FY20

Analyst Presentation
05.06.2020
 Safe Harbor

Certain statements in these slides are forward-looking statements. These

statements are based on Management's current expectations and are
subject to uncertainty and changes in circumstances. Actual outcomes may
differ materially from those included in these statements due to a variety of
factors.
Performance Highlights

Financial Performance & Business

Key strengths and strategy

COVID-19: Fully equipped to meet the challenge
Key Indicators
Rs. in Crores
YoY CASA
FY19 FY20
Growth
7.56% 9.99%
Net Interest Income 88,349 98,085 11.02%
2,17,415 11,93,566
Net Interest Margin – 2,02,134
2.95 3.19 24 bps 10,85,151
Domestic (%)
Profit &
Loss Operating Profit 55,436 68,133 22.90%
(in Rs.
Crore)
Profit Before Tax 1,607 25,063 1459%
Current Account Savings Account

FY19 FY20 FY19 FY20

Net Profit 862 14,488 1580%

Credit Cost 2.66 1.87 79 bps Retail Per Advances Return on Assets
15.40% 36 bps
Key Net NPA 3.01 2.23 78 bps
0.38%
Ratios 7,47,589
(in %) PCR 78.73 83.62 489 bps
6,47,844

Capital Adequacy 12.72 13.06 34 bps

Total Advances 22,93,454 24,22,845 5.64% 0.02%

Balance
Sheet Total Deposits 29,11,386 32,41,621 11.34%
(in Rs. FY19 FY20 FY19 FY20
Crore) Retail Personal
6,47,844 7,47,589 15.40%
Advances
4
Performance Highlights

Financial Performance & Business

Key strengths and strategy

COVID-19: Fully equipped to meet the challenge
 Financials – At a Glance
Rs. in Crores

Quarter Ended Year Ended Growth (%)

Q4FY20 Q4FY20
FY20 over
Q4FY19 Q3FY20 Q4FY20 FY19 FY20 over over
FY19
Q3FY20 Q4FY19

Interest Income 62,985 67,692 62,681 2,42,869 2,57,324 -7.40 -0.48 5.95
Interest Expenses 40,032 39,913 39,914 1,54,520 1,59,239 0.00 -0.29 3.05
Net Interest Income 22,954 27,779 22,767 88,349 98,085 -18.04 -0.81 11.02
Non Interest Income 12,685 9,106 16,077 36,775 45,221 76.56 26.74 22.97
Operating Income 35,639 36,885 38,844 1,25,124 1,43,306 5.31 8.99 14.53
Operating Expenses 18,706 18,662 20,379 69,688 75,174 9.20 8.95 7.87
Operating Profit 16,933 18,223 18,465 55,436 68,133 1.33 9.05 22.90
Total Provisions 16,095 12,639 14,884 54,574 53,645 17.76 -7.52 -1.70
Net Profit 838 5,583 3,581 862 14,488 -35.87 327.10 1,580.31

NIM (Domestic-Cumulative) (%) 2.95 3.27 3.19 2.95 3.19 -8 bps 24 bps 24 bps

NIM (Domestic-Quarterly) (%) 3.02 3.59 2.94 -65 bps -8 bps

Cost to Income Ratio (Cumulative) (%) 55.70 52.45 52.46 55.70 52.46 1 bps -324 bps -324 bps
6
Total Income
Rs. in Crores

Quarter Ended Year Ended Growth (%)

Q4FY20 Q4FY20
FY20 over
Q4FY19 Q3FY20 Q4FY20 FY19 FY20 over over
FY19
Q3FY20 Q4FY19

Interest on Loans 42,628 48,063 42,580 1,61,640 1,79,749 -11.41 -0.11 11.20
Interest on Resources 18,313 17,968 18,265 75,585 71,125 1.65 -0.26 -5.90
Other Interest income 2,045 1,660 1,836 5,643 6,450 10.61 -10.20 14.29
Total Interest Income 62,985 67,692 62,681 2,42,869 2,57,324 -7.40 -0.48 5.95

Fee Income 8,589 5,635 7,873 23,304 23,725 39.71 -8.34 1.81
Profit/Loss on Sale of
534 696 3,237 1,023 8,576 364.83 506.28 738.43
Investments
Forex Income 671 635 691 2,156 2,516 8.82 2.96 16.73

Misc. Income 2,892 2,140 4,277 10,292 10,404 99.88 47.91 1.09

of which:
2,485 2,087 3,941 8,345 9,250 88.88 58.61 10.85
Recovery in w/o accounts
Total Non Interest Income 12,685 9,106 16,077 36,775 45,221 76.56 26.74 22.97

Total Income 75,670 76,798 78,759 2,79,644 3,02,545 2.55 4.08 8.19
7
Fee Income Break Up
Rs. in Crores

Quarter Ended Year Ended Growth (%)

Q4FY20 Q4FY20 FY20

Q4FY19 Q3FY20 Q4FY20 FY19 FY20 over over over
Q3FY20 Q4FY19 FY19

Loan Processing Charges 1,502 1,120 1,924 3,710 4,426 71.81 28.09 19.31

Commission on Govt. Business 1,118 972 914 3,974 3,742 -5.96 -18.23 -5.84

Commission on LC/BG 1,289 771 862 3,118 3,055 11.86 -33.12 -2.03

Cross Selling 583 558 615 1,927 2,030 10.15 5.46 5.37

Account Maintenance Charges 484 356 490 1,334 1,343 37.67 1.27 0.74

Remittance, Collection, etc. 2,660 1,399 2,080 6,513 6,349 48.62 -21.80 -2.52

Misc. Fee Income 953 459 988 2,728 2,779 115.33 3.66 1.88

Fee Income 8,589 5,635 7,873 23,304 23,725 39.71 -8.34 1.81

8
Total Expenses
Rs. in Crores

Quarter Ended Year Ended Growth (%)

Q4FY20 Q4FY20
FY20 over
Q4FY19 Q3FY20 Q4FY20 FY19 FY20 over over
FY19
Q3FY20 Q4FY19

