SBI Q1 Results Review - Higher Credit Cost Dulls An Otherwise Inline Earnings: Systematix

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..Systematix Research Report.Stata Bank of India's reported Q1 FY25 profit after tax of Rs 170 billion (-18% QoQ, +1% YoY) which was largely in-line with estimates as the impact of lower margins and lower other income was offset by lower-than-expected opex. While credit costs inched up due to higher slippages in agri and unsecured credit, the bank expects full year credit costs to be around current levels..The key result highlights were:Loan growth (+1.2% QoQ, +15% YoY) was above sector average (+14% YoY). Sequentially, growth was led by RAM credit (+1.4% QoQ, +15% YoY) while corporate growth was flat QoQ, +16% YoY.Deposit growth (flat QoQ, 8% YoY) was lower than sector deposit growth of 10.7% yoy. Current account and savings account ratio declined to 40.7% (-41bp QoQ).Domestic credit-deposit ratio increased to 69.3% (+95 bps QoQ),Excluding IT refund benefit of Rs 13 billion (+9 bps of IEA) in previous quarter, reported domestic net interest margin declined to 3.35% (-3bps QoQ) as higher cost of deposits (+19bps QoQ) was offset by higher investment yields (+20bps QoQ) and higher leverage.Other income declined by -36% QoQ, -7% YoY due to higher seasonality. CIR declined to 49.4% (-188bp QoQ) as wage hike related provisions are behind. Credit costs increased to 0.48% (+19bp QoQ, +16bps YoY) due to higher seasonal slippages in agri, higher slippages in unsecured loans due to delayed salary credit in some states and higher ageing provisions.Xpress credit GNPA increased to 0.97% (+20bps QoQ) while Agri GNPA increased to 9.84% (+26bps QoQ). On the other hand, corporate GNPA declined to 2.17% (-28bps QoQ). The bank delivered RoA of 1.1%, RoE of 20.98%..Click on the attachment to read the full report:.SBI Q1 Results Review - Healthy Loan Growth Despite Seasonally Weak Quarter: Nirmal Bang.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 - Higher Credit Cost Dulls An Otherwise Inline Earnings: Systematix

The brokerage retains its Buy rating with a March-26 target price of Rs 1,010.

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SBI Q1 Results Review - Higher Credit Cost Dulls An Otherwise Inline Earnings: Systematix

The brokerage retains its Buy rating with a March-26 target price of Rs 1,010.

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