State Bank of India (SBI), despite the trying times, has posted a good set of results for the first half ended 30th September 2009. NII grew during H1FY10, grew 3.51% and this was driven mainly by interest on advances but it was muted due to fall in credit deposit ratio. Fee income grew 51.55% and operating income rose 18.03%.
What really helped the performance has been the reduction in the proportion of high-cost bulk deposits, which came down from 16.8% a year ago to 3.6%. Another noteworthy feature is that though PLR, since Sept 08’ has come down by 200 basis till Sep 09’, the yield on advances has fallen by only 29 basis points. This means that the bank has lesser sub-PLR lending.
Advances for HIFY10 grew 16%and deposits grew 25%. Gross NPA was at 2.99% and net NPA was at 1.73%. Interestingly, market share of SBI in advances rose YoY to 16.58% from 15.97%. Its advances to corporates grew 14%, that to SME rose 21%, agri loans grew 21% and home loans showed a healthy and steady rise at 23%. It remains numero uno in the total home loan segment in India.
After launching of SBI Happy Home Loan scheme, monthly average number of loans sanctioned increased from 14,400 in Feb 09 to 22,000 in Sept 09. In H1 FY10 disbursements under Happy Home Loans scheme is Rs 13,290 crore, which account for less than 2.3% of the overall loan book.
Education loans rose 42% and auto loans rose 44%. Market share in Auto loans is around 15% and SBI is the largest player in the industry.
It’s provisioning as at 30th Sept 09’ stood at 42.87% which is lower than 45.15% it had at the end of 30th June 2009. Last month, RBI increased the provision cover to 70% within a year and this means, SBI will have to hike its provisioning, putting pressure on the bottomline.
The good thing going for SBI is the proposed stake sale by the Govt from current 59% to 51%. This will rake in SBI over Rs.12,000 crore. Insurance companies have a 11.23% stake while the FII holding, as at September 30, stood at 9.87%.
What really helped the performance has been the reduction in the proportion of high-cost bulk deposits, which came down from 16.8% a year ago to 3.6%. Another noteworthy feature is that though PLR, since Sept 08’ has come down by 200 basis till Sep 09’, the yield on advances has fallen by only 29 basis points. This means that the bank has lesser sub-PLR lending.
Advances for HIFY10 grew 16%and deposits grew 25%. Gross NPA was at 2.99% and net NPA was at 1.73%. Interestingly, market share of SBI in advances rose YoY to 16.58% from 15.97%. Its advances to corporates grew 14%, that to SME rose 21%, agri loans grew 21% and home loans showed a healthy and steady rise at 23%. It remains numero uno in the total home loan segment in India.
After launching of SBI Happy Home Loan scheme, monthly average number of loans sanctioned increased from 14,400 in Feb 09 to 22,000 in Sept 09. In H1 FY10 disbursements under Happy Home Loans scheme is Rs 13,290 crore, which account for less than 2.3% of the overall loan book.
Education loans rose 42% and auto loans rose 44%. Market share in Auto loans is around 15% and SBI is the largest player in the industry.
It’s provisioning as at 30th Sept 09’ stood at 42.87% which is lower than 45.15% it had at the end of 30th June 2009. Last month, RBI increased the provision cover to 70% within a year and this means, SBI will have to hike its provisioning, putting pressure on the bottomline.
The good thing going for SBI is the proposed stake sale by the Govt from current 59% to 51%. This will rake in SBI over Rs.12,000 crore. Insurance companies have a 11.23% stake while the FII holding, as at September 30, stood at 9.87%.
Source: Internet (www.premiuminvestments.in by S P Tulsian)
No comments:
Post a Comment