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The Crown King

The bank’s operating profit stood at Rs 68,133 crore in F Y20 as compared to Rs 55,436 crore in the previous year.

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Despite a challenging year for the economy, in FY20 State Bank of India’s total deposits grew at a fast 11.34 per cent, compared to the 7.9 per cent recorded by All Scheduled Commercial Banks’ (ASCB), to Rs 32,41,621 crore from the previous year’s level of Rs 29,11,386 crore. This high growth in deposits pushed the bank’s market share up by 46 bps to 22.84 per cent. The foreign offices deposits grew 20.45 per cent to Rs 1,17,005 crore, while domestic deposits grew 11.03 per cent to Rs 31,24,616 crore. The term deposits grew at a brisk 12.23 per cent, compared to CASA growth of 9.61 per cent, while the bank maintained its robust CASA ratio at 45.16 per cent in FY20.

In line with the ASCBs decline in credit growth to a 58-year-low of 6.1 per cent in FY20, the bank’s domestic advances grew 3.75 per cent to Rs 20,65,484 crore, while the foreign offices advances grew at a robust 18.05 per cent to Rs 3,57,360 crore. Therefore, the gross advances of SBI grew 5.64 per cent to Rs 24,22,845 crore in FY20, from the previous year’s level of Rs 22,93,454 crore.

The year also witnessed Dinesh Kumar Khara’s appointment as the new chairman, after incumbent Rajneesh Kumar’s retirement. Under Khara’s leadership, much of the growth in domestic advances came from personal segment (Retail Per) including home loans. Overall, the personal loans showed a robust growth of 15.40 per cent to Rs 7,47,589 crore in FY20 which is in line with the bank’s strategy towards this segment.

Within retail, Home Loans and Xpress credit grew a substantial 13.86 per cent to Rs 4,55,865 crore and 34.64 per cent to Rs 1,41,243 crore, respectively, in FY20. The growth in Xpress credit was mainly driven by the bank’s YONO and INB platforms. SBI’s Home Loan & Xpress credit portfolio now constitutes around 80 per cent of the personal loans. However, the corporate loan book has declined a marginal 0.87 per cent to Rs 8,44,215 crore in FY20, which is in line with the banking industry’s growth trend.

AIDING GROWTH: A major share of the credit went to sectors such as infrastructure (power, roads & ports) and services especially commercial real estate and NBFCs. The corporate loan book accounts for 38.9 per cent share of PSUs/ government undertakings.

With the decline in credit to corporates, the share of the retail segment (personal, SME & agriculture) in the domestic loan book has increased to 59.13 per cent from 57.22 per cent last year.

In FY20, the bank reached another milestone when it posted a standalone net profit of Rs 14,488 crore against Rs 862 crore in the previous year. It also reported significant improvement on the asset quality front, provision coverage, NIM and yield on advances. This, coupled with a reduction in the cost of deposits and lower credit cost, has been a significant improvement over the previous year.

The Net Interest Income of the bank stood at R s 98,085 crore registering a healthy growth of 11.02 per cent. The growth is owing to focused efforts in retail credit and quality corporate credit as well as control in slippages.

The bank’s operating profit stood at Rs 68,133 crore in F Y20 as compared to Rs 55,436 crore in the previous year. The cost to income ratio improved 324 bps from 55.70 per cent in FY19 to 52.46 per cent in FY20.

Return on assets too increased 36 bps YoY to 0.38 per cent in FY20 from 0.02 per cent in FY19. The recovery in written-off accounts registered a growth of 10.85 per cent over the previous year and the trend is expected to continue with better recoveries in FY2020-21.