SBI Q2 Review - Non-Recurring Events Impact Asset Quality, Credit Cost: Systematix

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..Systematix Report.State Bank of India witnessed couple of one-offs in Q2 FY22 results in terms of full provision of family pension liabilities, recognition and provision for SREI loan exposure and partial NPA recovery and write-off of DHFL loan exposure post partial recovery. The bank’s fresh gross delinquency rate at 76 bps was quite low and excluding SREI loan reclassification gross delinquency was at 28 bps. It’s notable that the bank’s restructured loan book doubled to 151bps (from 76 bps in Q1 FY22). We need to monitor delinquency rate in H2 FY22 as the restructuring window would be shut. On core performance, the bank’s margin improved with lower net delinquency and interest income reversals and interest income on income tax refunds. Core fee income growth remained muted with 2.8% YoY as the balance sheet expansion was still low. Domestic loan book grew at 4.6% YoY below banking industry run-rate. From hereon we need to monitor progress in core earnings and balance-sheet expansion..Click on the attachment to read the full report:.DISCLAIMERThis 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.

SBI Q2 Review - Non-Recurring Events Impact Asset Quality, Credit Cost: Systematix

SBI Q2 Review - Non-Recurring Events Impact Asset Quality, Credit Cost: Systematix

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