Gaurang Shah of BNP Paribas said that the bank has been quite efficient in maintaining its cost of borrowing and cost of lending, which is why the net interest margins (NIMs) have been maintained.
Reacting to the news, Siddharth Purohit, Senior Research Analyst at Angel Broking, said that the reported numbers look decent. Surprisingly, gross NPA numbers haven't gone up in percentage and absolute terms, he said. There could have been some upgradation, he said.
The senior management's focus will now shift from recovering SBI's non-performing assets (NPAs) issues to the 7 branches merged and its 70,000 employees, says Hemindra Hazari of hemindrahazari.com.
Hemindra Hazari, hemindrahazari.com, said most of the bad debts being identified are from large corporates. But he feels the bad debts will slowly start coming from the small and medium-sized enterprises (SME).
With sales of loans to asset restructuring companies (ARC) and 5/25 rules, the bank has distinguished itself from others, says Hemindra Hazari of hemindrahazari.com.
On the sidelines of the second edition of a two-day conference, Gyan Sangam, CNBC-TV18 brings SL Bansal, Ashvin Parekh and Hemindra Hazari to talk about the non-performing loans (NPL) menace banks have been facing with in its special series 'Gyan for Banks'.
Asset quality weakened in December quarter but it was better compared to peers. Gross non-performing assets (NPA) increased 95 basis points QoQ and 20 bps YoY to 5.1 percent and net NPA rose 75 bps QoQ and 9 bps YoY to 2.89 percent in Q3.
Hemindra Hazari recommends avoiding the entire financial intermediary space because there is still lot of pain to come but if institutional investors have to be in the space then one should look at HDFC Bank and Kotak Mahindra Bank.
Independent market expert Hemindra Hazari says the market is deluding itself if it believes that banks with significant exposure to corporates can report 20 percent plus growth in earnings and with relatively no NPAs
The bank has always been rock solid in terms of asset quality and the improving trend will continue going forward too, said Vaibhav Agrawal of Angel Broking.
Jai Bala of 1857 says it may be a good idea to hold on to winners such as Cipla, Ceat and Bosch rather than search for new ones. He is also positive on the telecom (Bharti Airtel, Idea Cellular) and auto space.
Hemindra Hazari, Independent Market Expert has a positive view on the IT and pharma sectors.
Hemindra Hazari, Independent Market Expert is of the view that one may look at State Bank of India and Syndicate Bank.
Hemindra Hazari, Independent Market Expert is of the view that one may look at Britannia Industries.
Hemindra Hazari, independent market expert has a cautious view on Tata Motors.
Hemindra Hazari, independent market expert is of the view that Midcap pharma is going to be a better bet because large cap pharma.
Mithil Pradhan of Violet Arc Global Managers recommends investors to continue to stay invested and buy on dips. He is bullish on stocks such as Cipla, Biocon, HUL, LIC Housing Finance and GIC Housing Finance. He also likes the midcaps space, especially names such as Arvind and PVR.
Manas Jaiswal, manasjaiswal.com clearly believes one must short on every rise because the overall trend for the market is negative.
Hemindra Hazari, Independent Market Expert has a positive view on pharma and FMCG space.
Hemindra Hazari, Independent Market Expert is of the view that one may prefer largecap IT over midcap IT.
Hemindra Hazari, Independent Market Expert is of the view that one may avoid the banking space.
Hemindra Hazari, Independent Market Expert is of the view that one may look at Kotak Mahindra Bank.
Hemindra Hazari, Independent Market Expert is of the view that one can stay away from Tech Mahindra.
Hemindra Hazari, Independent Market Expert is of the view that FMCG is the appropriate sector to be in.
Kunj Bansal of Centrum Wealth Management on the other hand believes if the market continues to remain positive, not just long and medium-term investors, but even short-term investors can make money in Federal Bank.