Anand Rathi said that on the monthly chart SBI has been consolidating for many months. In the last month, May 2021, SBI has closed above its channel, clearly moving towards its new way to Rs 500 and above zone. Currently looking towards its current technical monthly chart set up, Anand Rathi advises traders to buy SBI stock in the price range of Rs 428 – Rs 433 zone for the target price of Rs 505 – Rs 510 with the stop-loss of Rs 390. The time frame for this will be 1 to 3 months. SBI share price closed yesterday at Rs is Rs 439.05, up 0.4% or Rs 1.8. The stock made a new 52 week high yesterday at Rs 441.92 .

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Sharekhan Highlights key Positives, Negatives and Risks associated with SBI:

SBI Key positives:

Strong asset-quality performance, with total slippages and restructuring for FY2021, is well contained at Rs 46416 cr, which is 2.1% of total domestic advances
Strong retail deposit traction with CASA ratio at 46.10% (improving from 45% in Q3FY2021)
This is despite the bank paring deposit SA rates over the past few years
This indicates the franchise value and strength of the bank

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SBI Key negatives:

Tepid credit growth continues with domestic advances growing by 5.67% yoy in FY2021, despite healthy 14% yoy deposits growth.

SBI Key risk:

Slower-than-expected or delayed recovery in India’s economic growth (due to the ongoing pandemic) also a credit risk of higher slippages in the MSME etc. segment may impact earnings and book value.

SBI Background:

State Bank of India (SBI) a Fortune 500 company is an Indian Multinational, Public Sector Banking and Financial services statutory body headquartered in Mumbai. SBI is the largest Indian Bank with 1/4th market share, serves over 44 crore customers through its vast network of over 22,000 branches, 58,500 ATMs, 66,000 BC outlets. SBI has successfully diversified businesses through its 11 subsidiaries i.e SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, etc. It has spread its presence globally and operates across time zones through 233 offices in 32 foreign countries. Growing with times, SBI continues to redefine banking in India, as it aims to offer responsible and sustainable Banking solutions.