State Bank of India

PRESS RELEASE
FOR THE FISCAL 2009-10

A. SBI STAND ALONE RESULTS

Net Profit for FY10 maintained at Rs. 9166 crores against Rs. 9121 crores in FY09.
- Net Interest Income up by 13.41% in FY10 over FY 09.
Net Profit for Q4FY10 at Rs. 1867 crores against Rs. 2742 crores in Q4FY09
- Net Interest Income up by 38.82% in Q4FY10 over Q4FY 09.

FY 10 Vs FY 09
• NII increased by 13.41% in FY10 over FY09, while cumulative NIM, which had
declined from 2.93% in FY09 to 2.30% in June 09 has improved sequentially to
2.43% in Sep 09, 2.56% in Dec 09 and 2.66% in Mar 10.
• Interest income on advances has increased by 9.11% YOY, despite a fall in yield
by 49 bps from 10.15% as on Mar 09 to 9.66% as on Mar 10 owing to reduction in
peak PLR by 200 bps and average PLR by 87 bps during FY 10 over FY 09.
• Income from resource operations increased by 13.40% as yields were low during
FY 10 due to liquidity overhang.
• Growth in Interest expenses on deposits was contained at 14.23% during FY 10
against 40.13% growth during FY 09, through strategic shedding of high cost bulk
deposits, which are down to just 1.79% of total deposits as compared to 10.74% a
year ago and growth of 26.76% YOY in CASA deposits.
• Fee income is up by 26.57% YOY. Total other income is up by 17.94% despite
profit on sale of investments coming down by Rs.451 crores.
• Forex income increased by 34.59%. Other Income (excluding profit on sale of
investments) is up by 26.95%.
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• Operating Expenses up by 29.84% in FY10 over FY09, driven by five key costs, as
the Bank invested heavily in laying the foundation for future growth:
 During Q4FY09, nearly 27,000 new employees came on board in various
categories, the full impact of which on staff expenses was felt during FY10.
The Bank has recruited 3,350 employees in FY10.
 Rs. 627 crores arrears for wage revision pertaining to previous years
provided during FY10.
 Additional contribution for pension at Rs.1,998 crores against Rs.1,469
crores last year.
 Additional expenses of Rs.59 crores on Financial Inclusion.
 An expenditure of Rs. 347 crores incurred on opening of 1,049 new
branches and installing 7,788 new ATMs during the year.
• Loan loss provision during FY10 at Rs.5147.84 crores against Rs. 2,474.97 crores
made during FY09, an increase of 108% YOY.

Q4FY 10 Vs Q4FY 09
• NII increased by 38.82% to Rs.6,721 crores in Q4FY10 against Rs.4,842 crores in
Q4FY09. In absolute terms, NII during Q4FY10 is the highest in last 8 quarters.
• Other Income down by 4.44% mainly due to 72% decline in profit on sale of
investments. Other Income (excluding profit on sale of investments) is up by
27.22%.
• Operating expenses grew at 40.93% mainly due to increase in staff expenses as
mentioned above (salary of new employees, increase in DA, provision for wage
revision and additional provision for pension); while overheads grew at 26.42% due
to higher expenses incurred on opening of new branches and ATMs, financial
inclusion drive and HR initiatives.
• Total provisions up by 31.27%.

TOTAL BUSINESS GROWTH OF Rs. 1,54,983 CRORES (YOY)

• Business Growth of Rs.1,54,983 crores at the end of Mar 10 (Deposits Rs. 62,043
crores & advances Rs. 92,940 crores).
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DEPOSITS
• Deposits of the Bank went up by Rs. 62,043 crores driven by CASA growth of
26.76% and retail TD growth of 17.64%, despite shedding of high cost bulk
deposits by 50.15%, resulting in a YOY growth of 8.36% in deposits from Rs.
7,42,073 crores in Mar 09 to Rs. 8,04,116 crores in Mar 10.
• Savings Bank deposits grew at an average of Rs.4,897 crores per month during FY
10, total CASA growth during the year being Rs.73,168 crores.
• CASA ratio has improved from 39.29% as on March 2009 to 46.67% as on March
2010, a growth of 741 bps.
• Market share in total deposits as on Mar 10 at 16.31% (17.70% as on Mar 09),
declined by 139 bps YOY, while market share in low cost demand deposits at
17.51% (17.43% as on Mar 09) is up by 8 bps.

