Good evening, ladies and gentlemen. I am Pawan Kumar, General Manager, Performance Planning and Review Department of the Bank. On behalf of the State Bank of India, I am delighted to welcome the analysts, investors, colleagues, and everyone present here today on the occasion of the declaration of the Q2 financial year 2026 results of the bank. I also extend a very warm welcome to all the people who are assisting the event through our live webcast. We have with us on the stage our Chairman, Sir, Shri Challa Sreenivasulu Setty at the center. Our Managing Director, Corporate Banking and Subsidiaries, Shri Ashwini Kumar Tewari. Our Managing Director, Retail Banking and Operations, Shri Vinay Tonse. Our Managing Director, Risk, Compliance and SARG, Shri Rana Ashutosh Kumar Singh. Our Managing Director, International Banking, Global Markets, and Technology, Shri Ram Mohan Rao Amara. Our Deputy Managing Director, Finance, Srimati Saloni Narayan.
Our Deputy Managing Directors, heading various verticals, and Managing Directors of our subsidiaries are seated in the front rows of this hall. We are also joined by Chief General Managers of different verticals, business groups. To carry forward the proceedings, I request our Chairman, sir, to give a summary of the bank's Q2 financial year 2026 performance and the strategic initiatives undertaken. We shall thereafter straight away go to question and answer session. However, before I hand over to Chairman, sir, I would like to read out the Safe Harbor statement . Certain statements in today's presentation may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety of factors. Thank you. Now, I would request Chairman, sir, to make his opening remarks.
Chairman, sir, please.
Thank you, Pawan. Good evening, ladies and gentlemen. Thanks for your interest in SBI . I would like to start by thanking the support of all of our stakeholders, including our customers, shareholders, employees, and the broader ecosystem, for supporting us all through our journey. Fairness to all our stakeholders remains at the crux of the bank's culture, which in turn has helped us in creating sustainable value and contributing to the nation's success. Let me first start with a brief description of the present global and domestic economic scenario. The global economic outlook for 2025 presents a picture of modest but uneven recovery. The IMF's World Economic Outlook, October 2025, projects world GDP growth at 3.2% in 2025 and 3.1% in 2026, reflecting steady but subdued momentum amid persistent structural challenges. Regarding inflation, though it has broadly moderated across most economies, the pace of disinflation remains slow.
Against this global backdrop, India's macroeconomic outlook remains one of cautious optimism, underpinned by robust domestic demand and easing inflationary pressures. The Reserve Bank of India projects real GDP growth at around 6.8% for FY 2026 and 6.6% for FY 2027. Growth is being supported by strong investment activity, recovery in rural consumption, and buoyancy in services and manufacturing. The GST 2.0 reforms are expected to boost private consumption and domestic demand. On the banking front, scheduled commercial banks' credit growth is slowly picking up and grew by 11.5% year- on- year. Last year, it was at the same level of 11.5%, but the fortnight ended 17 October 2025. While deposit growth remains sluggish at 9.5%, which was 11.7% last year. Going forward, we expect demand for credit to continue in the second half.
By looking at the trend, deposits and credit growth of scheduled commercial banks may remain in the range of 11%-12% during FY 2026. However, risks persist from volatile global commodity markets and potential spillovers from the trade disruptions. Overall, India's near-term outlook is strong, with macroeconomic stability providing space for sustained medium-term growth. In the above economic backdrop, let me now highlight a few key aspects of the bank's performance in the half year and second quarter of FY 2026. Our Q2 FY 2026 results and of several quarters before this underscore a simple point. State Bank of India is compounding on durable structural advantages. Scale with discipline. Growth with quality. Returns with resilience. The current quarter demonstrates industry-leading credit growth at State Bank of India scale, market share gains in chosen segments such as current account, Home Loans, auto loans, stable asset quality, and disciplined pricing.
Our domestic NIMs for the quarter improved by 7 basis points quarter on quarter to 3.09%, driven by repricing of deposits, operating leverage from technology, distribution, and procurement. The flywheel is clear. Our strength in low-cost liabilities derived from our brand, customers' trust in SBI , and our extensive reach. These advantages allow us to expand liabilities significantly, which are then utilized to finance strategic growth with careful pricing discipline. This focus on pricing and robust risk management supports our leading return on risk-weighted assets, RoRWA. A well-capitalized balance sheet enables us to achieve top-tier return on equity, which in turn helps in compounding our book value while maintaining stable capital ratios. In this quarter, we also raised INR 25,000 crore of equity capital by way of qualified institutional placement with a demand book of more than INR 1.1 trillion. This was the largest-ever QIP offering in India.
We thank our investors for supporting us in the capital raise. The issue was oversubscribed four and a half times with significant interest from both domestic and foreign institutional investors. What are our strategic anchors? They are brand trust and customer value. SBI is the reference brand in Indian banking. We earn trust by creating value for customers through transparent, efficient service, and optimal pricing across deposits and lending. Relationship depth drives balance stability and lowers risk through cycles. Institutionalization at scale. SBI runs on codified processes in credit, risk, collections, treasury, technology, and procurement while allowing innovation at all levels. Execution is consistent and repeatable across businesses and regions. Fair outcomes for all stakeholders is the third anchor. We balance customers, employees, investors, and society. Capital is allocated where risk-adjusted returns are sound.
