SBI Q4 Review - Strong Quarter; Strengthening Balance Sheet: Dolat Capital
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Dolat Capital Report
State Bank of India reported a strong set of numbers despite the net interest income miss driven by lower-than-expected slippages, large recovery from steel account of Rs 42 billion, higher fee growth, and further rise in provision coverage ratio at 71%.
Asset quality metrics continue to impress with decline in pro forma gross non-performing assets by 46 basis points QoQ to 4.98%, slippages at 1% for the quarter and 1.3% for FY21 (1.5% including impact of intra quarter adjustments), and restructured book at 0.7% of advances.
Slippages for the fiscal are lower than large private peers, driven by its lower share in retail unsecured advances and no direct exposure to credit cards, with retail slippages at 0.44% in a pandemic year.
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