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 | ||||
| Q2FY20 | Q1FY21 | Q2FY21 | |||
| 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 | 18,199 | 18,061 | 16,460 | -9.56% | |
| 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% | |
| Net Profit | 3,012 | 4,189 | 4,574 | 51.88% | |
| Key Ratios (in %) | Credit Cost | 1.97 | 1.56 | 0.94 | -103 bps |
| Net NPA | 2.79 | 1.86 | 1.59 | -120 bps | |
| PCR | 81.23 | 86.32 | 88.19 | 696 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% |
| Total Deposits | 30,33,396 | 34,19,363 | 34,70,462 | 14.41% | |
| 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
Q2FY21 RESULTS
| 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 | ||||||||
| Interest Income | 64,312 | 66,500 | 66,814 | 3.89 | 0.47 | 1,26,950 | 1,33,314 | 5.01 |
| Interest Expenses | 39,712 | 39,859 | 38,633 | -2.72 | -3.08 | 79,411 | 78,491 | -1.16 |
| 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 |
| Operating Profit | 18,199 | 18,061 | 16,460 | -9.56 | -8.87 | 31,445 | 34,521 | 9.78 |
| 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 % |
| Balance Sheet | |||||
| Gross advances | 22,48,313 | 23,85,639 | 23,83,624 | 6.02 | -0.08 |
| Domestic Corporate | 7,65,986 | 8,09,322 | 7,87,559 | 2.82 | -2.69 |
| 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 |
| Deposits | 30,33,396 | 34,19,363 | 34,70,462 | 14.41 | 1.49 |
| Domestic CASA | 13,26,171 | 14,98,718 | 15,27,007 | 15.14 | 1.89 |
| 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 |
| GNPA | 1,61,636 | 1,29,661 | 1,25,863 | -22.13 | -2.93 |
| NNPA | 59,939 | 42,704 | 36,451 | -39.19 | -14.64 |
| 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 |
| Asset Quality | ||||||||
| GNPA | 7.19 | 5.44 | 5.28* | -191 | -16 | 7.19 | 5.28* | -191 |
| NNPA | 2.79 | 1.86 | 1.59* | -120 | -27 | 2.79 | 1.59* | -120 |
| 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 |
| Slippage Ratio | 1.57 | 0.60 | 0.46 | -111 | -14 | 2.18 | 0.53 | -165 |
| Credit Cost | 1.97 | 1.56 | 0.94 | -103 | -62 | 1.98 | 1.24 | -74 |
| Capital Ratios | ||||||||
| CET-1 ratio | 10.08 | 10.14 | 10.49 | 41 | 35 | 10.08 | 10.49 | 41 |
| Tier-1 ratio | 11.31 | 11.35 | 11.90 | 59 | 55 | 11.31 | 11.90 | 59 |
| CAR | 13.59 | 13.40 | 14.72 | 113 | 132 | 13.59 | 14.72 | 113 |
*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.
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