State Bank of India - Q1 FY16 Results

HIGHLIGHTS

• Net Profit increased by 10.25% from Rs.3,349 crores in Q1FY15 to Rs.3,692 crores in Q1FY16.

• Operating Profit increased by 4.72% from Rs.8,788 crores in Q1FY15 to Rs. 9,202 crores in Q1FY16.

• Fee income increased by 12.86% from Rs.2,837 crores in Q1FY15 to Rs. 3,202 crores in Q1FY16.

• Non Interest Income increased by 19.66% from Rs. 4,252 crores in Q1FY15 to Rs. 5,088 crores in Q1FY16.

• Gross NPA Ratio is down by 61 bps from 4.90% in Q1FY15 to 4.29% in Q1FY16.

• Net NPA Ratio is down by 42 bps from 2.66% in Q1FY15 to 2.24% in Q1FY16.

• Domestic NIM of the Bank has declined from 3.54% in Q1FY15 to 3.29% in Q1FY16 due to reduction in base rate by 30 bps and also because of subdued growth of 5.38% in advances.

PROFITABILITY

Q1FY16 OVER Q1FY15

• Net profit increased from Rs.3,349 crores in Q1FY15 to Rs.3,692 crores in Q1FY16 (10.25% YOY growth).

• Operating profit increased from Rs.8,788 crores in Q1FY15 to Rs.9,202 crores in Q1FY16 (4.72% YOY growth) as the operating income growth of 7.52% is lower than 10.34% growth in operating expenses.

• Total Interest Income increased from Rs. 36,487 crores in Q1FY15 to Rs.39,643 crores in Q1FY16 (8.65%YOY growth).

• Interest Income on Resource operations increased from Rs.8,266 crores in Q1FY15 to Rs.10,254 crores in Q1FY16 due to growth in portfolio and increase in yield from 7.88% to 7.94%.

• Total Interest Expenses increased from Rs.23,235 crores in Q1FY15 to Rs. 25,911 crores in Q1FY16 (11.52 %YOY growth).

• Staff Expenses increased from Rs. 5,565 crores in Q1FY15 to Rs.5,906 crores in Q1FY16 (6.14%YOY growth).

• Operating Expenses increased from Rs. 8,717 crores in Q1FY15 to Rs.9,618 crores in Q1FY16 (10.34%YOY growth).

DEPOSITS

• Deposits of the Bank increased from Rs.14,18,915 crores in Jun 14 to Rs.16,13,545 crores in Jun 15.( 13.72%.YOY growth)

• Savings Bank Deposits increased from Rs.4,89,422 crores in Jun 14 to Rs. 5,39,050 crores in Jun 15 (10.14% YOY growth) .

• Current Account Deposits increased from Rs.89,710 crores in Jun 14 to Rs.96,845 crores in Jun 15 (7.95% YOY growth).                                                                                          

ADVANCES

• Gross Advances increased from Rs. 12,32,288 crores in Jun 14 to Rs.13,13,735 crores in Jun 15 (6.61% YOY growth).

• Large Corporate Advances increased from Rs.2,26,261 crores in Jun 14 to Rs.2,55,964 crores in Jun 15 (13.13% YOY growth).

• Retail Advances increased from Rs.2,42,480 crores in Jun 14 to Rs.2,80,114 crores in Jun 15 (15.52% YOY growth). Home loans increased from Rs.1,44,210 crores in Jun 14 to Rs.1,63,678 crores in Jun 15 (13.50% YOY growth).

ASSET QUALITY:

• Gross NPAs declined from Rs.60,434 crores in Jun 14 to Rs.56,421 crores in Jun 15.(-6.64% YOY)

KEY FINANCIAL RATIOS (SBI):

• Return on Assets 0.72% in Jun 15 decreased from 0.74% in Jun 14.

• Return on Equity 12.30% in Jun 15 increased from 11.94 % in Jun 14.

• Average Cost of Deposits moved to 6.35% in Jun 15 from 6.34% in Jun 14.

• Average Yield on Advances moved to 10.33% in Jun 15 from 10.50% in Jun 14.

• Both the Productivity Ratios i.e business per employee and profit per employee have increased from Rs.11.89 crores to Rs.13.41 crores and Rs.6.08 lacs to Rs.6.89 lacs in June 14 to June 15 respectively.

Performance of Associates and Subsidiaries:

• Net Profit of all Associate Banks increased by 19.31% from Rs.702 crores in Jun 14 to Rs.838 crores in Jun 15.

• Net Profit (after minority interest) of SBI Group has increased from Rs 4,448 crores in Jun14 to Rs 4,714 crores in Jun 15 (5.97% YOY growth).

• SBI Group’s Operating Profit for Q1FY16 is at Rs.12,333 crores is up by 6.83% from Rs.11,545 crores in Q1FY15.

• Return on Equity of SBI Group is down by 23 bps from 12.74% in Jun 14 to 12.51% in Jun 15.

ANNEXURE

Details of Profit and Loss account for stand alone are as follows: