SBI - PPOP Conversion To PAT Gaining Traction; Asset Quality Resilient: Motilal Oswal

SBI - PPOP Conversion To PAT Gaining Traction; Asset Quality Resilient: Motilal Oswal

Signage is illuminated atop a State Bank of India (SBI) branch at night in Bengaluru, India. (Photographer: Karen Dias/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

State Bank of India has demonstrated a strong improvement in asset quality, with gross non performing assets declining by 43% over the past three years, while provision coverage ratio increased to 68% currently from 40% four years back.

Fresh slippages moderated sharply to 1.2% in FY21 (2.5% in Q1 FY22), lower versus many of its private peers.

Advance under collection account book stood at Rs 1.72 trillion – higher than the gross non performing loan pool, with recoveries in the 6- 11% range.

Over the past five years, SBI has recovered ~Rs 400 billion from the AUCA book.

We expect the recovery trends to continue as the insolvency and bankruptcy process gains pace after a long pause due to the Covid-19 restrictions.

Click on the attachment to read the full report:

Motilal Oswal SBI Company Update.pdf
Read Document

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

lock-gif
To continue reading this story
Subscribe to unlock & enjoy all
Members-only benefits
Still Not convinced ?  Know More
Get live Stock market updates, Business news, Today’s latest news, Trending stories, and Videos on NDTV Profit.
GET REGULAR UPDATES