SBI Q4 Review - Impressive Show On Asset Quality: Prabhudas Lilladher
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.
Prabhudas Lilladher Report
State Bank of India reported in-line earnings of Rs 64.5 billion (our estimate: 64.8 billion) on slightly better other income (recoveries/fees) and lower provisions.
It delivered mainly on containing slippages plus restructuring within guidance (Rs 464 billion in FY21 versus Rs 600 billion) which is 1.2% slippage ratio – best in many years and 0.70% of restructuring.
Asset quality guidance has been maintained to be similar or lower than FY21 due to uncertainty of Covid-19 wave but its secured retail, government salaried employees, higher share of strong rated corporates and strong collection efficiency of 95% should help contain stress.
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