SBI Q4FY18: Six key takeaways from this quarter’s performance

It was just another disappointing quarter for largest lender State Bank of India (SBI), as it posted a net loss of Rs 7,718.17 crore in Q4FY18 compared to net loss of Rs 3,442 crore in the corresponding period of previous year. Q4FY18 net loss widened compared loss of Rs 2,416.37 crore in the preceding quarter.

According to SBI the loss was attributed to three factors - lower Trading Income and significant MTM losses due to hardening of bond yields, incremental Provision during the quarter for NPAs and higher provisioning on account of Wage Revision and enhancement in Gratuity ceiling.

Apart from this, here are six key takeaways from SBI Q4FY18 results.

Deposits

Deposits at the whole Bank level registered a growth of 4.68% YoY from Rs. 25,85,320 Cr as on Mar 17 to Rs. 27,06,343 Cr as on Mar 18.

Domestic CASA Deposits registered a growth of 7.21% YoY from Rs. 11,07,434 Cr as on Mar 17 to Rs. 11,87,294 Cr as on Mar 18.

Domestic Term Deposits grew by 1.84% YoY from Rs. 13,86,527 Cr as on  Mar 17 to Rs. 14,12,099 Cr as on Mar 18.

CASA Ratio further improved by 128 bps from 44.40% as on Mar 17 to 45.68% as on Mar 18.

Advance

Gross Advances at the whole Bank level registered a growth of 4.91% YoY from  Rs. 19,52,507 Cr as on Mar 17 to Rs. 20,48,387 Cr as on Mar 18.

Personal Retail Advances grew by 13.55% YoY from Rs.4,81,386 Cr as on Mar 17 to Rs. 5,46,594 Cr as on Mar 18 with Home loans growing by 13.26% from  Rs. 2,76,454 Cr as on Mar 17 to Rs.3,13,106 Cr as on Mar 18.

Agri Advances dipped by 1.58% YoY from Rs.1,91,265 Cr as on Mar 17 to Rs. 1,88,251 Cr as on Mar 18.

Advances to Large and Mid-Corporates and SME registered a growth of 1.80% YoY.

International Advances grew by 5.51% YoY from Rs. 2,86,219 Cr as on Mar 17 to Rs. 3,01,998 Cr as on Mar 18.

Asset Quality

Gross NPA Ratio at 10.91% increased sequentially by 56 bps in Q4FY18.

Net NPA Ratio at 5.73% increased sequentially by 12 bps in Q4FY18.

Provision Coverage Ratio improved by 464 bps YoY from 61.53% as on Mar 17 to 66.17% as on Mar 18. Sequentially the same has increased by 25 bps.

Provision Coverage Ratio on NCLT List 1 and List 2 at 56% and 75% respectively. Overall Provision Coverage Ratio on NCLT accounts is 63%.

Strong Retail Franchise

CASA deposits registered a sustained growth of 7.21% YoY in FY18.

CASA Ratio up 128 bps YoY to 45.68% as on 31st Mar 18. Daily average CASA was at 44.29%.

Retail Term Deposits grew by 3.15% YoY in FY18.

Personal Retail Loan portfolio grew by 13.55% YoY driven mainly by 13.26% growth in Home Loans. Sequentially the portfolio grew by Rs 25,568 Cr during Q4FY18.

Dominance in Digital

80% of total transactions through alternate channels, up by 500 bps YoY.

Leadership position in Debit Card spends with 30.40% Market-share which has improved by 107 bps YoY.

Leadership position in Merchant Acquiring Business with over 6.10 lakh customer touch points (POS) and 20.20% Market-Share.

SBI Online is the 5th most popular online global financial site.

YONO downloads at 43.70 lakhs with 14.90 lakhs registered users.

Bonds

CET 1 Ratio improved by 27 bps YoY to 9.68% as on 31st March 18.

Tier 1 Ratio improved by 31 bps YoY to 10.36% as on 31st March 18.

Overall CAR remained at 12.60%, well above the regulatory requirements.

During the year Rs. 15,000 Cr of equity raised through QIP and GOI infusion of Rs. 8,800 Cr.  Rs. 2,000 Cr Tier 1 Capital raised by way of AT 1 bonds.