State Bank of India share price target

State Bank of India (SBIN) announced one-time settlement scheme for bad & doubtful tractor and farm equipment loans. As per media, such loans aggregate to ~Rs 60 bn (i.e. 0.4% of Q3FY17 loan book and ~4.8% of Q3FY17 agri loans).

NII increased to Rs. 19659.36 Cr in Q3FY17 compared to Rs. 19644.48 Cr in Q2FY17.

Profit of ~Rs 17.6 bn received from stake sale in SBI Life helped buoy SBIN's Q3PAT to Rs 26 bn. Loan growth remained muted (+4% YoY) due to ~11% YoY decline in SME loans and largely flat large corporate book. Tailwinds from demonetization aided SA accrual (CASA up 35% YoY; ratio improved ~400 bps..

Cabinet approves acquisition of subsidiary banks of State Bank of India The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved the acquisition by the State Bank of India of its subsidiary banks namely State Bank of Bikaner and...

other income on back of selling of non-core assets provided support to PAT. Q3FY17 Result Analysis: Net interest income (NII) of bank grew by 8.4% YoY and 2.2% QoQ in Q3FY17 (1.3% YoY and 0.9% QoQ in Q2FY17) despite the challenging business environment during the quarter. Pre-provision operating profit (PPOP) grew by significant 30.7% YoY and 11.8% QoQ due to the high NIIs growth and better operating efficiencies. Operating expenses grew by 16.5% YoY and 2% QoQ and thereby the cost-to-income (C/I) ratio declined 230 bps to 48.6% as compared to 50.9% in the previous quarter. NIM during the quarter...

SBINs net stressed assets (incl. watch list) further fell 7% QoQ led by sharp drop in watch list and stable asset quality (NNPA 2%). SBIN?s watchlist (Rs 180bn, -31% QoQ) at a mere 1.2% is much lower vis-a-vis large pvt banks like ICICIBC (~6%) and AXSB (3.7%).

ICICI Securities Ltd | Retail Equity Research Fresh slippages remaining contained at | 10185 crore as guided, leading GNPA ratio to rise just 9 bps QoQ to 7.23%. Absolute GNPA addition was lower at | 2389 crore vs. | 4242 crore and increased just 2% QoQ to | 108170 crore. NNPA ratio rose 5 bps QoQ at 4.24% Strong other income of | 9662 crore up 56% YoY (mainly due to trading gains and profit from 3.9% stake sale in SBI Life at | 1775 crore) and improving NII to |14751 crore up 8.4% YoY led operating...

SBI is a beneficiary of positive trends in the industrial sector and more specifically in the Iron & Steel and Power sectors from an NPA outlook..

BUY State Bank of India between Rs. 261 - 238 for the Target of Rs. 302

ICICI Securities Ltd | Retail Equity Research Fresh slippages remained higher QoQ at 11852 crore vs. | 10797 crore, led by slippages from restructured book and watch list. Absolute GNPA increased 4% QoQ to | 105780 crore with GNPA ratio increasing by 20 bps QoQ at 7.14%. Standard RA was at | 36570 crore or 2.6% of advances Outstanding SDR was at ~| 18000 crore of which ~60% is NPA. For 5/25, it was at ~| 19200 crore with ~35% as NPA. The management...