We price risk fairly, invest in people and systems, and support the real economy while protecting depositors and shareholders. Fourth anchor is liability franchise strength. I think I mentioned earlier also our total deposits of INR 56 lakh crore, CASA deposits of more than INR 21 lakh crore with CASA ratio at 39.63%. While CASA market share 23% versus overall deposit market share of more than 22%. This granular low-cost funding is a structural advantage and the engine for disciplined growth. Finally, the anchor which I want to mention is leadership where RoRWA is attractive. We lead by a wide margin in lending and liability products with superior risk-weighted returns.
We choose segments where unit economics are strong and price-up are de-emphasized where capital is not adequately compensated. We believe SBI is positioned to grow faster than the industry at this scale and to deliver higher ROE than the industry. We will attempt to deepen the liability engine and sustain the CASA outperformance, allocate capital to high RoRWA businesses, and maintain pricing discipline, use technology to lower cost to serve, and lift service quality and further improve capital terms. Keeping in view a customer-centric approach, the bank has launched Project SARL. I think I did mention last time also on the 31st July 2025. Aligning with this year of simplification, an ambitious vision of a complete revamp and redesign of operational processes in our retail banking territory.
The aim is not only to re-engineer the existing processes, but also to make the bank future-ready for the evolving financial landscape and changing market dynamics. As we augment and enhance our digital capabilities further, the bank will shortly launch the next version of the YONO platform, YONO 2.0, which is not just an upgrade to the previous version, but a leap forward in digital banking. With state-of-the-art journey designs and supporting tech architecture, our customers can bank with confidence and in a more seamless manner. Although the current valuations of SBI are a conundrum, considering our return on equity and growth metrics, we are confident that they will eventually align with our fundamental and operational metrics, the institutionalized nature of our business, and our market leadership in the coming years. SBI's path is clear.
We will defend and extend the liability franchise, grow faster than industry where RoRWA is superior, institutionalize execution, and deliver fair outcomes for all stakeholders. To conclude, I thank you all for your continuous support of the bank. We remain committed to rewarding your trust in us with sustainable returns over the long term. I wish everyone here the best of health and happiness. My team and I are now open to taking your questions. Thank you very much.
Thank you, Chairman, Sir. We now invite questions from the audience. For the benefit of all, we request you to kindly mention your name and company before asking the questions. Committed to all the questions, we request you to restrict your questions to a maximum of two at a time. Also, kindly restrict your questions to the financial results only and no questions be asked about specific accounts, please. In case you have additional questions, the same can be asked at the end. We now proceed with the question and answer session. Please.
Congratulations, Sir. For yet another good quarter with good set of numbers. I pick up your point, you know, which you said, our valuations. Here, I would like to give some comparison. Our business is now INR 100 trillion. It's a INR 100 trillion bank for the first time. Congratulations for this thing.
Thank you.
As against the bank which we compare, of about INR 57 trillion. But our market cap is only INR 8.82 lakh crore against the market cap of that bank of INR 15.14 lakh crore. So, even GNPA now almost 1.7% to 1.2%. Net NPA is only 0.44%. The only difference is now in, I think, ROE. But for that, whether we should be so undervalued as compared to, with a price to earning of almost 22%. And here 11%, 11%, 11.5% . Definitely, we deserve much higher valuation on our working and the way you said, on the fundamental structures, our digital existence in the roadmap, definitely we deserve much higher valuations. Compliments to you and your entire team for the same.
Thank you.
Having said that, Sir, in this quarter particularly. I think, but for that exceptional item of, I think, Yes Bank. Sale of shares of INR 4,593 crore, we are down in our operating profit and net profit substantially. Now, one item which I have noticed is that. While the exceptional income. In the standalone is INR 4,593 crore, in the consolidated, it is only INR 3,000 crore. So it means one of the subsidiaries also booked loss of exceptional loss. Or some of the subsidiaries. Or maybe associate businesses. So I would like to know about that. What is that? And, Sir, profitability, of course, you already said a reply. Then there was a report and recommendations.
Which I read in the newspaper, even your own statement also, that you all appeal to the RBI for making funding available for the corporates, at least listed corporates for M&A activities and the capital. So on that, any progress, further progress, and are we moving in that. Direction? And is there any immediate. Positive results going to be there because of that? Then, Sir, this quarter, we have a little bit. Fallen short in the recovery and upgradation numbers also, which are almost 55% or 60% lower. I mean, 40%-45% lower than the last quarter. So some color on the recoveries. And one last is that the treasury has been the biggest, which, of course, in some of the other banks also. If you look at the segment-wise results, our treasury profit has gone down by almost 50% from INR 8,082 crore to INR 4,011 crore. Going forward.
In the next two quarters and for the FY 2026, how do we look at it? With, of course, the second half is expected to be a little better and maybe 20 basis points more rate cut might come in. These are my few questions and some observations. You are very comfortable on SMA. NIM is good. There is nothing much on that. Last, as generally I ask, is that in the first six months, our credit growth is only 3.88%. Though annualized basis, you can say it is 12%. To get that 12%. We'll have to disburse the loan of INR 3.07 lakh crore in the remaining five and a half months or maybe six months if you take it. How do we plan to achieve those target numbers, targeted numbers? What is the sanction pipeline or. Some activity which might have been done in the last one month?
These are the first round of my questioning and observations.
