Best Bank Stocks To Invest In 2023

Motilal Oswal’s research report on State Bank of India

SBIN has demonstrated a strong improvement in asset quality, with GNPAs declining by 43% over the past three years, while PCR increased to 68% currently from 40% four years back. Fresh slippages moderated sharply to 1.2% in FY21 (2.5% in 1QFY22), lower v/s many of its private peers. AUCA book stood at INR1.72t – higher than the GNPL pool, with recoveries in the 6-11% range. Over the past five years, the bank has recovered ~INR400b from the AUCA book. We expect the recovery trends to continue as the IBC process gains pace after a long pause due to the COVID-19 restrictions. SBIN appears well positioned to report strong uptick in earnings, led by moderation in credit cost from FY22. The bank has historically delivered over 15% RoE for 10 years, before the worst phase of the corporate cycle hit earnings to the point that it reported back-to-back losses in FY17/FY18. During FY19-21, SBIN has shown a remarkable improvement in asset quality, reducing net NPLs to 1.8% at present from 5.7% in FY18, while PCR stands comparable to many well-run Private Banks.

Best Bank Stocks To Invest In 2023: BioScrip, Inc.(BIOS)

BioScrip, Inc. provides home infusion and other home care services, and pharmacy benefit management (PBM) services in the United States. It operates in two segments, Infusion Services and PBM Services. The Infusion Services segment offers home infusion therapy and respiratory therapy services; and durable medical equipment, products, and services. Its services comprise home infusion services, including intravenous administration of medications to treat a range of acute and chronic conditions, such as infections, nutritional deficiencies, immunologic and neurologic disorders, cancer, pain, and palliative care; dispensing and administering of infusion-based drugs, which require nursing support and clinical management services; equipment to administer the dosage; and patient training. The PBM Services segment offers discount card programs that provide an alternative for individuals who may be uninsured, underinsured, or might have restrictive coverage, which disallows reimbursement for certain medications. The company was founded in 1993 and is based in Eden Prairie, Minnesota.

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