INSUBCONTINENT EXCLUSIVE:
State Bank of India's return on assets may hit a four-year high this fiscal year on the back of improving interest income, driven by higher
0.4 per cent -0.5 per cent this fiscal and to 0.9 per cent - 1.0 per cent in 2020-21
This would be the highest since 0.4 per cent RoA reported in the year ended March 2016.
The rise in RoA would be driven by credit growth of
around 10 per cent -12 per cent and higher net interest margins (NIMs) of 3.15 per cent -3.20 per cent , fee income growth of 15 per cent
and an estimated slippage ratio of 2 per cent for the year ending March 2020, the management said
It expects the slippage ratio to improve to 1.3 per cent by March 2021.
The bank is targeting a pre-provisioning operating profit of ?65,000
crore this fiscal, which it expects to increase further to ?75,000 crore in fiscal 2021
per cent -0.85 per cent , it said
That would be still much better than the 0 per cent recorded in fiscal ended March 2019 and negative RoA reported in fiscals 2017 and
ratio) of 81 per cent , robust capitalisation (Tier 1 of about 11.3 per cent ), a strong liability franchise, and an improvement in core
SBI shares rose 7.69 per cent to end at ?312 on Thursday as investors cheered the possibility of improved profitability.
However, some
and strong performance from subsidiaries
Coupled with the continued struggle for banks to recover old bad loans, this implies that credit costs stay high
profit for the second quarter ended September increased three times year on year to ?3,011.73 crore despite the bank using all the gains
from stake sale in its life insurance subsidiary for making provisions