First round is it? Okay. Thank you, Ajmera Sahib, for your compliments. On the consolidation number, I think they will clarify that number. The net profit on the transaction is not INR 4,593 crore. It is lower than that post-tax. They will clarify in terms of what are these consolidation numbers. As far as the M&A activity is concerned, more than the opportunity in the M&A transactions, it's a confidence which the regulators have imposed or reposed in us as an Indian banking system. Indian banks were not allowed to fund the local M&A transactions for so long. The current guidelines are a matter of trust in the banking system. As far as what SBI, obviously SBI has been doing outbound M&A activity financing for quite some time. This is not new to us. We will definitely take up the suitable transactions. Current guidelines are basically draft guidelines.
We have to get the final guidelines and to take up any transaction. In the meantime, we are setting up our teams to ensure that they are ready when the guidelines are released. As far as recovery numbers are concerned, I think recovery and return of accounts, I think we have done fairly well in this quarter. You want to add anything, Ashwini?
Yes, sir. Upgradation and recovery, this figure is combined. If you see the slippage itself in the previous quarter, it is much higher. If you compare it, this number is better. OCA recovery Chairman guidance was INR 2,000 crore per quarter. We have done INR 2,400 crore. The guidance continues.
The treasury gains, Sir, you can.
Yeah. I think your observation is correct. If we exclude the exceptional item, I think Q2, the trading profit is almost 50% of Q1. We need to be reminded that Q1 has that OMO operations from RBI and switch operations were also there, which is available to the entire industry and we have made use of, which was not available in Q2. That was the reason why I think that same performance we could not repeat. There are several. I think strategically we are doing several things. We are taking larger positions in trading portfolio. We do have certain investments, which are like depending on the opportunity, depending on the price that is available, we will continue to offload. That way, we are reasonably confident that a large portion of this, whatever we have performed in Q2, we'll be able to repeat in Q3 as well.
No.
We don't have any losses. Rather, our AFS reserve has increased, actually, quarter on quarter.
There's no MTM loss.
There is no MTM loss on the treasury side.
One thing I would like all of you to look beyond is the net profit number. Obviously, the SBI transaction aided us to post a good number in a difficult treasury quarter. I think what we have focused on is how do we balance your resource cost. If you have seen, the cost of borrowings as well as cost of deposits have come down. We not only have focused on reducing the reliance on the wholesale deposits, where the market was going a bird's nest in terms of pricing those deposits, we stayed away from there. Number two, we focused on the daily average balance improvement in the current account and savings bank account. That has contributed to the reduction in the cost of deposits and cost of resources.
Your NIM uptick is basically on account of that, despite that 100 basis point reduction in the interest rates on the asset side. Just to answer your credit growth, the pipeline, I think Mr. Tewari will answer. The credit growth is secular. If you see from the Q1 itself, we have had almost one to two percentage point increase across the business segment, whether you take retail, personal, agriculture, SME, corporate. For the first quarter after March 25, we have reversed the trend and have posted a good 7.1% credit growth. With the pipeline, we have the visibility of at least reaching 10% corporate credit growth in the next two quarters. Would you like to supplement something?
Yeah. The pipeline is INR 7 lakh crore, which is a consistent number across quarters. Half of it is already sanctioned and awaiting disbursement, and half is in discussions. The other point which has to be made is in quarter one and also in quarter two, we had a lot of payments which were a result of either a large IPO being raised or an equity raise, which was used to repay loans or sometimes converted into bonds as well. A couple of airports were like that. There were also the large payments done by some of the government entities which got cash upfront. These were the reasons. As Sara said, we would expect a much better performance in quarter three. The negative growth has been reversed. We look forward to a better performance.
Hello, Sir. Congratulations.
Thank you.
Sir, I just had a few questions. Firstly, on margins. What has been the interest on tax refunds this time for the quarter? That is the first question. The second question is that usually there is a seasonality in your miscellaneous operating expenses in the second quarter. This time it looks higher, maybe because of a low base. If you can give the breakdown of those miscellaneous operating expenses for this quarter and the previous quarter. Q2 2026, Q1 2026, and Q2 2025. That will really set everything clear. Just the last one, in terms of CASA, if you could give the average CASA growth. You said your average daily balances have been good. Any growth numbers you could share?
In terms of margins, interest on tax refund is minuscule. Some INR 200 crore, INR 300 crore or something. That is not big. INR 340 crore. That is not contributing any significantly to the margins. On the seasonality, miscellaneous operational expenses, you can.
The major head here is actually GST on expenses, which was INR 662 crore in Q2 of FY 2025. It is INR 1,180 crore this year, this quarter. Last quarter also, it was INR 588 crore. There is a large difference there. Apart from that, actually, software expenses for software.
Not many items.
These are very small amounts.
Very small amounts.
Of course, they aggregate to a large number, but actually, individually, they don't add up so much. The main thing is this. The next is the mobile banking.
Okay. GST, why such a big rise?
GST on expense, that we recover and pay. That is taken on both sides.
Okay.
Yeah. You get input tax credit also.
Got it. Got it. Okay.
CASA, daily average balance will give separately.
Thank you, Sir.
Hi, Sir. Thanks for the opportunity. Sir, congrats on very good numbers. Sir, firstly, we did a very good job in recovery from burden off this quarter. It was almost double quarter on quarter. Sir, how much of that would be parked into interest income line? This quarter versus last quarter. There is some apportionment which happens, right?
Not much.
