SBI Q4 Review - Robust Asset Quality; Earnings Set To Gain Pace: Motilal Oswal

People walk past the State Bank of India main branch office in Mumbai, India. (Prashanth Vishwanathan/Bloomberg News)

SBI Q4 Review - Robust Asset Quality; 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 a strong Q4 FY21, with gross non-performing asset/net non-performing asset ratio improving to 4.98%/1.5% (versus pro forma GNPA/NNPA of 5.44%/1.81% in Q3 FY21), aided by benign slippages (lowest in the past 20 quarters barring the period of moratorium/Supreme Court prohibition).

Slippages stood at 1.2% of loans (much better than other large banks) in FY21, with impeccable retail asset quality (slippages at 0.5% of loans).

Restructured book stands at 0.7% of loans, well within the management’s guided range.

Click on the attachment to read the full report:

Motilal Oswal SBI Q4FY21 Result Update.pdf

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