State Bank of India

PRESS RELEASE
QUARTERLY RESULTS Q1 FY11
SBI STAND ALONE RESULTS

Operating Profit recorded a YOY growth of 66.97% as on June 10 against a negative

growth of 7.28% recorded as on June 09.
Net Profit for Q1FY11 increased to Rs. 2914.20 crores from Rs. 2330.37crores in
Q1FY10, a growth of 25.05%.

HIGHLIGHTS:
• NII increased by 45.35% in Q1FY11 over Q1FY10 against a growth of 4.30%
recorded in June 09. NII during the quarter was highest since last 3 years.
• Interest expenses on deposits have decreased by 11.85% during Q1FY11 against
a growth of 47.19% during Q1FY10, through strategic shedding of high cost bulk
deposits. Interest expenses have come down despite deposits going up by 6.78%.
• Interest income on advances has increased by 8.62% YOY driven by a growth of
20.74% in advances.
• Interest earnings from Investments increased by 3.08%.
• While cumulative NIM improved significantly by 88 bps to 3.18% as on June 10
from 2.30% as at the end of June 09, it improved by 52 bps from 2.66% in March
10. Sequentially also, NIM continues to improve from 2.30% in Q1FY10, 2.55% in
Q2FY10, 2.82% in Q3FY10 and 2.96% in Q4FY10 to 3.18% in Q1FY11.
• Total non interest income up by 3.40% despite profit on sale of investments coming
down by 75.54% (Rs.535 crores). Non Interest Income excluding profit on sale of
investments is up by 22.96%.
• Fee income went up by 29.41% YOY, driven by robust growth in loan processing
charges, non fund based business, Government business and cross-selling.
• Forex income increased by 6.83%, YOY.
• Operating Expenses have declined by 1.23% YOY.

Staff Expenses have declined by 9.89% YOY. While provision of Rs.1100
crores has been made for gratuity in Q1FY11 against the estimated
actuarial valuation of Rs.2,200 crores for the whole year, there was a write
 2

back of Rs.845 crores from excess provision on wage revision during

Q1FY11; Q1FY10 included a provision of Rs 627 crore for wage revision for
prior periods

Overheads growth was contained at 18.36%, in Q1FY11 as against growth
of 33.70% in Q1FY10.

 TOTAL BUSINESS GROWTH OF Rs. 1,65,769 CRORES (12.62% YOY)

• Business Growth of Rs.1,65,769 crores at the end of June 10 (Deposits Rs. 51,734
crores & advances Rs. 1,14,035 crores).

 DEPOSITS
• Deposits of the Bank went up from Rs.7,63,563 crores in June 09 to Rs.8,15,297
crores in June 10 recording a YOY growth of 6.78%, driven by CASA growth of
28.93% and retail TD growth of 10.16%, despite shedding of high cost bulk
deposits by 51.43%.
• Savings Bank deposits grew at an average of Rs.9,232 crores per month during
the first three months of FY11, leading to a YTD growth of Rs.27,696 crores. YOY
growth in Savings bank deposits at Rs.71,806 crores (33.85%) as on June 10.
• CASA ratio has improved from 38.45% as on June 2009 to 47.51% as on June
2010, an increase of 906 bps.
• Market share in total deposits as on June 10 at 16.14% (17.43% as on June 09),
declined by 129 bps YOY, while market share in low cost demand deposits at
16.24% (15.35% as on June 09) is up by 89 bps.

 ADVANCES
• Gross Advances up by Rs. 1,14,035 crores, a growth of 20.74% from Rs. 5,49,793
crores in June 09 to Rs. 6,63,828 crores in June 10.
• Market share in advances as on June 10 at 16.55% (16.43% as on June 09), an
increase of 12 bps YOY.
• Credit Deposit Ratio (Domestic) is up at 74.85% as at the end of June 10 from
64.84% at the end of June 09, an increase of 1001 bps, against a growth of
348 bps recorded by ASCB during the same period.

2
 3

• Large Corporate advances have grown from Rs. 70,964 crores in June 09 to Rs.
95,603 crores in June 10 registering a growth of 34.72%. Growth in Mid-Corporate
Advances was 14.30%.

The Bank continues to be the number one retail lender in the country:

Home loans grew by 29.83% YOY from a level of Rs.57,513 crores in June
09 to Rs.74,669 crores in June 10.

Auto Loans up by 48.06% YOY and Education Loans grew by 30.75% from
June 09 to June 10.

SME Advances of the Bank are up by 14.72% from a level of Rs.96,404 crores in
June 2009 to Rs.1,10,596 crores as at the end of June 2010.

Agri advances have grown by 15.98% from June 09 to June 10. Total
disbursements under Agri Advances were Rs.7892 crores during Q1FY 11. 2.89
lacs new farmers financed during Q1 FY11.

