SBIN reported a modest quarter with weak NII growth (affected by higher interest reversals on Agri slippages), although stake sale gains from its cards subsidiary supported earnings. Overall, the bank maintains a PCR of 73% on Power sector NPAs. Total slippages declined to INR81.0b (v/s INR165.3b in 3QFY20) on decline across segments, with the Corporate segment accounting for INR15.6b, SME INR2.3b, and Retail INR6.0b. SBIN holds higher provision coverage on power NPAs SBIN currently does not have exposure to any large-ticket corporate account; thus, the slippage trajectory is expected to remain under 2% in the current COVID-19 crisis. Among the PSU banks, SBIN remains the best play on the gradual recovery in the Indian economy, with a healthy PCR of 65% (84% including TWO), robust capitalization (Tier 1 of ~11.0%), a strong liability franchise, and improved core performance in a very challenging environment.