Country’s largest lender State Bank of India is expected to report signs of lesser asset quality pressures in the first quarter as resolutions to big-ticket stress loans get initiated. However, it may report a drag on profitability due to subdued contribution from treasury amid volatile bond markets.
The interest rate reversals for loans that slip into bad loan category and sluggish credit growth in early months of the next financial year FY19 may adversely impact interest income.
In a review, domestic brokerage Motilal Oswal said loan growth is expected to be muted (over two per cent on quarter over quarter) but pick

)