Particulars (In Rs. Cr.) Q4FY21 Q3FY21 Q4FY20 QoQ % YoY%
Interest earned 65,102 66,735 62,681 -2.45% 3.86%
Interest Expended 38,035 37,915 39,914 0.32% -4.71%
Net Interest Income 27,067 28,820 22,767 -6.08% 18.89%
Operating Profit 19,700 17,333 15,733 13.66% 25.21%
Provisions 11051 10342 13945 6.86% -20.75%
Net Profit after tax 6450 5196 3580 24.13% 80.17%
Deposits 3681277 3535753 3241621 4.12% 13.56%
Advances 2539393 2456607 2422845 3.37% 4.81%
Slippages 21,934 237 8105 170.62%
Ratios (%) Q4FY21 Q3FY21 Q4FY20 QoQ bps YoY bps
Gross NPA 4.98 5.44 6.15 -46 -117
Net NPA 1.5 1.81 2.23 -31 -73
Provision Coverage Ratio 87.75 86.33 83.62 142 413
Net Interest Margin 3.11 3.34 2.94 -23 17
Capital Adequacy Ratio 13.74 14.5 13.06 -76 68
CASA Ratio 46.13 45.15 45.16 98 97
Slippages Ratio 1.18 1.27 2.16 -9 -98

  Result Highlight:

  • SBI Net Interest Income in Q4FY21 grew by 18.9% YoY to Rs. 27067 crores.
  • GNPA and NNPA declined to 4.98% and 1.5%, from 5.44% and 1.81%, respectively on QoQ basis
  • Provision coverage ratio improved to 87.8% from 86.3% at March’20
  • Total Deposits grew at 13.56% YoY, out of which Current Account Deposit grew by 27.36% YoY, while Saving Bank Deposits grew by 14.79% YoY.
  • Total domestic Advances grew 5.67% in FY21, Home loan, which constitutes 23% of Bank’s domestic advances, has grown by 10.51% YoY.
  • Q4FY21 Fresh Slippages at Rs. 5473 Cr., Low compared to Q4FY20 ; declared 16,461 slippages in Q4 due to SC order hence reported total slippages at Rs. 21,934 in Q4FY21
  • Slippages Ratio for FY21 has declined to 1.18% from 2.16% as at the end of FY20.
  • Cost to Income Ratio has marginally increased from 52.46% in FY20 to 53.60% in FY21.
  • Return on Assets (RoA) increased by 10 bps YoY to 0.48% in FY21 against 0.38% in FY20.
  • Capital Adequacy Ratio (CAR) has improved by 68 bps YoY to 13.74% as on Mar 2021.
  • Restructured loans worth Rs 5,316 crore under the Reserve Bank of India’s one-time restructuring scheme for borrowers affected by the Covid-19 pandemic. The bank holds provisions worth Rs 1120.75 crore against these loans.
  • Retail advances stood at Rs 8.7 lakh crore, rising 16.47% from a year ago. In comparison, the domestic corporate loan book contracted 3% year-on-year to Rs 21.82 lakh crore.
  • Declared a dividend of Rs. 4.00 per equity share for the financial year ended 31st March,2021, its first payout since May 2017

Management commentary: Chairman – Dinesh Khara

  • We Have further consolidated our performance over Q4. Expenses have been control, except Staff Expenses
  • Gross NPA Ratio is at 4.98% lowest in 5 Years
  • Will Try to Maintain credit cost at 2% for FY22 as well.
  • Expect Economic cycle to turn by the Q2. Expect FY22 Credit growth to be 10%
  • While the bank is watching for the impact of the second wave of Covid-19 cases, at present collection efficiency is at 96%
  • Do not see any major asset quality pressure going ahead. We are closely monitoring retail loan asset quality. We are yet to see any major impact of the second wave and hoping that the impact of the second wave will be behind us at the end of this month
  • The drop in the outstanding corporate loan book was largely because companies are not utilising available credit lines. However, as the situation normalises, these credit lines will get utilised and push up growth for the bank.
  • We are Upbeat on healthcare sector. Intend to create a Rs. 10000 Cr. COVID Book
  • Pharma Sector is Cash Rich, but we have over Rs. 4000 Cr. Pharma Book


SBI Reported strong growth in Net Interest income and Profit After Tax on Year-on-Year basis however number are marginally below the street estimates. Low slippages and improved assets quality are the big positive for the bank. SBI is expected to come out of the COVID impact without much stress in its asset quality.  With FY21 slippages at just 1.2%, SBI has one of the best asset qualities compared to even large Pvt. Bank. It has also declared divided of Rs. 4 per share after 2 years. Given the bank’s strong guidance for credit growth at 10% and strong asset quality we expect it will do well in coming quarters too. Considering strong numbers from bank and positive commentary from the management we recommend to buy the stock. Thus, Investors can buy the stock at CMP of Rs. 404 for the target price of Rs.490 with 12 months’ time frame.

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