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.
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