Analysis of Financial Track RecordData adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
|Net Profit/Total Funds (%)||0.95||0.85||0.88||1||0.96||0.87||0.72||0.91||0.92||0.64|
|Net NPA to Net Advances (%)||2.65||1.87||1.56||1.78||1.76||1.72||1.63||1.82||2.1||2.57|
|Capital Adequacy Ratio||-||-||-||-||-||-||-||-||-||12.96%|
CAGR Colour Code Guide
|9 yrs||5 yrs||3 yrs||1 yr|
|Net Interest Income||14.7%||18.4%||14.1%||10.5%|
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
Book Value per Share
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
|RATIOS \ YEARS||Mar'05||Mar'06||Mar'07||Mar'08||Mar'09||Mar'10||Mar'11||Mar'12||Mar'13||Mar'14|
|Interest Earned / Total Income||81.6||81.71||80.99||79.25||81.05||74.77||76.86||83.21||83.75||83.31|
|Return on Equity (%)||18.66||16.23||16.6||17.76||16.72||15.45||13.42||16.69||15.85||10.64|
on 5 important parameters. These parameters are colour coded as Green (Very Good),
Orange (Somewhat Good) and Red (Not Good)
SBI, in the last 10 years, increased its net interest income by 15% on the stand-alone as well as consolidated basis. Its net interest income increased from Rs. 12,402 Cr. in FY02 to Rs. 57877Cr. in FY12 on the consolidated basis. Its CASA, the source of low cost fund, was at the six-year-average level of 42%; among the highest. At the end of FY12, it was 40.69%; best in PSU bank. The high interest income and the low cost because of high CASA helped the Bank maintain an average net ... Read more
SBI, in the last 10 years, increased its net interest income by 15% on the stand-alone as well as consolidated basis. Its net interest income increased from Rs. 12,402 Cr. in FY02 to Rs. 57877Cr. in FY12 on the consolidated basis. Its CASA, the source of low cost fund, was at the six-year-average level of 42%; among the highest. At the end of FY12, it was 40.69%; best in PSU bank. The high interest income and the low cost because of high CASA helped the Bank maintain an average net interest margin at a level of 2.9%. The SBI has increased its book value per share by 14.64% in the last 10 years, from Rs. 403.68 in FY03 to Rs. 1583.05 in FY12, on a consolidated basis.
SBI managed to maintaina six-year-average ROA (Return on assets) at 0.88% on a consolidated basis, which is significantly below the benchmark of 1.25%. The main reason for this is a higher provisioning cost of high staff base and non-performing assets, greater than 1.5%, throughout the last 10 years. The non-performing assets to net advances ratio has decreased from 4.5% in FY03 to 1.82 in FY12 which shows the continuous improvement in its assets quality; but, it is still not up to the mark.
At the end of Financial Year 2012, its capital adequacy ratio was at 13.86% which is drastically improved as comparison to 12% for last year.
In nut shell, we can say that though the core operating performance of State Bank of India has been very good, its return on assets and asset quality have not been up to the mark. Hence, we conclude that the 10 YEAR X-RAY of the State Bank of India is Orange (‘Somewhat Good’).Show less