%.

Savings account grew from Rs 11,93,566 cr in FY20 to Rs 13,70,082 cr in FY21; YoY growth was 14.79%.

68% of new savings accounts opened through YONO in Q4FY21

Advances:

Credit mix for FY21 was as follows: Personal -39.89%, Corporate - 37.52%, SME - 12.78%, Agri - 9.81%.

Retail Personal advances grew from Rs 7,47,589 cr in FY20 to Rs 8,70,711 crores in Q2FY22; YoY growth was 7.98%.

Agri loans grew from Rs 2,10,945 crores in Q2FY21 to Rs 2,14,998 crores in Q2FY22; YoY growth was 2%.

SME loans grew from Rs 2,77,248 crores in Q2FY21 to Rs 2,79,820 crores in Q2 FY22; YoY growth was 1%.

Corporate loans declined from Rs 7,87,559 crores in Q2FY21 to Rs 7,56,767 crores in Q2FY22; YoY decline was 4%.

Asset Quality:

Total slippages in Q2 FY22 at Rs 15,666 crores.

Gross NPA in Q2FY22 was Rs 1,23,942 crores; Gross NPA Ratio as on Sept’21 is 4.90%.

Net NPA in Q2FY22 was Rs 37,119 crores; Net NPA Ratio as of Sept’21 is 1.52%.

Slippages ratio at 1.56% in Q2 FY22.

PCR ratio as on Sept’21 was around ~88%.

Digital Banking:

27,600 SB accounts per day were opened through YONO in Q2 FY22.

1.20 crores avg. daily logins on YONO in Q2 FY22.

526 crores online GMV in Q2 FY22.

4,957 crores MF Sales.

Number of internet banking users are 94.4 mn as at the end of Sept 2021 quarter.

Digital Lending (PAPL):  ~2.84 lac new PAPL A/c opened; INR 5,271.57 Cr PAPL disbursement.

YONO Krishi: ~46.7 K KCC Reviewed through YONO; INR 743 Cr Amount of KCC Reviewed; 2.89 lac+ KCC Reviewed on YONO since launch (Aug’20).

UPI: Number of UPI users: 158 Mn; Remit transactions handled (in Q2FY22); 4,822 Mn, Market share in remittances: 25% (Sept 2021).

Debit cards: No. of cards: Rs 284.60 Mn; Debit Card spends: around Rs 559.90 Mn transactions and Rs 937.63 bn spend during Q2 FY22.


Please find attached for detailed analysis.

Originally Published On: https://blog.investyadnya.in/sbi-bank-q2fy22-result-analysis-conference-call-highlights/