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Wednesday, December 25, 2024 | 02:05 PM ISTEN Hindi

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SBI's attractive asset quality needs to be viewed with a sharp lens

Proforma net NPA ratio at 2.08 per cent indicates a reversal in easing of asset quality trend

How much money will you get if your bank goes bust?
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Another factor which doesn’t seem very convincing is the total Covid-related provisioning at Rs 7,091 crore

Hamsini Karthik Mumbai
In the past four quarters, State Bank of India’s (SBI’s) stock has gained over four per cent reacting to results. On Wednesday, after its September quarter (Q2) results, the stock gained 1.12 per cent, slightly muted even as results beat estimates. With net interest income (NII) at Rs 28,181 crore (up 14 per cent year-on-year) and net profit of Rs 4,574 crore (up 52 per cent YoY), Q2 performance bettered expectations by about 2-3 per cent.

However, the numbers on asset quality, though very attractive, might not convince investors. Even as gross non-performing assets (NPA) ratio cooled to 5.28 per cent

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