NEW DELHI : The State Bank of India's (SBI) earnings are set to revive amid uncertain macros on the back of steady operating performance at pre-provisioning operating level, recoveries from large National Company Law Tribunal (NCLT) resolutions and normalisation in credit cost, according to a broking firm. The SBI posted ₹2,312 crore profit in the first quarter of FY20 as provisionings declined 11% year-on-year. "The SBI is poised for an earnings recovery led by steady operating performance at the pre-provisioning operating level (14% CAGR over FY19-FY21E), recoveries from large NCLT resolutions and normalisation in credit cost to 1.9-1.3% over FY20E/FY21E against average of 3% over FY16-19," it said. The brokerage said the bank was set for earnings recovery after a long lull. After reporting sub-optimal performance in the last few years due to high opex, interest reversals and provisioning pressures, the SBI is now poised for an earnings recovery, it said.

Source: Mint October 20, 2019 06:22 UTC