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Last Updated : Aug 09, 2020 08:58 AM IST | Source: Moneycontrol.com

Buy State Bank of India; target of Rs 245: Arihant Capital

Arihant Capital is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 245 in its research report dated August 03, 2020.

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Arihant Capital 's research report on State Bank of India


State Bank of India posted Q1FY21 earnings almost in line with expectations for quarterly and annual profits. The bank’s NII for Q1FY21 stood at Rs 26,642 Cr, increasing by 16.1% YoY/17.0% QoQ. PPOP increased by 24.7% YoY/7.0% QoQ and Net Income stood at Rs 4,189 Cr, up by 81.2% YoY/17.0% QoQ. Advances growth (+7.7% YoY/down by 1.2% QoQ) was driven primarily by fresh SME segment disbursals which grew by 4.1% QoQ while retail loans grew a tad slower by 0.2% QoQ and the agri & corporate portfolio de-grew sequentially. The deposits grew by 16.0% YoY/5.5% QoQ in Q1FY21, and was driven by both savings (up 8.4% YoY/17.3% QoQ) and term deposits (15.4% YoY/5.4% QoQ) after consumption trend slowed down due to the pandemic.


Outlook


BV multiple of 0.6x on FY22E adj. BV of INR 259 for standalone bank and use a SOTP approach to value its subsidiaries, to arrive at a revised Target Price of INR 245 and maintain our BUY rating.


For all recommendations report, click here


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First Published on Aug 9, 2020 08:58 am
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