In This Article:
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Credit Growth: 14.93% year-on-year.
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Deposit Growth: 9.13% year-on-year.
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CD Ratio Domestic: 67.87%.
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Slippage Ratio: 0.51%; Retail Slippage Ratio: 0.31%.
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Credit Cost: 0.38%.
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Profit for the Quarter: INR18,331 crore, up 28% year-on-year.
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Total Deposits: INR51.17 trillion, up 9.13% year-on-year.
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Term Deposits Growth: 12.51% year-on-year.
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Current Account Deposits Growth: 10% year-on-year.
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CASA Growth: 4.24%; CASA Ratio: more than 40%.
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Domestic Advances Growth: 15.55% year-on-year.
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Foreign Office Advances Growth: 11.56% year-on-year.
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Net NPA Ratio: 0.53%, improved by 11 basis points year-on-year.
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Provision Coverage Ratio (PCR): 75.66%.
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Liquidity Coverage Ratio: 129% as of September 30.
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Capital Adequacy Ratio (CAR): 13.76% without profits; 14.79% with profits for H1 FY25.
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Return on Assets (ROA): Greater than 1%.
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Return on Equity (ROE): Greater than 20%.
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Return on Risk-Weighted Assets (RORWA): 2.07%.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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State Bank of India (FRA:SID) reported a strong credit growth of 14.93% year-on-year, surpassing the industry average.
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The bank's profit for the quarter increased by 28% year-on-year, reaching INR18,331 crore.
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SBI's asset quality remains robust with a net NPA ratio improving by 11 basis points year-on-year to 0.53%.
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The bank's capital adequacy ratio stands at 13.76%, well above the regulatory requirement, indicating a strong capital position.
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SBI's digital banking platform, YONO, continues to grow with over eight crore customers registered, driving the bank's digital agenda.
Negative Points
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Deposit growth at 9.13% year-on-year lags behind credit growth, raising concerns about the sustainability of credit expansion.
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The bank's cost base remains substantial, highlighting challenges in managing compliance and establishment expenses.
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SBI's unsecured personal loan segment, Xpress Credit, has seen a slowdown in growth, attributed to demand slack and high repayment rates.
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The bank's reliance on other income, including trading gains and forex income, raises questions about the sustainability of such income levels.
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Concerns were raised about the elevated delinquency levels in the credit card segment, reflecting broader industry trends.
Q & A Highlights
Q: How does State Bank of India view the gap between credit and deposit growth, and what are the expectations for future growth rates? A: Challa Setty, Managing Director, explained that the bank aims to maintain its market share of 22% to 23% in deposits and ensure that incremental credit growth is supported by incremental deposits. The bank expects credit growth to remain at 14% to 16% and aims for deposit growth to cross 10%, with efforts to increase savings bank growth rates.