SBI Q1FY19 Results

·         The Bank incurred a net loss of Rs. 4,876 Cr during the Quarter.

o   Lower Trading Income and significant MTM losses due to hardening of bond yields, recognised in Q1FY19 itself (Rs 7,098 Cr Loss). Bank has not availed the benefit of RBI dispensation with regard to amortization of MTM loss.

o   Higher provision on account of Wage Revision and enhancement in Gratuity ceiling (Every quarter Rs 903Cr until Q3FY19).

·         Net Interest Income increased by 24% YoY; due to 7.5% YoY growth in interest from loans and 2% YoY decline in cost of deposits

·         Non-Interest Income decreased by 17% from Rs. 8,006 Cr in Q1FY18 to Rs. 6,679 Cr in Q1FY19 mainly on account of lower trading income.  Excluding treasury income, YoY growth in Non-Interest income was 28%.

·         Recovery in Written-Off Accounts registered a robust growth of 241% from Rs.712 Cr in Q1FY18 to Rs. 2,426 Cr in Q1FY19 with major contribution coming from one large resolution. Even after excluding the impact of such resolution, the YoY growth in Recovery in Written Off accounts is 50%.

·         Deposits of the Bank increased by 5.5%; and CASA ratio stands at 45%

·         Gross Advances at the Whole Bank level registered a growth of 5.5%

o   Domestic Advances registered a growth of 7%

§  Retail Advances increased by 14% on the back of Home loans (13% YoY Growth), Auto loans (12% YoY Growth) and Express Credit (31% YoY Growth)

·         Gross NPA Ratio at 10.69% declined sequentially by 22 bps, while it increased by 72 bps YoY.

o   Net NPA Ratio declined by 68 bps YoY from 5.97% as on June 17 to 5.29% as on June 18. Sequentially the same has declined by 44 bps.

o   Provision Coverage Ratio improved by 846 bps YoY from 60.79% as on June 17 to 69.25% as on June 18 and improved by 308 bps sequentially.

·         Tier 1 Ratio improved by 17 bps sequentially from 10.36% to 10.53%. Overall CAR remained at 12.83%,

(in Rs Cr.)	Q1FY19	Q1FY18	Q4FY18	YoY Growth	QoQ Growth
Net Interest Income	21,798	17,606	19,974	24%	9%
Other Income	6,679	8,006	12,495	-17%	-47%
- of which recovery from w/o accounts	2,426	712	2,113
- of which profit / loss from sale of investments	-1,264	1,770	941
Operating Expenses	16,505	13,738	16,586	20%	0%
Operating Profit	11,973	11,874	15,883	1%	-25%
Total Provisions	16,849	9,869	23,601	71%	-29%
Loan loss provisions	13,038	12,125	24,080	8%	-46%
Standard Asset	(919)	(2,039)	(852)	-55%	8%
Investment Depreciation	7,098	(755)	4,761	-1040%	49%
Others	11	-401	107	-103%	-90%
Income tax	(2,379)	939	(4,495)	-353%	-47%
Net Profit	-4,876	2,006	-7,718	-343%	-37%
Advances	1,990,172	1,886,666	2,048,387	5%	-3%
Domestic Advances	1,723,443	1,607,583	1,746,389	7%	-1%
Corporate (incl. SME)	928,479	976,199	1,011,544	-5%	-8%
Agri	188,110	189,100	188,251	-1%	0%
Retail	559,134	490,005	546,594	14%	2%
Deposits	2,747,813	2,602,534	2,706,343	6%	2%
CASA	1,196,195	1,113,455	1,187,294	7%	1%
Watchlist (incl. SMA1 and SMA2)	24,633		28,989
GNPA	10.69%	9.97%	10.91%
NNPA	5.29%	5.97%	5.73%