SBI REPORTS

PRESS RELEASES
WORKING RESULTS – 9MFY08
PRESS RELEASE -
State Bank of India

WORKING RESULTS – 9MFY08
Highlights:

The Net Profit for 9MFY08 Rs.4845.87 crores, growth of 58.98% over 9MFY 07.

The Net Profit for Q3FY08 is at Rs.1808.64 crores as against Rs.1065.06 crores in Q3FY07, growth of 69.82%.

High net profit for fourth quarter in succession.

The Bank’s Operating Profit for 9MFY08 at Rs.8734.42 crores, growth of 39.35% over 9MFY07.

ROA of the Bank improved to 1.00% in 9MFY 08 from 0.78% in 9MFY07.

Marked improvement in ROE of the Bank to 18.01% in 9MFY 08 from 13.24% in 9MFY 07.

Market Share in Deposits and Advances 15.29% and 15.46% respectively.
Profitability:

Net Interest Income (NII) in 9MFY08 at Rs.12220.64 crores has gone up by 16.26% over the NII of Rs.10511.49 crores in 9MFY07.

Net Interest Margin (NIM) of the Bank at 3.01% excluding CRR balances.

Total non-interest income increased from Rs.4347.88 crores in 9MFY07 to Rs.5877.73 crores in 9MFY08 thereby registering a strong growth of 35.19%.

Fee Income also registered a growth of 15.68% to Rs.2854.03 crores in 9MFY08 from Rs.2467.22 crores in 9MFY07.

Correspondingly, share of Non-Interest Income to Operating Income has increased from 29.26% in 9MFY07 to 32.48% in 9MFY08.

Operating Expenses have been controlled and have a nominal increase of only 8.99% in 9MFY08 over 9MFY07 while staff expenses have gone up by just 5.21% despite ex-gratia payment under Exit Option.

Provision for Income Tax has been made for Rs.2839.04 crores in 9MFY08 as against Rs.1985.86 crores in 9MFY07due to higher operating profit.

Gross NPA ratio declined from 3.15% to 2.69%. Rs.933.96 crores has been provided towards loan loss provisions in 9MFY08 against Rs.698.27 crores in 9MFY07. Loan Loss Provision made in conformity with RBI guidelines.

Net NPA Ratio has come down to 1.44% in December 07 from 1.56% in March 07.
§ Capital Adequacy Ratio (CAR) of the Bank as on 31.12.07 is 12.28% and Tier I CAR is 7.53%.Rights Issue process is in advance stage.

Ratios:

Yield on Advances has increased to 9.93% from 8.61% (132 bps growth) whereas Cost of Deposits has increased to 5.55% from 4.71% (84 bps only) which is mainly due to higher term deposits mobilization and higher interest rates.

Yield on Investments increased to 6.95% from 6.74%.
Cost to Income Ratio has declined to 51.74% from 57.82% due to higher income and cost control.
Deposits:

Bank’s Deposits grew by Rs.105780 crores to Rs. 510132 crores as at the end of December 2007 from Rs.404352 crores as at the end of December 2006 recording a growth of 26.16%.

In absolute terms, CASA deposits increased from Rs171202 crores upto Dec 06 to Rs. 202642 crores upto December 07. Further within CASA, SB deposits increased from Rs. 127174 crores upto December 06 to Rs 146762 crores upto December 07. Similarly CA deposits increased from Rs. 33984 crores upto December 06 to Rs. 45238 crores upto December07. CASA ratio of the Bank as on December 07 is 41.05%.

Advances:
Gross Advances grew to Rs.395343 crores as at the end of December 2007 from Rs. 314850 crores as at the end of December 2006 i.e. a growth of Rs.80493 crores equal to 25.57%.

§ The average yield on advances improved substantially to 9.93% in December 2007 from 8.61% in December 2006. Due to the volume growth in advances and improvement in yield, interest income on advances went up by 44.10% compared to 9MFY07.

§ As on 31st December 2007, the advances in personal segment have grown (Y-O-Y) by Rs.12564 crores (i.e. 18.06%) and (Y-T-D) by Rs.8542 crores (11.61%). The outstanding personal segment advances aggregate Rs.82132 crores at the end of December 2007.

