{"id":146733,"date":"2023-05-19T08:25:46","date_gmt":"2023-05-19T12:25:46","guid":{"rendered":"https:\/\/44.250.171.167\/?p=146733"},"modified":"2023-05-19T08:25:48","modified_gmt":"2023-05-19T12:25:48","slug":"state-bank-of-india-q4-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/state-bank-of-india-q4-fy23-earnings-conference-call-insights\/","title":{"rendered":"State Bank of India Q4 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from State Bank of India (SBIN) Q4 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:13:08] An analyst asked about Bank&#8217;s expectation for credit growth in FY24 and if there a risk of a material increase or impact on domestic margins due to deposit growth and pricing. Dinesh Khara Chairman said SBIN expects 12-14% credit growth in FY24, with a 16 bp increase in deposit costs and excess SLR reserves of INR4 trillion. The bank aims to balance deposit rates for the benefit of depositors while managing overall resource costs.<\/li>\n<\/ul>\n<ul>\n<li>[00:21:29] An analyst asked what provisions has the bank made for the implementation of ECL guidelines and how will it impact existing provisions. Dinesh Khara Chairman said the bank has made provisions of INR2,600 crore for potential future threats and is well-prepared for ECL implementation, with non-NPA provisions estimated to be significantly lower over a five-year period.<\/li>\n<\/ul>\n<ul>\n<li>[00:33:10] Vishal from UBS enquired how SBIN tracks the express credit book and the lead indicators that would make the bank worry about it. Dinesh Khara Chairman replied that the bank&#8217;s express credit book has a strong performance and security due to its customer base primarily consisting of armed forces, government employees, and reputable corporates, resulting in a low default rate. Furthermore, 95% of the loans are expected to be repaid through salary deductions, ensuring a high repayment rate.<\/li>\n<\/ul>\n<ul>\n<li>[00:34:54] Vishal from UBS queried what would trigger a capital raise from here on. Dinesh Khara Chairman said SBIN has reinvested profits, creating value for shareholders without diluting return on equity. With a capital adequacy ratio of 14.68%, it can support loan book growth of INR7.10 trillion without raising additional equity, enabling profit reinvestment.<\/li>\n<\/ul>\n<ul>\n<li>[00:38:06] Jai Mundra from ICICI enquired if there a target to increase the fee to asset ratio, given that it has remained stagnant while peers have achieved higher ratios. Dinesh Khara Chairman replied SBIN\u2019s major drivers of fee income are loan processing, cross-selling, and forex income. The bank aims to achieve a billion-dollar-plus income from cross-selling in the medium term and has seen over 25% growth in forex income this year.<\/li>\n<\/ul>\n<ul>\n<li>[00:42:19] Nitin Aggarwal at Motilal Oswal asked how is cross-selling approached for YONO customers and what insights can be gained about their deposit balances and behavior over the past few years. Dinesh Khara Chairman replied that YONO is a distribution channel for digital banking customers and the bank uses analytics for targeted marketing. The focus is on frictionless banking and upgrading the platform.<\/li>\n<\/ul>\n<ul>\n<li>[00:44:38] Nitin Aggarwal at Motilal Oswal queried when can deposit rates be expected to moderate and will it depend on RBI\u2019s stance or can it happen independently prior to a repo rate reduction. Dinesh Khara Chairman said the moderation in deposit rates depends on factors such as credit deposit ratios and market borrowing conditions. Banks need to balance competitiveness in the loan book with increasing interest rates and providing for potential risks.<\/li>\n<\/ul>\n<ul>\n<li>[00:46:16] Sushil Choksey of Indus Equity enquired if SBIN feels credit growth will more front ended in view of election, infrastructure spend etc. Dinesh Khara Chairman clarified that it should be all through the year.<\/li>\n<\/ul>\n<ul>\n<li>[00:53:20] VG Kannan asked if there will be a consideration to increase the interest rate on savings bank deposits and its impact on NIM. Dinesh Khara Chairman replied that SBIN does not have any plan to raise the savings bank rate for the time being.<\/li>\n<\/ul>\n<ul>\n<li>[00:54:00] Akash Agarwal enquired about the impact of wage revision in total employee cost. Dinesh Khara Chairman answered that total employee cost was INR57,292 crores in FY23. Wage revision was about INR2,490 crores in FY23. So it is 4.35% of the employee cost.