State
Bank of India
Reco:
REDUCE
CMP:
Rs2171
Target
Price: Rs1750
Slippages
revised; No change in estimates
Slippage/upgrades
revised down by Rs13.9bn
SBI has
revised down its slippages and upgrades by Rs13.9bn for Q2FY13.
Management explained that some of the accounts (worth Rs13.9bn)
slipped during the quarter and were also upgraded during the quarter
itself. Thus, after netting off these numbers, the slippage for the
quarter would stand revised down to Rs70.7bn (still 3.1% annualized)
and the upgrade number would stand revised down to Rs16.6bn.
The
reported net slippage for the quarter (excluding write off) would
remain unchanged at Rs39.8bn (1.7%
annualized).
However,
earlier we understood that these upgrades pertained to slippages of
the previous quarter and had assumed net slippages of Rs56bn for
Q2FY13.
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