SBI - The Elephant Is Set To Dance; Return On Equity To Improve: 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
Among public sector undertaking banks, State Bank of India remains the best play on a gradual recovery in the Indian economy, with a healthy provision coverage ratio, tier I of ~11.3%, strong liability franchise and improved core operating profit.
While business trends were impacted by the lockdowns, SBI's loan growth is likely to recover gradually over FY22-23E.
Even slippages are expected to moderate meaningfully over H2 FY22 as asset quality remains impeccable in the retail book.
We estimate credit costs of 1.6%/1.3% for FY22E/FY23E.
We project return on asset/return on equity of 0.8%/14.6% by FY23E.
Click on the attachment to read the full report:
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.