Key trends in Q2FY21 BY SBI
Key trends in Q2FY21
- Credit growth in Retail is coming back to pre Covid-19 levels.
Sanctions and Disbursements during Q2FY21 are significantly higher YoY across most retail products
- Asset Quality outcomes are better than prior expectations.
Collection efficiency in domestic loan book (excl. Agri Segment) as at the end of Q2FY21 stands at 97%.
- The Bank continues to demonstrate a strong liability franchise – driven by brand, trust and reach.
Savings account balances have increased by 16.28% YoY; we now have a total deposit base at Rs 34.7 lakh crores as at the end of Q2FY21.
- Domestic NIM for the quarter at 3.34% has increased by 12 bps YoY and 10 bps QoQ
There is sufficient liquidity (credit deposit ratio at a low of 61.27%) to fund credit growth which is on the mend.
- Bank has raised Rs 19,931 crores in Tier 2 and AT1 capital during Q2FY21
Setting new benchmarks in spreads and reviving AT1 market
- Digital customer onboarding
38% of retail asset accounts and 60% of liability customers onboarding done through digital channels in H1FY21.
|For the Quarter||YoY Growth|
|Profit & Loss (in Rs. Crore)||Net Interest Income||24,600||26,642||28,181||14.56%|
|Net Interest Margin – Domestic (%)||3.22||3.24||3.34||12 bps|
|Operating Profit (excl. one-off Items)*||14,714||16,521||16,460||11.86%|
|Profit Before Tax||5,060||5,560||6,341||25.33%|
|Key Ratios (in %)||Credit Cost||1.97||1.56||0.94||-103 bps|
|Net NPA||2.79||1.86||1.59||-120 bps|
|Capital Adequacy||13.59||13.40||14.72||113 bps|
|Balance Sheet (in Rs. Crore)||Total Advances||22,48,313||23,85,639||23,83,624||6.02%|
|Retail Personal Advances||6,85,570||7,48,800||7,85,345||14.55%|
*One-off items: stake sale in SBI Life – Rs.3,484 Crs in Q2FY20 & Rs.1,540 Crs in Q1FY21
|Highlights Bank has delivered a strong performance in Q2FY21 with all round improvement in Profitability, Capital Adequacy and Provision Coverage Ratio, including Additional Provision over Minimum Regulatory Provisions required. Bank registered a Net Profit of Rs. 4,574 Crores in Q2FY21, an increase of 51.88% over Q2FY20.Operating Profit (Excl. Exceptional Items) increased to Rs. 16,460 Crores in Q2FY21 from Rs. 14,714 Crores in Q2FY20, an increase of 11.86% YoY.Net Interest Income of the Bank grew by 14.56% YoY during Q2FY21. Domestic Net Interest Margin (NIM) improved to 3.34% in Q2FY21, registering an increase of 12 bps YoY.Non-Interest Income (Excl. one-off Items) remained flat with Q2FY21 at Rs. 8,528 Cr as against Rs.8,538 Cr in Q2FY20.Total Deposits grew at 14.41% YoY, out of which Current Account Deposit grew by 8.55% YoY, while Saving Bank Deposits grew by 16.28% YoY.Credit Growth stood at 6.02% YoY, mainly driven by Retail (Personal) Advances (14.55% YoY), Agri Advances (4.19% YoY) and Corporate Advances (2.82% YoY). With the YoY growth in Corporate Bonds / CPs at Rs. 54,980 crores taken together, the loan book has grown by 7.97% YoY.Home loan, which constitutes 23% of Bank’s domestic advances, has grown by 10.34% YoY.Net NPA ratio at 1.59% isdown 120 bps YoY and 27 bps QoQ. Gross NPA ratio at 5.28% is down 191 bps YoY and 16 bps QoQ.Provision Coverage Ratio (PCR) has improved to 88.19%, up 696 bps YoY and 187 bps QoQ.Slippages Ratio for Q2FY21 has declined to 0.46% from 1.57% as at the end of Q2FY20.Credit Cost as at the end of Q2FY21 has declined 103 bps YoY to 0.94%.Cost to Income Ratio has improved from 53.47% in H1FY20 to 52.61% in H1FY21, an improvement of 86 bps.Capital Adequacy Ratio (CAR) has improved by 113 bps YoY to 14.72% as on Sep 2020. Return on Assets (RoA) increased by 14 bps YoY to 0.43% in H1FY21 against 0.29% in H1FY20.Share of Alternate Channels in total transactions has increased from 90% in H1FY20 to 93% in H1FY21.|
Key Summary of Q2FY21 Results
|In Rs Crores||Q2FY20||Q1FY21||Q2FY21||YoY %||QoQ %||H1FY20||H1FY21||YoY %|
|Profit & Loss|
|Net Interest Income||24,600||26,642||28,181||14.56||5.78||47,539||54,823||15.32|
|NIM, % (Domestic)||3.22||3.24||3.34||12 bps||10 bps||3.11||3.29||18 bps|
|Loan loss provisions||11,041||9,420||5,619||-49.10||-40.35||22,689||15,040||-33.71|
|Profit after tax||3,012||4,189||4,574||51.88||9.19||5,324||8,763||64.61|
|In Rs Crores||Sep 19||Jun 20||Sep 20||YoY %||QoQ %|
|Domestic Retail Personal||6,85,570||7,48,800||7,85,345||14.55||4.88|
|Of which: Home loans||4,24,487||4,55,443||4,68,382||10.34||2.84|
|Domestic Term Deposits||16,12,583||18,06,840||18,37,128||13.92||1.68|
|CASA Ratio (%)||45.13||45.34||45.39||26 bps||5 bps|
|Slippages (During the Quarter)||8,805||3,637||2,756||-68.70||-24.22|
|Ratios, %||Q2FY20||Q1FY21||Q2FY21||YoY, bps||QoQ, bps||H1FY20||H1FY21||YoY, bps|
|PCR (with AUCA)||81.23||86.32||88.19||696||187||81.23||88.19||696|
|PCR (without AUCA)||62.92||67.07||71.04||812||397||62.92||71.04||812|
*But for the Hon’ble Supreme Court interim order dated 03.09.2020, the GNPA and NNPA would have been at 5.88% and 2.08% respectively.