STATE BANK OF INDIA - Q4FY12V & FY 2012 - EXCELLENT IMPROVEMENT OVER PRECEDING QTRS AND PREVIOUS YEARS

State Bank of India

NSE Symbol        SBIN

State Bank of India has declared good results for the 4^th quarter (Q4 FY 2012).

QUARTERLY RESULTS REVIEW

Interest on Advances in Q4 FY 12 stands at Rs.22141.10 cr ; up 5.98% from Q3 FY 12 (Rs.20891.37 Cr); and up 36.2% from Q4 FY 12 (Rs.16256.56 Cr).

Income on Investments in Q4 FY 12 stands at Rs.6204.92 cr ; down       -3.25% from Q3 FY 12 (Rs.6413.10 Cr); and up 18.92% from Q4 FY 12 (Rs.5217.90 Cr).

Interest Earned  in Q4 FY 12 stands at Rs.28695.50 cr ; up 3.74% from Q3 FY 12 (Rs.27661.42 Cr); and up 32.11% from Q4 FY 12 (Rs.21721.35 Cr).

Total Income       in Q4 FY 12 stands at Rs.33959.54 cr ; up 14.01% from Q3 FY 12 (Rs.29787.37 Cr); and up 27.97% from Q4 FY 12 (Rs.26536.84 Cr). Income improvement over preceding and corresponding quarters is reasonably GOOD.

Interest Expended       in Q4 FY 12 stands at Rs.16991.75 cr ; up 4.92% from Q3 FY 12 (Rs.16195.56 Cr); and up 24.36% from Q4 FY 12 (Rs.13663.30 Cr).

Net Interest Income in Q4 FY 12 stands at Rs.11703.75 cr ; up 2.07% from Q3 FY 12 (Rs.11465.86 Cr); and up 45.24 % from Q4 FY 12 (Rs.8058.05 Cr).

Total Expdr(excl.provisions) in Q4 FY 12 stands at Rs.24362.75 cr ; up  8.15% from Q3 FY 12 (Rs.22527.37 Cr); and up 19.09% from Q4 FY 12 (Rs.20457.13 Cr).Expenditure increase (%) is significantly LOWER THAN  TOTAL INCOME. This has helped SBI to clock excellent improvement in Q4 FY 12.

Operating Profit  in Q4 FY 12 stands at Rs.9596.79 cr ; up 32.19% from Q3 FY 12 (Rs.7260.00 Cr); and up 57.85% from Q4 FY 12 (Rs.6079.71 Cr).

Provisions  in Q4 FY 12 stands at Rs.3140.41 cr ; up 30.45% from Q3 FY 12 (Rs.2407.42 Cr); and down -24.45% from Q4 FY 12 (Rs.4156.98 Cr). Provisions are significantly down from Q4 FY 11 though significantly up from Q3 FY 12.

Profit  before tax in Q4 FY 12 stands at Rs.6456.38 cr ; up 33.05% from Q3 FY 12 (Rs.4852.58 Cr); and up 235.79% from Q4 FY 12 (Rs.1922.73 Cr).Lower provisions has resulted in GOOD PBT in Q4 FY 12 – compared to both the preceding Qtr and corresponding Qtr.

Tax Expense in Q4 FY 12 stands at Rs.2406.11 cr ; up  51.37% from Q3 FY 12 (Rs.1589.54 Cr); and up  26.51% from Q4 FY 12 (Rs.1901.85 Cr).

Net Profit   in Q4 FY 12 stands at Rs.4050.27 cr ; up 24.13% from Q3 FY 12 (Rs.3263.04 Cr); and up 9297.84% from Q4 FY 12 (Rs. 20.88 Cr). The Dismal performance in corresponding qtr of last year (Q4 FY 11) is almost erased by the Good performance in current quarter. The NPT represents significant improvement over both preceding and corresponding qtrs.

Face Valueis Rs.10 per share

Paid-up Equity    in Q4 FY 12 stands at Rs.671.04 Cr

Capital Adequacy Ratio : in Q4 FY 12 stands at 12.05% ; compared to 10.19% in Q3 FY 12;and 10.69% in Q4 FY 11. The CAR is good enough to carry SBI through the current quarter’s needs.

Basic EPS : in Q4 FY 12 stands at Rs.63.76 ;compared to Rs.51.39 in Q3 FY 12; and Rs.0.33 in Q4 FY 11. This is an impressive improvement.

Gross/Net NPA : in Q4 FY 12 stands at Rs.15818.85 cr ; down -15.87% from Q3 FY 12 (Rs.18803.17 Cr); and up        28.12% from Q4 FY 12 (Rs.12346.89 Cr).NPAs are still  not comfortable for SBI compared to other Banks, but, because of its sheer size, the NPAs are manageable.

 % of Gross/Net NPA : in Q4 FY 12 is 1.82%;2.22% in Q3 FY 12;and 1.63% in Q4 FY 11. There is need to bring down % of Net NPAs further significantly.

Return on Assets stands at 0.88% in Q4 FY 12 against  0.97% in Q3 FY 12.

For FY 12 : proposed a dividend of Rs.35 per share.

ANNUAL RESULTS REVIEW

(Consolidated)

FY 12 vs FY11  & FY10

SBI has performed excellently in FY 12 (consolidated) compared to FY 11 and FY 10.

