SBI Q1 results slightly soft on NPAs and credit growth: Gurmeet Chadha

economictimes.indiatimes.com:

Gurmeet Chadha, CIO & Managing Partner, Complete Circle Consultants, says “SBI’s gross NPAs were Rs 91,000 crore. They are still about Rs 90,500 odd crore. Even the net NPA number is marginally up by Rs 1,000 crore.

If you see SBI over a period of time, the one number which may not be happy is the quarter on quarter credit growth. That is why year-on-year it is still showing 15%. But in Q&Q, it is a marginal improvement of about 1%.”If you look at numbers, the PAT is above estimates. NII is in line with estimates but the absolute gross NPA has risen by about 0.4% on a quarter-on-quarter basis while the net NPA has seen an uptick of about 7% up quarter-on-quarter basis. Do you think it is a cause of worry?We probably need to see and hear management more in terms of what is the breakup and what is the reason.

Is it anything to do with a corporate account or retail account? But, overall in terms of how SBI has done over the years on credit cost metrics, on overall asset quality, it has been quite good. Profits are almost Rs 16,800 crore. NII numbers also look pretty much in line.

We will wait for the commentary more. Optically, it looks like a slight increase in asset quality. So, probably I would want to hear the management more before making a comment on it.

But optically, the numbers look in line as far as I am concerned so far.We are waiting for the slippages numbers but what we were expecting is even if it comes approximately at around Rs 8,500 crore of slippages, it would not be that much of a concern. But now, what else could weigh on the stock?As far as absolute numbers are concerned, there is no sizable jump as such. Gross NPAs were Rs 91,000 crore.