“NII (Rs.132.5 bn) came a shade above our expectations on the back of better than expected margin. Non-interest income was lower on back subdued trading gains (Q1FY14 was exceptional quarter), however, controlled opex (almost flat) and write back of Rs.5.5 bn of depreciation helped in mitigation the impact of higher NPA provisions (72% YoY). Reported headline NPA remained stable at 4.9%, despite higher slippage on back of higher cash recovery, up-gradation and write-offs. Nonetheless, fresh impairment remained lower at Rs.135 bn as against the run-rate of Rs.165.5 bn seen during previous 4 quarters. We retain our preference for SBI in PSU banking space.”
By Saday Sinha, banking analyst, Kotak Securities
By Saday Sinha, banking analyst, Kotak Securities
