State Bank of India - Q3 FY21 Result Update: Rating: BUY, Target Price: Rs440, Upside 23.9%

ZeeBiz WebTeam | Feb 05, 2021, 01:41 PM IST

Stock to Buy - State Bank of India’s (SBI) Q3 FY21 performance saw growth in loan book and asset quality. The bank experienced a healthy 3 per cent quarter-on-quarter (QoQ) expansion in loan book aided by sustained robust traction in retail segment which grew 6 per cent QoQ and 16 per cent year-on-year (yoy). Strong indications of improved asset quality outcomes driving profitability normalization at State Bank of India (SBI). Source: IANS

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SBI Loan Growth

SBI Loan Growth

With capital and credit scenario no more a constraint, SBI’s loan growth is expected to move past 10-12 per cent over the medium term supported by increasing lending opportunities. Source: IANS

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SBI fee, employee cost

SBI fee, employee cost

Firm NIMs, revival in fee growth and recoveries, restrained increase in employee cost (provisions of wage revision behind) and normalization of credit cost should drive a smart RoA/RoE recovery in FY22/23 for SBI. Source: PTI

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SBI Stock Rating

SBI Stock Rating

SBI, stand-alone bank, trades at an undemanding valuation of 0.6x P/ABV and 4x P/E on FY23 estimates. Rate SBI stock as BUY with a 12m PT of Rs 440 (contribution of holdings in subsidiaries/associates at Rs174/share). Source: PTI

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SBI Stock Price Today

SBI Stock Price Today

At 1:30 pm the SBI stock was trading at Rs 391.85 on NSE, up by almost 10 per cent from the previous close. Source: PTI