From hope to happiness: Analysts find SBI's FY2020 plan credible

State Bank of India (SBI) seems to be taking the Rs 77.18-billion loss in the March 2018 quarter in its stride with the bank’s chairman Rajnish Kumar expecting better days ahead.

“The year gone by was one of despair, the current year is one of hope and 2019-20 will be the year of happiness,” Kumar said.

He expects gains from higher credit growth, robust financial profile and control on costs.

Despite SBI’s poor numbers, the stock market has taken an optimistic view on the outlook as is evident from the stock gaining 7.4 per cent in two trading sessions.

Analysts say FY2020 targets as set by the country’s largest lender are credible and very much within reach. The clean-up of balance sheet involving recognition and provisioning for bad loans is almost through. While retail credit, which was 57 per cent of total loans in FY18, is growing at a healthy pace. Its leadership position in corporate lending, for which demand is picking up, will also stand in good stead.