SBI Share price: In its report, HDFC Securities says that State Bank of India (SBI) is the country's largest domestic bank and a market leader in retail advances. SBI has an extensive network of around 22,000 branches and over 58,350 ATMs. SBI is a financial conglomerate. Through its various subsidiaries and JV companies, it has presence in insurance, asset management, credit cards and various other services including stake in various regional rural banks. HDFC Sec says that all these are performing exceptionally well and adding substantial value to the bank’s valuation. This will also help SBI hedging against downturns in specific segments and access multiple growth avenues. All of the consolidated business is trading at attractive valuations. SBI share price today is trading at Rs 335, up Rs 5.5 or 1.6%. SBI Share price has moved down from Rs 346 to 335 in the last 1 week

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Technical Analysis on SBI:

Vishal Wagh, Research Head at Bonanza Portfolio says that PSU banks are already underperforming major indices. Post a decent rally pre and post-budget the SBI has corrected on the expected ground and the zeroed target of Rs 340 had achieved in the process SBI has touched levels of Rs 322. Thanks to the strongest demand zone between Rs 325 – Rs 340 a decent pullback is seen in the SBI. SBI is underperforming the major indices on a daily basis.  But on a weekly and monthly basis, the chart set-up is still favouring SBI. The big candle Post budget is still valid and only retraced by 66% still the bottom of Rs 286 is not broken.  On the higher side, the level of Rs 368 will be tested in a day or two and if it sustains above it then one can see the resumption of the uptrend.

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SBI is almost immune to any liability-side risks at this juncture, given its expansive, granular deposit base and government’s majority holding. It is better placed to curtail asset quality worries than many other large banks because of its quality of loan book. Moreover, ample provision coverage will curtail incremental loan loss provisions. After a prolonged period of stress, Indian banking sector had finally entered into resolution and recovery phase, highlights HDFC Securities

HDFC Securities says that corporate facing banks like SBI with huge corporate book size had a lot to gain. Any further delay in the process of resolution of large assets due to current uncertainties and extension granted under IBC could be a dampener. Recent COVID19 pandemic is likely to have far reaching impact on the banking sector. Credit growth is already low and asset quality issues are likely to spread into many sectors. On-going stress in Corporate and SME segment might accelerate and in fact retail loan segment might emerge as a new source of stress