Post on 14-Jun-2015
State Bank GroupState Bank Group
March 2007March 2007March 2007March 2007
22
DisclaimerDisclaimer
This presentation is made purely for information. We have tried to give relevant information which we believe will help in knowing the Bank. The viewers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Bank nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc.
33
Group’s VisionGroup’s Vision
Premier Indian Financial Services Group with global perspective, world class standards of efficiency and professionalism and core institutional values.
Retain its position in the country as a pioneer in Development Banking.
Maximize shareholder value through high sustained earnings per share.
An institution with a culture of mutual care and commitment, a satisfying and exciting work environment and continuous learning opportunities.
44
State Bank Group – A presence in every area of theFinancial SectorState Bank Group – A presence in every area of theFinancial Sector
SBI Capital Markets SBI Capital Markets Ltd.Ltd.
Others - RRBs, UTI-Others - RRBs, UTI-AMC, C-EdgeTechAMC, C-EdgeTech
SBI DFHI Ltd.** SBI DFHI Ltd.**
SBI Cards & Payment SBI Cards & Payment Services Pvt Ltd. Services Pvt Ltd. (with GE Capital)(with GE Capital)
SBI Factors & SBI Factors & Commercial Services Commercial Services
P Ltd. P Ltd.
SBI, SBICI & 7 SBI, SBICI & 7 Associate Banks Associate Banks
SBI Life Insurance SBI Life Insurance Co.Ltd Co.Ltd
( with Cardiff SA)( with Cardiff SA)
Foreign Subsidiaries Foreign Subsidiaries & Joint Ventures& Joint Ventures
SBI Funds SBI Funds Management Ltd Management Ltd
(with Society (with Society Generale)Generale)
1992 1998
2001
2004**
1991
1986
** SBI Gilts - 1996 DFHI - 1988
55
HighlightsHighlights
State Bank Group, with 14337 branches as on 31.03.2007, has the largest branch network.
State Bank Group has a market share of 25.13%* in deposits and 24.68%* in advances out of total commercial banks’ business in India.
Four out of seven Associate Banks have achieved Net NPA <1.00%.
* (Source: ASCB data as on March 2006 from Report on Trends and Progress of Banking in India by RBI)
66
Technology InitiativesTechnology Initiatives
All the branches of State Bank of India and its 7 Associate Banks were fully computerized in January 2004.
Core Banking Solution implemented in 10297 branches of the Group by June 2007.
All Associate Banks have fully migrated to CBS Platform by January 2006.
Country wide network of 6921 ATMs spread across the country.
Business Process Reengineering initiative launched (Consultant : Mckinsey).
77
State Bank Group – Consolidated Balance Sheet 31.03.2007State Bank Group – Consolidated Balance Sheet 31.03.2007
