SBI: Investors should wait for more clarity on moratorium, asset quality

Besides asset quality improvement, management's positive commentary on loan growth and lower that expected moratorium book were key reasons behind the Street's excitement

State Bank of India's (SBI's) stock surged 7.9 per cent to Rs 187.8 on Friday, even as the country's largest lender disappointed with its muted operating performance for the March 2020 quarter (Q4). Besides asset quality improvement, the management’s positive commentary on loan growth and lower-than-expected moratorium book were the key reasons for the Street's excitement.

While the enthusiasm was partly justified, considering the stock had corrected sharply (still 50 per cent down from its 52-week high) amid worries over asset quality and loan moratorium, some analysts pointed out that with a few details on moratorium missing, it could be early