{"id":155928,"date":"2023-11-08T06:08:39","date_gmt":"2023-11-08T11:08:39","guid":{"rendered":"https:\/\/44.250.171.167\/?p=155928"},"modified":"2023-11-08T06:08:40","modified_gmt":"2023-11-08T11:08:40","slug":"state-bank-of-india-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/state-bank-of-india-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"State Bank of India Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from State Bank of India (SBIN) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Net profit increased 8.03% (YoY) to INR14,330 crores.<\/li>\n<li>Operating profit declined 8.07% YoY to INR19,417 crores.<\/li>\n<li>ROA improved 34 bps YoY to 1.10% in H1 FY2024 but moderated 3 bps YoY to 1.01% in Q2 FY24.<\/li>\n<li>ROE increased significantly by 649 bps YoY to 22.57% in 1H24.<\/li>\n<li>NIM grew 12.27% YoY due to higher yields and credit growth.<\/li>\n<li>Domestic NIM fell 12 bps YoY to 3.43% in Q2 FY2024 due to higher cost of deposits.<\/li>\n<li>Opex increased 34.60% YoY, mainly due to additional provisions for impending wage revision.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Business Growth<\/strong>\n<ul>\n<li>Domestic advances was up 13.21% YoY, led by growth in SME of 22.75% YoY, retail of 15.68% YoY and agriculture of 14.76% YoY.<\/li>\n<li>Corporate advances rose slower at 6.62% YoY.<\/li>\n<li>Domestic deposits grew 11.80% YoY, driven by current and savings account growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Excess Credit Portfolio Quality<\/strong>\n<ul>\n<li>Stands at INR3.2 trillion as of Sep 2023.<\/li>\n<li>Accounts for 25% of total retail portfolio of INR12.43 trillion.<\/li>\n<li>Gross NPA ratio low at 0.69%, indicating resilience of portfolio.<\/li>\n<li>6% of customers are govt.\/armed forces employees, 12% are corporate employees.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Impact of Wage Revision<\/strong>\n<ul>\n<li>Additional provision of INR3,417 crores in Q2FY24 for upcoming wage revision.<\/li>\n<li>Provisioning rate increased retrospectively to 14% from 10% from Nov 2022.<\/li>\n<li>Resulted in decline in Q2 operating profit and other profitability metrics.<\/li>\n<li>Sensitivity is about INR100 crores per month for every 1% increase.<\/li>\n<li>Expect about INR400 crores per month higher wage bill after revision.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Asset Quality Improvement<\/strong>\n<ul>\n<li>Gross NPA ratio declined 97 bps YoY to 2.55%, lowest in over 10 years.<\/li>\n<li>Slippage ratio improved 16 bps YoY to 0.70%.<\/li>\n<li>Credit cost improved year over year.<\/li>\n<li>PCR including AUCA increased 39 bps YoY to 91.93%.<\/li>\n<li>Digital and Subsidiaries Progress<\/li>\n<li>61% of savings accounts sourced digitally through YONO.<\/li>\n<li>Increased traction in cross-selling through YONO.<\/li>\n<li>Earned INR190 crore fee income through YONO in Q2 FY24.<\/li>\n<li>YONO opened to customers of other banks, saw 25 lakh registrations.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin and Profitability Outlook<\/strong>\n<ul>\n<li>Expect margins to remain around current levels or compress 3-5 bps more.<\/li>\n<li>Impact is mainly from higher deposit costs.<\/li>\n<li>Loan pricing concessions already offered, seeing good traction.<\/li>\n<li>Deposit cost increases have bottomed out.<\/li>\n<li>Target is to be a 1.2% ROA bank.<\/li>\n<li>Budgeting and monitoring aligned to 1.2% ROA target.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Corporate Loan Pipeline and Outlook<\/strong>\n<ul>\n<li>Have pipeline of INR3.4 trillion proposals awaiting approval.<\/li>\n<li>4 trillion proposals pending disbursement.<\/li>\n<li>Projects cater domestic economy so global issues may not impact much.<\/li>\n<li>Expects approved proposals to get disbursed and aiming to see lower double digit growth in corporate loans.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Overall Loan Growth<\/strong>\n<ul>\n<li>SME and retail growth sustainable and outpacing projections.<\/li>\n<li>Guidance is around 14% growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Balance Sheet and Provisioning<\/strong>\n<ul>\n<li>Investments increased to INR17 trillion, 8.2% QoQ growth in G-Secs and SDLs.<\/li>\n<li>Borrowings raised to fund credit growth or invest excess deposits.<\/li>\n<li>Reversed INR1,200 crores of provisions for standard assets.<\/li>\n<\/ul>\n<\/li>\n<li><strong>SME Loan Growth and Portfolio<\/strong>\n<ul>\n<li>Grown SME book from INR3 trillion to INR3.88 trillion currently.<\/li>\n<li>Achieved 20% growth in identified products aligned to risk appetite.<\/li>\n<li>Introduced pre-approved loans seeing strong growth.<\/li>\n<li>Expect to sustain 20%+ growth going forward.<\/li>\n<li>Working capital loans seeing 57% growth indicating higher utilization.<\/li>\n<li>Term loans growing around 25%.<\/li>\n<li>Average ticket size up to INR50 crores.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Deposit Rate Increases<\/strong>\n<ul>\n<li>Not raised deposit rates materially in last few months.<\/li>\n<li>Bulk of deposit repricing already over.<\/li>\n<li>Some more repricing pending which will pan out next quarter.<\/li>\n<\/ul>\n<\/li>\n<li><strong>International Loan Growth<\/strong>\n<ul>\n<li>Growing in certain markets like US, Middle East and Japan.<\/li>\n<li>Not looking for aggressive growth internationally.<\/li>\n<li>Expect to maintain current growth trends going forward.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Mortgage Growth Trends<\/strong>\n<ul>\n<li>Mortgages remain a competitive segment, but seeing healthy traction with 20-25% sequential growth.<\/li>\n<li>Added 150 CPCs last year aiding sourcing capabilities.<\/li>\n<li>Expects decent growth momentum to continue.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Savings Deposit Trends<\/strong>\n<ul>\n<li>Focusing more on growing current accounts, up 8% YoY.