Balance Sheet 8151.74 (100%) Balance Sheet 8151.74 (100%)
Capital & LiabilitiesCapital & Liabilities AssetsAssets
Rs in Billion
Share Capital / Reserves : 425.36 (5.2%)
Minority Interest: 16.90 (0.2%)
Deposits : 6362.73 (78.1%)
Saving Deposits : 1726.08 (21.2%)
Term Deposits : 3646.48 (44.7%)
Demand Deposits : 990.17 (12.1%)
Borrowings : 486.62 (6.0%)
Other Liabilities & Provisions : 860.14 (10.6%)
Cash & Balances with RBI/ Bank: 724.77 (8.9%)
Investments: 2165.21 (26.6%)
Loans & advances : 4872.86 (59.8%)
Net Fixed Assets : 39.99 (0.5%)
Other Assets: 348.91 (4.3%)
(Figures in brackets indicate % to Total Assets)
88
SBI Group – Financial Highlights FY 2007SBI Group – Financial Highlights FY 2007
Total Income: 683.77 ( 100%)
Non-Interest Income: 111.39 (16.3%)
Interest Earned: 572.38 (83.7%)
Interest Expended : 339.83 (49.7%) Operating Income :
343.94 (50.3%)
Net Interest Income : 232.55 (34.0%) Operating Expenses :
200.01 (29.3%)
Employee Expenses 105.97 (15.5%)
Other Expenses: 94.04 (13.75%)
Operating Profit:143.92 (21.0%)
Provision for Investment Depreciation: 8.29 (1.21%)
Provision for Loan Losses:17.76 (2.60%)
Provisions for Std Assets:9.45 (1.38%)
Provisions and Contingencies :36.14 (5.3%)
Profit Before Tax : 107.78 (15.8%)
Provision for Tax: 41.57(6.1%)
GroupProfit: 63.64 (9.3%)
Other Provisions :0.64 (0.09%)
Net Profit: 66.21 (9.7%)
Minority Interest: 2.55 (0.4%)
Rs in Billion
(Figures in brackets indicate % to Total Income)
Banking & Non-Banking Subsidiaries of Banking & Non-Banking Subsidiaries of State Bank of IndiaState Bank of India
1010
Domestic Banking SubsidiariesDomestic Banking Subsidiaries
NAMEPaid-up Capital
(March 07)(Rs. in bn)
STAKE OFSBI (%)
STATE BANK OF BIKANER & JAIPUR
0.50 75.00
STATE BANK OF HYDERABAD 0.17 100.00
STATE BANK OF INDORE 0.17 98.05
STATE BANK OF MYSORE 0.36 92.33
STATE BANK OF PATIALA 0.25 100.00
STATE BANK OF SAURASHTRA 3.14 100.00
STATE BANK OF TRAVANCORE 0.50 75.00
SBI COMM. & INT’L BANK LTD. 1.00 100.00
1111
Domestic Non Banking Subsidiaries & Joint VenturesDomestic Non Banking Subsidiaries & Joint Ventures
NAME OF SUBSIDIRIES/ JOINT VENTURES
Paid-up Capital(Marc
h 07)(Rs. in bn)
Stake ofSBI (%)
SBI Capital Markets Ltd. 0.58 86.16
SBI Life Insurance Co. Ltd. 5.00 74.00
SBI Funds Management Pvt. Ltd. 0.50 63.00
SBI Cards & Payment Services Pvt. Ltd.
2.50 60.00
SBI DFHI Ltd. 2.91 56.96
SBI Factors & Commercial Services Pvt. Ltd.
0.45 54.00
C-Edge Technologies Ltd. 0.0005 49.00
1212
Foreign Subsidiaries / Joint VenturesForeign Subsidiaries / Joint Ventures
NAME Paid-up Capital(March 07)
(In US $ mio)
STAKE OFSBI (%)
SBI (Canada) 14.12 100%
SBI (California) 24.50 100%
SBI Intl (Mauritius) Ltd 10.00 98%
Indian Ocean Intl. Bank Ltd 5.24 56.84%