ADVANCES
• Gross Advances up by Rs. 92,940 crores, a growth of 16.94% from Rs. 5,48,540
crores in Mar 09 to Rs. 6,41,480 crores in Mar 10.
• Market share in advances as on Mar 10 at 16.28% (15.99% as on Mar 09), an
increase of 29 bps YOY.
• Credit Deposit Ratio is up to 73.56% as at the end of Mar 10 from 66.63% at the
end of Mar 09, an increase of 693 bps, bucking the industry trend as the credit
deposit ratio for ASCB has come down from 72.32% as on Mar 09 to 72.22% as on
Mar 10. Incremental CD ratio during FY10 was 157%.
• Large and Mid Corporate advances have grown from Rs. 1,93,311 crores in Mar 09
to Rs. 2,21,892 crores in Mar 10 registering a growth of 14.78%.
• SBI was No.1 in retail lending in 2009 and it continues to be No.1 in 2010, driven
by robust growth in Home, Auto and Education loans.
• Home loans grew by 31.69% YOY from a level of Rs.54,063 crores in Mar 09 to
Rs.71,193 crores in Mar 10. Almost 95% of our customers (in rural, semi urban and
urban areas) are first time home buyers.
• Auto Loans up by 45.44% YOY and Education Loans grew by 34.61 % from Mar
09 to Mar 10. Market share in Auto loans up by 180 bps from 15% as on Mar 09 to
16.80% as on Mar 10.
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• Agri advances have grown by 16.54% from Mar 09 to Mar 10. Total disbursements
under Agri Advances were Rs.34,179 crores during FY 10. Credit extended to
12.32 lac new farmers during the year.
• International advances up by 12.49% from Rs. 86,301 crores in Mar 09 to Rs.
97,071 crores in Mar 10 despite hardening of the rupee.

DETAILS OF PROFIT AND LOSS ACCOUNT (Rs. in crores)
2008-09 2009-10 Growth
Q4FY10
Over FY10 Over
Q4 FY Q4 FY Q4FY09 FY09
Interest on Advances 12,084 46,405 12,967 50,633 7.31% 9.11%
Int on Resources
Operations 5,088 16,974 4,670 19,248 -8.22% 13.40%
Other Sundry Int. 171 410 328 1,113 92.41% 171.49%
Total Interest Income 17,342 63,788 17,966 70,994 3.59% 11.30%
Total Interest Expenses 12,500 42,915 11,244 47,322 -10.05% 10.27%
Net Interest Income 4,842 20,873 6,721 23,671 38.82% 13.41%
Total Non-Interest Income 4,718 12,691 4,509 14,968 -4.44% 17.94%
Total Operating Income 9,560 33,564 11,230 38,640 17.47% 15.12%
Total Staff Expenses 2,350 9,747 3,592 12,755 52.87% 30.85%
Total Overhead Expenses 1,934 5,901 2,444 7,564 26.42% 28.17%
Total Operating Expenses 4,283 15,649 6,036 20,319 40.93% 29.84%
Operating Profit 5,277 17,915 5,194 18,321 -1.58% 2.26%
Loan Loss Provisions 1,296 2,475 2,187 5,148 68.70% 108.00%
Total Provisions 2535 8,794 3,327 9,155 31.27% 4.10%
Net Profit 2,742 9,121 1,867 9,166 -31.93% 0.49%

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%
^ Provision Coverage Ratio for past reworked in line with RBI guidelines