Interest on Deposits 35,607 37,182 37,168 1,40,272 1,47,399 -0.04 4.38 5.08
Interest on Borrowings 3,223 1,521 1,424 9,839 6,891 -6.37 -55.81 -29.96
Other Interest paid 1,201 1,210 1,322 4,408 4,949 9.25 10.04 12.25
Total Interest Expenses 40,032 39,913 39,914 1,54,520 1,59,239 0.00 -0.29 3.05

Salary 6,612 6,855 6,984 26,349 27,364 1.88 5.62 3.85

Provisions for Employees 3,866 4,601 5,055 14,706 18,351 9.88 30.76 24.79
Staff Expenses 10,478 11,456 12,039 41,055 45,715 5.09 14.89 11.35
Depreciation 831 815 901 3,212 3,304 10.57 8.48 2.85
Others 7,397 6,392 7,440 25,421 26,155 16.40 0.57 2.89
Overheads 8,228 7,207 8,341 28,633 29,459 15.74 1.37 2.88
Operating Expenses 18,706 18,662 20,379 69,688 75,174 9.20 8.95 7.87

Total Expenses 58,737 58,575 60,294 2,24,208 2,34,412 2.93 2.65 4.55
9
Overhead Expenses
Rs. in Crores
Quarter Ended Year Ended Growth (%)

Q4FY20 Q4FY20 FY20

Q4FY19 Q3FY20 Q4FY20 FY19 FY20 over over over
Q3FY20 Q4FY19 FY19

Rent, Taxes and Lighting 1,480 1,322 1,475 5,266 5,339 11.56 -0.34 1.40

Depreciation 831 815 901 3,212 3,304 10.57 8.48 2.85

Printing and Stationery 189 119 186 499 526 55.93 -1.69 5.46

Postage & Telecommunications 116 83 101 387 349 21.75 -12.83 -9.79

Repairs and Maintenance to Bank's

277 224 272 904 924 21.29 -1.77 2.24
Property

Travelling & Halting 298 279 291 1,113 1,087 4.36 -2.30 -2.31

Insurance 726 798 846 2,845 3,213 6.12 16.52 12.91

Business Acquisitions & Development

699 527 708 2,071 2,548 34.30 1.16 23.02
Expenses
ATM /CDM/Debit Card /Other Tech
2,151 1,824 1,995 7,611 7,228 9.41 -7.22 -5.04
Expenses

Misc. Expenses 1,461 1,216 1,565 4,725 4,941 28.74 7.13 4.57

Overheads 8,228 7,207 8,341 28,633 29,459 15.74 1.37 2.88

10
Provisions & Profit
Rs. in Crores

Quarter Ended Year Ended Growth (%)

Q4FY20 Q4FY20
FY20 over
Q4FY19 Q3FY20 Q4FY20 FY19 FY20 over over
FY19
Q3FY20 Q4FY19

Operating Profit 16,933 18,223 18,465 55,436 68,133 1.33 9.05 22.90
Loan Loss 17,336 8,193 11,894 54,529 42,776 45.17 -31.39 -21.55

Standard Assets 810 -1,752 1,866 -75 -877

Investment Depreciation -1,615 3,287 -604 -762 539

Other Provisions -29 -2,475 339 136 633

Income Tax -407 5,386 1,389 745 10,575

Total Provisions 16,095 12,639 14,884 54,574 53,645 17.76 -7.52 -1.70

Net Profit 838 5,583 3,581 862 14,488 -35.87 327.10 1,580.31

ROA (%) 0.09 0.60 0.37 0.02 0.38

ROE (%) 0.48 7.74

Earning Per Share (Rs.) 3.81 24.89 16.32 0.97 16.23

11
Costs, Yields and Margins (Cumulative)
Yield on Advances (%) Net Interest Margin (%)
8.56 8.69 8.91 8.72
8.49 NIM – Domestic Ops 3.27
3.19
3.11
3.01
2.95

3.71 3.70 3.59 3.51 3.29

NIM – Overseas Ops

Mar-19 Jun-19 Sep-19 Dec-19 Mar-20

Cost of Deposits (%) 1.32

1.18 1.20 1.20 1.18

5.10 5.07 5.02 4.97 4.94

NIM – Whole Bank

3.05
2.97
2.90
2.78 2.81

2.48 2.52 2.46 2.34

2.14

Mar-19 Jun-19 Sep-19 Dec-19 Mar-20

Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
Domestic Foreign Offices

12
Asset Quality (1/3)
Rs. in Crores

Gross NPA Net NPA

1,72,750
1,68,494
1,61,636 1,59,661
65,895 65,624
1,49,092
59,939
58,249

51,871

Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20

Mar 19 Jun 19 Sep 19 Dec 19 Mar 20

Gross NPA Ratio (%) 7.53 7.53 7.19 6.94 6.15
Net NPA Ratio (%) 3.01 3.07 2.79 2.65 2.23
Provision Coverage Ratio (%) 78.73 79.34 81.23 81.73 83.62
Provision Coverage Ratio (Excl. AUCA) (%) 61.86 61.05 62.92 63.52 65.21
Corporate PCR (Excl. AUCA) (%) 70.89 71.25 73.84 74.58 78.37
Slippage Ratio (%) 1.60 2.83 2.18 2.42 2.16
Credit cost (%) 2.66 2.03 1.98 1.80 1.87 13
Asset Quality (2/3)
Rs. in Crores
Movement of NPAs: Q4FY19 FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 FY20
Opening Level of Gross NPAs 1,87,765 2,23,427 1,72,750 1,68,494 1,61,636 1,59,661 1,72,750
Total Reductions 22,976 90,417 21,251 15,984 22,073 18,860 78,168
of which : Recovery +
Upgradation 5,712 31,512 5,769 3,931 13,553 2,528 25,781

Gross Addition 7,961 39,740 16,995 9,126 20,098 8,291 54,510

of which : Increase in O/s 456 7,002 783 321 3,573 186 4,863
: Fresh Slippages 7,505 32,738 16,212 8,805 16,525 8,105 49,647
Net Increase -15,015 -50,677 -4,256 -6,858 -1,975 -10,569 -23,658
Closing Level of Gross NPAs 1,72,750 1,72,750 1,68,494 1,61,636 1,59,661 1,49,092 1,49,092

