HDFC Securities: SBI - Lesser-Than-Anticipated Pain In Store?
A customer uses an automated teller machine (ATM) at a State Bank of India Ltd. (SBI) branch at night in Bengaluru, India. (Photographer: Karen Dias/Bloomberg)

HDFC Securities: SBI - Lesser-Than-Anticipated Pain In Store?

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.

HDFC Securities Report

State Bank of India’s Q2 earnings were ahead of estimates, led by lower-than-expected provisions.

The bank reported a sharp improvement in collection efficiency to 97% in Q2. These have been common themes across most of our coverage this quarter.

While we have reduced our slippage and provisioning estimates, they remain conservative.

Despite the recent additional tier one and tier two capital raise, we believe it will be prudent for the bank to raise equity capital.

Click on the attachment to read the full report:

HDFC Securities - State Bank of India Q2FY21 Results Review.pdf

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