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State Bank of India on standalone basis has recorded strong 80% growth in the Net Profit to Rs 6450.75 crore for the quarter ended March 2021 (Q4FY2021), driven by strong growth in the net interest income as well as non interest income, while bank has improved cost to income ratio. Bank has posted robust improvement in asset quality on sequential basis as well as over a year earlier level. Bank has maintained stable Net Interest Margin (NIM) helping Net Interest Income (NII) growth to accelerate in Q4FY2021. Bank has maintained business growth steady at 10% end March 2021. Bank has also improved the CASA deposits ratio to 46.1% at end March 2021.
Asset quality improves: Bank has improved the asset quality on sequential as well as year-on-year basis in Q4FY2021.
Fresh slippages of advances stood at Rs 21934 crore (annualized 1.2% of advances in Q4FY2021) compared with Rs 237 crore (0.4%) in the previous quarter.
Recoveries, upgradations and write-offs together were healthy at Rs 12905.21 crore in Q4FY2021.
The bank has improved provision coverage ratio to 87.8% at end of March 2021 from 83.6% end March 2020.
| Asset Quality Indicators: State Bank of India |
|
Mar-21 |
Dec-20 |
Sep-20 |
Jun-20 |
Mar-20 |
Variation |
| QoQ |
YoY |
| Gross NPA (Rs Crore) |
126389.02 |
117244.23 |
125862.99 |
129660.69 |
149091.84 |
8 |
-15 |
| Net NPA (Rs Crore) |
36809.72 |
29031.72 |
36450.69 |
42703.63 |
51871.30 |
27 |
-29 |
| % of GNPA |
4.98 |
4.77 |
5.28 |
5.44 |
6.15 |
21 |
-117 |
| % of NNPA |
1.50 |
1.23 |
1.59 |
1.86 |
2.23 |
27 |
-73 |
| Provision coverage ratio % |
87.75 |
90.21 |
88.19 |
86.32 |
83.62 |
-246 |
413 |
| CRAR Basel III % |
13.74 |
14.50 |
14.72 |
13.40 |
13.06 |
-76 |
68 |
| Tier I - Basel III % |
11.44 |
11.73 |
11.90 |
11.35 |
11.00 |
-29 |
44 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore |
Business Highlights:
Business growth stable: Business of the bank rose 10% yoy to Rs 6220670 crore at end March 2021. Deposits increased 14% at Rs 3681277 crore, while advances rose 5% at Rs 2539393 crore at end March 2021.
Domestic advances increased 6% to Rs 2182516 crore, while international advances were flat at Rs 356877 crore at end March 2021.
The credit-deposit ratio of the bank eased to 69.0% at end March 2021 from 69.5% a quarter ago.
Retail and large corporate credit driving loans growth: Of the domestic advances, large corporate credit declined 3% yoy to Rs 818705 crore, while retail credit improved 16% to Rs 870711 crore. The SME credit increased 4% to Rs 278949 crore at end March 2021. Further, the agriculture credit rose 4% to Rs 214151 crore at end March 2021.
CASA ratio improves: Deposits grew 14% yoy to Rs 3681277 crore in the quarter under review. Domestic deposits grew 14% yoy to Rs 3570165 crore of which CASA deposits grew 17% yoy to Rs 1646974 crore. Domestic CASA ratio improved 97 bps yoy to 46.1% at end March 2021. Overseas deposits declined 5% to Rs 111112 crore at end March 2021.
Network expansion: Bank has reduced 111 branches in the quarter under review, taking the total branch count up to 22219 at end March 2021. ATMs count of the bank has increased to 62617 ATMs end March 2021.
Book Value per share stood at Rs 258.0 per share at end March 2021, while the adjusted book value (net of NNPA and 25% of restructured assets) stood at Rs 211.8 per share at end of March 2021.
Quarterly Performance:
NII growth accelerate on better NIMs: Bank has posted 19% rise in NII at Rs 27067.00 crore for quarter ended March 2021. Interest earned moved up 4% to Rs 65101.64 crore, driven by interest earned on investment rising 19% to Rs 21742.81 crore. Meanwhile, the interest expended declined 5% to Rs 38034.64 crore. NIM of the bank improved to 3.04% in Q4FY2021 from 2.97% in Q4FY2020.
Treasury income and exchange gains boost other income: Non-interest income of the bank increased 22% to Rs 16225.32 crore in Q4FY2021. The forex income rose 16% to Rs 803 crore, while recoveries in written off account jumped 60% to Rs 6312 crore. The core fee income of the bank rose 7% to Rs 8455 crore in Q4FY2021. However, the bank has recorded trading loss of Rs 37 crore in Q4FY2021.