PT Bank Indo Monex 2.20 76%
Bank of Bhutan 2.30 20%
Nepal SBI Bank Ltd 9.21 50%
Commercial Bank of India LLC, Moscow
20.00 60%
Profile of Associate Banks ofProfile of Associate Banks ofState Bank of IndiaState Bank of India
1414
Net Worth Net Worth
107.1
98.82
86.92
0
20
40
60
80
100
120
FY 05 FY 06 FY 07
NET WORTH
FY05 FY06 FY07
SBBJ 12.98 14.06 16.54
SBH 17.66 21.14 24.88
SBIr 9.04 10.18 11.77
SBM 7.56 9.27 11.41
SBP 20.44 22.35 24.88
SBS 7.94 8.50 9.22
SBT 11.30 13.32 15.99
TOTAL ABs
86.92 98.82 114.69
Rs in Billion
1515
Branch Network – Associate Banks as on 31.03.2007Branch Network – Associate Banks as on 31.03.2007
SBH965
SBS452
SBIr.445
SBM644
SBT704
SBP766
SBBJ844
TOTAL NUMBER OF BRANCHES : 4,820
1616
Operating Profit Operating Profit
44.34
40.31
42.7
38
39
40
41
42
43
44
45
FY 05 FY 06 FY 07
Rs in Billion
OPERATING PROFIT
FY05 FY06 FY07
SBBJ 7.30 5.92 6.79
SBH 7.13 8.68 10.04
SBIr. 3.52 4.20 3.89
SBM 4.52 4.38 4.72
SBP 8.53 7.32 7.89
SBS 3.68 3.06 2.49
SBT 8.02 6.74 8.52
TOTAL ABs 42.70 40.31 44.34
1717
Net ProfitNet Profit
20.31
15.50
13.71
0
5
10
15
20
25
FY 05 FY 06 FY 07
Robust performance by all Associate BanksRobust performance by all Associate Banks
NET PROFIT
FY05 FY06 FY07
SBBJ 2.06 1.45 3.06
SBH 2.51 4.27 5.06
SBIr. 1.33 1.39 1.90
SBM 2.06 2.17 2.49
SBP 2.87 3.03 3.67
SBS 0.41 0.60 0.87
SBT 2.47 2.59 3.26
TOTAL ABs
13.71 15.50 20.31
Rs in Billion
1818
Balance Sheet SizeBalance Sheet Size
2,083.31
1,671.93
1,980.01
0
500
1,000
1,500
2,000
2,500
FY 05 FY 06 FY 07
B.SHEET SIZE FY 05 FY 06 FY 07
SBBJ 234 275 345
SBH 349 406 491
SBIr. 169 207 245
SBM 166 193 268
SBP 315 414 475
SBS 150 165 188
SBT 289 319 380
TOTAL ABs 1672 1980 2392
Rs in Billion
1919
Return On Equity (%)Return On Equity (%)
17.70
15.7315.78
14.5
15.0
15.5
16.0
16.5
17.0
17.5
18.0
FY 05 FY 06 FY 07
ROE FY 05 FY06 FY 07
SBBJ 15.85 10.32 18.49
SBH 14.21 20.20 20.31
SBIr. 14.74 13.67 16.14
SBM 27.27 23.37 21.84
SBP 14.04 13.74 14.73
SBS 5.18 7.07 9.48
SBT 21.87 19.43 20.40
ALL ABs 15.78 15.73 17.70
2020
Return On Average Assets (%)Return On Average Assets (%)
0.97
0.82
0.88
0.7
0.8
0.8
0.9
0.9
1.0
1.0
FY 05 FY 06 FY 07
ROA FY 05 FY06 FY 07
SBBJ 0.88 0.59 1.04
SBH 0.72 1.13 1.15
SBIr. 0.79 0.76 0.87
SBM 1.25 1.26 1.13
SBP 0.91 0.90 0.92
SBS 0.27 0.40 0.49
SBT 0.86 0.86 0.95
ALL ABs 0.82 0.88 0.97
2121
Capital Adequacy Ratio (%)Capital Adequacy Ratio (%)
12.22
12.18
12.06
11.95
12.00
12.05
12.10
12.15
12.20
12.25
FY 05 FY 06 FY 07
CAR FY 05 FY 06 FY 07
SBBJ 12.60 12.08 12.89
SBH 11.74 12.08 12.51
SBIr. 11.61 11.40 11.77
SBM 12.08 11.37 11.47
SBP 14.21 13.55 12.38
SBS 11.45 12.03 12.78
SBT 11.05 11.15 11.68
ALL ABs 12.18 12.06 12.22
2222