Mar 19 Dec 19 Mar 20

Segmental NPAs:
NPA Ratio % NPA Ratio % NPA Ratio %
Retail: 54,804 4.81 62,507 5.18 65,814 5.39
Agri. 23,431 11.56 28,932 13.78 32,670 15.85
Per Segment 6,685 1.03 7,521 1.04 7,914 1.06
SME 24,688 8.55 26,054 9.37 25,230 9.43
Corporate 1,16,009 13.62 93,743 12.16 81,628 9.67
International 1,937 0.64 3,411 1.06 1,650 0.46
Total 1,72,750 7.53 1,59,661 6.94 1,49,092 6.15
14
Asset Quality (3/3)
As on Mar 2020 Rs. in Crores

Fresh
FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 FY20
SMA 1 & SMA 2
Slippages

18,313
Corporate 10,056 5,354 3,239 9,467# 1,561 19,621#

SME 9,478 3,964 1,522 1,578 227 7,291 7,632

AGRI 8,978 4,239 3,078 2,965 5,238 15,520

8,101
7,762 7,266

2,766 3,677
PER 3,976 2,438 648 821 600 4,507 10,681 3,672

4,996 4,424 3,594

IBG 250 217 318 1,694# 479 2,708#

Mar-19 Sep-19 Dec-19 Mar-20

Total 32,738 16,212 8,805 16,525# 8,105 49,647#

SMA1 SMA2

Accounts with exposure above Rs. 5 cr; from data submitted to CRILC
# - Includes exposure to a large Housing Finance Company

15
Performance Highlights

Financial Performance & Business

Key strengths and strategy

COVID-19: Fully equipped to meet the challenge

16
COVID-19 – Response so far
SBI employees donated Rs. 108
1 crore to PM Cares Fund
Employees availed
Protecting health & 38% Work from Home Pledged Rs. 30 cr for COVID related
safety of Employees, 2 CSR activities through SBI Foundation
Clients & Community Robust protective measures (sanitisation,
~21,000 PPE Kits distributed to
fumigation, protective gears etc.) taken up at 3 Govt. hospitals
branches, offices & ATMs

Operational Resilience Re-orienting our clients to digital channels

Continue to provide
essential service to
~98% ~90% ~91%
our customers Branches ATMs
remained remained Alternate
Operational operational Channels

Covid-19 specific credit lines for

INR 17,116 Cr 1 quick assessment & loan
Offer financial sanction
COVID-19 related loan sanctions
support to our
Reduction in margins,
customers
Moratorium availed by ~21.8% 2 reassessment of working capital
cycle for customers
customers, ~23.0% of term loans
17
 Strong liability franchise with a customer base of ~49 cr – more than the population
of United States
1 Supported by unmatched distribution network and digital capabilities – Our
greatest strength

Consistent growth in operating income and core PPOP - CAGR of 9.5% and 9.6%
2 respectively over FY18 – FY20
Our shock absorber against any elevation in future credit cost

Key
Diversified loan portfolio with strong capabilities to originate, early identification of stress
strengths 3 and resolution thereof
Legacy stress fully identified and suitably provided
and strategy

COVID-19: Fully
equipped to
4 Well capitalized; healthy provision coverage for corporate NPAs and huge potential to
unlock value in subsidiaries

meet the
challenge
Industry leading digital capabilities – YONO Retail, YONO Krishi, YONO Business,
5 YONO Global, Internet Banking

Protect Core PPoP - Focus on cost rationalization and adopt new ways of working – Flexi
SBI; Rationalize and reskill workforce, improve staff productivity, redeploy workforce from
6 admin to sales roles
Financial Inclusion & Micro Market vertical to create value in micro markets
18
 Asset Quality

Likely job cuts and salary reductions, however relatively low level of stress on account of
Retail
higher proportion of govt/ quasi govt. sector customers

Low level of economic activity and reduction in repayment capacity; likely decline in value
SME
of collateral

Have cleaned a significant part of Agri book in FY20; relatively less impacted by COVID
Agri
19 disruption
COVID-19:
Sectors impacted by COVID 19 – like hospitality, CRE, aviation, NBFCs form < 10% of
Corporate corporate loan book – as such several risk mitigants in place to prevent significant
Challenges deterioration in asset quality

Possible impact Pressure on Other Income

and emerging
Core other income has been driven by growth in recoveries and fee income- however
Other income
challenges pressure on the same is visible

Negative impact on fresh resolutions, NPV of ongoing resolutions also under risk, while
(1/2) Recoveries
delays are inevitable; further fresh litigations cannot be filed under IBC for one year

Forex Decline in trade and remittances to have some impact on forex income

Loan ~65% linked to NBG loan growth; focus on lowering concessions – however weak credit
Processing growth likely to negatively impact

Elaborate BCP in place to manage disruptions; business continuity hub branches

Business
identified to cater to customers in case of emergency, BCP sites identified to support
Continuity
essential backend services

19
 Retail Agri MSME

▪ Robust growth in deposits - ▪ One time settlement policy ▪ Intensive monitoring; early
flight to safety to be revamped and warning signals being
liberalized closely tracked
▪ Robustness of our retail
portfolio is established as ▪ Leverage BC channel for ▪ Industry specific action
only about ~21% of collections and recovery plans to address
borrowers availed unintended
COVID-19: moratorium
▪ Opportunities in Agri
delinquencies
infrastructure funding and
emergence of contract
Opportunities farming

Possible impact
and emerging
Corporate HR
challenges
▪ Exploring new opportunities ▪ Covid transmission in work
(2/2) from high quality credit- force, quarantine, closure of
lite accounts where bank workspaces and disruption
has a low market share in internal and field work
▪ Opportunities for ▪ Planned availability of
refinancing of high quality workspaces and workforce
loans for completion of shared
organisational goals
remained uncertain

20
 Liability Operating Cost
Loan Portfolio Capital Position Digital Platform
Franchise Performance Optimization

We serve more clients than the population of US; capability to serve entire Indian subcontinent – peak
1 transactions per second (TPS) of 9831, capacity to handle 23,000 TPS