§ The Bank continues to perform well in housing finance. As on 31st December 2007, housing advances have grown (Y-O-Y) by Rs. 6811 crores (i.e.16.02%) and (Y-T-D) by Rs.4540 crores (11.95%). The total outstanding of home loans as at the end of December 2007 are Rs.42522 crores. Asset quality under control.

§ Retail Advances constitute 24.04% of Bank’s Gross Domestic Advances as at the end of Dec 07. Housing Loans constitute 51.77% of Bank’s Retail Advances as on Dec 07.
§ Agricultural advances grew to Rs 41365 crores as at the end of December 2007 from Rs. 32263 crores as at the end of December 2006, i.e., a growth of Rs. 9102 crores (28.21%) on Y-O-Y basis and Rs.6373 crores on Y-T-D basis (18.21%).

§ Bank has achieved 17.69% ratio of agri advances to Adjusted Net Bank Credit forthe 9 month ended December 2007 against 14.49% as on 31.03.2007.

ON TECHNOLOGY FRONT:

The largest number of ATMs 8079 and largest card base (33.35 million Cards).
7800 of SBI branches under CBS.
More than 95% of business of SBI is now on Core Banking.
98% of business to be on Core Banking by March 2008.

BUSINESS GROUP HIGHLIGHTS

Retail Banking

Thrust on Affordable Housing for all.

Home Loans are now sanctioned for a period upto 25 years.

Ceiling on concessional Home Loans in Rural Areas raised under SBI Gram Niwas from Rs.2 Lac to Rs. 5 Lacs.

Reverse Mortgage Loan Scheme launched on 12th October 2007 for the benefit of senior citizens.

In December 2007 the SBI group retains the position as the largest financier of Maruti cars with 15% share.

In order to give a thrust to the Auto loan business we have taken a number of initiatives and implemented various new schemes and processes such as, pre-approved car loan limits to existing customers, online sanction system for Maruti cars at 18 select centres, execution of documents at mutually acceptable location at select centres

Web based online application of Education Loan introduced w.e.f November 2007.

SME Business Unit

As on December '07 SME deposits have increased to Rs. 1,46,348 crores, recording year on year growth of 33.80% and SME advances have increased to Rs.69,134 crores and the year on year growth in SME advances is 33.60%.

üIntroduced SME Power Gain & SME Power Pack, two value added current account products, SME sahaj a no frill Current account Product and SME Surabhi account with auto sweep and reverse sweep facilities.Also introduced Multicity Cheques, ATM cum Debit Cards, Inter core transactions, B 2 B payment solution for Corporates to provide on line pooling of funds and detailed MIS to related parties.

üCustomer Relationship Executives recruited for Medium Enterprises from the Market and placed them in potential SME pockets to serve our ME customers.

üConducted a Traders Bonanza Campaign for a period of four months and sanctioned loans to 48364 Traders to the tune of Rs.4984 crores during the campaign period.

Rural & Agri Business Group

üUpto December 07, the Bank has credit-linked 1.67 lac SHGs taking cumulative number of SHGs credit-linked to 9.35 lacs as on 31st December 2007.

üPiloting of SBITiny Cards, based on mobile communication and finger print verification has been rolled out in 10 states, covering 2379 villages of which 1968 villages are unbanked.
üThe Bank has adopted 237 villages for their integrated development, formed 2,361 Farmers club and conducted 20,144 Farmers' Meet during the year.

üGrameen Pay Order- a remittance product, has been launched across Bank's sponsored RRBs to facilitate remittance from far-flung areas.

International Banking (Foreign Offices)

üNet profit of our foreign offices at USD 115 mio. shows a growth of 45% compared to the corresponding period last year. This has surpassed the whole year profit earned during 2006-07 by 16% .

üDeposits of foreign offices have grown by 50% and Advances have grown by 51% as compared to the corresponding period last year.

ü54% of growth in Balance sheet was funded from Deposits against 20% in the corresponding period last year.

ü31 M&A deals aggregating USD 19.82 bio. were handled by our foreign offices as against 13 deals of USD 5.38 bio. in 12 months last year.

üBank has been ranked # 1 in the Asia Pacific (ex-Japan and Australia) league table for mandated arrangers and book runners of Syndicated Loans.

üA new electronic fund transfer product called ‘SBI Nepal Express Remit’ hasbeen launched to enable Napalese settled in India to remit funds to Nepal.