Net Interest Margin (%)Net Interest Margin (%)
3.26
3.39
3.72
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
FY 05 FY 06 FY 07
N.I.M. FY 05 FY06 FY 07
SBBJ 4.20 4.18 3.64
SBH 3.45 3.25 3.44
SBIr. 3.63 3.18 2.79
SBM 3.81 3.59 3.28
SBP 3.53 3.08 3.04
SBS 3.80 3.32 2.91
SBT 3.61 3.27 3.39
ALL ABs 3.72 3.39 3.26
2323
Yields , Costs & Spread (%)Yields , Costs & Spread (%)
ABs
YOA COD SPREAD YOI
FY05 FY06 FY07 FY05 FY06 FY07 FY05 FY06 FY07
FY05FY06 FY07
SBBJ 8.60 8.70 9.46 4.84 4.53 5.30 3.76 4.17 4.16 8.73 8.54 7.84
SBH 8.32 8.21 9.16 5.20 4.89 5.43 3.12 3.32 3.73 8.00 8.02 7.98
SBIr. 8.21 8.24 9.02 5.05 4.95 5.62 3.16 3.29 3.40 8.49 8.34 8.20
SBM 8.64 8.39 8.92 4.96 4.65 5.30 3.68 3.74 3.62 8.46 7.93 7.77
SBP 7.95 8.06 8.90 4.73 4.90 5.52 3.22 3.16 3.38 8.07 7.84 7.76
SBS 7.81 7.87 8.50 5.09 5.03 5.52 2.72 2.84 2.98 8.56 8.28 7.88
SBT 7.94 7.92 8.74 4.87 4.96 5.27 3.07 2.96 3.47 8.51 8.47 8.71
2424
Asset Quality (%)Asset Quality (%)
0.76
1.23
1.05
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
FY 05 FY 06 FY 07
NET NPA FY05 FY 06 FY07
SBBJ 1.61 1.18 1.09
SBH 0.61 0.36 0.22
SBIr. 1.00 1.83 1.04
SBM 0.92 0.74 0.45
SBP 1.23 0.99 0.83
SBS 1.40 1.16 0.70
SBT 1.81 1.47 1.08
ALL ABs 1.23 1.05 0.76
2525
Cost-Income Ratio (%) Cost-Income Ratio (%)
COST-INCOME RATIO
FY 05 FY06 FY 07
SBBJ 46.03 56.19 52.57
SBH 48.47 48.46 48.24
SBIr 48.26 48.60 51.31
SBM 51.47 54.31 54.38
SBP 35.96 45.51 45.49
SBS 44.84 45.72 52.09
SBT 38.53 48.41 43.09
ALL ABs 44.20 49.73 48.89
49.73%
44.20%
49.73%
41%
42%
43%
44%
45%
46%
47%
48%
49%
50%
51%
FY 05 FY 06 FY 07
2626
TRANSACTION COST (%) TRANSACTION COST (%)
1.44%
1.51%
1.47%
1.40%
1.42%
1.44%
1.46%
1.48%
1.50%
1.52%
H1 FY 06 FY 06 H1 FY 07
FY05 FY06 FY 07
SBBJ 1.99 2.01 1.53
SBH 1.47 1.44 1.13
SBIr 1.42 1.38 1.16
SBM 2.11 1.83 1.45
SBP 1.13 1.09 0.97
SBS 1.54 1.37 1.21
SBT 1.28 1.40 1.15
AVERAGE ABs
1.51 1.47 1.20
Performance ofPerformance ofNon Banking Subsidiaries & Joint VenturesNon Banking Subsidiaries & Joint Ventures
2828
Performance of Domestic Non-bkg. SubsidiariesPerformance of Domestic Non-bkg. Subsidiaries
AS ON 31/03/2007 Rs. in Billion
NAME GROSSINCOME
NET PROFIT
SBI'S INVEST-
MENT
SBI CAPITAL MARKETS LTD. 1.49 0.6 0.5
SBI CARDS 9.30 0.6 1.5
SBI DFHI LTD. 0.88 0.5 3.0
SBI FUNDS MANAGEMENT (P) LTD.
1.10 0.3 0.2
SBI FACTORS & COMMER- CIAL SERVICES (P) LTD.
0.95 0.1 0.3
SBI LIFE 29.28 38.2 mio 3.7
2929
Performance of Domestic Non-bkg. Subsidiaries Performance of Domestic Non-bkg. Subsidiaries
AS ON 31/03/2007 Rs. in Billion
NAMENET
WORTHROE (%)
TOTAL ASSETS
B.V. PER
SHARE (Rs)
SBI DFHI LTD 10.09 5.28 15.97 346.98
SBI CAPITAL MARKETS LTD. 3.78 17.02 4.29 65.16
SBI LIFE 4.7 0.81 49.45 9.41
SBI FACTORS & COMMER- CIAL SERVICES (P) LTD.