2 We open ~70,000 savings accounts per day

Strong Can raise liabilities with a differential of 25–100 bps as compared to peers;
Liability 3 Savings Deposits touching Rs. 12 lakh crore; market share gains in CASA and
Term Deposits
Franchise

Dominant across channels: Branches – 22,141; Bank Mitras – 61,102; ATMs –

4 58,555; Branch share in transactions less than 10%

Strong digital capabilities created to further strengthen liability franchise – Market leader across
5 digital channels – Internet banking (7.3 cr registered users), YONO (2.1 cr registered users)

21
 Liability Operating Cost
Loan Portfolio Capital Position Digital Platform
Franchise Performance Optimization

Core PPoP of Rs. 61,918 cr in FY20, up from Rs. 51,505 cr in FY18 – CAGR of 9.6% over
1 FY18-20; Core PPoP/ Credit cost ratio doubled over FY18-20 to 1.45x

Strong growth in Net Interest Income (Rs. 98,085 cr in FY20), through improved
2 loan pricing, increase in share of performing loans and control over interest
expense; NIM improved 52 bps to 3.19% from FY18-20
Robust
Operating
Performance Core Non-Interest Income drivers resilient; recoveries driven by strong stressed
3 asset team; Cross Sell Income CAGR of 11.6% over FY18-FY20

Transitioned to new tax regime – DTA on account of loan losses fully absorbed and stands
4 NIL; effective tax rate to trend lower at 28-30% going ahead

22
 Liability Operating Cost
Loan Portfolio Capital Position Digital Platform
Franchise Performance Optimization

Diversified loan portfolio – 38.9% of corporate loans to PSUs/ Govt. depts, 60.8% of personal retail to
1 low risk mortgages; > 95% of unsecured personal lending to government/PSU employees

Low cost in-house loan origination in retail; and co-origination in small value SME
2 loans for faster delivery and superior monitoring; focus to increase market share in credit
light corporates

Diversified
77% of corporate loans to A and above rated corporates, leading banker to all the top
Loan 3 five highly rated industrial houses in India
Portfolio

Exposure to severely stressed sectors by COIVD 19 is less than 4.0% of the book- (Other
4 pvt sector NBFC/CRE/Aviation/Hotel and Retail/ IPPs rated below A-) ; strong risk
mitigation available; Eg- Lease Rent Discounting - mainly office space to top class IT majors

Cash flow-based lending models being used for SME segment; leading to lower early delinquency;
5 Advanced Analytics based models for underwriting in the P-segments and low value SME loans
Sectoral credit underwriting teams and leveraging multiple data sources for corporate credit
23
 Liability Operating Cost
Loan Portfolio Capital Position Digital Platform
Franchise Performance Optimization

Strengthening Collections in rural areas through BC/BF network; leveraging branches and
1 call centers in metro/urban areas

2 Partnership with FinTechs to source alternate data for monitoring

Loan
3 EWS Automation for SME and Corporate to enable prompt corrective actions
Portfolio -
Collections

Sectoral teams within SARG to assist in resolution

4 Digitization of key SARG processes to accelerate resolution

5 Empanelment of specialized agencies for monitoring of large exposure accounts

24
 Liability Operating Capital Cost
Loan Portfolio Digital Platform
Franchise Performance Position Optimization

CET 1 ratio of 9.77% well above regulatory minimum, demonstrated ability to comfortably raise
1 capital through various avenues in the past

2 Provision Coverage Ratio of 83.7% up 1745 bps YoY over FY18-20

Comfortable
Capital
Position
Corporate PCR of 78.37% is significantly higher than the LGDs; Net Corporate NPA
3 at Rs 17,656 cr; close to 98.7% provision for accounts in NCLT list 1 & 2

Subsidiaries – leading across the financial intermediation value chain, valued in excess of Rs 1
4 lakh cr; significant potential to unlock value

25
 Liability Operating Cost
Loan Portfolio Capital Position Digital Platform
Franchise Performance Optimization

Digital Leadership across channels – Mobile Banking market share of 23.2%;

1 Internet Banking transactions value in excess of Rs 35,000 cr/ per day

YONO Retail – 40% of incremental deposits through YONO; 4,000+ daily disbursals
of personal loans; 1200+ / 600+ SBI General/ SBI Life policies sold per day

YONO Business – all corporate banking applications under a common platform, reduce
manual touchpoints, ease of process and faster TAT to significantly scale transaction
Leading banking revenue streams
Digital 2 YONO Krishi – 4.5lacs + gold loans sanctioned, 24X7 gold loan application; First in
market, pre-approved Agri loans for farmers with corporate tie-ups
Platform
YONO Global – launched in UK and Mauritius; 9 more countries to be covered by end
of 2020; strong focus on customer experience; integrate “Online Market Places” and
launch asset journeys; scale up business through digital transformation and new digital
offerings

Building out the Ecosystem Bank – YONO Retail (Online Market Place integration with
3 over 80 partners); YONO Krishi (Farmer marketplace and Advisory); YONO Business (B2B
marketplace capabilities)

26
 Liability Operating Cost
Loan Portfolio Capital Position Digital Platform
Franchise Performance Optimization

Successfully controlled overheads – CAGR of 4.9% over FY18-20; staff cost (ex- pension and
1 gratuity provisions) controlled – CAGR of 5.8% over FY18-20

Cost to assets at 1.9%, significantly lower than peers, rationalized branches with
2 focus on increasing business/ branch, employee headcount reduction of ~15k to
249,448 over FY18-20

Further focus to contain costs and increase productivity through digitization –

Cost 3 Account Opening in 10 minutes; 3 click personal loan disbursal; AI enabled inward
and outward cheque processing; centralization of trade finance processing
Optimization
New way of working – bank at your doorstep; Comprehensive work from home
4 policy- e-tools developed for contactless completion of tasks; remote advisory
capability to be expanded

FIMM network – 38% of branches, contribute to 12% of business;

