Asset quality improves sharply: Bank has improved the asset quality on sequential as well as year-on-year basis in Q1FY2021.

Fresh slippages of advances dipped to Rs 3637 crore (annualized 0.6% of advances in Q1FY2021) compared with Rs 8105 crore (2.2%) in the previous quarter.

Recoveries, upgradations and write-offs together were robust at Rs 23341.15 crore in Q1FY2021.

The bank has improved provision coverage ratio to 86.3% at end of June 2020 from 79.3% end June 2019.

Business growth improves: Business of the bank rose at improved pace of 12% yoy to cross Rs 30 trillion mark at Rs 5805002 crore at end June 2020. Deposits increased at higher pace of 16% at Rs 3419363 crore, while advances growth also improved to 7% at Rs 2385639 crore at end June 2020.

Domestic advances rose at improved pace of 6% to Rs 2041120 crore, while international advances growth eased to 11% yoy to Rs 344519 crore at end June 2020.

The credit-deposit ratio of the bank declined to 69.8% at end June 2020 from 74.7% a quarter ago.

Retail and large corporate credit driving loans growth: Of the domestic advances, large corporate credit increased 3% yoy to Rs 809322 crore, while retail credit improved at higher pace of 13% to Rs 748800 crore. The SME credit also increased fell 1% to Rs 278711 crore at end June 2020. On the other hand, the agriculture credit rose 2% to Rs 204288 crore at end June 2020.

CASA ratio improves: Deposits grew 16% yoy to Rs 3419363 crore in the quarter under review. Domestic deposits grew 16% yoy to Rs 3305558 crore of which CASA deposits grew 17% yoy to Rs 1498718 crore. Domestic CASA ratio improved 24 bps yoy to 45.3% at end June 2020. Overseas deposits moved up 16% to Rs 113805 crore at end June 2020.

Network expansion: Bank has network of 22135 branches and 58582 ATMs end June 2020.

Book Value per share stood at Rs 244.1 per share at end June 2020, while the adjusted book value (net of NNPA) stood at Rs 196.3 per share at end of June 2020.

NII growth accelerate, as NIM improves: Bank has posted 16% rise in NII at Rs 26641.56 crore for quarter ended June 2020. Interest earned moved up 6% to Rs 66500.38 crore, driven by interest earned on investment rising 18% to Rs 20499.90 crore. Meanwhile, the interest expenses were flat at Rs 39858.82 crore. NIM of the bank improved to 3.01% in Q1FY2021 from 2.97% in the previous quarter supporting NII growth.

Treasury income gains boosting other income: Non-interest income of the bank increased 18% to Rs 9497.21 crore in Q1FY2021, driven by healthy growth in profit on sale of investment at 730% to Rs 4025.00 crore. However, the forex income declined 10% to Rs 468 crore and recoveries in written off account dipped 67% to Rs 448 crore, while the core fee income of the bank dipped 14% to Rs 4471 crore in Q1FY2021.

Expense ratio improves: Net total income of the bank increased 17% to Rs 36139 crore in Q1FY2021, while the operating expenses rose at moderate pace of 2% to Rs 18078 crore, leading to an improvement in expense ratio to 50.0% in Q1FY2021 from 57.2% in Q4FY2019. The employee expenses rose 9% to Rs 11865.06 crore, while other operating expenses declined 9% to Rs 6212.63 crore in Q1FY2021.

The operating profit galloped 36% to Rs 18061.08 crore in Q1FY2021.

Provisions jumps on higher investment provisions: The provisions and contingencies increased 36% to Rs 12501.30 crore in Q1FY2021 over Q4FY2019, led by investment provisions of Rs 1231.00 crore and standard assets provisions at Rs 282.00 crore in Q1FY2021. However, the NPA provisions declined 19% to Rs 9420 crore.

PBT increased 37% to Rs 5559.78 crore in the quarter ended June 2020.

Tax rate declines: The effective tax rate declined to 24.6% in Q1FY2021 from 43.1% , in Q1FY2021, leading to 81% surge in the net profit to Rs 4189.34 crore for quarter ended June 2020.

Standalone Financial Performance FY2020:

For the year ended March 2020 (FY2020), Bank posted 1580% increase in net profit to Rs 14488.11 crore. The net interest income improved 11% to Rs 98084.82 crore, while non-interest income moved up 23% to Rs 45221.48 crore in FY2020. The expense ratio declined 324 bps yoy to 52.5% in FY2020. The operating expenses rose 8% to Rs 75173.69 crore, while provision and contingencies dipped 20% to Rs 43069.85 crore in FY2020. The profit before tax improved 1459% to Rs 25062.76 crore in FY2020. The effective tax rate declined 417 bps yoy to 42.2%. Net profit moved up 1580% to Rs 14488.11 crore in FY2020.

Consolidated quarterly performance:

On the consolidated front, the bank has posted 62% increase in the net profit at Rs 4776.50 crore with 16% rise in NII at Rs 29638.65 crore. The other income increased 10% to Rs 19411.63 crore, leading to 14% growth in net total income to Rs 49050.28 crore. The operating expenses rose 4% to Rs 29275.07 crore, allowing the operating profit to increase 32% to Rs 19775.21 crore in the quarter ended June 2020. The provisions zoomed 33% to Rs 12562.76 crore, PBT moved up 32% to Rs 7212.45 crore in Q1FY2021. An effective tax rate dipped to 27.9% in Q1FY2021 from 42.0% in Q4FY2019, allowing the net profit to move up 64% to Rs 5203.49 crore before minority interest and share of associates. The Minority interest increased 45% to Rs 490.95 crore, while the profit from associate companies declined 44% to Rs 63.96 crore. Net Profit increased 62% to Rs 4776.50 crore for quarter ended June 2020.

Net profit of non-banking subsidiaries increased 21% to Rs 1107 crore in Q1FY2021, driven by SBI Life 5% to Rs 391 crore, SBI Funds Management 57% to Rs 188 crore, SBI Cards & Payment Services 14% to Rs 393 crore and SBI General Insurance 80% to Rs 135 crore in Q1FY2021,

Consolidated Financial Performance FY2020:

For the year ended March 2020 (FY2020), Bank on consolidated basis has posted 760% increase in net profit to Rs 19767.80 crore. The net interest income improved 12% to Rs 108727.86 crore, while non-interest income gained 27% to Rs 98158.99 crore in FY2020. The expense ratio declined 197 bps yoy to 63.7% in FY2020. The operating expenses rose 15% to Rs 131781.56 crore, while provision and contingencies dipped 18% to Rs 44788.70 crore in FY2020. The profit before tax improved 481% to Rs 30316.59 crore in FY2020. The effective tax rate declined 117 bps yoy to 40.0%. Net profit advanced 760% to Rs 19767.80 crore in FY2020.