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from State Bank of India (SBIN) Q4 FY23 Earnings Concall Q&amp;A Highlights: [00:13:08] An analyst asked about Bank&#8217;s expectation for credit growth in FY24 and if there a risk of a material increase or impact on domestic margins due to deposit growth and pricing. Dinesh Khara Chairman said SBIN expects 12-14% credit growth [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"State Bank of India Q4 FY23 Earnings Conference Call Insights #SBIN #Q4 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[9153,10169,8265],"class_list":["post-146733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-banks-diversified","tag-earnings","tag-finance"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":135876,"url":"https:\/\/alphastreet.com\/india\/state-bank-of-india-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":146733,"position":0},"title":"State Bank of India Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"November 8, 2022","format":false,"excerpt":"https:\/\/youtu.be\/W_FDVFWMDGI Key highlights from State Bank of India (SBIN) Q2 FY23 Earnings Concall Q&A Highlights: [00:12:07] Mahrukh Adajania of IDFC asked about margins, if for the next few quarters SBIN will continue to see margin expansion. Dinesh Khara Chairman answered that the bank will try to keep the NIM at\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":140241,"url":"https:\/\/alphastreet.com\/india\/state-bank-of-india-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":146733,"position":1},"title":"State Bank of India Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"February 6, 2023","format":false,"excerpt":"Key highlights from State Bank of India (SBIN) Q3 FY23 Earnings Concall Q&A Highlights: [00:11:08] Mahrukh Adajania from Nuvama enquired about write-offs being marginally higher in 3Q23. Dinesh Khara Chairman replied that write-offs is in the normal course of the business of about INR10,000 crores. Generally write-offs were taken towards\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":129537,"url":"https:\/\/alphastreet.com\/india\/state-bank-of-india-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":146733,"position":2},"title":"State Bank of India Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 16, 2022","format":false,"excerpt":"Key highlights from State Bank of India (SBIN) Q4 FY22 Earnings Concall Management Update: SBIN said it clocked highest ever profit of INR31,676 crores for FY22, up 55.2% YoY. Q&A Highlights: Mahrukh Adajania from Edelweiss asked about breakdown of loan book by benchmark rates. Dinesh Khara Chairman replied that T-bill\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":132599,"url":"https:\/\/alphastreet.com\/india\/state-bank-of-india-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":146733,"position":3},"title":"State Bank of India Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 8, 2022","format":false,"excerpt":"Key highlights from State Bank of India (SBIN) Q1 FY23 Earnings Concall Management Update: SBIN said its end-user mortgage portfolio for the bank had the best quarter in 1Q23. Q&A Highlights: Mahrukh Adajania from Edelweiss asked about international loans, which sectors contributed most to international growth. Dinesh Khara Chairman replied\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":168247,"url":"https:\/\/alphastreet.com\/india\/sbin-q4-call-highlights-sustaining-roa-cost-efficiency-and-ai-powered-banking-future\/","url_meta":{"origin":146733,"position":4},"title":"SBIN Q4 Call Highlights: Sustaining ROA, Cost Efficiency, and AI-Powered Banking Future!","author":"Praveen","date":"May 5, 2025","format":false,"excerpt":"State Bank of India, India\u2019s largest public sector lender, in its Q4 earnings call highlighted its operating profit exceeding INR1 lakh crore despite credit growth of 12% falling short of the 14-16% target, with net profit appearing down 10% quarter-over-quarter due to front-loaded provisions. Management discussed maintaining their 1% ROA\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":146819,"url":"https:\/\/alphastreet.com\/india\/state-bank-of-india-sbin-q4-fy23-earnings-concall-transcript\/","url_meta":{"origin":146733,"position":5},"title":"State Bank of India (SBIN) Q4 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"May 18, 2023","format":false,"excerpt":"State Bank of India (NSE: SBIN) Q4 FY23 earnings concall dated May. 18, 2023 Corporate Participants: Sanjay Kapoor\u00a0--\u00a0General Manager, Performance Planning and Review Dinesh Kumar Khara\u00a0--\u00a0Chairman Saloni Narayan\u00a0--\u00a0Deputy Managing Director, Finance Analysts: Ramesh Bhojwani\u00a0--\u00a0Mehta & Vakil -- Analyst Vishal Goyal\u00a0--\u00a0UBS -- Analyst Jai Mundhra\u00a0--\u00a0ICICI Securities -- Analyst Nitin Aggarwal\u00a0--\u00a0Motilal Oswal\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/146733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=146733"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/146733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=146733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=146733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=146733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}