State Bank of India

- SBI is focusing on digital investments to enhance productivity and customer experience, including credit processing cells and end-to-end digital workflows for SME and home loans. - The bank is leveraging analytics and exploring applications of GenAI for operational efficiency. - Expected digital and technology-related expenses have increased, including business acquisition, development expenses, and other tech expenses (~₹371 crores). - SBI anticipates continued investment in digital infrastructure and delivery channels such as ATM, CDM, and debit card systems. - Capital adequacy is expected to improve with new RBI norms allowing positive MTM on investments to be part of CET1, adding approx. 50 basis points of capital from April 2024. - SBI has a loan book growth pipeline (~₹4.6 trillion) indicating potential capital needs but currently sufficient liquidity and capital for growth. - No specific large-scale strategic or capital expenditure announcements beyond digital and operational investments were detailed.

- SBI expects deposit growth for FY24 to be around 12-13%, aligned with scheduled commercial banks (ASCB) deposit growth. - Advances (loan growth) for FY24 are expected to grow by approximately 14-15%, in line with ASCB advances. - The bank foresees loan growth of 14-15% based on nominal GDP and current economic trends. - SBI anticipates loan growth of 18-20% potential, considering liquidity and risk appetite, with a current loan book of 35-36 trillion and an additional 7.5 trillion elbow room for growth. - ROE is expected to be above 20%, supporting credit growth potential and additional market capital raising if loan growth exceeds expectations. - Agri advances have grown 18.12%, with a focus on the entire agri-value chain financing and opportunities under government schemes like Atmanirbhar Bharat.

- SBI expects loan growth of about 14-15% for FY24, aligned with scheduled commercial banks' credit growth. - Deposit growth is expected around 12-13% for FY24. - The bank anticipates maintaining net interest margins (NIM) at current levels, with a possible slight dip of 2-3 basis points. - ROE was around 19.5% currently; SBI expects to trade above 20% ROE going forward. - Provisions related to one-time pension liabilities (₹7,100 crores) are non-recurring; next year's wage provisions are expected to be ₹5,400 crores approximately. - Enhanced productivity, driven by digital advances and improved operational efficiency, is expected to support earnings growth. - Capital adequacy is likely to benefit by about 50 basis points from revised fair valuation norms effective April 2024. - Longer-term aspirations include generating ₹1 trillion profit, subject to controlled provisions and risk appetite.

- State Bank of India currently has a pipeline/orders pending amounting to approximately ₹4.6 trillion. - This represents opportunities for corporate banking growth and potential acquisitions aligned with their risk appetite. - The bank is actively looking to support corporate clients and may consider buying portfolios if suitable. - Additionally, growth prospects for the loan book are strong, with an expected incremental loan growth of about 14-15% for FY24. - The bank’s overall loan book stands at about ₹35-36 trillion, with a capacity to grow by ₹7.5 trillion (18-20%). - SBI expects this robust pipeline and loan growth to contribute positively, provided risk and capital conditions are met.

- SBI may consider tapping the market to raise capital if credit growth exceeds expectations. - Currently, the bank has a strong capital position with a Liquidity Coverage Ratio of 131% and comfortable credit-deposit ratio. - No specific announcement of imminent debt or equity fundraising was made during the call. - The bank has a ₹4.6 trillion corporate pipeline, indicating potential credit growth that might require additional capital. - The Chairman indicated that if higher loan growth opportunities arise and meet risk appetite, SBI would be happy to support them, potentially requiring capital raising. - Overall, fund raising will depend on actual loan growth exceeding the planned 14-15%, with no definitive commitments yet.