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

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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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