“SBI’s valuations at 0.3 times September 2022 book is clearly undemanding, in our view, and in line with much weaker PSU peers. SBI has managed its non-performing loans quite well lately despite the pandemic. But even while gross non-performing loans have come down to about 5.4% of loans in Q2, it remains high. SBI, however, remains better placed among PSU peers. But note that stress in several parts of the economy continues, and any delay in economic recovery could impact profitability and hurt non-performing loans.

Source: Mint December 29, 2020 09:11 UTC