SBI Q3 Review - Asset Quality Outlook Encouraging; Earnings Set To Gain Pace: Motilal Oswal 
Signage for the State Bank of India Ltd. (SBI) is seen at a branch in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

SBI Q3 Review - Asset Quality Outlook Encouraging; Earnings Set To Gain Pace: Motilal Oswal 

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 strong performance, with healthy net interest income growth (excluding one-time interest recovery during Q3 FY20) and strong recovery in retail credit growth.

On the asset quality front, controlled pro forma slippages (Rs 20.7 billion) and low restructuring request (0.8% of loans) underscores an encouraging asset quality outlook.

Pro forma gross non-performing asset/net non-performing asset ratio stood at 5.44%/1.81% (versus 5.88%/2.08% in Q2 FY21).

We believe the earnings normalization cycle for the bank has begun as the uncertainty ushered by Covid-19 has receded significantly.

Click on the attachment to read the full report:

Motilal Oswal SBI Q3FY21 Result Update.pdf


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