PRESS RELEASE
State Bank of India
WORKING RESULTS – H1FY08
Highlights:
 The Net Profit for H1FY08 Rs.3037.23 crores, growth of 53.16% over H1FY 07.
 The Net Profit for Q2FY08 is at Rs.1611.42 crores as against Rs.1184.49 crores in
Q2FY07, growth of 36.04%.
 Continued high net profit for third quarter in succession after net profit of
Rs.1493.19 crores in Q4FY07 and Rs.1425.81 crores in Q1FY08.
 The Bank’s Operating Profit for H1FY08 at Rs.5074.68 crores, growth of 29.52%
over H1FY07.
 Consolidated Net Profit up from Rs. 2697.45 crores in H1FY 07 to Rs. 4012.38
crores in H1FY 08, growth of 48.75%.
 ROA of the Bank improved to 0.97% in H1FY 08 from 0.78% in H1FY07.
 Marked improvement in ROE of the Bank to 17.83% in H1FY 08 from 13.39% in
H1FY 07.
 Market Capitalization of the Bank has crosses Rs. one lakh crores during the
quarter.
 Market Share in Deposits and Advances 15.38% and 15.35% respectively.
Profitability:
 Net Interest Income (NII) in H1FY08 at Rs.7964.29 crores has gone up by 12.61% over
the NII of Rs.7072.33 crores in H1FY07.
 Net Interest Margin (NIM) of the Bank at 2.84% after deduction of amortisation premium
of Rs.569 crores from Interest Income on Investments.
 Total non-interest income increased from Rs.2525.86 crores in H1FY07 to Rs.3180.54
crores in H1FY08 thereby registering a strong growth of 25.92%.
 Fee Income also registered a growth of 13.95% to Rs.1830.37 crores in H1FY08 from
Rs.1606.31 crores in H1FY07.
 Correspondingly, share of Non-Interest Income to Operating Income has increased from
26.32% in H1FY07 to 28.54% in H1FY08.
 Operating Expenses have registered a moderate increase of only 6.87% in H1FY08 over
H1FY07 while staff expenses have gone up by just 3.68% despite ex-gratia payment
under Exit Option.
 Provision for Income Tax has been made for Rs.1792.87 crores in H1FY08 as against
Rs.1362.65 crores in H1FY07due to higher operating profit.
 Gross NPA ratio declined from 3.38% to 2.92%. Correspondingly, Net NPA ratio declined
from 1.67% to 1.63%. However, Rs.489.84 crores has been provided towards loan loss
provisions in H1FY08 against Rs.287.66 crores in H1FY07. Loan Loss Provision made in
conformity with RBI guidelines. The Provision Cover has marginally come down to
45.15% in H1FY 08 from 51.38% in H1FY07.
 The Bank added Rs.6023 crores to its capital during half year ended September 2007 by
way of Upper Tier-II Subordinated Debt, which helped the Bank in improving its Capital
Adequacy Ratio. Also added US$225 mio as IPDIs overseas, adding to Tier-I Capital.
 Capital Adequacy Ratio (CAR) of the Bank as on 30.09.07 is 12.85% and Tier I CAR is
7.78%. Capital raising Plans in advance stage.
Ratios:
 Cost of Deposits has increased to 5.48% from 4.51% due to higher term deposits
mobilization and higher interest rates.
 Yield on Advances has increased to 9.84% from 8.55% (129 bps growth).
 Yield on Investments decreased to 6.60% from 6.78% due to deduction of amortisation
premium from Interest Income on Investments.
 Non Interest Income to Operating Income increased to 28.54% from 26.32%.
 Cost to Income Ratio has declined to 54.47% from 59.18% due to higher income and
cost control.
Deposits:
 Bank’s Deposits grew by Rs.91499 crores to Rs. 484114 crores as at the end of
September 2007 from Rs.392615 crores as at the end of September 2006 recording a
growth of 23.31%.
2
 In absolute terms, CASA deposits increased from Rs157456 crores upto Sep 06 to Rs.
