“SBI is likely to see a significant increase in revenue.”

“SBI’s focus on strengthening its balance sheet has allowed us to significantly reduce total toxic assets (GNPA). ￡1.3 trillion from FY2009 ￡2.2 trillion in 2018. Total NPA has declined by nearly 43% over the last three years, but provisioning coverage rate (PCR) has increased from 40% four years ago to 68% now, “Motilal Oswal’s report said on August 20. increase.

The bank has accumulated amortization ￡With $ 1.5 trillion since 2018, asset quality is improving faster than most peers, including private banks.

“Although there was a slight increase in the June 2010 quarter, we believe balance sheet cleansing is almost complete and we are focused on recovering profits and pursuing growth. Managed restructuring (0.8) %) And notable books (0.5%) will make the quality of assets more comfortable and promote sustainable reductions in credit costs. “

Advance payments under the bank’s collection account (AUCA) books are ￡It is 1.72 trillion, which is much higher than the total NPA pool at present, and the recovery rate in the past is in the range of 6 to 11%.

In the last 5 years, banks have been about ￡40,000 chlores from AUCA books. Analysts at Motilal Oswal expect the bankruptcy and bankruptcy law (IBC) process to continue its recovery trend as it accelerates after a long pause due to the outbreak of covid-19. Even before the IBC, banks reported past recovery rates of 9-11% from AUCA’s books.

“While the first quarter was difficult, banks showed resilient performance. ￡15,670 Chlore.Slippage rose slightly, driven by the retail and small business (SME) portfolio, but management revealed that slippage was worth it. ￡ By July, 480 billion rupees had already been collected or upgraded. “