New Research Reports

PAT declined on subdued topline and higher credit cost, while operational efficiency offset some of its adverse impact

We maintain our BUY recommendation on the stock.

SBIN reported 1QFY25 PAT of INR170.4b (up 1% YoY, in line), driven by controlled opex. NII grew 5.7% YoY to INR411.3b (4% miss).

State Bank of India (SBI) has reported steady and broadly in-line Q1FY25 PAT of INR 170bn (up 1% YoY) with 1.1% RoA. Loan growth remained strong at ~16% YoY (up 1.2% QoQ). NIM adjusted for IT refund was flattish.

We maintain our BUY recommendation on the stock.

Earnings grew 10% y-o-y mainly driven by a 48% y-o-y fall in provisions, but core operational performance was weak. Overall asset quality was broadly stable.

Indian Bank (INBK) reported 1QFY25 PAT of INR24b (41% YoY, 9% beat), driven by lower provisions (as the bank reversed INR970m on account of the sale of stressed assets in 1Q).

Punjab National Bank (PNB) reported a 1QFY25 PAT of INR32.5b (8% beat), led by sharply lower provisions (67% YoY decline).

Sustained improvement in asset quality trends is resulting in lower credit cost. Earnings were above estimates in Q1FY25 driven by lower credit cost resulting in RoA at 0.82%.