In the wake of mega merger, SBI stands to gain market share in fast-growing Retail and SME segments. Notably, it has been able to deliver relatively better operating performance vis-vis its peers despite elevated stress on balance sheet. Further, analysis of its stressed assets clearly suggests that it is approaching the end of recognition of stressed loan cycle, which along with higher PCR clearly indicates sharp moderation in credit cost from FY19 onwards. Moreover, SBI has been able to clean-up its loan book effectively, which reasonably assures that it may surprise positively on operating and asset quality front, going forward. We continue to maintain our BUY recommendation on the stock with an SOTP-based Target Price of Rs370 (from Rs355 earlier) valuing parent at 1.7x FY19 Adj. BV implying standalone value at...