Not much.
Not much.
Okay.
Most of that has gone into the P&L directly.
Understood, Sir.
Yeah.
Sir, on ECL, as in Sir, your initial assessment would help. Given SMA- 1 and 2 would be charged at 5% or as per the proposed guidelines. Sir, would we see an inch up in credit cost on a sustainable basis after the implementation of these guidelines?
I think on the ECL front, we need to be a little patient. I did mention earlier that the impact on our balance sheet would be limited for two reasons. One is the long roadmap which is given. While we have to assess the overall expected credit loss requirement on the 1st of April 2027, we will have time up to 31st March 2031 to take that. We want to utilize that roadmap which is going to be given to us, which means that the impact is going to be not significant. We will wait for the final guidelines to come to you, what would be the impact and how we would like to handle it. As I mentioned, whatever is the impact, we are going to take that four-year roadmap which is given to us to ensure that the balance sheet is not impacted in one go.
The second thing is, yes, the major impact would come from the SMA- 1 and 2, which are not significantly provided now. We do have some buffers, as shown here on the excess provisioning on the standard assets. What we believe is that the impact can be reduced by strengthening our collection mechanism. Today, the rollbacks in SMA- 1 and 2 are significant for us. They are temporarily SMA- 1 and SMA- 2. While we are presenting to the regulator that in terms of the rollback, frequent rollbacks of this category do not require such high floor rates on the ECL, there are so many other things which we need to present to them. I do not want to comment at this juncture. Structurally, what we are focusing on is strengthening our collection mechanism. Today, in our retail side, 70% of the collections happen automatically.
It is just sweeping from savings account to the loan account. Over the years, we have focused on this rest of the 30% where the delays happen. The delay is not necessarily that the customer is delaying. It is also because salaries get delayed. We are trying to see how do we address this category. Structurally, we will be strengthening our collection mechanism intensely so that we will not have SMA- 1 and 2 situation. They are not bad assets, except that they just roll forward and roll backward frequently. We need to address that issue. ECL, I think, is too premature to talk about the impact at this juncture.
Sir, lastly, Sir, you mentioned.
I gave a little longer answer so that, again, this question on ECL doesn't come.
Thank you, sir. Sir, just one last question. Sir, your borrowings, as in that's up for 12% quarter on quarter. Yeah, as in there has been a very sharp improvement in interest on borrowings, interest expense on borrowings. That's down from INR 6,000 to INR 4,000 over the last year. Sir, as in any insights there would be helpful. Was this INR 60,000 crore of incremental borrowings back-ended, any color there? Thank you, Sir.
The second part I did not understand, but the interest on borrowings is a market function. As the liquidity improved and the rates have moderated, I think the costs have come down. What was your second question?
The borrowings, we show like 12% quarter on quarter inch up. I just wanted to understand if it was back-ended or it was through the quarter.
The borrowings, overall borrowings?
Yeah, overall borrowings.
Anything, Ravi, you want to say?
Throughout the.
Throughout the quarter, the liquidity was in surplus. So borrowings were very few. Only in the last week of September, we had to do some borrowing. That's why the price is lower.
Sir. Interest on borrowing has also gone down by 26%, yeah.
At any rate.
While we have borrowed less, the cost has also gone down.
Hi, sir. This is Jai Mundhra from ICICI Securities. Sir, question on your NIM trajectory, right? This quarter was supposed to be tough for NIM because you had the residual impact of 50 basis point rate cut. You have done phenomenally well. The margins are up. Now, going ahead, Sir, you would have some tailwind from continued repricing on borrowing, maybe CRR benefit, of course. On the opposite side, you may have some MCLR deceleration. On balance, Sir, would you believe that MCLR deceleration would be more than offset by TD repricing and maybe CRR benefit? NIM should inch up from here, at least the same way what we have seen in 2Q, or they can be slightly even better. What would be your sense? Assuming there is no further rate cut.
Yeah. That's the last one which you mentioned. The caveat is that if there's no rate cut in December. We believe that. I did mention about the u-shaped curve of the recovery of NIM and slightly front-loaded on the Q2 because of our liability management, better liability management, both on cost of deposits coming down and cost of borrowings coming down. Yes, there are some definite tailwinds. How much it plays out, we'll have to see. Obviously, the CRR full cut benefit will be available by the end of November. That will give some pickup on the net interest margin side. We will continue to focus on the CASA. CASA is a very critical component in terms of bringing down the cost. Fixed deposit repricing generally takes about 12- 14 months. That means we have completed six to eight months.
Another one or two quarters, the repricing will continue to be there on the stock. The flow is not getting too much repriced because I don't think any of us would be relooking at adjusting the fixed deposit rate of interest unless there's a rate action by the RBI. Our guidance still stands good that we will be above 3% in Q3 and Q4.
Sure. Sir, on your core fee, right? This has been up 25%, and there is a decent 30-31% growth in remittance and processing fee. Is this volume only, or have you done some fee structure change also? Because for the last three, four years.
It is purely volume. I think it is mainly coming from the debit card spends and interchange fee which we got on the debit cards. Very significant amount uptick. I do not know whether it is sustainable or not. One is the card's issuance itself has gone up, but that is a function of how many savings accounts we open. I think the spends have gone up, and the interchange fee on the debit cards has gone up. It is not about fee structure being changed. It is just volumes have contributed.