New Businesses:

The Bank incorporated its new subsidiary, SBI Pension Funds Pvt. Ltd., on December 14 2007. It will undertake management of pension funds under the New Pension System.Pension Fund Regulatory and Development Authority (PFRDA) is the primary Regulatory Authority and they will be initially allocating 55% of the corpus to the SBI subsidiary and the balance distributed between the other two players.

The Bank has also started Financial Planning and Advisory services at 40 select branches to attract and retain young and mass affluent customers by providing value added services. The scope will be gradually enlarged.

Associate Banks

üAll the Associate Banks have continued to perform very well. They have registered YOY growth of 17.15% in net profit . While the aggregate deposits have grown by 24.61%, the advances have grown by 23.16%.

The Associate Banks command a market share of 7.48 in deposits and 7.75% in advances.

CAR of Associate Banks taken together at 12.39%.

Gross NPAs of ABs at 1.76% (2.11% in December 2006).
SBI Life

Gross Income increased by 179% YOY from Rs. 1622.45 crs in Dec 06 to Rs. 4,519.38 crs.

Net premium at Rs.2740.96 crsposted YOY growth of101%.

DuringFY08, 8.63 lacs additional lives were insured. Total Life in force 70.54 lacs.

PAT of Rs. 37.74 crs. as against a loss of Rs.33.50 crs. in the corresponding period last year.

Market Share 4.13 as on 30.11.2007.

Ranked 3rd amongst the private insurance companies.

SBI MF

Total Income at Rs.127.77 crs. posted a YOY growth of 55%.

Profit After Tax at Rs.47.77 crs. posted a YOY growth of 81%.

Assets Under Management (AUM) as on 31st December2007 was Rs.29,312 crs. Growth of72%

over March 2007.

SBI Capital Markets Ltd

Gross Income was Rs.237.42 crs YOY growth of 76%.

PAT of Rs.115.63 crs. YOY growth of 86%.

Ranked No.1 by Bloombergand IFR Asia.

Ranking released by Project Finance International:

Ranked # 1 in Asia-Pacific and # 9 globally for Project Finance mandated lead arranger role.

Ranked # 1 in Asia-Pacific for advisory role.

Market share increased by 3.4% to 8.7% in Asia Pacific in year 2007.

SBI DFHI

Gross income at Rs.85.80 crs. has registered YOY growth of 46%.

PBT at Rs.80.58 crs. has recorded YOY growth of 90%.

SBI Cards

The revenue in December 2007 is Rs. 618.80 crs. as against Rs.536.50 crs. in Dec 06, i.e, a growth in Income of 15%.

YOY growth of 18% in Fee & Other Income.

The number of Cards in force as on 31st December 07 is 3.24 million.

Company is the second largest Credit card issuer in India.

SBI Factors& Commercial Services Pvt Ltd

Total income at Rs.101.49 crs. has recorded YOY growth of 46%.

PAT at Rs.20.21 crs. has posted YOY growth of 88%.



Indore, the largest metropolitan city of the state of Madhya Pradesh, is fast emerging as a centre of trade and commerce. In the context of rapid growth of the city, increasing mobility, high travel demand, increasing intensity of traffic, congestion, delays, accidents and other such problems, public mass transport system of the city stands out as the most critical issue. The intra-city public transport system is essentially road based with 500 private minibuses , 550 tempos and 10000 auto rickshaws. Since there was no specialized and effective regulatory agency to monitor the system a special purpose vehicle in the form of public limited company “ Indore City Transport Services Ltd.” was set up to operate and manage the public transport system in Indore with private sector participation to overcome financial constraints

The aforesaid company has identified and took permission for 18 high travel demand routes from RTA and has already started operation of its 37 ultra-modern low floor buses. These city buses with 2 broad doors are allowing passengers to board and alight quickly and easily, save time and fuel, and give better run-times and improved economy to the bus operators. Real time vehicle tracking and fully computerized ticket vending system are some other highlights. O&M and other regulatory measures are being exercised by the company.

The main sources of revenue for the system are the fare box collection, advertising, passes revenue and bidding amount by private participants. The optimum fare structure has been decided to meet twin objective of Equity access to poor and incentive for upper middle class to prefer these buses over their own vehicles. The fares have been kept reasonable to give healthy competition to existing minibuses and tempos, low enough to secure fullest utilization and high enough to ensure viability of the system within the government norms. System of monthly, weekly, employee and student passes will ensure the fullest utilisation of the new system.

