State Bank of India - Is 450 The New 250?: Motilal Oswal's Take

State Bank of India - Is 450 The New 250?: Motilal Oswal's Take

A State Bank of India illuminated signage. (Source: BQ Prime).

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Motilal Oswal Report

State Bank of India continues to strengthen its balance sheet and improve return ratios. The focus remains on building a superior loan book, while maintaining strong underwriting as evident in lower stressed assets and higher provision coverage ratio.

This has aided in a sustained turnaround in operating performance and will drive return ratios to long-term average and possibly higher.

With a high share of floating-rate loans at 75%, the bank remains well-placed to ride the rising interest rate environment. While retail helped clock growth in loans in recent quarters, SBI is witnessing a sharp recovery in corporate book, reflected by a improving utilisation ratios.

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Motilal Oswa SBI Update.pdf
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