179754 crores upto September 07. Further within CASA, SB deposits increased from Rs.
123912 crores upto September 06 to Rs 138883 crores upto September 07. Similarly CA
deposits increased from Rs. 33545 crores upto September 06 to Rs. 40870 crores upto
September 07. However, CASA ratio has fallen to 39.45% due to higher mobilization of
Term deposits (on the back of higher interest rates being offered).
Advances:
 Gross Advances grew to Rs.363591 crores as at the end of September 2007 from Rs.
288078 crores as at the end of September 2006 i.e. a growth of Rs.75513 crores equal
to 26.21%.
 The average yield on advances improved substantially to 9.84% in September 2007 from
8.55% in September 2006. Due to the volume growth in advances and improvement in
yield, interest income on advances went up by 43.84% compared to H1FY07.
 As on 30th September2007, the advances in personal segment have grown (Y-O-Y) by
Rs. 11962 crores (i.e. 18.18%) and (Y-T-D) by Rs.4182 crores (5.68%). The outstanding
personal segment advances aggregate Rs.77772 crores at the end of September2007.
 The Bank continues to perform well in housing finance. As on 30th September 2007,
housing advances have grown (Y-O-Y) by Rs. 6236 crores (i.e. 18.04%) and (Y-T-D) by
Rs.2825 crores (7.43%). The total outstanding of home loans as at the end of September
2007 are Rs.40807 crores. Asset quality under control.
 Retail Advances constitute 24.82% of Bank’s Gross Domestic Advances as at the end of
Sept 07. Housing Loans constitute 52.47% of Bank’s Retail Advances as on Sept 07.
 Rural & Agri Business Group achieved a growth of Rs. 11753 crores in deposits and Rs.
5863 crores in advances during the first half of 2007-08 as against the growth of Rs.
3561 crores in deposits and Rs. 5407 crores in advances during the corresponding
period of 2006-07.
 Agricultural advances grew to Rs 39069 crores as at the end of September 2007 from
Rs. 30609 crores as at the end of September 2006, i.e., a growth of Rs. 8460 crores
(27.64%) on Y-O-Y basis and Rs.4077 crores on Y-T-D basis (11.65%). Disbursements
during the half year ended September 2007 were at Rs.9550 crores.
3
 Bank has achieved 16.38% ratio of agri advances to Adjusted Net Bank Credit for the
half year ended September 2007 against 14.49% as on 31.03.2007.
ON TECHNOLOGY FRONT:
 The largest number of ATMs 7546 and largest card base (30.36 million Cards).
 6234 of SBI branches under CBS.
 92.79% of business of SBI is now on Core Banking.
 98% of business to be on Core Banking by March 2008.
BUSINESS GROUP HIGHLIGHTS
Retail Banking
 SBI Home Loans maintained its position for second year in a row, as the “Most
Preferred Home Loan Provider” in the CNBC-AWAAZ Consumer awards on the basis
of survey conducted by M/S A C Nielsen.
 Longer tenure of 25 years for Home Loans.
 Two new mortgage based products viz. SBI Home Cash and SBI Reverse Mortgage
Loan introduced.
 SBI Gold debit card on Visa platform for HNIs/ Mass Affluent customers having Visa
Money Transfer and Verified by Visa facilities.
 Rich Savings Account introduced– provides enriched version of Savings Bank accounts
with various concessions and add-ons. Suitable for our HNI/ Mass Affluent customers.
 For the half year ended Sept 2007 the auto loans portfolio has grown by 24%.
 Car loan online sanction system introduced for Maruti cars.
SME Business Unit
 Bank has introduced SME Power Gain & SME Power Pack, two value added current
account products, SME Sahaj, a no frill Current account Product, and SME Surabhi
account with auto sweep and reverse sweep facilities. We have also introduced Multicity
Cheques, ATM cum Debit Cards, Inter core transactions, B 2 B payment solution for
Corporates to provides on line pooling of funds and detailed MIS to customers.
