SBI Q4 Results Review - SBI Has Answers For Capital, ECL Questions: Yes Securities

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. .Yes Securities Report.State Bank of India's management alluded to expected credit loss speculation being futile at this stage but assessed that, if implemented, the impact could be absorbed: SBI is carrying non-NPA provisions and, in the bank’s assessment, the incremental ECL provision impact would be much below this number, presumably, the non-NPA provision number of Rs 355.75 billion stated on the presentation and that too, the said impact would be spread over five years. Management averred that the current capital provides sufficient headroom for normal growth: The CET1 ratio improved from 9.94% as of March 2022 to 10.27% as of March 2023 and the bank has, thus, been able to plough back profits and accrete capital. SBI's current capital adequacy is sufficient to support Rs 7.1 trillion of loan growth without equity capital raise. Management guided for a loan growth of 12-14% in FY24: Regarding the international business, management explained that there will be huge manufacturing export happening from India. Hence, SBI’s focus on global presence is more of a strategic move to capture that prospective opportunity..Click on the attachment to read the full report:.SBI Q4 Results Review - Earnings Surpass The Rs 500 Billion Milestone; Outlook Positive: Motilal Oswal.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 - SBI Has Answers For Capital, ECL Questions: Yes Securities

Management stated that the bank does not have to grow deposits at a very fast pace.

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