Interest on Advances : in FY 12 stands at Rs.111341.46 Cr; up 33% from FY 11(Rs.83797.22 Cr) ; and up 54% from FY 10(Rs.72298.74 Cr).

Income on Investments       : in FY 12 stands at Rs.33705.21 Cr; up      22% from FY 11(Rs.27679.48 Cr) ; and up 37% from FY 10(Rs.24614.07 Cr).

Others        : in FY 12 stands at Rs.1374.46 Cr; down -6%from FY 11 (Rs.1460.80 Cr) ; and up          2% from FY 10(Rs.1341.38 Cr).

Interest Earned  : in FY 12 stands at Rs.147197.39 Cr; up    30% from FY 11(Rs.113636.44 Cr) ; and up 47% from FY 10(Rs.100080.73 Cr).

Other Income     : in FY 12 stands at Rs.29835.43 Cr; down -13% from FY 11(Rs.34207.48 Cr) ; and up -12% from FY 10(Rs.33771.10 Cr).

Total Income       : in FY 12 stands at Rs.177032.82 Cr; up    20 % from FY 11(Rs.147843.92 Cr) ; and up 32% from FY 10(Rs.133851.83 Cr).

Interest Expended : in FY 12 stands at Rs.89319.55 Cr; up 31% from FY 11(Rs.68086.40 Cr) ; and up 34% from FY 10(Rs.66637.51 Cr).

Net Interest Income : in FY 12 stands at Rs.57877.84 Cr; up 27% from FY 11(Rs.45550.04 Cr) ; and up 73% from FY 10(Rs.33443.22 Cr). NII improvement over the last 2 years is impressive.

Employees cost   : in FY 12 stands at Rs.22084.03 Cr; up 13% from FY 11(Rs.19508.78 Cr) ; and up 35% from FY 10(Rs.16331.06 Cr).

Other Oprting Exp : in FY 12 stands at Rs.24772.00 Cr; down -7% from FY 11(Rs.26538.43 Cr) ; and down -5% from FY 10(Rs.26084.33 Cr).

Operating Expenses : in FY 12 stands at Rs.46856.03 Cr; up 2% from FY 11(Rs.46047.21 Cr) ; and up 10 % from FY 10(Rs.42415.39 Cr).

Total Expdr(excl.provisions) : in FY 12 stands at Rs.136175.58 Cr; up 19% from FY 11(Rs.114133.61 Cr) ; and up  25% from FY 10(Rs.109052.90 Cr). It is good to see that expenditure over the last 2 years has grown less than proportionately compared to Income.

Operating Profit : in FY 12 stands at Rs.40857.24 Cr; up 21% from FY 11(Rs.33710.31 Cr) ; and up 65% from FY 10(Rs.24798.93 Cr). OPT has grown well over last 2 years.

Provisions : in FY 12 stands at Rs.16244.44 Cr; up 22% from FY 11(Rs.13319.76 Cr) ; and up 166 % from FY 10(Rs.6116.91 Cr). Provisions have grown heavily over last 2 years.

Provision coverage Ratio = 68.1%

Exceptional Items : in FY 11 stands at Rs.470.80 Cr

Profit before tax : in FY 12 stands at Rs.24612.80 Cr; up   24% from FY 11(Rs.19919.75 Cr) ; and up 32% from FY 10(Rs.18682.02 Cr). Provisions has brought down Profit to some extent – but is still very good.

Tax Expense : in FY 12 stands at Rs.8639.50 Cr; down -1% from FY 11(Rs.    8739.81 Cr) ; and up 30% from FY 10(Rs.6668.38 Cr).

Net Profit : in FY 12 stands at Rs.15973.30 Cr; up 43% from FY 11(Rs.11179.94 Cr) ; and up 33% from FY 10(Rs.12013.64 Cr).NPT Growth is also very impressive.

Minority Interest  : in FY 12 stands at Rs.630.20 Cr; up  27% from FY 11(Rs.494.99 Cr); and up 125% from FY 10(Rs.279.81 Cr).

Consolidated NPT : in FY 12 stands at Rs.15343.10 Cr; up 44% from FY 11(Rs.10684.95 Cr) ; and up 31% from FY 10(Rs.11733.83 Cr). At the consolidated level, the Growth is impressive.

Face Value of the share : in FY 12 stands at Rs.10.  Paid-up Equity: in FY 12 stands at Rs.671.04 Cr.       

Reserves : in FY 12 stands at Rs.105558.97 Cr; up 27% from FY 11(Rs.82836.25 Cr) ; and up 28% from FY 10(Rs.82500.70 Cr).

Basic EPS : in FY 12 stands at Rs.241.55; compared to Rs.168.28 in FY 11; and Rs.184.82 in FY 10.

Current Market Price is Rs.1955.90; while the 52 week high price is Rs.2657.20 and the 52 week low price is Rs.1571.10.

The PE Ratio works out to  8.097

BALANCE SHEET DETAILS

(Consolidated)

Deposits : Rs.1414689.40 Cr (FY12);Rs.1255562.48 Cr (FY 11)

Borrowings : Rs.157991.35 Cr (FY 12); Rs.142470.77 Cr (FY 11)

Investments : Rs.460949.14 Cr (FY 12); Rs.419066.45 (FY 11).

Advances : Rs.1163670.21 (FY 12); Rs.1006401.55 Cr (FY 11)

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