SBI Q4 Review - Asset Quality Outlook Remains Strong: Axis Securities
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Axis Securities Report
State Bank of India maintained its strong asset quality performance in Q4 FY21 with slippages at ~ Rs 55 billion (less than 1% of the book) and a stable restructured book (Rs 179 billion).
Headline gross non performing assets were restricted to ~5.0% versus 5.44% QoQ (on pro-forma basis).
For FY21, the overall stressed asset accrual of Rs 464 billion was much below the management’s initial guidance of Rs 600 billion with slippage for the bank at 1.2% and restructured loans at 0.73%.
Provision coverage ratio improved to 71% in FY21 from 65% in FY20.
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