State Bank of India (2QFY15) : Best amongst peers. Maintain BUY :: HDFC Sec, link

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NII stood at Rs 133bn, +9% YoY, driven by NIM of 3.1%
and loan growth of 9%. Non int. inc. was 11% above
expectation. However, sharp QoQ rise in other opex
led to PPoP of Rs 84bn (+33% YoY), 3% below
estimates. Continued high provisioning cost (+41% YoY)
of Rs 43bn led to PAT miss, despite a lower tax rate.
PAT came in at Rs 31bn (+31% on low base).
 G/NNPA increased a mere 1/4% QoQ to form 4.9/2.7 of
loans. Gross stress addition was lower at Rs 117bn,
3.9% ann. Slippages of Rs 77bn (Rs 17bn from
restructured pool) saw QoQ decline across segments.
The bank reported restructured std. loans of Rs 40bn
and has a pipeline of another Rs 30bn. O/S Std.
restructuring pool now stands at 3.6%.
 RWA rise was contained at a mere 5% YoY vs. 12% B/S
growth & 30% jump in infra loans. This indicates
incremental growth within better rated corporates &
segments which attract low risk weights. Further, Tier-I
at 10% and stable PCR of 63% strengthen the B/S. QoQ
exposure towards stress mid-corp was flat and SME
declined 3%.

LINK
http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3009851