New Research Reports

crore in the previous quarter. The net profit for the bank was supported by other income of Rs 473.12 crore from sale of partial investments in SBI General Insurance Company and profit of Rs 1087.43 crore on transfer of the bank merchant acquiring business to wholly owned subsidiary. The bank has improved margins in Q2FY2019, while recorded 12% growth in the net interest income. Bank has improved business growth at 8% along with rise in credit deposit ratio to 73.7% at end September 2018. Bank has also improved the CASA deposits ratio to 45.3% at end September 2018. Bank has posted robust improvement in asset quality on sequential basis as well as over a year earlier level....

Maintain BUY with a SOTP of Rs 352 (1.3xSept-20E ABV of Rs 181 + Rs 112 subs value) Although SBINs 2Q earnings were higher than estimates, they lacked quality. The bank would have reported a loss for the 4th consecutive qtr had it not been for exceptional items of ~Rs 10.87bn and under provisioning (Rs 53bn) for one NCLT case. Consequently, it reported a PAT of ~Rs 9.4bn.

ICICI Securities Ltd | Retail Equity Research Gross slippages came in at | 10888 crore vs. elevated | 14349 crore largely as expected. Corporate slippage was lower at | 3189 crore (| 3704 crore in Q1FY19), of which | 2392 crore was from watchlist. Absolute GNPA declined to | 205864 crore vs. | 212840 crore QoQ,...

Earnings in positive zone (ex of one off) SBI reported positive earnings (ex one off profit on hive off of segment principally led by improved credit costs. In other positives, NIMs marginally expanded and advances grew 11% YoY. The bank is well placed amidst a healthy corporate recovery cycle, increasing pricing power and strong low cost fund base. We are factoring a favorable metrics towards margins and credit costs in H2FY19 with NIM improving ~200 bps to 2.9% and credit costs at 2.9%/2.4% in FY19/20E. The downside risk is its investments in...

Punjab National Bank Q2FY19 results Comment NII fell to Rs. 3974.11 Cr in Q2FY19 compared to Rs. 4691.86 Cr in Q1FY19. NII fell by 1.02% ( Rs. 41.07 Cr ) when compared with the same period last year.

Bank of Baroda Q2FY19 results Comment NII increased to Rs. 4492.54 Cr in Q2FY19 compared to Rs. 4381.08 Cr in Q1FY19. NII increased by 20.75% ( Rs. 772.01 Cr ) when compared with the same period last year.

PNB reported a loss of INR45.3b due to its weak operating performance and elevated provisions of INR97.6b. NII declined 15% QoQ to INR39.7b, as the domestic margin shrank 44bp QoQ to 2.5%. Other income declined 15% QoQ to INR17.1b, led by muted treasury gains. Operating expenses grew 16% QoQ to INR28.4b, led by wage-related 2 November 2018 provisions. Consequently, PPoP was subdued at INR 28.4b (-13% YoY). loss of INR69.2b, which was partly offset by tax credit of INR23.9b.

We maintain a NEUTRAL rating on the stock with TP of Rs 126 (0.8x Sept-20E ABV of Rs 157) in spite of the strong near term operational performance. Healthy operating performance in 2Q was characterized by resurgent book growth, steady NIMs and CASA and higher fees & recoveries. Further, the dip in provisions (-17% QoQ), best in class PCR (~71%) and lower slippages (-21% QoQ) were promising yet deceptive as the bank utilized the RBI dispensation towards MSME accounts to retain assets worth ~Rs 14bn as standard.

Merger Overhang Remains A Key Concern; Maintain HOLD Bank of Baroda (BoB) has delivered a strong performance on asset quality front in 2QFY19, marked low fresh slippage of Rs22.8bn for seventh successive quarter. It's PCR including technically written-off accounts sequentially improved to 70.75%, which excluding technically written-off accounts stood at 61.79% in 2QFY19 vs. 69.11% and 59.94% in 1QFY19. The Bank's NII grew by 20.8% in 2QFY19 led by strong growth in loan book and relatively stable NIMs of 2.61%. Further, its core fee-based income remained strong ((+14.3% YoY and +12.3% QoQ) at Rs9.6bn. Domestic credit grew by 20.4% led by retail loans, which grew by 33.6% YoY. Within retail loans,...