Here's what Macquarie has to say on SBI's Q3FY21 results

State Bank of India’s (SBI) Q3FY21 numbers are way better than expected, said Suresh Ganapathy, Banking Analyst of Macquarie Capital Securities on Friday, while sharing his views and outlook on SBI.

The PSU bank has been consistently disappointing on asset quality for the last 5-6 years and therefore despite having a solid, robust liability franchise, the market always was sceptical, he said.

He believes the results showed that the balanced stress that SBI has on its book is extremely manageable. “Therefore, there is a very strong case for provisions of credit cost to normalise over the course of next one year thereby resulting in a massive earnings upgrade and correspondingly the target price increase,” he said.