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
State Bank of India continues to strengthen its balance sheet and improve its return ratios. The management’s focus has been on building a granular, high-quality loan portfolio, while maintaining a strong focus on underwriting, which has aided a sustained turnaround in operating performance.
SBI remains well positioned to withstand mark to market losses in its treasury portfolio as the rate environment hardens further.
Retail growth is likely to remain strong. This, along with a pick-up in the small and medium enterprise and corporate book (as the un-utilised limit continues to moderate to 40% versus 53% a couple of quarters ago), will support loan growth.
Improving margin, deployment of surplus liquidity, and reversal in the rate cycle (as ~70% of loans are floating in nature) will enable a recovery in net interest income.
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