In a remarkable development, SBI tanked after results as the NPA surge matched time cycles with Dollar bursting out of its "bearish reverie" Though undue analysis is unwarranted as we had factored this correction in our analysis yesterday, SBI in particular is just suffering integration pains as its NPA book or Gross quantum of Non performing credit/loans is a humongous $6.5billion ( almost $7) or Rs 27000 Crores up from 17000 Crores 

Given that the NIM is 3.45% it is unlikely to do much more than bring eons of other investors to the bank ( We are invested in the monthly gyrations of the stock now, for example) However, serious readers would have gleaned as much. We do believe India's re rating in MSCI indices is near as India ETFs have been in the Top 10 and investment inflows are a likely $35 billion by the time 2010 comes to a close, having already crossed Rs 1.2 T ( Lakh crores) or $25bln in October

SBI has slowly but surely been removing impediments to growth since its last restructuring exercise but with OP Bhatt stepping out after a long innings, the bank will be looking to find the key replacement for him due support in policy and leadership of the banking sector as governments get serious about expanding Indian Banking's spread corollary to the 30 year funds for infrastructure as evidenced by new likely quasi public investment funds in the space. Given the same another keen development worth watching would be the PE sale of Axis Bank which is duely hanging fire with public bank sponsors unlikely to give up their prerogative easily

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