SBI - Margin Outlook Positive; Aiming For Sustainable RoA Of More Than 1%: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.We organised an interactive session with the management of State Bank of India, to discuss the macro-economic environment, the bank’s growth and margin outlook, and progress on its stated objectives. Key insights from the discussion are highlighted below:The global banking system has been facing challenges primarily due to liquidity issues rather than asset quality. The portfolio duration and concentration of loans/deposits under various categories have also caused problems. However, the Indian banking system has remained quite resilient thanks to active supervision and higher governance standards set by the Reserve Bank of India. SBI does not see any significant challenges to the Indian banking system. The domestic market remains fairly strong, which should support growth. The corporate sector is likely to see a pick-up as the focus on infrastructure will revive owing to the government’s push (70% of fresh capex being led by the private sector). SBI has a strong pipeline of sanctions and its undisbursed term loans are coming down (-26% QoQ), which indicate that utilisation is increasing. The manufacturing, export, renewables, batteries and electric vehicle segments are likely to be the key growth drivers..Click on the attachment to read the full report:.DMart — 'Ready' For A Long Drive: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI - Margin Outlook Positive; Aiming For Sustainable RoA Of More Than 1%: Motilal Oswal

SBI’s robust performance has been aided by strong loan growth, margin expansion and lower provisions.

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