▪ Defined strategy to take business contribution to 20%, with differentiated cost structure, HR and IT
strategies – improve cost to income for 38% of network
5 ▪ More effective use of BC channel – which has emerged an important channel partner
▪ Extensive use of BC channel in collections
▪ 35 Regional business offices & 20 admin offices to be closed ( done w.e.f -01 June 2020 )
27
 Way forward – Asset Quality
Constant vigil on the emerging stress and proactive action, including rephasement of term loan
installments and deep restructuring wherever required

Strong monitoring & collection mechanism; use digital and analytical capabilities to
originate, sanction and monitor
Retail, Agri,
MSME New organisation structure (FIMM vertical) for retail banking likely to give competitive
(RAM) edge and sharper focus on various business lines
Opportunities in Agri infra funding and contract farming as a result of agri reforms

Corporate & Maintain quality, look for refinancing opportunities for high quality credit; timely and
International proactive steps to identify and resolve stress; step up recovery/ resolution of cases in
Banking NCLT
Way
Way forward – PPOP
Forward
Protect PPoP by continuing to recalibrate loans and deposits pricing; reducing concessions and
1
pricing in accordance with risk return matrix using ‘DIPAK’ (Pricing tool)
(1/2)
Corporate – Provide end to end solution for supply chain with special focus on credit light
2 customers to address transaction, trade finance and investment needs of large corporates and
enhance non-interest income revenue streams to compensate for decline in other income

Further strengthen retail segment with feet on street for sales and collections; strengthen
3
collection machinery with use of BC channel

Advance digital footprints, identify creditworthy clients through analytics and strengthen
4
monitoring and collection through SME intensive branches and touchpoints

5 Control overheads and staff costs; improve productivity

28
 Further scale up YONO – target of doubling user registrations in the next six
1 months and further strengthen platform – new product offerings like end to end
home loans, pre-approved car loan etc; Special PAPL and personal gold loans
have received excellent response

HR way forward
▪ Redeploying employees to outward sales or processing teams
▪ Recalibrating productivity benchmarks for Work From Anywhere roles,
2 expected to save Rs. 1,000 cr through HR cost optimization
▪ Reskilling employees in virtual communication, decision making and
Way personal leadership for learning
Forward

Other strategic
value drivers Change the Bank, Run the Bank – Fix to Flexi
▪ Productivity tools & technology in place to perform administrative work remotely
(2/2) ▪ Work from Anywhere (WFA) infrastructure to facilitate work from any location
3 ▪ WFA reduce commute time that can be utilized for providing better services to
customers as well as ensure better work life balance
▪ Drive down the operational cost for the Bank
▪ WFA facility also rolled out across 19 foreign offices

29
Additional Information

30
Strong Liability Franchise
Domestic Deposits
Mar 19 Mar 20

CA, 7.18%
CA, 6.96%

SA, SA,
38.56% TD,
54.26% 38.20%
TD,
54.84%

CASA: 45.74% CASA: 45.16%

Rs. in Crores Mar 19 Mar 20 YoY Growth (%)

Current Account 2,02,134 2,17,415 7.56

Saving Bank 10,85,151 11,93,566 9.99
CASA 12,87,285 14,10,981 9.61
Term Deposits (TD) 15,26,958 17,13,635 12.23
Domestic Deposits 28,14,243 31,24,616 11.03
Foreign Offices 97,143 1,17,005 20.45
Total Deposits 29,11,386 32,41,621 11.34

31
Diversified Loan Portfolio

Domestic Advances
Mar 19 Mar 20

Per, 32.54% Per, 36.19%

Agri, 10.18%
Agri, 9.98%
Corporates, Corporates,
SME, 14.50% 42.78% 40.87%
SME, 12.96%

Retail: 57.22% Retail: 59.13%

Rs. in Crores Mar 19 Mar 20 YoY Growth (%)

Retail Per 6,47,844 7,47,589 15.40

Agri 2,02,681 2,06,067 1.67
SME 2,88,583 2,67,614 -7.27
Corporates 8,51,638 8,44,215 -0.87
Domestic Advances 19,90,746 20,65,484 3.75
Foreign Offices Advances 3,02,708 3,57,360 18.05
Total Whole Bank Advances 22,93,454 24,22,845 5.64
32
Retail Per Banking
Leadership across all segments As on Mar 2020

Personal Retail Portfolio of Rs 7.5 lakh crore

NPA ratio at 1.06%

% of Dom. Adv. FY19: 32.54 FY20: 36.19

Home Xpress Other P Seg

Auto Loans
Loans Credit Loans

O/S, 77,819
4,55,865 72,662 1,41,243
In Rs cr

YoY
13.86 1.08 34.64 10.11
Growth, %

#Market share, % 34.05 32.93 N.A. N.A.

GNPA, % 0.95 1.08 0.53 2.63

#As per latest available data; 33

Diversified Loan Portfolio
High quality asset book with lower exposure to high risk sectors

Corporate Rating mix Industry mix

Outstanding as on 31st Mar 20 Mar-20 Fund Based O/S
Sectors Amount % Share YOY Gr %
Infrastructure 3,43,523 16.63 -2.52
of which: Power 2,03,532 9.85 1.98
Telecommunication 37,804 1.83 21.81
34% Roads & Ports 56,060 2.71 12.22
AAA 39%
Other Infrastructure 46,126 2.23 -35.78
Services 2,50,456 12.13 1.82
Iron & Steel 55,089 2.67 -28.24
Textiles 33,804 1.64 -16.81
Petroleum & Petrochemicals 47,060 2.28 -15.81
26% Engineering 23,322 1.13 -18.91
AA 25%
Comm. Real Estate 41,251 2.00 23.10
Other Industries 3,17,324 15.36 3.61
Home Loans 4,55,865 22.07 13.86
17% Auto Loans 72,662 3.52 1.08
A 14%
Other Retail Loans 2,19,062 10.61 24.76
Agriculture 2,06,067 9.98 1.67
BBB 10% 10% Total Domestic Advances 20,65,484 100 3.75