Financial evaluation of the project was carried out with the objective of determining its financial viability and assessing its potential for implementation on a commercial format. At this stage, projected financial analysis estimates the likely returns to the operators, company and people at large.

Management Of Passes

One of the important sources of revenue to the company and the operators is system of various kinds of passes. Project envisages sharing of pass revenue in the ratio of 80:20. Operators will get 80% i.e 200 Rs against the denomination of 250 Rs monthly pass. ICTSL will save an amount Rs.30.50 on new pass and Rs.42.50 on renewed passes. Remaining amount will go to the vender for processing, marketing and delivery of passes. System of issuing passes is being done through 15 instant pass centers and a network of distributors and retailers. Company has taken a minimum guarantee of issuing at least 15000 passes every month from the agency. This minimum guarantee of passes ensures an assured income of Rs.40 lakhs per month to be shared between the ICTSL and operators


Our Pass system is complete modular, web based solution specially designed for Public Transport Systems. It aims at reducing the strenuous workload involved in managing passes by seamlessly integrating the various aspects of running a large system.

System is based on Client-Server architecture. It provides central database which can be updated from several clients synchronously.

System reduces the error/faults of manual system by providing bar code which reduces duplicity. pass centre no. , shift no., date and pass no. are encoded in the barcode. Beside barcode card contains detail user information such as photograph of pass owner, unique id- number, name, address & age of the pass owner, stamp & sign of authorized signatory, rules & regulation on back-side and an specially designed hologram to root out any scope of duplicity.

In this system, there is one centralized server located at the ICTSL Head Qrtrs and is attached with several clients at different locations.

The Concept

Cities with population of more than one million should have urban bus Transport Corporation that owns 30 percent of its own buses and contracts 70 percent of buses from private contractors and operators. Motivated by this World Bank recommendation note on 'India's Transport Sector, The Challenges Ahead (2002)' Mr. Vivek Aggarwal, Collector and District Magistrate, Indore conceptualized a financial model of public transport system through private partnership where in every player whether Government, the spv, local administration, operators and people are mutually benefited.

Looking to the high potential for development of competitive bus transport market through contracting or franchising arrangements, a Special Purpose Vehicle as a public limited company was formed which specifies the role of the market and government. It was felt that cities like Indore should develop their own regulatory and enforcement capabilities to promote city service competition and put in place a mechanism that will ensure financial viability of such operations.
The main source of revenue for the company is the monthly premium amount received from the bus operators, advertising revenue and the share of revenue generated through passes. The sources of revenue for the bus operators are the daily fare box collection, share of revenue generated through advertising on buses and monthly passes. Cost effective and substantial finances to the operators has been made available by the bank. Operators were financed 100% by the bank and an agreement has been executed between the company, the bank and the operators to have an escrow account.

Online GPS Based Bus Monitoring & PIS Solution

A fully automated vehicle tracking system will ensure that the city buses reach the stop at fixed time. Any deviation from timing would be corrected and controlled using GPS and real time tracking solutions.The very purpose for this city bus service is to offer better civic facilities and ICTSL is determined to ascertain that the service level is duly monitored. GPS based On Line Bus Tracking System (OLBTS) is identified as a tool to ascertain the service levels. For this ICTSL plans to establish a control room for OLBTS and every bus will be fitted with GPS based tracking device with online data transfer facility.

ICTSL desires to avail following advantages by implementing OLBTS
Estimated time of arrival that could be flashed on display screens at bus stops
Schedule & itinerary adherence
Log of exact kilometer traveled by bus
Punctuality and improvement in driving pattern
Control over unauthorized and unscheduled stoppages
Better KMPL & EPKM
Better analysis.

Migration to Passenger Information system including IVRS
In the first phase the OLBTS will have 37 buses, which will expand to 100 buses in 6 to 8 months.

Development of vehicle tracking system solutions will help us monitor our own performance against people expectations. This would help our team to give better services to people and enable the buses in reaching the stops at scheduled times. ICTSL has already tendered for GPS system on BOT Basis.

In order to ensure tracking of city buses a detailed GPS-enabled digital mapping of the city is being done which will enables the staff at central control room to direct the driver to maintain the shedule.