Expense ratio improves: Net total income of the bank increased 11% to Rs 43292 crore in Q4FY2021, while the operating expenses rose 16% to Rs 23592 crore, leading to an improvement in expense ratio to 54.5% in Q4FY2021 from 56.4% in Q4FY2020. The employee expenses rose 11% to Rs 13382.78 crore, while other operating expenses increased 22% to Rs 10209.39 crore in Q4FY2021.
The operating profit galloped 25% to Rs 19700.15 crore in Q4FY2021.
Provisions decline: The provisions and contingencies declined 18% to Rs 11051.03 crore in Q4FY2021 over Q4FY2020, led by 17% dip in NPA provisions to Rs 9914 crore. The investment provisions jumped to Rs 613.00 crore and standard assets provisions also moved up 21% to Rs 2259.00 crore in Q4FY2021.
With the decline in provisions, the PBT zoomed 286% to Rs 8649.12 crore in the quarter ended March 2021.
Tax rate eases: The effective tax rate declined to 25.4% in Q4FY2021 from 28.0% in Q4FY2020, leading to 80% surge in the net profit to Rs 6450.75 crore for quarter ended March 2021.
Standalone Financial Performance FY2021:
For the year ended March 2021 (FY2021), the bank posted 41% increase in net profit to Rs 20410.47 crore. The net interest income improved 13% to Rs 110710.00 crore, while non-interest income rose 8% to Rs 41956.64 crore in FY2021. The expense ratio declined 70 bps yoy to 54.1% in FY2021. The operating expenses rose 10% to Rs 82652.22 crore, while provision and contingencies increased 2% to Rs 44013.03 crore in FY2021. The profit before tax improved 38% to Rs 26001.39 crore in FY2021. The exceptional income declined 75% to Rs 1539.73 crore. The effective tax rate declined 1630 bps yoy to 25.9%. Net profit moved up 41% to Rs 20410.47 crore in FY2021.
Consolidated quarterly performance:
On the consolidated front, the bank has posted 11% decline in the net profit at Rs 6125.52 crore over 16% rise in NII at Rs 29643.84 crore. The other income increased 25% to Rs 35397.98 crore, leading to 21% rise in net total income to Rs 65041.82 crore. The operating expenses rose 22% to Rs 43863.76 crore, allowing the operating profit to increase 19% to Rs 21178.06 crore in the quarter ended March 2021. The provisions declined 18% to Rs 11516.71 crore, PBT jumped 160% to Rs 9661.35 crore in Q4FY2021. The effective tax rate declined to 26.3% in Q4FY2021 from 36.5% in Q4FY2020, allowing the net profit to decline 11% to Rs 6495.17 crore before minority interest and share of associates. The Minority interest rose 2% to Rs 369.65 crore, while the associate companies recorded loss of Rs 775.08 crore. Net Profit declined 11% to Rs 6125.52 crore for quarter ended March 2021.
Consolidated Financial Performance FY2021:
For the year ended March 2021 (FY2021), Bank on consolidated basis has posted 13% increase in net profit to Rs 22405.45 crore. The net interest income improved 12% to Rs 122105.31 crore, while non-interest income rose 15% to Rs 105855.14 crore in FY2021. The expense ratio rose 46 bps yoy to 66.0% in FY2021. The operating expenses moved up 14% to Rs 150429.60 crore, while provision and contingencies increased 3% to Rs 46102.16 crore in FY2021. The profit before tax improved 28% to Rs 31428.69 crore in FY2021. The effective tax rate declined 1020 bps yoy to 26.3%. Net profit advanced 13% to Rs 22405.45 crore in FY2021.
Notes:
During the year, the Bank has accounted for Rs 5353.50 crore arising out of 11th Bi-Partite Wage Settlement effective from 1 November 2017.
Exceptional items for the year ended March 2021, includes net profit of Rs 1539.73 crore (Previous Year Rs3484.30 crore) on sale of certain portion of investment in Bank's subsidiary SBI Life Insurance Company.
Exceptional items for the year ended March 2020 included net profit of Rs 2731.34 crore on sale of certain portion of investment in Bank's subsidiary SBI Cards & Payment Services Limited in Q4 FY20.
Bank has reversed interest income by Rs 830 crore on account of interest on interest benefit during the year ended March 2021.
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