• Growth in NPAs contained as a result of which additions to Gross NPAs have

come down sequentially during the last few quarters as under:
(Rs. in crores)
As on 30.06.2009 As on 30.09.2009 As on 31.12.2009 As on 31.03.10

Gross
15318 17376 18861 19535
NPAs
Growth
during the -396 2058 1485 674
quarter
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• Movement of NPAs
(Rs. in crores)

FY10
15,714 Details of increase in
Opening level of Gross NPAs
NPAs by Rs. 674 crores
during Q4FY10
Fresh Slippages 11,843 Corporate 1,062
Upgradation + Recovery 6,031 International -89
Write off 1,991 SME 107
Closing level of NPAs 19,535 Agriculture -74
Growth during the quarter 674 Retail -332

• Slippages from Restructured Assets

Out of the standard restructured assets of Rs.16,796 crores restructured under RBI
dispensation, Rs. 1,616 crores have slipped into NPA category upto Mar 10, taking the
slippage ratio for these to 9.62%.

KEY FINANCIAL RATIOS:

• Return on Assets (ROA) declined to 0.88% in FY10 from 1.04% in FY09.
• Return on Equity declined to 14.84% in FY10 from 15.07% last year.
• Net Interest Margin (cumulative) improved from 2.56% as on 31st Dec 09 to 2.66%
as on 31st March 10; NIM for the quarter has improved to 2.96% in Q4FY10 from
2.82% in Q3FY10 and 2.39 % in Q4FY09.
• Average Cost of Deposits has been brought down by 50 bps to 5.80% as on Mar
10 from 6.30% as on Mar 09. Sequentially, cost of deposits has come down by 12
bps from 5.92% as on Dec 09.
• Yield on advances (YOA) at 9.66% in FY10 is lower by 49 bps as compared to
10.15% in FY09 driven by an average reduction of 87 bps in PLR during the year
and nearly 70% of the growth in advances being sub-PLR during the year.
• Cost to income ratio has increased to 52.59% as on Mar 10 from 46.62% as on
Mar 09 due to higher operating expenses incurred on branch and ATM expansion,
recruitment of new employees, pension contribution and lower profits from sale of
investments.
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• As per Basel II the CRAR of the Bank is at 13.39% as at the end of Mar 2010,
compared to 14.25% last year, with Tier 1 at 9.45%. As per Basel I the CRAR was
12.00% and Tier I was 8.46% as on Mar 10.

B. PERFORMANCE OF ASSOCIATES AND SUBSIDIARIES

• Associate Banks’ net profit increased by 17.74% from Rs.2,774 crores to Rs. 3,266
crores in FY10. Operating profit of all associate banks increased by 20.08% from
Rs.5,495 crores to Rs.6,598 crores.
• SBI Life has recorded a profit of Rs. 276 crores in FY10 as against a loss of Rs. 26
crores in FY09. AUM of the company as on March 31, 2010 stood at Rs. 28,703
crores, a YOY growth of 94%. Market share of SBI life amongst private insurers
increased to 18.34% from 16.00% as on March 09.
• SBI Capital Markets Ltd has posted a PAT of Rs. 150 crores during FY10 as
against Rs. 75 crores in FY09 (excluding extraordinary income of Rs. 74.98 Crs), a
YOY growth of 100%, driven by an increase of 73% in Fee income. SBI Caps has
crossed the milestone of Rs.1,00,000 crores in syndication.
• SBI DFHI Ltd has recorded a net profit of Rs.89 crores during FY 10 which is the
highest in last six years.
• SBI Cards has emerged as the most trusted brand by being the undisputed Gold
Award winner in the Reader’s Digest Trusted Brands Survey 2009 in the Credit
Card category. Net loss before tax during FY10 is down by 17% to Rs.154 crores
against a loss of Rs. 185 crores during FY09.

C. SBI GROUP NET PROFIT

• SBI Group Net Profit for FY10 at Rs. 11,734 crores up by 7.11% from Rs. 10,955
crores for FY09.
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