Last question, sir, on Yes Bank transaction, right? Other banks which have sold the stake, they had very small stake, but they have routed it through reserves, right? We have shown in P&L. Any insights that you can offer? Plus the residual stake which is there, right? As per my, I mean, the plain reading of RBI circular stated that MTM, you can actually route either through reserves or through P&L, right? You have done the P&L for the realized amount. This is my understanding. The unrealized understanding, would you have done, or is that still pending?
Unrealized, we will not do because we have a significant control by having a board seat there, which means that we do not have to. We are not using the MTM on the residual portion. On the other transaction, would you like to explain in terms of Yes Bank transaction? Or even CFO can explain?
We were holding this as an investment in associates, sir. The stake sale which was sold is marked to market as per RBI guidelines.
We have done it.
We followed the same regulatory process. The one which is actually realized is routed through the P&L. Unrealized, we continue to not mark-t o- market because of our control which is still there by way of board seat.
Sir, on the same logic, I mean, does this new guidelines actually create less quality in P&L? Because if there is an MTM loss on bond, it will not be part of P&L, right? If you realize, then of course it will come in P&L. In a way, these new guidelines make P&L less volatile, especially at the time of hardening of yields. Is that a right understanding?
I don't. In terms of the corporate bonds?
Yes, Sir. G-Sec bonds.
G-Sec, yes.
Okay. Sure. Thank you and all the very best, Sir.
That was the purpose of that.
Sir, this is Anand Dama from Emkay Global. Sir, my question was related to your Xpress Credit. Last quarter, you said that incrementally we will see growth coming back in that. Are we on to it? Now we will see further acceleration in the second half of the year. Are you getting more comfortable in terms of the asset quality over there? If you can comment on that. Plus the mortgages. Obviously, we are growing at a relatively faster pace versus the peers. Can we see further acceleration on that front? That basically should fuel the growth target, which we have increased now from 11-13% to 12-14%.
The 12-14% guidance is because of across the segments, not necessarily Home Loans. Home loans, 15% is good growth. While we may have potential, see, in case of Home Loans, our catchment is fairly large. We have set up almost more than 400, 420-425 Home Loan centers across the country, processing only the specialized sales only for Home Loan processing. Our acquiring the customers is also robust. That is contributing to the Home Loan growth. I think 15-16% growth, I would place that as the portfolio grows, 14-15% stability will be achieved there. Xpress Credit is one segment we would like to further grow. Currently, we expected this Xpress Credit to reach double digit. We were wishing for that. The gold loans, I think some moment is there from Xpress Credit kind of customers.
Unsecured personal loan is moving to secured gold loan because the amount of gold loan is higher now because of the value and the lower rate of interest, I think contributing to that. As the gold prices moderate, we hope that Xpress Credit will grow. Our sanctions and disbursements have been very significant in the Xpress Credit. it is a high-churning product. You need to constantly acquire the customers.
Sure. Sir, the customer segment is similar, particularly when you look at your Xpress Credit and gold loan? Because otherwise, why would that shift happen?
Some overlap is there. Some of those non-CSP customers, that is corporate salary package customers only, will take Xpress Credit. Non-CSP customers could be there. Gold loan customers. A fair amount of customer base of gold loans may not be the common customer base.
Sir, secondly on your overseas credit. So that book also is now growing pretty fast. You said that you are more focused on the RoRWA-based lending. How does the overseas corporate book lending, places, particularly in terms of the RoRWA versus the domestic credit? Is it not diluted in terms of the RoRWA?
Foreign book growth rate in dollar terms is just about 8.7%. What you see, 15% growth rate because of the rupee depreciation when we convert into rupees. Our IBG, our international book growth is opportunistic. If we see the good value, we will do that. Otherwise, we'll just ramp up. In the past, also we have demonstrated in quarters where we feel that pricing is not attractive, we just ramp down that. We will be comfortable. I think the IBG book constitutes about 15% of our credit portfolio. I think that is a level which we would like to maintain.
Thank you, sir.
Sushil Choksey from Indus Equity. Congratulations on all your milestones. Sir, first question, recent event of the newspaper, you highlighted that you have INR 5,500 crore of human resource spent for training. Secondly, you highlighted you would not spell out SBI does not talk on digital spend, what they do on the CapEx side on an annualized basis. Can you elaborate on that INR 5,500 crore, which is?
INR 50 crore. INR 550 crore.
INR 550 crore. How does it enable our bank? The performance speaks for itself. The steps, what you've taken for today and with cybersecurity and many other measures which are required, how are we going to be future enabled with all these measures?
This spend on training is significant for us because most of the people who join SBI are not bankers to start with. We take mainly from the people who are writing exam and joining the bank, whether it is a clerical position or officer position. Their career paths are defined, and we prepare them for various assignments, as you are familiar with. This training system today has two components. We have one of the largest physical training systems in the country. Almost 55 training colleges and centers are available. The second important element which we have done, while these physical trainings are important to bring people together, exchange of ideas happen, we have launched what is called Spark. This is a digital platform. Not only provides online training for across the section, they can choose their training package. We have international agencies providing the inputs along with our own inputs.