4
Rural & Agri Business Group
 During the half year, the Bank has credit-linked 98,000 SHGs taking cumulative number
of SHGs credit-linked to 8.66 lacs as on 30th Sept., 2007.
 The Bank is in the process of developing a well-functioning alternative delivery channel
of Business Facilitators and Business Correspondents. It has entered into a BF/BC
alliance with India Post and pilots are running in six States.
 Piloting of SBI Tiny Cards, based on mobile communication and finger print verification
has been rolled out in 8 States, covering 1262 villages.
International Banking (Foreign Offices)
 Net Profit of our foreign offices at USD 85.80 mio in H108 is 80% of full year’s Profit of
2006-07.
 The Net Balance Sheet size of our foreign offices at USD 18.73 bio as on 30.09.07 has
grown by more than 30% over Mar-07 level.
 The Net Customer Advances in our foreign offices at USD 13.858 bio as on 30.09.07
has grown by 42% over Mar-07 level.
 With our foreign offices focusing on deposits as sustainable source of funds, the
deposits have registered significant growth of over 22% in H108.
New Businesses
 Bank is in the process of setting up new businesses in the areas of Financial Planning &
Advisory, Pension Fund Management, Custodial Services, Mobile Banking, Merchant
Acquisition, Payment Solutions including a robust payment gateway and a set of Private
equity funds targeted to various segments.
 While rollout of Financial Planning and Advisory business has made substantial progress
with large scale training and induction of expert staff, SBI is the only Bank appointed by
PFRDA to set up a Pension fund. MOU has been signed with a leading global player for
setting up Custodial Service.
 First phase of Mobile Banking services being rolled out shortly.
Associate Banks
 All the Associate Banks have continued to perform very well. They have registered YOY
growth of 16.85% in net profit . While the aggregate deposits have grown by 20.71%,
the advances have grown by 26.84%.
5
 The Associate Banks command a market share of 7.33% in deposits and 7.68% in
advances.
 CAR of Associate Banks taken together at 12.44%.
 Gross NPAs of ABs at 1.91% (2.34% in Sept 2006).
 Merger of SBS with SBI awaiting RBI and GOI approval.
SBI Life




Gross Income increased by 145.52% YOY from Rs.901 crs in H1FY07 to Rs. 2,212 crs.
Net premium at Rs.1376.50 crs posted YOY growth of 79.24%.
During H1FY08, 5.34 lacs additional lives were insured.
PAT of Rs.14.09 crs. as against a loss of Rs.10.13 crs. in the corresponding period last
year.
 Market Share 3.11% as on 31.08.2007.
 Ranked 3rd amongst the private insurance companies.
SBI MF
 Total Income at Rs.73.12 crs. posted a YOY growth of 35.71%.
 Profit After Tax at Rs.25.29 crs. posted a YOY growth of 51.26%.
 Assets Under Management (AUM) as on 30th September 2007 was Rs.23,810 crs.
Growth of 41.11% over March 2007.
SBI Capital Markets Ltd
 Gross Income was Rs.169.88 crs YOY growth of 106.75%.
 PAT of Rs.87.97 crs. YOY growth of 223%.
 Ranked No.1 by Bloomberg in India Syndicated Loans Mandate Arranger (39 Deals)
SBI DFHI
 Gross income at Rs.58.79 crs. has registered YOY growth of 107.74%.
 PBT at Rs.55.10 crs. has recorded YOY growth of 118.39%.
SBI Cards
 The revenue in H1FY08 is Rs.532.96 crs. as against Rs.409.00 crs. in H1FY07, i.e, a
growth in Income of 30%.
 YOY growth of 38% in Fee & Other Income.
 The number of Cards in force as on 30th Sept-07 is 3.30 million.
 Company is the second largest Credit card issuer in India.
SBI Factors & Commercial Services Pvt Ltd
 Total income at Rs.65.11 crs. has recorded YOY growth of 36.93%.
 PAT at Rs.13.40 crs. has posted YOY growth of 36.32%.
6