The recent slowdown in equity inflows have hampered the prospects of the markets going ahead.

The 15 public sector banks that have announced their Q4 results so far reported accumulated losses of nearly Rs 44,241 crore almost double of Rs 19,000 crore posted in the quarter ended December 2017. The losses are a fallout of new RBI norms ending all loan-restructuring schemes. Considering the worsening scenario, only a braveheart can enter PSU banks currently, Manish Sonthalia of Motilal Oswal told CNBC TV18. The IDBI Bank, Bank of India, Bank of Baroda, United Bank and Indian Overseas Bank are yet to announce their results and the losses may easily touch Rs 50,000 crore, considering the trend.

On top of this, the recent slowdown in equity inflows have hampered the prospects of the markets going ahead. Despite this, earnings for January-March quarter have been decent so far, said Manish Sonthalia. An investor must see out-performance or under-performance of markets on the base of cycles, he further told CNBC TV18.

Motilal Oswal is bullish on private sector banks and retail NBFCs.

SBI commentary was positive

Talking about the weak Q4 results posted by country’s largest public sector lender, he said even if the results were below estimates, commentary from SBI management post Q4 earnings was very positive. SBI reported a standalone net loss of Rs 7,718.17 crore for the quarter ended 31 March 2018 as bad loan provisions doubled as compared to same quarter last year.

The bank posted a standalone net loss of Rs 6,547.45 crore in the financial year 2017-2018 when compared to standalone net profit of Rs 10,484.1 in the corresponding quarter last year.

In Q4, SBI standalone provisioning rose by 139 percent to Rs 28,096.07 crore as against a provisioning of Rs 11,740.09 crore made in corresponding quarter in 2017.