More importantly, we are creating a skill inventory. Based on the skill inventory, the job profile is defined and where people want to go. Every training module is available in this Spark, the knowledge base which we have created. We are using AI extensively to offer what they're looking for. They can build their own training module. A combination of physical training, on-the-job training, and online training aided by the AI is going to be the way forward. As you mentioned, I think we are also having a specialized training, job families, so that the specialized areas of treasury technology are constantly improved. We have, for the first time, undertaken the largest technical recruitment of 1,500 people. These are the people who have not come from the market. They are from colleges and people who have first time are entering the technical jobs.
We have completely created a training module for them internally. These are some of the investments which we are making so that we have the industry best attrition rate. I think we have 0.5%, less than 0.5% attrition rate because of our investment in human resources.
You churn out a lot of CEOs and top management people from many other entities. You answered for new recruits. The top layer of SBI management, you specified in that event about IIMs, Harvard, and MIT, various other things. This initiative, what you spend is immaterial. What makes the bank capable for future ready like AI? You may not spell out the digital CapEx number or annual digital number. How are we transforming from current, like you said, YONO 2.0 is going to come up? Now you have set up a global capability center, or you can say a back office in Delhi where your agriculture and other products, a lot of other things initiative, whether your retail credit processing and this back. You have a 24 by 7 working bank. It's not necessary you have to only do within the bank.
The cost will be far lesser and productivity may be large there. The initiative which you are enabling today because your profit numbers can support any kind of future projections which you want to make.
Absolutely. I think today we made a big beginning. I don't know whether I've mentioned to you. We had 17 trade finance processing centers in the country, 17 of them. We have moved to two global trade finance centers, one in Calcutta and Hyderabad, which is completely digital. Across the country, the global trade finance is handled by these centers. This is the beginning of our centralization aspect. The Project SARL, which I mentioned in my speech, the simplification project, has four elements. One is you identify a process and simplify it. After simplification, if it is possible, automate it. If possible, centralize it. The fourth element is that if it can be outsourced, you outsource it. This is the new paradigm, right? When you are looking for doubling your balance sheet every six years, the scale what we have, this scale requires out-of-the-box thinking.
This is what we are going to do through the Project SARL. If Project SARL believes that a centralization by way of global capability center is the need, we will definitely look at it.
SBI as a parent has achieved many milestones. We will continue to figure with much higher milestones in years to come. We have very formidable subsidiaries. I'm not critical of the performance. When will you find those milestones visible where SBI Mutual Fund is the largest, I understand? As far as SBI Cards is concerned, a lot of concerns and ups and downs keep coming. SBI Trusteeship, SBI Capital Markets, insurance, it is underprivileged market. Now the amount of CASA customers you have, I'm sure your fees can be five times than where it is today. Improve all these areas. What enabling steps or how are we going to improve upon that? The consolidated number of some of the members are saying we are not performing up to the private bank. Possibly we are not listed on ADR. Maybe one answer. Maybe your holding now, you've given a QIP done.
These underlying assets have much more strength than what we are showing today. How does it take to the next level?
In case of subsidiaries, as you see, SBI Life Insurance today is the largest private insurance company. In case of SBI Card as a standalone card company, the performance is always under the focus. We are working on that in terms of addressing the asset quality issues, in terms of the spends, in terms of the new card issuance. I think many things are being done in the SBI Card. AMC, as you mentioned, is the largest AMC in the country. General Insurance is moving up the ladder and has a great potential in terms of the non-property, non-life insurance company. Merchant Banking Unit of SBI Caps is a different ballgame altogether. I do not think we should be looking at the valuation there.
Among these four major subsidiaries, we definitely would be looking at, as I mentioned several times, SBI AMC and SBI General are right candidates for listing in our stable. It also provides some value unlocking and, more importantly, value recognition for the industry. We would soon be working on that. It is also important that SBI Conglomerate is leveraging one SBI value, one SBI in the sense that if any customer walking into SBI branch, he is provided the gamut of services which are manufactured by the conglomerate itself. That has been successful, yes, if you see our cross-sale income. More important than income, we are trying to provide one-stop solution for our customers. We will continue to do that. Yes, we can do better, we can do more, and we will definitely work on them.
Does it mean that CASA customers, we are able to sell five products, three products, four products?
Our PPC at this juncture is about 3.5.
Can we be at five?
We can definitely move to five.
Okay. Moving back to today, RBI is indicating the deposit rates have stabilized. How do you see the environment, at least for the current year? Second thing, rupee is a little volatile and G-Sec is also volatile. What's your outlook on the next six months on that?
Deposits, what did you ask in the deposit?
Deposit is stabilized. The rates have stabilized on RBI articles.
Yeah. I think the deposit rates are stabilized. The further deposit repricing or recalibration will only happen if there is any monetary, I mean, repo rate action. Otherwise, I think more or less the deposit rates are stabilized. As far as treasury related, you can respond.
I think your question is around the G-Sec, where it is going to be a 10-year G-Sec. I think we have seen a lot of volatility and also specific actions from RBI where they convey to the market that they are not comfortable at certain yields, right? I mean, that messaging happened by way of canceling some auctions. That was taken note of by the market on that particular day when the yields came down by around 4 basis points to 5 basis points. I think it is now range bound. We feel like the range can be 6.2 basis points-6.65 basis points kind of range for the 10-year G-Sec. It's just an internal house view.