BB & below 12% 13% Sectors impacted by COVID-19 Mar-20 Fund Based O/S
CRE excl. Lease Rent Discounting 26,665
Other Pvt. Sector NBFC 29,530
FY19 FY20
Power IPPs (rated below A-) 27,554
Aviation 466
38.9% share of PSUs/ Govt. Dept.
Tourism, Hotel & Resorts 9,268
Total 93,483
34
Treasury Operations

MAR 19 AFS Book MAR 20

Corporate Others, 7.0% Others, 11.3%
Bonds, 18.2%

Corporate G-Sec and T

G-Sec and T Bill, Bonds, 23.7% Bill, 42.2%
49.7%
SDLs, 15.9%
SDLs,
CP, 9.6% 9.3% CP, 13.5%

Modified Duration: 2.62 Modified Duration: 2.06

Break up of Domestic Investments

(%)
Total Investments Book
Mar 19 Mar 20
37.9 (Rs. in Crores)
45.4
Domestic Investments 9,26,651 10,10,599

- of which- SLR 7,65,910 8,03,270

54.6 62.1
Foreign Offices Investments 51,473 47,449

Whole Bank Investments 9,78,124 10,58,048

Mar 19 Mar 20
HTM AFS
35
International Banking Group
(Amt in INR Cr.)

Gross Advances: Healthy Credit Growth Diversified Loan Portfolio

USA
3,57,360
3% 9% UK

4% Hongkong
24%
Singapore
4%
Bahrain
4%
UAE
3,02,013 3,02,708
5% Japan
Australia
8%
21% Belgium
Gift City (India)
8%
Mar 18 Mar 19 Mar 20 11% Others

Asset Quality: NPAs Contained Digital Preparedness

2.38
GNPA % ❖ To fortify digital banking at our FOs, “YONO Global”, an international variant of our
YONO APP launched in UK in Sep-19.

❖ Cross Border integrated accounts position viewing enabled through “Customer One
View” Journey.

0.64 ❖ Roll out in 10 more Countries is in various stages of implementation-Canada,

0.46 Singapore, Male, Mauritius, Bahrain, South Africa, Sri Lanka, Bangladesh, Nepal, USA.

❖ YONO Global shall enable seamless and paperless onboarding of new customers and
features inter-alia include remittances, bill payments, online Market place etc.
Mar 18 Mar 19 Mar 20
36
SBI remains a well-capitalized bank with adequate liquidity

Tier II
Capital ratios (%) LCR (%)
AT1
Tier I
CET1

12.60% 12.72% 13.06%

146.8 151.47
2.06 133.99 134.41
2.24 2.07
106.05
1.03 1.23 100
0.68 Minimum requirement

Mar 19 June19 Sep 19 Dec 19 Mar 20

RWA to Total Assets (%)

11.00
10.36 10.65
9.68 9.62 9.77 54.71

53.12
52.35

Mar 18 Mar 19 Mar 20 Mar 18 Mar 19 Mar 20

• “Credit Risk Weighted Assets on Advances to Gross Advances” - Mar 19: 56.60%, Mar 20: 56.72%
• Bank is well capitalized

37
Well provided on legacy NPAs

Mar 2020
Credit costs below 2.0% in FY20
Particulars • 35% of provisions for fresh slippages
As % of total PCR without
GNPA AUCA (%) • 65% of provisions due to ageing
requirements
Total Corporate 54.75 78.37
• Large accounts have been resolved
IBG 1.11 75.85 through NCLT, change in promoter &
OTS
Total Retail 44.14 44.32
• Key power accounts resolved under
Retail - Per 5.31 37.75 Samadhan scheme

• Haircut for resolution of Corporate

Agri 21.91 36.86
NPAs expected to be contained

SME 16.92 56.04 within current PCR; LGD for the

whole book of the Bank is ~55%
Total existing NPA 100 65.21

Note: At end of FY20, Specific Standard Asset Provision was Rs.2,095 Cr, while Counter Cyclical Provision was Rs 1,250 cr

38
 NBFC & FI Sector
Loans to PSUs and High Quality Private Sector
As on Mar 2020
Rs. in Crores

NBFC & FI Portfolio Classification Housing Finance

Companies
NBFCs
1,78,891
1,78,891 65,712 1,13,179

38,580
Backed by PSUs'
30% 25%
66,302 Housing
Finance Backed by large
Companies Pvt Sector
Institutions
26,965 45% Pvt. Others

47,043

Central & State Govt.

16%
Pvt. Others
NBFCs 42% Backed by PSUs'
Backed by large Pvt Sector Institutions (Other than HFCs)
Backed by PSUs' & FIs Backed by large Pvt
Central & State Govt.
33% Sector Institutions
9% Pvt. Others

• Strong presence in Govt. and PSU backed NBFCs; and exposure to large reputed private sector institutions
• ‘Pvt. Others’ includes NPA of Rs 8,302 crs
39
Accelerating digital agenda (1/3)
YONO – Our flagship digital offering

2.1 Cr+ 66%+ 30 L+ 4K+ 14,000 Cr

Registered customers Monthly active users Daily Active Users # of disbursals per day Digital loans disbursed

YONO: The digital bank with a customer base almost equal to the population of Australia

1 Customer facing digital bank catering to banking and lifestyle needs on self serve basis on mobile/ portal

Digital bank
“Seamless Omni-channel YONO Cash (“Cardless Fixed One view of all
customer experience” Fund Transfer withdrawal”) deposit SBI account

Financial Super Store

“Enable higher cross-sell”
Cards Mutual fund Insurance Investment
Online Market Place
“Deepen relationships
with existing customers” Shop Book and order

2 Branch employee facing portal enabling e2e digitization and omni-channel experience

E2E digitization
“Improve productivity and Account Service Home Car Personal
reduce cost” opening requests loans loans loans

4.5L+ 100 L+ 80+ 10K+ 40%

Agri Gold loans YONO Cash (Cardless withdrawal) Merchant partners on OMP Avg. bal. Incremental dep. through YONO

40
Accelerating digital agenda (2/3)
Higher branch productivity via YONO

Product Redesigned journey Impact

Account “Account opening and activation in 21K 80%

opening <10 minutes”
New accounts per day Productivity improvement

Personal
Loans
“3 click instant disbursal” ~1,000 Cr 4,000+
Monthly disbursal run rate Daily disbursals

