Indiabulls research previews Sept quarter (2Q F2011) for State bank of India

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State Bank of India (SBIN IN, CMP: `3232; TP: `2718; Underperform)
• State Bank of Indore merger took place on 25 August 2010. We have readjusted numbers for proportionate number of days.

• We expect NIMs to remain stable as CASA growth remains robust, International margins improving from ~0.7 to ~1% and deposit growth to remain muted.
• We expect asset quality to witness some pressure with slippages to be higher at Rs. 40 bn. While we expect slippages from restructured book to be lower than our earlier estimates of 20%