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