UBS on SBI ; Neutral, TP Rs 1100

Reported a mixed quarter with strong NII growth of 5% QoQ and NIM of 2.94% (+8bp), both ahead of est. Yet, loan growth of 18.2% YoY (19% in 1Q) & 3% miss on PPOP due to higher opex were key negatives There was also a one-time gain from SBI MF listing of Rs72.9bn but was partly offset by treasury losses of Rs12.8bn. Ex - of listing gain RoA for H1 was <1% vs reported RoA of 1.14%. Retail loan growth of 14.5% YoY continued to lag overall loan growth and segments other than gold remained weak. Bank continues to maintain full year guidance of 14-15% loan growth, 1% RoA and >3% domestic NIM

STATE BANK OF INDIA

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