Credit “4 minute card approval”

1 ~1.6L 80%
Cards
Cards sourced Productivity improvement

Non
Financial “<2 minutes with pre-filled form” 10K+ 40%
Services Transactions per day Productivity improvement

Agri gold
loan “24X7 gold loan application” 4.5L+ 40%
Gold loans sanctioned Productivity improvement

41
 Accelerating digital agenda (3/3)
Digital Leadership across channels

Market share (As per latest available data)

Mobile Banking Mobile Banking
Debit card spends POS terminals ATMs
No. of Transactions Transaction value
29.42% 13.43% 27.82% 23.23% 19.38%

Presence across multiple channels and payment acceptance touch points

Customer touch points Payment acceptance touch points

Numbers (As on March 2020) Numbers (As on March 2020)

INB users 73.5 Mn BHIM merchants 146,000

Mobile banking users 16.8 Mn Bharat QR 333,652

ATMs/CDMs/ADWMs 58,555 BHIM–Aadhar–SBI 952,622
BC outlets 61,102 SBI POS 672,862

Branches 22,141 BHIM SBI Pay 329,967

Technology and Innovation Key highlights

Mar 2019 Mar 2020 Digital1 • Remit transactions handled (in FY20): 3326.60 Mn
ATM & CDM • Transactions processed in a day crossed: 20 Mn
51% 59% during FY20
BC Channel UPI • Number of UPI users: 95.26 Mn
Share of Branch • Market share in remittances: 24.61% (Mar’ 2020)
Share of Txns
Txns through (#1 Remittance bank)
through
Alt. Channel Alt. Channel Debit • No. of cards: 278.10 Mn
12% 88% 91% • Debit Card spends: > 1.43 bn transactions and
cards
9%
Rs. 2.05 Trillion spend during FY 19-20.
32% 26%
5% 6%
ATM • Average no. of ATM transactions: ~35 Cr per
month
1 Digital comprises of Internet, Mobile, UPI & YONO and Green Channel 42
Financial Inclusion & Micro Markets
As on Mar 2020

Accounts & Amount in FI Channel Transactions in BC Channel

(No. in Crores) (No. & Amt. in Crores)

No. of Accounts
15.53 49.29
14.25
2,50,000 39.75 2,27,469 42.00

10.97 12.05
2,00,000
32.00
1,73,381

1,50,000
3.28 3.48 22.00

Mar 19 Mar 20 1,00,000 12.00

PMJDY Others
50,000 2.00
Mar 19 Mar 20

0 -8.00
Deposits (Rs. In Crs) 31,235 38,033
FY19 FY20
Average Balance (Rs.) 2,192 2,449
Transactions Amount No. of Transactions

OD facility for PMJDY accounts - Eligible accounts 21.05 lakh; Sanctioned 10.85 lakh accounts (51.5%)

RSETI: Total Number: 152; No. of Training Programs held: 29,944, Youth Trained: 93,009, Financial Literacy Centers (FLC): 341

PM Suraksha Bima Yojana: 364.30 Lakh; PM Jeevan Jyoti Bima Yojana: 112.67 Lakh; Atal Pension Yojana: 38.56 Lakh (In Nos.)

No. of BC Outlets: 61,102 43

 SBI and its Subsidiaries
Leveraging Synergies
As on Mar 2020

• Increase in share of Protection NBP from 11.9% to 12.5% with 27%

growth • Rank 1st in QAAUM with Market Share of 13.82%.
• Private market leadership Rank 1 in Individual Rated Premium (IRP)
with 9% growth • AUM at Rs.374K Crores, up by 31.62% YoY
• New Business Premium increased by 20% • QAAUM grew by 5.93% vis-à-vis Industry growth rate of 0.95%
• Strong financial performance: VoNB Margin: 18.7% during Q4FY20.

• SBI General has written GWP of Rs.6,840 Crs with YoY growth of 45% as
• Market Share Total Spends : 17.9%
compared to the Industry growth at 11.5%
• Market Share Card base : 18.2% • Ranked at 8th position amongst private insurers and 13th (Up from 13th in FY19)
• Ex COVID PAT ₹ 1,662 Cr YoY 92% in the Industry overall.
• Overall market share improved from 2.77% last year to 3.59% in FY20
• Positive operating leverage; Income Growth 34%, Opex growth • 1st in Personal Accident with 16.1% share and 3rd in Fire with 7.5% share
26% amongst Private insurers as on March 2020.

FY19 FY20 FY19* FY20*

PAT (in Rs. cr) 1,327 1,422 PAT (in Rs. cr) 428 603

ROE (in %) 18.81 17.43 ROE (in %) 31.12 30.40

FY19* FY20* FY19 FY20

PAT (in Rs. cr) 865 1,245 PAT (in Rs. cr) 334 412

ROE (in %) 28.40 27.40 ROE (in %) 20.10 20.40

*(As per IND AS) 44
SBI Group Financials – FY20
Rs. In crores

Year Ended Growth Rs. In crores

Year Ended
(%)

FY19 FY20 YoY FY19 FY20

Interest Earned 2,53,322 2,69,852 6.53
ROA (%) 0.06 0.49
Non-Interest Income 77,365* 98,159* 26.88

Total Income 3,30,687 3,68,011 11.29

ROE (%) 1.23 9.86
Interest Expended 1,55,867 1,61,124 3.37

Operating Expenses (i+ii) 1,14,800 1,31,782 14.79

Earning Per Share (Rs.) 2.58 22.15
(i) Employee Cost 43,795 48,851 11.54

(ii) Other Operating Expenses 71,005 82,931 16.79

Expenses Ratio (%) 55.60 52.46
Total Expenditure 2,70,668 2,92,905 8.22

Operating Profit 60,020 75,105 25.13

NIM (%) 2.85 3.03
Provisions (other than Tax) 54,799 44,789 -18.27
Add: Share in profit of
281 2,963 952.70
associates
Gross NPA Ratio (%) 7.43 6.07
Less: Minority Interest 1,051 1,372 30.57