Last question again. Government may have to push up bigger ticket CapEx infrastructure because you are seeing some noise being made about nuclear tie-up, hydrogen, and many others. SBI Caps have come out with a lot of reports on solar, hydrogen. Solar integration more on backward going up to polysilicon. These larger ticket sizes are moving up. They are no more INR 1,000, INR 2,000. These are INR 10,000 crore-INR 20,000 crore projects. Are we getting any sense for next year, if not for this year, of some kind of a discussion and a pipeline coming up?
From the government side?
Government and private?
No, no. Private side, I think we have a very robust pipeline. Our aggregate corporate credit pipeline is around INR 7 lakh crore. This is a mix of working capital underutilized and term loans under disbursement. The new projects which are being discussed, both in the public sector and private sector, but predominantly private sector. That pipeline is very strong. This pipeline, a part of it will get converted into reality this year, and there will be a spillover to the next year in some of the projects.
You indicate that there is positivity on private CapEx.
Yes. Not necessarily across the sectors, but most of the sectors, yes.
This new policy about capital market funding and M&A. The yields on capital markets are much higher than home loan and car loans and any other loans which you might be disbursing today, at least from the other banks. The M&A activity, can we build a INR 40,000 crore-INR 50,000 crore book overnight on this?
I mean.
INR 40,000 crore-50,000 crore.
No, today I think the draft guidelines put some cap on that, 10% of capital.
Capital market is possible to support.
Capital market, yes. I think we have done. One product, which is loan against mutual funds. We have never been active on loan against shares. While we have adequate room on the capital market exposure, there is underutilized room available there. We will see. I think we need to assess our own risk appetite for this kind of activities. Also, I think most of these activities also have to be end-to-end digital. Unless we get that right, we will not be moving there. On the capital market broker side, I think we have significantly scaled up that.
The share advance can be 10% yield on current conditions. The second thing, YONO 2.0 can plug in.
Yes. We will develop that product. Mostly on the self-consuming platform.
Good luck for many milestones for the years to come.
Yeah. Due to positive time, we will take up two more questions, followed by a few questions coming in through online webcast, which will be addressed by the Chairman, sir.
Yeah. Hi, sir. This is Kunal Shah from Citig roup. So firstly.
Where are you?
Oh, yeah. Firstly, with respect to standard asset provisioning, almost INR 1,200 crore. This is after some release from the restructured account of INR 1,100 crore against INR 1.65 lakh crore of increase in the loan book. Is there any accelerated provisioning which has been done towards the standard assets during the quarter?
There's no accelerated provision.
Some additional standard asset provisioning, it seems to be a slightly higher quantum.
Yes, we have done some. For two accounts, actually, we have done some DCCO extension.
Basically, whenever there is an extension of date of commencement of commercial operations, there's a requirement of making provision. And some of the reversals, what you see, also related to the DCCO. The moment DCCO is achieved, the provision gets written back. So there has been some write-back and there is an additional provision which is made where the DCCO dates are extended.
That quantum was on.
I think INR 750 crore or something, additional provision.
INR 200 crore was write-back, sir. So, INR 500-odd crore.
Net was INR 550 crore. The second question is on subsidiaries. Monetization, as you indicated, SBI Mutual Fund and SBI General. What would actually trigger that decision? The capital market environment is conducive. Market sentiments are good. Should we expect it sooner or maybe we have just done the fundraise very recently, so we would want to wait for some time and then explore that option?
We are not waiting because we have done the QIP. I think we need to just look at. See, one is, as I mentioned earlier also, that these two companies do not require capital at this juncture. Neither the parent requires because we just raised INR 25,000 crore. We are serious about listing them. The respective boards will take a call in terms of the timing, quantum. The reasons, whatever you mentioned, all of them are applicable.
Thank you. Thank you, sir.
Can I go ahead or?
One last question, please.
Okay. I'll squeeze in two. Sir, just on, this is Piran Engineer from CLSA. On Project SARL. How do we measure what the outcomes will be and what the timelines will be? That's point number one. Point number two, in our current account ratio, we've seen a steady improvement for the last four, five quarters. It's growing faster than the overall deposits. Just some flavor on what's going on there. Are we gaining market share in terms of accounts or higher wallet share of existing customers, more retail SME push? What's going on there? That's it. And congrats on the good quarter.
Yeah. The second one, I think I did mention in terms of what we are doing on the CASA side. One is, you're all very familiar that when we open savings bank account, we don't have minimum balance requirement. That is USP of SBI . And we were the first bank not to charge on the minimum balance not being maintained. Which also means that the customers who have the ability to fund the account also, so many a time, don't fund. We have started a large-scale campaign to educate our staff who are opening the accounts that you politely ask the customer whether you can fund the account. Today, the simple nudge has ensured that 70% or 75% of such account get funded within 45 days, which means that your balances are going up, otherwise which would have remained unfunded for a long time.
That is on the savings bank side. On the current account side, I think our focus on business current accounts and focus on ensuring that you give different variants of current account to business customers based on the balance maintained, which is the usual stuff everybody does. We have intensified our effort in terms of providing services which are linked to the balances which are maintained. This has helped us and we have opened a lot of, a few transaction banking hubs which were primary owners of opening the current accounts and ensuring that a solution is given, not merely opening an account. That is also contributing to CASA daily average balances going up. We did acquire market share in the current account.
185 basis points. 185 basis points.
