{"id":595,"date":"2020-01-03T11:32:02","date_gmt":"2020-01-03T11:32:02","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=595"},"modified":"2020-01-03T11:32:04","modified_gmt":"2020-01-03T11:32:04","slug":"2020-will-be-the-best-year-in-terms-of-recoveries-rajnish-kumar-sbi","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2020\/01\/03\/2020-will-be-the-best-year-in-terms-of-recoveries-rajnish-kumar-sbi\/","title":{"rendered":"2020 will be the best year in terms of recoveries \u2013 Rajnish Kumar, SBI"},"content":{"rendered":"\n<p><span style=\"text-decoration: underline;\">Excerpts from an interview of Mr Rajnish Kumar, Chairman, State Bank of India with live mint dated- 02-01-2019:<\/span><\/p>\n\n\n\n<p><strong>Update&nbsp;on\nthe Indian Equity Market:<\/strong><\/p>\n\n\n\n<p>On Thursday,\nNIFTY closed +0.8% higher. Among sectoral indices NIFTY Metal (2.7%), NIFTY PSU\nBank (+2.0%), NIFTY PVT Bank (+1.2%) closed higher. NIFTY IT closed on marginally\nnegative. The biggest gainers were Tata Motors (+5.1%), Tata Steel (+4.3%) and UltraTech\nCement (+4.2%) whereas Eicher Motors (-2.3%), BPCL (-1.0%), and Bajaj Auto\n(-0.9%) ended with losses.<\/p>\n\n\n\n<p><em>We offer research services on the Indian equity market and plan to offer investment advice shortly.&nbsp;For information on our services, please visit our website <\/em><a href=\"http:\/\/www.assetmultiplier.co.in\/\"><em>http:\/\/www.assetmultiplier.co.in\/<\/em><\/a><\/p>\n\n\n\n<ul><li>Mr Kumar says, there is an issue around credit\ngrowth particularly in the corporate sector. This year, estimated growth is\naround 7-8%. <\/li><li>Non-performing assets (NPAs) are alright,\natheist the recoveries are happening.<\/li><li>Term loans are growing. The year-on-year growth\nis \u20b91.7 trillion. Last\nyear, the bank had seen good disbursements and that helped to achieve high\ncredit growth of 13%.<\/li><li>He says the pickup in capacity utilization has\nnot happened as of now. It would have been reflected in working capital\nutilisation if there was any pickup.<\/li><li>Speaking about sector growth, he says, only\nthree sectors have proposals with SBI \u2013 roads, solar and city gas projects or\noil and gas.<\/li><li>Speaking about Jet Airways, he says, it has been\nleft to resolution professional. If the RP decides to go for one more round of\nbidding, then the bank will make one more attempt.<\/li><li>The pace of referrals with National Company Law\nTribunal (NCLT) will come down. There are not many cases now that are \u20b91,500 crore and above.<\/li><li>Speaking about steps expected by government or\nRBI to revive growth, he says, some sector-specific steps are required, telecom\nissues need to be sorted out.<\/li><li>In terms of recoveries, the coming quarters are\ngoing to be the best. 2018 was the best year in terms of NPA provisions and\n2020 will be best year in terms of recoveries. 2021 onwards things will be\nnormal unless there is a major shock.<\/li><\/ul>\n\n\n\n<p>Consensus\nEstimate (Source: market screener and investing.com website)<\/p>\n\n\n\n<ul><li>The closing price of SBIN was \u20b9 339\/- as of 02-January-20.\nIt traded at 1.3x \/ 1.2x \/ 1.0x the consensus Book Value for FY20E \/ 21E \/ 22E\nof \u20b9 251\/ 281\/ 322 respectively.<\/li><li>Consensus target price of \u20b9 376\/- implies a\nPrice to Book multiple of 1.1x on FY22E Book Value of \u20b9 322\/-.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Excerpts from an interview of Mr Rajnish Kumar, Chairman, State Bank of India with live mint dated- 02-01-2019: Update&nbsp;on the Indian Equity Market: On Thursday, NIFTY closed +0.8% higher. Among sectoral indices NIFTY Metal (2.7%), NIFTY PSU Bank (+2.0%), NIFTY PVT Bank (+1.2%) closed higher. NIFTY IT closed on marginally negative. The biggest gainers were [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,53],"tags":[138,176],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/595"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=595"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/595\/revisions"}],"predecessor-version":[{"id":597,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/595\/revisions\/597"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}