 "SBI has some more book cleaning to do")
The stock of State Bank of India (SBI) was the top loser among Sensex stocks, shedding 5.4 per cent on Friday. The June quarter (Q1) results were way below estimates, due to higher-than-anticipated slippages in the non-corporate book. Operationally, too, there wasn’t much to be excited about. On a comparable basis (adjusting for the merger of subsidiaries), net interest income (NII) declined 3.5 per cent year-on-year (y-o-y) to Rs 17,606 crore.
About 60 per cent of the loan book has migrated to the MCLR (marginal cost of funds-based lending rate), which explains the NII weakness. SBI has passed on
About 60 per cent of the loan book has migrated to the MCLR (marginal cost of funds-based lending rate), which explains the NII weakness. SBI has passed on