0.93 14.16 13.13 20.67
SBI FUNDS MANAGEMENT (P) LTD.
0.92 32.43 1.24 183.58
SBI CARDS 3.62 16.25 27.61 14.46
3030
Performance of Foreign Subsidiaries / Joint VenturesPerformance of Foreign Subsidiaries / Joint Ventures
AS ON 31/03/2007 ( In US $ mio)
NAME OPERATING PROFIT
NET PROFIT
ASSET SIZE
SBI (Canada) 3.32 2.05 395.82
SBI (California) 5.34 3.31 353.76
SBI Intl (Mauritius) Ltd 3.39 2.98 259.97
Indian Ocean Intl. Bank Ltd 2.02 1.40 172.75
PT Bank Indo Monex 0.01 -0.12 39.80
Bank of Bhutan 7.01 4.57 394.32
Nepal SBI Bank Ltd 4.53 1.68 187.57
Commercial Bank of India LLC, Moscow
1.71 1.02 42.79
3131
Highlights of Group CompaniesHighlights of Group Companies
Only Pvt Sector Insurance company to declare profit of Rs.38.3 mio in FY07 (Rs.20.2 mio in FY06).
Gross Premium in FY 07: Rs.29.28 bn ( Growth : 172%) ( FY 06 : Rs 10.75bn)
First Year Premium grown by 275% to Rs.17.18 bn.
12% Market Share among Private players.
Third position in terms of New Business Income among private players.
Number of Lives insured : 6.49 million ( March 06 : 4.32 million)
SBI LifeSBI Life
SBI MF currently ranked 7th in the industry; AUM at Rs 16.8 bn
PAT Rs. 297.8 mio ( YOY growth 59.76%) for FY07.
SBI MF won the prestigious CNBC TV 18 CRISIL Mutual Fund of the Year Award 2007 in February 2007.
Also won 5 CNBC TV 18 CRISIL Awards and 3 Lipper India Fund Awards
SBI Funds SBI Funds Mgmt (P) Ltd.Mgmt (P) Ltd.
2nd largest card issuer in India with 3.36 million cards.
Cards spends amounted to Rs.48.38 bn in March 2007 an increase of 54%.
PAT of Rs. 587.7 mio a growth of 62% in FY07 (Rs. 362.0 mio in FY06)
SBI CardsSBI Cards
Mandated Lead Arranger in Project Finance 9th Globally and 1st in Asia Pacific and India. Project Finance Advisor 3rd Globally and 1st in Asia Pacific.
Gross Income increased to Rs.1.93 bn in FY 07.
SBI CapsSBI Caps
3232
Way Forward – Other Business InitiativesWay Forward – Other Business Initiatives
Introduction of multicity cheques and relationship managers for HNIs
Centralized Pension Processing & Payments
Customer Customer ServiceService
Bouquet of products offerings being enhanced by inviting expertise from market leadersTreasury Treasury ProductsProducts
Centralised Processing Cells
Initiatives for improved customer service
Currency Administration Cells
Sales Forces
Relationship Management
Alternate Delivery Channels
Branch Redesign
BusinessBusinessprocess process
Re-engineeringRe-engineering
3333
New OpportunitiesNew Opportunities
General InsuranceGeneral Insurance General InsuranceGeneral Insurance
Pension Fund ManagementPension Fund ManagementPension Fund ManagementPension Fund Management
Venture CapitalVenture CapitalVenture CapitalVenture Capital
Private EquityPrivate EquityPrivate EquityPrivate Equity
Infrastructure FundInfrastructure FundInfrastructure FundInfrastructure Fund
Thank YouThank YouVisit us at: www.statebankofindia.com
Click on “Investor Relation” Page for detailed financial information on the Group
You may also contact Mr. S.S.Ranjan, Chief General Manager (Financial Control), the designated official for Investor Relations, at cgm.fc@sbi.co.in or
on Telephone No: +91 22 2202 0389 for any queries on Bank’s Financial Performance