SBI has reported a pick-up in growth in core operating profits (31% YoY), though NII growth has been slightly soft due to flattish trend in advances growth. Asset quality has showed some positive signs with stressed assets accretion moderating on sequential basis.
Asset quality held stable with fresh slippages moderating to 2.6 per cent annualized vs 3.3 per cent in Q1FY15 while fresh restructuring also declined on sequential basis.
We reiterate that Opex efficiency will help better PPOP growth with SBI adequately providing on pensions & wage revisions. We retain BUY with a revised target price of Rs 351," the report said.
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