Asset Quality Stress Peaking Out: Maintain BUY State Bank of India (SBI) has reported the highest ever fresh slippages of Rs337bn (+30.3% QoQ & 34.4% YoY) in 4QFY18 led by accelerated NPA recognition of Rs174.4bn from loans under different restructuring schemes of the RBI. However, its overall stressed asset ratio including gross NPA and other standard stressed loans reduced to 12.2% in Mar'18 compared to 12.7% in Dec'17 and 14.5% in Jun'17. Further, the Bank's PCR including Advance Under Collection Account (AUCA) improved to 66.2%, while ~63% PCR on all accounts referred to NCLT by the RBI. This will give much-needed support to future credit cost trajectory, in our view. Further, sharp...