<\/li>\n<li>Opened 30-40 lakh savings accounts and 1.4 lakh salary accounts.<\/li>\n<li>No plans to increase savings deposit rates.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from State Bank of India (SBIN) Q2 FY24 Earnings Concall Financial Performance Net profit increased 8.03% (YoY) to INR14,330 crores. Operating profit declined 8.07% YoY to INR19,417 crores. ROA improved 34 bps YoY to 1.10% in H1 FY2024 but moderated 3 bps YoY to 1.01% in Q2 FY24. ROE increased significantly by 649 [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","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":[9153,10169,1792],"class_list":["post-155928","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-financial-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":160546,"url":"https:\/\/alphastreet.com\/india\/axis-bank-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155928,"position":0},"title":"Axis Bank Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 25, 2024","format":false,"excerpt":"Key highlights from Axis Bank Ltd (AXISBANK) Q4 FY24 Earnings Concall Deposit Franchise Strengthening Focused on improving deposit quality and strength over the past couple of years. Initiatives like Burgundy, Burgundy Private, Siddhi, and Sparsh helped improve deposit health. LCR outflow rates improved by 500 bps in last two years.\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\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":157981,"url":"https:\/\/alphastreet.com\/india\/axis-bank-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155928,"position":1},"title":"Axis Bank Ltd Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 24, 2024","format":false,"excerpt":"Key highlights from Axis Bank Ltd (AXISBANK) Q3 FY24 Earnings Concall GPS Strategy Performance Bank delivered over 18% ROE for last 6 quarters while maintaining better credit profile compared to past. Organically accreted 39 bps of CET1 capital in 9 months FY24. Focused on 3 areas - embedding performance culture,\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\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":169936,"url":"https:\/\/alphastreet.com\/india\/sbi-q1-fy26-earnings-results\/","url_meta":{"origin":155928,"position":2},"title":"SBI Q1 FY26 Earnings Results","author":"Chirag Gupta","date":"August 8, 2025","format":false,"excerpt":"State Bank of India is a Fortune 500 company. It is an Indian Multinational, Public Sector banking and financial services statutory body headquartered in Mumbai. It is the largest and oldest bank in India with over 200 years of history. Presenting below are its Q1 FY26 earnings results. \u00a0 Q1\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"SBI Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":161026,"url":"https:\/\/alphastreet.com\/india\/state-bank-of-india-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155928,"position":3},"title":"State Bank of India Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"May 10, 2024","format":false,"excerpt":"Key highlights from State Bank of India (SBIN) Q4 FY24 Earnings Concall Financial Performance Highest ever net profit of INR 61,777 crores in FY24, up 21.59% YoY. Q4 FY24 net profit at INR 20,698 crores, up 125% sequentially. Absorbed wage revision, pension liabilities without impacting long-term profitability. ROA improved to\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\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":172304,"url":"https:\/\/alphastreet.com\/india\/kpi-green-q2-fy26-earnings-results\/","url_meta":{"origin":155928,"position":4},"title":"KPI Green Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"November 11, 2025","format":false,"excerpt":"Incorporated in 2008, KPI Green Energy Ltd is part of KP Group. They develop, build, own, manage, and maintain renewable power facilities (solar and wind solar hybrid power project) as an Independent Power Producer (IPP) and as a service provider to Captive Power Producers (CPPs) under the \u2018Solarism\u2019 brand. \u00a0\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"KPI Green Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/KPI-Green-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/KPI-Green-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/KPI-Green-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/KPI-Green-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/KPI-Green-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/KPI-Green-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":171595,"url":"https:\/\/alphastreet.com\/india\/polycab-q2-fy26-earnings-results\/","url_meta":{"origin":155928,"position":5},"title":"Polycab Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"October 17, 2025","format":false,"excerpt":"Polycab is India\u2019s leading manufacturers of cables and wires and allied products such as uPVC conduits and lugs and glands. We have a range of cables and wires for practically every application. More recently Polycab has also launched a wide range of consumer electrical products like Fans, Switches, Switchgear, LED\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Polycab Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Polycab-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Polycab-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Polycab-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Polycab-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Polycab-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Polycab-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/155928","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=155928"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/155928\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=155928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=155928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=155928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}