SBI Q4 Review - Core Operational Numbers Slightly Weak But Balance Sheet Well Provided: Systematix

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..Systematix Research Report.State Bank of India’s net interest income and core fee income were marginally below our estimates. Lower recoveries on written-off pools further dragged non-interest income. After utilising Rs 62 billion of contingent provision towards restructured loan book (of Rs 370 billion), the bank now holds provision cover of ~21%, with excess provision of ~Rs 25 billion. SBI holds 100% provision cover on security receipts and 75% provision coverage ratio on gross non-performing assets. The bank’s balance sheet is healthy with adequate provision cover and much lower net delinquency rate at ~22 bps in FY22 (versus 51 bps in FY21). Credit cost run-rate also fell to ~54 bps in FY22 and to 51 bps in Q4 FY22. Few areas that SBI needs to work on are-strengthen current account and savings account deposit franchise and gain incremental market shares,reduce overdependence on Xpress retail credit and expand loan-to-deposit ratio to improve margin..Click on the attachment to read the full report:.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 Review - Core Operational Numbers Slightly Weak But Balance Sheet Well Provided: Systematix

SBI Q4 Review - Core Operational Numbers Slightly Weak But Balance Sheet Well Provided: Systematix

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