State Bank of India share price target

We maintain a Buy on the stock with a revised target price of Rs 510/share (SOTP basis core book at 1.1x and subsidiaries at Rs 152), implying an upside of 27% from CMP.

Slippages at record low; credit cost guidance appears conservative SBIN reported a strong 4QFY21, with GNPA/NNPA ratio improving to 4.98%/1.5% (v/s pro forma GNPA/NNPA of 5.44%/1.81% in 3QFY21), aided by benign slippages (lowest in the past 20 quarters barring the period of moratorium/SC prohibition). Slippages stood at 1.2% of loans (much better than other large Banks) in FY21, with impeccable Retail asset quality (slippages at 0.5% of loans). Restructured book stands at 0.7% of loans, well within the management's guided range....

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Inflection for growth recovery has been reached State Bank of India is India's largest bank. The bank operates 22,330 branches globally and has a vast network of 57,889 ATMs/CDMs. It provides a wide range of financial services, such as insurance, credit cards and asset...

We maintain Buy on the stock with a revised target price of Rs 477 (SOTP basis core book at 1.1x and subsidiaries at Rs 151).

Slippages + restructuring to remain within the guided range SBIN reported strong performance, with healthy NII growth (excluding one-time interest recovery during 3QFY20) and strong recovery in retail credit growth. On the asset quality front, controlled pro forma slippages (INR20.7b) and low restructuring request (0.8% of loans) underscores an encouraging asset quality outlook. Pro forma GNPA/NNPA ratio stood at 5.44%/1.81% (v/s 5.88%/2.08% in 2QFY21). We believe the earnings normalization cycle for SBIN has begun as the...

State Bank of India's (SBIN) Q3FY21 PAT declined 7% YoY to Rs 52bn on a 5% dip in operating profit.

State Bank of India (SBI) is an attractive play on a gradual recovery in Indian economy, with a healthy PCR (88% including Technical Write Off), robust Tier 1 capital ratio of ~11.9% and a strong liability franchise. Manageable asset quality outlook with a 97% collection efficiency, guidance of just Rs. 60,000 crore for FY2021 slippages and restructuring (~2.5% of gross advances), and only ~Rs 2,000 crore of provisions remaining provide comfort. Stock trades at 1.2x / 1.0x its FY2022E / FY2023E ABVPS which is reasonable;...