SBI Q1 Results Review - Balance Sheet Strength To Protect Net Interest Margin: Prabhudas Lilladher

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.State Bank of India reported a steady quarter as core pre-provision operating profit beat our estimate by 7.2% owing to lower opex, although fees and asset quality were a miss. Credit growth was largely in-line, while deposit growth was soft at 8.2% YoY due to focus on controlling high borrowing cost; strong balance sheet allows deposit accretion to remain muted. Hence, domestic loan-deposit ratio that touched 69% (65% in Q1 FY24) can further increase to 70-72%. SBI can achieve 15% loan growth since surplus liquidity is Rs 3.7 trillion and capital can support loan accretion of Rs 6-7 trillion. Liquidity coverage ratio is strong at 129%, which can absorb the impact of draft RBI circular. Slippages were higher led by agri (seasonal) and unsecured; however, the bank has recovered a chunk of unsecured loans. We maintain multiple at 1.5 times on core FY26 adjusted book value but raise SOTP-based target price to Rs 960 from Rs 910 led by-Rs 37 billion accretion to equity due to new investment norms, upgrade in core earnings by ~2% andincrease in subsidiary valuation. Retain ‘Buy’..Click on the attachment to read the full report:.SBI Q1 Results Review - Steady Quarter; Higher Retail Delinquencies A Monitorable: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI Q1 Results Review - Balance Sheet Strength To Protect Net Interest Margin: Prabhudas Lilladher

Core pre-provision operating profit beat led by lower staff cost; fees and provisions were a miss, says the brokerage.

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SBI Q1 Results Review - Balance Sheet Strength To Protect Net Interest Margin: Prabhudas Lilladher

Core pre-provision operating profit beat led by lower staff cost; fees and provisions were a miss, says the brokerage.

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