International advances up by 22.07% from Rs. 86,157 crores in June 09 to Rs.
1,05,168 crores in June10.
 DETAILS OF PROFIT AND LOSS ACCOUNT (Rs. in crores)

Q1FY10 Q1FY11 Growth (%) - Q1FY11 Over Q1FY10

Interest on Advances 12357 13422 8.62%
Int on Resources Operations 4988 4610 -7.57%
Other Sundry Int. 128 420 228.03%
Total Interest Income 17473 18452 5.61%
Total Interest Expenses 12448 11148 -10.44%
Net Interest Income 5025 7304 45.35%
Total Non-Interest Income 3569 3690 3.40%
Total Operating Income 8594 10994 27.93%
Total Staff Expenses* 3411 3074 -9.89%
Total Overhead Expenses 1509 1785 18.36%
Total Operating Expenses 4920 4859 -1.23%
Operating Profit 3674 6134 66.97%
Loan Loss Provisions 1344 1733 28.96%
Total Provisions 1344 3220 139.68%
Net Profit 2330 2914 25.05%

*Q1FY10 iIncludes Rs.627 crores wage revision arrears for prior period while Q1FY11 includes write
back of Rs.845 crores, in addition to a provision for gratuity amounting to Rs 1,100 crores

3
 4

 ASSET QUALITY:
Gross NPA Net NPA Provision Provision
Coverage Coverage
(Excl.AUCA) (Incl.AUCA) ^
March 09 2.86% 1.79% 38.42% 56.98%
June 09 2.79% 1.55% 45.15% 62.16%
Sep 09 2.99% 1.73% 42.87% 59.14%
Dec 09 3.11% 1.88% 40.24% 56.19%
Mar 10 3.05% 1.72% 44.36% 59.23%
June 10 3.14% 1.70% 46.82% 60.70%
^ Provision Coverage Ratio for past reworked in line with RBI guidelines

Gross NPAs during Q1FY11 are higher due to classification of agri debt relief
advances as NPA amounting to Rs.354 crores.
(Rs. in crores)
31.12.2009 31.03.10
30.06.2009 30.09.2009 30.06.10
Gross
15318 17376 18861 19535 20825
NPAs
Growth
during the -396* 2058 1485 674 1290
quarter
* Includes Rs.1651 crores on account of up gradation of Ratnagiri Gas & Power.

Movement of NPAs
(Rs. in crores)

Q1FY11
Opening level of Gross NPAs 19535 Details of net increase in NPAs by
Rs. 1290 crores during Q1FY11
Fresh Slippages 4081 Corporate + 102
Upgradation + Recovery 2164 International - 43
Write off 627 SME +183
Closing level of NPAs 20825 Agriculture +683*
Growth during the quarter 1290 Retail +365
*Rs.354 crores on account of Agri Debt waiver scheme

Slippages from Restructured Assets
Out of the standard restructured assets of Rs.16,796 crores restructured under RBI
dispensation upto June 2009, Rs. 158 crores have slipped into NPA category
during the quarter, taking the total slippages to Rs.1,774 crores and the slippage
ratio for these to 10.56% up to June 10.

 KEY FINANCIAL RATIOS:

Return on Assets (ROA) up to 1.07% in Q1FY11 from 0.92% in Q1FY10 an
increase of 15 bps. Sequentially, ROA is up by 19 bps from 0.88% in March 10.
4
 5

Return on Equity increased to 17.09% in June 2010 from 15.88% in June 2009, an
increase of 121 bps. Sequentially, ROE has gone up by 305 bps from 14.04% in
March 2010.

Net Interest Margin improved significantly from 2.30% as on 30th June 09 to 3.18%
in June 10.

Average Cost of Deposits has come down by 89 bps to 5.27% as on June 10 from
6.16% as on June 09. Sequentially, Cost of Deposits has come down by 53 bps
from 5.80% as on Mar 10.

Yield on advances (YOA) at 9.30% in Q1FY11 lower by 71 bps as compared to
10.01% in Q1FY10, mainly on account of lower PLR which was reduced by 50 bps
from 12.25% to 11.75% as on 29.06.09 last year.

Cost to income ratio has declined substantially by 1305 bps YOY to 44.20% as on
June 10 from 57.25% as on June 09. Compared to March 10, it has come down by
839 bps from 52.59%.

As per Basel II CRAR of the Bank is at 13.54% as at the end of June 2010,
compared to 14.12% last year, with Tier 1 of 9.79%. As per Basel I CRAR is at
12.17% and Tier I is 8.79% as on June 10.

B. PERFORMANCE OF ASSOCIATES AND SUBSIDIARIES

Operating profit of all associate banks increased by 47.37% from Rs. 1,276.22
crores to Rs.1,880.81 crores.

SBI Life has earned a profit after tax of Rs.113.79 crores against a profit of Rs.39
crores. YOY growth of 192%. AUM of the company as on June 30, 2010 stood at
Rs. 30,082 crores, a YOY growth of 64%. The company is ranked 2nd amongst the
private insurance companies under New Business Premium, as on June 2010.

SBI Capital Markets Ltd has posted a PAT of Rs. 157.15 crores during Q1FY11
registering a YOY growth of 93% after excluding provision of Rs.63.99 crores
towards syndication fee sharing payable to SBI.

SBI Funds Management has posted PAT of Rs.15.30 crores in Q1FY11 as against
Rs.14.14 crores for Q1FY10.
C. SBI GROUP NET PROFIT

SBI Group Net Profit during Q1 FY11 at Rs. 3365.26 crores up by 21.99% from Rs.
2758.53 crores during Q1 FY10.
=========================================================
5