Adapting to Change
1.23% Net NPA ratio in Q3 FY21, down 142 bps year-on-year
7.6% Year-on-year credit growth in Q3 FY21
A week ago, Dinesh Kumar Khara, 59, the new Chairman of India’s largest bank, State Bank of India (SBI), had said the ‘elephant is ready to dance’. Khara’s optimism shows up in the bank’s stock market performance where its share price doubled since he took charge in October 2020.
The reasons are a greater control over asset quality deterioration, robust base of low-cost deposits, retail banking acceleration in mortgages and institutional setup for housing loans gone bad and financing long-term infrastructure projects. Also, the bank’s subsidiaries are already firing on all cylinders. Be it SBI Cards or SBI Life, the higher market valuations indicate the future scalingup of these businesses.
In the BT-KPMG study of India’s Best Banks, the jury was unanimous
