SBI Annual Report: 7 key takeaways

Best performance in FY23 

FY23 was the best year for SBI in terms of overall operating performance, profitability, asset quality, and a stronger balance sheet with diversification across segments.

Business outlook ahead 

SBI’s focus is 'to be the bank of choice of today and tomorrow,' and the management has indicated that the thrust on physical and digital presence is likely to continue going forward.

Stable domestic market  

State Bank of India’s (SBI) market share in credit terms stood at 20.3%  in the fiscal year gone by, while market share with respect to deposits inched up marginally to 23.6% in FY23. 

 Improvement in asset quality  

India’s largest lender reported one of the best years in terms of asset quality growth. The gross and net non-performing assets or bad loans stood at 2.78% and 0.67%, respectively.

Highest-ever profitability 

SBI reported the highest-ever profitability in FY23 driven by margin expansion and credit growth, its net interest income (NII) grew by 20%, and NIM expanded to 3% in the last fiscal year.

What brokerage say?  

Nirmal Bang believes that SBI is well-positioned to capitalise on the growth opportunity going ahead on the back of improved credit quality, and its overall lending profile also continues to be strong.

Should you buy? 

Nirmal Bang maintained a ‘buy’ rating on the stock with a target price of Rs 680 per share, implying an 18% upside, as it is well poised to sustain its return ratios going forward.

Source: Nirmal Bang