The NPA game

The INR 8 tln SBI book of advances, grew its net NPA component to 4.6%, bad loans ( 6 months) to $1.6bln even after the 20% writedown of the rupee and gross NPAs $1.2 bln adding INR 81.61 bln and INR 6152 bln to bad loans and Gross NPAs - Tough game to understand but you'll follow the various definitions across our series' from the last 3 years..

As expected by some in the market, though I ahve apparently been busy elsewhere INR 21.88 bln was added in restructuring, on top of the 5.64 bln in June popping the loss reserves out of INR 27 bln in the two quarters ( though the ones provided for restructuring were never provided in reserve) 

PCR has not had any additional cash either, hitting 62% from 67% in the last quarter having been upped by design for the year per se Another $ 1 billion or INR 50 bln  is expected by the year end in NPAs The iron and Sugar setor problems are going to track for some time as will further dockets inr estructyuring media using variously ya nomura note evaluatiing it to be followed by a MOS update ont he bank report they arte having so much fun with. the PSE bans have accepted the hit for systemisation and will recover from here but SBI's jump back on more debt raising in QIP is unlikely to keep it up , esp if the market doth correct.

Improved NIMs

On the back of its deposits the bank continued growing NIMs and like HDFC Bank grew credit better than average, ( more SME disasters added without underwriting?)  at 17.5% in advances

QOQ comparison

Net interest income grew from INR 100.42 bln or $ 2bln to > $2.2 bln in one quarter or INR 114.65 bln, NIM coming in at 4.05% the 9 months of the fiscal having added INR 315.7 bln in NII and Other income dropping yoy with weakness to INR 90.87 bln or $1.8 bln

Stafee Expenses and profits somehow both grew in low double digits on year, maintaining equanimity sequentially even as net profit jumped 16% sequentially despite higher NPAs on higher restructuring

The Opr Profit of INR 72.6 bln for the quarter and INR 219.77 bln for the nine months is barely adequate ( apparently bey design as the bank tries to adequately capitalise itself after INR 8000 crores from the government and another INR 4500 crores in QIP ( targeting a rnage of $500 mlon to $1 bln currently) The Bank CDS has been trading above default near 200 bps before capitalisation byut has not reported enough liquidity yet.

 

 

 

Posted via email from The India Investment Post