It is a significant market. Share acquisition there. Mind you that the largest current account balances are with us. Growing on that is important. The savings bank account, another thing I would like to say. In the overall deposit construct, what we have told all of our regional managers, we have more than 730 districts in the country. In many districts, SBI , you will be surprised, has market share more than 60% in deposits. We said that despite whatever dominant market share you have, the focus is at least get 1% additional market share. Get additional, acquire market share of 1%, irrespective of what is our market share in that district. That is also contributing to the savings bank growth rate. I think these are a few things. There are many strategies which we are adopting, but two things which I wanted to call out.
On Project SARL, I think the primary aim of Project SARL is to reduce the drudgery at our branches. Whatever we talk about technology, digitalization, this is a bank which we would like to position as digital first, consumer first, our customer first, which means that we would like to leverage our large physical presence and large employee base to provide that human touch. Many a time the branches are overcrowded, people are not able to spend enough time with the customers. We would like to focus on reducing that drudgery. The outcomes could be taking some time. Ultimately, of course, it has to be measured in terms of whether it is adding to my productivity, reducing my costs. There are definite outcomes defined there. We will not be discussing them at this juncture. Probably the first drop from this Project SARL is 1st April 2026.
I think April quarter, we would talk more about what are those benefits we are getting out of this project.
Thank you, sir.
We have a few questions coming into the online webcast. Now these will be addressed by the Chairman, sir.
Yeah. First question, Kiran Shah. Return of account and recoveries from accumulated return of. Recovery from return of accounts as we have presented here, INR 2,483 crore. This question on the. What is that technically return of portfolio is likely to give recovery rate, I think discussed earlier also. We place it around 6-8%. We started saying about 10%, but as the security value is coming down, based on the security value, on the accumulated return of accounts, our recovery rates are likely to be around 8%. The Tapabrata Dutta on slippages and portfolio quality and Xpress Credit, the GNPA is showing a sharp rise. Any signs of concern there? It's not showing any sharp rise. I think quarter to quarter it has come down, if I remember correctly. As the denominator, the portfolio increases. In absolute terms, there is no major concern in terms of the Xpress Credit.
Abhishek Kumar, Gross NP and ACA book position. Gross NP as of 30th September is INR 76,000 crore and ACA is INR 1.63 lakh crore. Ujjwal Kumar, SBI should implement tap banking for onboarding of customer, either individual or non-individual. Why is SBI not taking such initiatives? I'm glad to announce that tap banking we have launched last quarter. And this tap banking is launched initially for the corporate salary package customer onboarding. And as we fine-tune that, and a good number of customer accounts are being opened on the tap banking. The first phase we launched on the 1st of July 2025. This journey, onboarding journey takes just about five to seven minutes because if it is. Most of the customer data is collected from various sources. Similarly, in the current account also, we have already started tap banking. Ankit Ladhani from IndusInd Nippon Life, any guidance on NIM?
I think we have talked enough on the NIM. And we still are holding that our guidance long-term NIM above 3% through the cycles. Ashish, can you provide a share of MCLR, EBLR, and other loans in advances? As of 30th September, EBLR is 31%, MCLR is 29%, fixed rate is 22%, and T-bill increase 15%. Tarunlala, what amount has been earmarked for pension provision? The pension provision for half year 2026 is INR 6,672 crore. For the quarter, it was INR 3,525 crore. Prashant, which sector industry has maximum proposals in pipeline? This is a little diversified. I think pipeline is both in terms of capital expenditure and as well as NBFC portfolio. From a capital expenditure point of view, power, renewable energy, commercial real estate, and a bit of iron and steel. Vishal Gutka from ASK Investment, any plans to monetize your subsidiaries in near term?
I think we have had enough discussion on this, but just to answer your question. These are the two companies we will be seriously considering. The timeline and when we are likely to go will be decided by the respective boards. How much is the LCR of the bank? LCR of the bank is 143.8%. Up from 139% as of 30 June. What is the impact of Yes Bank stake sale on your return on assets? If we do not consider profit in Yes Bank, the ROE is still above 1%. It would be around 1.04%. Thank you very much.
Thank you, Chairman. Sir, I trust all the questions have been addressed.
No, if anybody wants to ask a question, we still can give five more minutes. Otherwise, we can close. Okay. Just see that you're not repeating the same question.
I just had a data keeping question here. The extraordinary gains because of Yes Bank stake sale. Gross of tax was around INR 4,500 crore. What is this amount net of tax?
INR 3,386 crore.
Thank you.
Sir, Prakash Sharma here from Jefferies. Just wanted to check. Your fee growth in this quarter has been phenomenal. We have not seen 20% plus numbers for a long time on a big number. Can you just elaborate what has helped and what do you think? Is this start of a new run rate? Maybe not 20, but double digit, etc. If you could just help.
Most of the lines of other income seem to be good ones, like either in the government business or cross-sell. I believe they are stable, even loan processing charges. Much of the loan processing charges is not one-off or bulky one. They are all widespread across the retail segments. The only thing which I mentioned is on the debit card interchange fee. I do not know how it is going to play out. Otherwise, I think other income streams seem to be stable.
Thank you.
You can close.
Okay. I trust all the questions have been addressed. We'll be happy to respond to other questions in offline mode. Let me end the evening with thanking Chairman, Sir, MD, Sir, DMD Madam, top management team, analysts, investors, ladies and gentlemen. We thank you all for taking time out of your schedule and joining us for this event. To round off this evening, we request you all present here to join us for HITI, which is arranged just outside this hall. Thank you. Thank you so much.