Due to the recent ban on Rs 500 and Rs 1000 currency notes to curb counterfieting and crack down on black money, Agarwalla says MSMEs' business will be severly hurt and could lead to slippages.
Siddharth Purohit of Angel Broking said that the slippages number has been a positive surprise and this shows that SBI has been able to manage its asset quality and balance sheet better than other PSBs.
There has been a pick-up in road projects and strong demand in the commercial vehicle space, says Manish Agarwalla, Co-Head of Research, Banking and NBFCS, PhillipCapital.
Major drawbacks would be the stress is asset quality of the SBI Group post the merger and a surge in employee costs, says Manish Agarwalla, Co-Head of Research at Phillipcapital.
Indian banks have welcomed new rules that could allow them to take majority stakes in troubled companies as a warning to wayward entrepreneurs, even if the provisions will not apply to the bulk of struggling loans from past years.