...November 5, 2020 SINGAPORE (S&P Global Ratings) Nov. 5, 2020--S&P Global Ratings said today that State Bank of India Ltd. (SBI) has the financial strength to withstand tough operating conditions in the next 12 months. In our view, SBI (###-/Stable/A-3) has a dominant market position and strong deposit franchise and liquidity. The very high likelihood of government support, if needed, provides a cushion to accentuated downside risks. SBI's performance in the second quarter (ended Sept. 30, 2020) was broadly in line with our expectations of a rebound in performance after the lockdown, with uncertainty about the amount of incremental stressed assets emerging over the next six months. The bank has continued to cut the cost of deposits and boost its net interest margin, while peers have faced pressure from excess investments in lower earning assets. Collection efficiency was excellent at 97% for the quarter, excluding agriculture loans. Furthermore, the flood of deposit funding despite interest...
