SBI Q4 Review - Asset Quality Outlook Remains Strong: Axis Securities
People stand outside a State Bank of India Ltd. branch at night in Bengaluru, India. (Photographer: Karen Dias/Bloomberg)

SBI Q4 Review - Asset Quality Outlook Remains Strong: Axis Securities

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.

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.

Click on the attachment to read the full report:

Axis Securities SBI Q4Fy21 Result Update.pdf

DISCLAIMER

This 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.