Sharekhan's research report on State Bank of India
As credit growth has steadily improved, we believe banks with strong balance sheet, capital position and investments in digitalisation/technology are better placed to ride on the potential uptick in credit off-take. State Bank of India (SBI) has an edge in terms of loan book growth deriving from overall systemic improvement in credit demand. The management’s focus on building a granular loan portfolio with better underwriting practices has aided robust operating performance and profitability. The bank’s asset quality too has improved significantly over the past three years. With a correction of 10% from highs of Rs. 549, SBI presents a good investment opportunity.
The stock trades at 1.6x and 1.5x its FY23E and FY24E P/BV. We maintain a Buy rating on the stock with an unchanged SOTP-based PT of Rs. 650.
At 17:30 State Bank of India was quoting at Rs 494.95, down Rs 2.45, or 0.49 percent.
It has touched an intraday high of Rs 501.40 and an intraday low of Rs 491.90.
It was trading with volumes of 461,843 shares, compared to its thirty day average of 1,292,805 shares, a decrease of -64.28 percent.
In the previous trading session, the share closed up 1.44 percent or Rs 7.05 at Rs 497.40.
The share touched its 52-week high Rs 549.05 and 52-week low Rs 321.15 on 07 February, 2022 and 19 April, 2021, respectively.
Currently, it is trading 9.85 percent below its 52-week high and 54.12 percent above its 52-week low.
Market capitalisation stands at Rs 441,723.65 crore.
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