SBI Q4 Results Review - Earnings Surpass The Rs 500 Billion Milestone; Outlook Positive: 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.State Bank of India delivered a mixed quarter as profit after tax rose 83% YoY to Rs 166.9 billion (10% beat), aided by lower provisions in Q4 FY23. Pre-provision operating profit, albeit, reported a miss of 9% hit by higher opex. Net interest income growth was healthy as margin expanded ~10 basis point QoQ during the quarter.Slippages remained under control at Rs 35 billion, while recoveries and upgrades stood higher than slippages. As a result, the gross/net-non-performing asset ratios improved 36 bp/10 bp QoQ to 2.8%/0.7%. The restructured book too declined to 0.8% in Q4 FY23.We maintain our estimates. We further estimate return on asset/return on equity of 1.0%/17.1% in FY25..Highlights from the management commentary Credit growth is expected to be ~12%-14% in FY24. RoA for FY24 is likely to be around the FY23 levels (0.96% in FY23). Credit cost came in at ~32 bp for FY23 and is likely to remain similar for FY24.SBI believes that it has some further cushion in terms of Marginal Cost of Funds based Lending Rate re-pricing that is likely to support margins..Click on the attachment to read the full report:.SBI Q4 Results: Net Profit Jumps 83% Beating Estimates.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 Q4 Results Review - Earnings Surpass The Rs 500 Billion Milestone; Outlook Positive: Motilal Oswal

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