State Bank of India share price target

SBIN reported a modest quarter with weak NII growth (affected by higher interest reversals on Agri slippages), although stake sale gains from its cards subsidiary supported earnings. Overall, the bank maintains a PCR of 73% on Power sector NPAs. Total slippages declined to INR81.0b (v/s INR165.3b in 3QFY20) on decline across segments, with the Corporate segment accounting for INR15.6b, SME INR2.3b, and Retail INR6.0b. SBIN holds higher provision coverage on power NPAs SBIN currently does not have exposure to any large-ticket corporate account; thus, the slippage trajectory is expected to remain under 2% in the current COVID-19 crisis. Among the PSU banks, SBIN remains the best play on the gradual recovery in the Indian economy, with a healthy PCR of 65% (84% including TWO), robust capitalization (Tier 1 of ~11.0%), a strong liability franchise, and improved core performance in a very challenging environment.

Led by lower NII growth and higher provisions, SBI reported lower than estimated PAT of Rs 35.8bn (~Rs 16.7bn ex-SBI Cards stake sale). Higher agri slippages (Rs52bn) during Q4 impacted NII growth as the...

State Bank of India (SBI) posted mixed results, wherein, on one hand, operational performance came below expectations, but reasonable moratorium book and sequentially improved asset quality were positives. The bank has stated that there are around 23% customers who have opted for moratorium and have missed two or more instalment payments. This is reasonable, given the size and the nature of the bank's customer profile. Net interest income (NII) came in at Rs. 22,767 crore, down 18% q-o-q and flat y-o-y. There was an exceptional nature of gain of Rs. 2,731 crore (due...

State Bank of India (SBI) posted mixed results, wherein, on one hand, operational performance came below expectations, but reasonable moratorium book and sequentially improved asset quality were positives. The bank has stated that there are around 23% customers who have opted for moratorium and have missed two or more instalment payments. This is reasonable, given the size and the nature of the bank's customer profile. Net interest income (NII) came in at Rs. 22,767 crore, down 18% q-o-q and flat y-o-y. There was an exceptional nature of gain of Rs. 2,731 crore (due...

SBIN's Q4 PAT at Rs 36bn disappointed on weak NII growth and high provisions.

Rs50k has published its draft restructuring plan to stabilize the bank as financial position deteriorates and avoid depositors run on the bank. Draft scheme if accepted by investor will have to invest fresh capital into the bank with 49% stake and retain 26% shareholding in Yes for next three years. SBI has shown its willingness to invest in the bank and post due diligence will give its nod to RBI on the infusion by 9th Mar'20. RBI in its draft scheme has enhanced capital structure to Rs480bn with...

Rs50k has published its draft restructuring plan to stabilize the bank as financial position deteriorates and avoid depositors run on the bank. Draft scheme if accepted by investor will have to invest fresh capital into the bank with 49% stake and retain 26% shareholding in Yes for next three years. SBI has shown its willingness to invest in the bank and post due diligence will give its nod to RBI on the infusion by 9th Mar'20. RBI in its draft scheme has enhanced capital structure to Rs480bn with...

Yes Bank rescue plan stake purchase the lesser evil for SBIN

Fundamentally, other business parameters remain stable for the bank. A gradual pick-up in credit offtake coupled with A healthy operational matrix and lower slippages augurs well for future earnings. Gains from the SBI Cards IPO would flow in from Q4FY20. We expect return ratios to improve...

State Bank of India (SBIN) is the oldest and largest PSU player in the Indian banking sector, with a market share of 22.4%/20.1% (deposits/advances as on March 31, 2019). The bank's brand image, pan-India presence