Senior investment analyst

Pallavi Deshpande

Equity Bottom-Up

<p>The Reserve Bank of India's (RBI) recent circular requiring banks to disclose divergence in NPL classification and provisioning caused a lot of pain to the new private sector banks, however, <a href="https://www.smartkarma.com/entities/160" target="_blank" data-smartkarma-citation="entities:160:1">State Bank Of India's (SBIN IN)</a>(SBI) chose not to make similar disclosures and saved itself from the pain. We believe SBI was busy preparing for the merger and the clean-up of books took a back seat, with the above dispensation from the RBI being a quid-pro-quo for complying with its merger dictate. You can…</p>

The Reserve Bank of India's (RBI) recent circular requiring banks to disclose divergence in NPL classification and provisioning caused a lot of pain to the new private sector banks, however, State Bank Of India's (SBIN IN)(SBI) chose not to make similar disclosures and saved itself from the pain. We believe SBI was busy preparing for the merger and the clean-up of books took a back seat, with the above dispensation from the RBI being a quid-pro-quo for complying with its merger dictate. You can…

SBI: Rises Above the Law as It Complies with RBI's Merger Dictate