SBI Q1 Review - Asset Quality Holding Up Well: Dolat Capital
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.
Dolat Capital Report
State Bank of India reported a good set of numbers with asset quality metrics faring better than industry and pre provision operating profit growth of 15% YoY.
While net interest income was in-line, operating profits benefitted from higher treasury gains and strong recovery from written off accounts (including Kingfisher recovery of Rs 17 billion).
SBI's asset quality metrics continued to impress with slippages as 2.7% (better than some of large private peers), strong pull-back/recoveries in July at Rs 48 billion, and limited restructuring.
Slippages from agri segment were fairly contained in a seasonally weak quarter, benefitting from increased share of gold backed agriculture loans.
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