Buy State Bank of India; target of Rs 390: Sharekhan

Sharekhan's research report on State Bank of India

State Bank of India (SBI) posted strong results for Q4 FY19 where while its topline and operational performance were in line with expectations, but the sharp improvement in asset quality was the key notable. Net interest margin (NIM) improved by 28 bps sequentially to 2.95% helped by strong domestic advances growth. Along with reduction in GNPAs its provision coverage ratio (PCR) at 78.7% is amongst the best in industry and a strong positive.

Outlook

We maintain our Buy rating on the stock with revised PT of 390.