Bank Analysis

Submitted by Group 7:
Shikhar Dani - 18020841009
Rahul Joshi – 18020841029
Rishav Agarwal – 18020841126
Ronak Bafna - 18020841078
Paresh Narkhede – 18020841170
Abhishek Mevawala - 18020841062
 Key Performance Indicators – Bank Analysis

INDUSTRY FY 2019 FY 2018 FY 2017 FY 2016 Fy 2015 18-19 17-18 16-17 15-16
Particulars FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 Trend
Home Loans 20.11% 17.93% 16.59% 15.33% 14.46% 27.87% 13.26% 45.08% 19.67%
Infrastructure 15.71% 14.64% 15.30% 16.70% 16.10% 22.33% 0.25% 22.86% 17.08% Expense Ratio 7.55% 8.12% 7.25% 7.55% 7.47%
Agriculture 10.18% 10.78% 11.48% 10.09% 10.88% 7.67% -1.58% 52.54% 4.68% Tax Ratio 0.02% -0.26% 0.16% 0.16% 0.30%
Other Per Segment Loans 8.82% 9.57% 8.84% 7.88% 7.36% 5.06% 13.44% 50.37% 20.89% Asset Utilization 7.60% 7.67% 7.80% 8.14% 8.54%
Services 16.66% 13.15% 10.52% 8.73% 6.93% 44.42% 31.03% 61.51% 42.20% ROA 0.03% -0.19% 0.39% 0.42% 0.77%
Iron and Steel 3.86% 5.76% 6.63% 6.64% 7.32% -23.71% -8.90% 33.84% 2.39% LEVERAGE 16.66222 15.76587 14.37157 16.3412 15.94603
Trade 5.07% 5.42% 5.50% 5.57% 6.04% 6.46% 3.42% 32.32% 4.14% ROE 0.53% -2.99% 5.57% 6.90% 12.33%
Auto Loans 3.61% 3.80% 3.46% 3.10% 2.92% 8.32% 15.19% 49.44% 19.91% Yield On Assets 6.60% 6.38% 6.49% 6.96% 7.44%
Textiles 2.04% 2.94% 3.35% 3.51% 3.86% -20.94% -7.84% 27.89% 2.52% Non- Interest Income Yield 1.00% 1.29% 1.31% 1.18% 1.10%
Petroleum and Petrochemicals 2.81% 3.03% 2.95% 2.95% 3.22% 5.67% 7.63% 34.13% 3.38% Provision Rate 1.50% 2.17% 1.33% 1.25% 0.82%
Commercial Real Estates 1.68% 1.82% 1.90% 1.85% 1.59% 5.27% 0.79% 37.10% 31.34%
Engineering 1.44% 1.52% 1.80% 2.29% 2.52% 8.26% -11.45% 5.30% 2.87%
Other Industries 8.01% 9.64% 11.70% 15.34% 16.79% -5.21% -13.66% 2.20% 3.16%
• Due to the economical slowdown, several
sectors such as Iron and Steel, Automobile and
Total 100.00% 100.00% 100.00% 100.00% 100.00% 13.99% 4.81% 34.09% 12.88% Textile has seen a decline in loan growth.
Business Breakdown - Domestic Loans by Industry YOY Growth
• The Indian economy is reliant on the service
sector and given SBI’s a prime lender to service
sector.
• Repo and MCLR are positively Correlated. SBI
being the India's largest bank is responsive to
change in Monetary Policy.
• Negative ROE in FY 2018 can be traced to
increase in expense ratio ,leverage and the
loan growth in that year has been the lowest.
• Due to increase in the provision for loans over
the years, ROE is Declining.
 NIM, NII and Loan to Deposit Ratio

Particulars FY 2019 FY 2018 FYFY2017

2019 FYFY2018
2016 FYFY2017
2015 FY 2016 Particulars FY 2015 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015
NIM 2.85% 2.50% 2.84% 2.96% 3.16%
Net Loans 21858769.18 19348801.89 15710783.81 14637004.18 15710783.81
21858769.18 19348801.89 13000263.9314637004.18 13000263.93
Net Interest Income 883488.76 748537.16 618597.37 571948.05 550152.51
Deposits 29113860.11 27063432.85 20447513.95 17307224.36 20447513.95
29113860.11 27063432.85 CASA Ratio
15767932.4517307224.36 15767932.45 45.54 45.68 45.58 43.84 42.88

YOY Growth on loan 12.97% 23.16% 7.34%

12.97% 12.59%
23.16% 7.34% 12.59%
YOY Growth on Deposit 7.58% 32.36% 18.14%
7.58% 9.76%
32.36% 18.14% 9.76%
Loan to Deposit Ratio 75.08% 71.49% 76.83%
75.08% 84.57%
71.49% 82.45% 84.57%
76.83% 82.45%

• The bank has maintained a stable CASA ratio over the years.
• Over the years, the bank’s NIM has decreased due to low
growth rate in their loan book which has decreased the
Interest Income.
• The Loan to Deposit Ratio graph, as shown to the left goes to
show that while the quantum of growth in loans has
increased, there has been a subsequent increase in deposits
over the years.
 Segment Analysis and Liquidity Position
Over the years, SBI has maintained their segment
portfolio as can be seen in the breakup provided,
with their main revenue drivers being Retail
Banking and Corporate Banking. Revenue from
Treasury has seen a steady increase over the
years.
Compliance with Basel 3 norms

Basel III requirements:

- Tier 1 Common Equity Ratio <= 4.5%.
- Capital Adequacy Ratio <= 10.5%.
- Liquidity Coverage Ratio <= 100%.

- Comfortable LCR, CD ratio & CAR

provide room for sustaining growth at
2019 levels

This graph showcases the change

in the banking environment, as
many consumers prefer UPI &
YONO as opposed to Branch
Banking, as can ben seen from the
decrease in transactions.
ATM/CDM too has seen a decline
as a result of the same.
Asset Quality Report
NPA Ratio
GNPA NNPA

10.91%
9.11%
7.53%
5.19% 5.73%
3.01%

FY17 FY18 FY19

Provision Coverage Ratio

79.00%
62.00% 66.00%

FY17 FY18 FY19

Slippage and credit cost

• The breakage of NPA’s given gives an idea of how capital intensive
Slippage ratio Credit cost
industries has a higher proportion of NPA’s for SBI.
• The bank has maintained stable rating for various agencies over
5.78%
4.85%
3.62%
the years, as can be seen in the illustration above. This shows that
2.90% 2.66%
1.60% the bank has managed to maintain the trust factor over the years.
• The NPA ratio has declined as compared to the previous FY. The
FY17 FY18 FY19 bank has started to take more preventive measures towards NPA
as can be seen with the increase in provisions coverage ratio.