Buy State Bank of India; target of Rs 380: Motilal Oswal

Motilal Oswal's research report on State Bank of India

INR36.5b) for 4QFY19, dragged by higher provisions of INR165b. NII increased 15% YoY to INR229.5b (in-line), driven by strong loan growth of 13% YoY. Domestic NIM expanded 5bp QoQ to 3.02%. For FY19, NII grew by 18%, while PAT stood at INR8.6b (v/s a loss of INR65.5b in the previous year). Outlook

We currently value the stock at 1.2x P/ABV and arrive at a target price of INR380. The stock is primed for a further re-rating as the credit cost curve keeps shifting down. Maintain Buy.

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