Motilal Oswal: SBI Q2 Review - Asset Quality Outlook Encouraging; Valuations Extremely Compelling
People standing outside State Bank of India Nerul branch. (Photo: BloombergQuint)

Motilal Oswal: SBI Q2 Review - Asset Quality Outlook Encouraging; Valuations Extremely Compelling

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 reported a decent quarter, with healthy net interest income growth, led by margin expansion, and retail credit growth recovering to pre-Covid-19 levels.

On the asset quality front, potential slippages (without the Supreme Court order) increased to Rs 171 billion, led by the agriculture and small and medium enterprise segments.

Management indicated total restructuring of Rs 200 billion (approximately 0.9% of loans) and a total asset quality impact of Rs 600 billion (including restructuring) in FY21E, corresponding to 2.6% of loans.

Click on the attachment to read the full report:

Motilal Oswal SBI Q2FY21 Result Update.pdf

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