SBI Q1 Review – Gaining Momentum; Asset Quality Outlook Strong: Motilal Oswal

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State Bank of India reported a steady quarter, with an earnings beat of 12% on our estimate.

This was aided by controlled provisions despite a challenging environment. Core operating performance was in-line.

Asset quality ratios deteriorated marginally on elevated slippage in retail/small and medium enterprise.

However, SBI’s management clarified that slippage worth ~Rs 48 billion has already been recovered/upgraded in July 2021.

Furthermore, the total restructured book remained in check, while special mention account -I/II (exposure of more than Rs 50 million) was stable QoQ at Rs 113 billion (~0.5% of loans).

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Motilal Oswal SBI Q1FY22 Result Update.pdf


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