Tax Expenses 2,151 12,140 464.27

Net NPA Ratio (%) 2.97 2.20
Net Profit 2,300 19,768 759.60
* Includes exceptional items
45
Balance Sheet
Liabilities Rs. in Crores

SBI SOLO SBI GROUP

YOY YOY
Mar 19 Mar 20 Mar 19 Mar 20
Growth (%) Growth (%)
Capital 892 892 0.00 892 892 0.00
Reserves and Surplus 2,20,021 2,31,115 5.04 2,33,603 2,50,168 7.09
Minority Interest 6,037 7,944 31.59
Deposits 29,11,386 32,41,621 11.34 29,40,541 32,74,161 11.35
Borrowings 4,03,017 3,14,656 -21.92 4,13,748 3,32,901 -19.54
Other Liabilities & Provisions 1,45,597 1,63,110 12.03 2,93,643 3,31,427 12.87
Total Liabilities 36,80,914 39,51,394 7.35 38,88,464 41,97,492 7.95

Assets
SBI SOLO SBI GROUP
YOY YOY
Mar 19 Mar 20 Mar 19 Mar 20
Growth (%) Growth (%)
Cash & balances with RBI 1,76,932 1,66,736 -5.76 1,77,363 1,66,968 -5.86
Bal with Banks & Money at Call and Short Notice 45,558 84,361 85.17 48,150 87,347 81.41
Investments 9,67,022 10,46,955 8.27 11,19,270 12,28,284 9.74
Net Advances 21,85,877 23,25,290 6.38 22,26,854 23,74,311 6.62
Fixed Assets 39,198 38,439 -1.93 40,703 40,078 -1.54
Other Assets 2,66,328 2,89,614 8.74 2,76,125 3,00,503 8.83
Total Assets 36,80,914 39,51,394 7.35 38,88,464 41,97,492 7.95
46
 SBI’s ESG Practices
‘Environmental’ Practices ‘Governance’ Practices
▪Average training hours per Full time employee stood at
▪Big push to digitalization. As on March 2020, 56.23 hrs for the FY 2019-20 compared to 54 hrs last
almost 90.12 % Bank’s total transactions took ▪‘Sustainability’ incorporated as a core value in the
year.
place through Alternate channels as compared Bank and an online tutorial on Sustainability
to 88% in March,2019. ▪95% of the officers & 93% of Associate staff completed matters – “ASTITVA” introduced for employees.
role relevant certification in F.Y 2019-20. Basket of Role
▪Bank’s E-rickshaw loan product and Green Car ▪An independent ETHICS business conduct function
Based Certification programs increased to 59 in-house
loan product directed at Climate Action had an in place that looks after the ethical morale of the
and 42 external certifications.
aggregate outstanding portfolio of Rs.14.31 entire organization. Ethics Tutorial on monthly basis
Crore as on March 2020. ▪ Supplementary accreditations on niche areas viz introduced for benefit of employees.
Digital transformation & Leadership development rolled
▪Pan-India specialized energy saving initiative ▪A Policy on Prevention of Sexual harassment at
out for employees due for promotion in certain grades.
viz. desktop software(IPM+) resulting in a Workplace- “GARIMA”. More than 2 lakh
Certification completed by 75% of the eligible
cumulative saving of 44.04GWh of Energy. employees completed online certification on
employees.
GARIMA.
▪Branch Server consolidation project for migration ▪Phase II of the mass communication program Nayi
of physical servers at branches/offices to a ▪An entry level sector agnostic assessment barrier
Disha focusing on customer centricity introduced during
centralized secure virtualized cloud environment for environmental and social issues, primarily
the year for equipping employees with the requisite skill
done for 22,963 locations as on March 2020. compliance driven and applied to loans ranging
sets. Around 2.34 lakhs employees covered under the
from ₹ 5-50 crore to facilitate a 'Go' or a 'No-Go'
▪ 'Beat Plastic Pollution’ drive for eliminating the program,
decision
usage of Single Use Plastic(SUP) with standard ▪SBI is continuously working towards improving the
guidelines adopted ▪Collation of wide range of ESG Evaluation
diversity of its workforce; Women represent more than
Statements from the borrowers for loans exceeding
▪. Bank’s Seven(7) premises have been certified 25.28% of the total work force as on 31st March,2020.
₹ 50 crore and an 'ESG Score' given to the
as Green Buildings under different categories ▪More than 3,500 branches, headed by women officers borrower.
▪Under the World Bank line of credit of USD 625 as on March,2020.
▪The Bank has a Corporate Centre Sustainability
million, Bank has financed 241 projects with an ▪An in-house employee grievance redressal mechanism Committee (CCSC) comprising of key business
aggregate sanctioned limit of INR 1,744 crores “SANJEEVANI “ helpline having services of counsellors heads and responsible for execution of SBI’s
as on 31st March 2020 to address employees issues and concerns. sustainability Strategy.
▪Bank came up with a fresh 100 USD million ▪Raising Environment concerns amongst staff and ▪ Bank has started mapping its products & services
Green Bond issue during FY2019-20 resulting in general public through the 3rd season of “SBI Green to SDGs to make them more inclusive. Eight
Bank’s aggregate Green Bond issue size to USD Marathon” was conducted at 12 centers. products mapped during the year.
800million so far with a projected emission
reduction of 16,77,581 tCO2 in a year. ▪Bank spent Rs.27.47 crores on various CSR initiatives ▪A sound internal audit framework, Whistle blower
during F.Y 2019-20. and vigilance mechanism, employee grievance and
▪Pan India roll out of “Swacchata hi Sewa feed back system with ongoing enhancements.
campaign” in the Bank in line with the national ▪Bank conducted 29,995 financial literacy camps during
mission. More than 4 lakh tress planted during the F.Y 2019-20 through 341 Financial literacy centers. ▪With growing digitization, Bank is committed to
the FY 2019-20. cyber security. Bank’s Security Operations Centre
complies with the ISO 27001:2013 requirements.
▪Bank has so far commissioned 248 rain Water
harvesting sites and 68 Waste management
‘Social’ Practices
installations respectively.
47
Thank You