State Bank of India share price target

Merger of subsidiaries is a onetime cost for creation of Provident Fund of Rs 30bn. The cost to income ratio of merged entity stands at 50% which the management expects to come down to 45% over three year time frame. This will be driven by branch rationalisation; economies of scale, removal of duplicationofvariousdepartmentliketreasury. Rationalisation of deposit cost in line with parent bank as associate use to...

The Board of Directors of State Bank of India (SBI) has approved the swap ratio for taking over four associate banks i.e. State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank (BMB). Notably, SBI has not publicly announced swap ratio for unlisted State...

9 Asset quality performance was better than expectation due to sharp moderation in slippage. However the bank maintained its stressed assets watchlist position at Rs 313bn(2.1%ofloanbook).StandardrestructureddeclinedtoRs365bnVsRs390bnqoq. 9 At the preprovision level results surpassed our expectation, led by strong 44% yoy growthinnoninterestincomedrivenbytreasurygain.HigherprovisionsonNPAdueto...

ICICI Securities Ltd | Retail Equity Research SBI reported a healthy operational performance and QoQ easing of asset quality pressure during Q1FY17 Asset quality pressure eased in terms of fresh slippages, which were at | 8790 crore vs. | 30313 crore. However, there were further slippages from the existing NPA book of | 2007 crore. Absolute GNPA increased 3% QoQ to | 101540 crore with GNPA ratio at 6.94%. Standard RA was at | 36551 crore or 2.5% of total advances...

SBIN started FY17 with relatively stable asset quality (compared to peers including corporate-heavy pvt banks). At 2.2%, its watch list now includes overseas stress. Despite soft macro print, we believe GNPAs are close to peaking out for SBI at ~7% post the 3% slippage this quarter.

State Bank of India (SBI), founded in 1806, is the oldest and largest commercial bank in India engaged in providing a range of banking and financial services. SBI has a total of 16,784 branches making it the country largest bank accounting for around 17-18% share in banking industry business. With the declining stressed level and improving balance sheet quality due to AQR, SBI is well poised to avail business opportunities that are likely to emerge with the improving Indian economic scenario and enhancing financial inclusion. We are of the view that SBI is likely to...

ICICI Securities Ltd | Retail Equity Research Asset quality deterioration continued with GNPA increasing to 6.5%, up from | 72790 crore to | 98173 crore QoQ while NNPA rose to...

8 Overall performance was impacted due to asset quality cleanup. The bank reported stressedassetswatchlistofRs313bn(2.1%ofloanbook),thisincludesRs26bnin5/25 andSDRandRs116bninrestructuredbook.Ofthis,itexpects70%toslipinFY17,ithas...

Merger with associate banks has been a long-pending agenda. We value SBIN on consolidated basis. As the integration cost and dilution associated with the merger is not meaningful, it is unlikely to change our target price. BMB...

For 3QFY2016, State Bank of India (SBI) reported a PAT of `1,115cr, which is in line with our expectation. Although the PAT declined by 61.7% yoy and 71.2% qoq, the performance can still be termed satisfactory given the cleaning up of NPAs taken up by the bank and with it having provided for higher provisions during the quarter. Higher provisions dented profits; NIM under pressure: The bank's advances grew by a healthy 12.9% yoy while its deposits grew by 10.7% yoy during the quarter. The NII declined by 1.2% yoy due to interest reversal to the tune of `450cr on NPA recognition. The operating profit grew by a meager 3.3% yoy however, it declined by 7% qoq while provisions went up by 2x qoq, thereby leading the PAT to decline by 61.7% yoy and 71% qoq to `1,115cr. Asset quality deteriorated further, but cleaning up of balance sheet a positive move: Fresh slippages for the quarter came in at `20,692cr (slippage ratio of 6.2%) as against `5,875cr in 2QFY2016. Slippages from AQR related accounts were at `14,800cr (70% of these were accounted by 3 accounts in the steel and textile sectors) while `5,000cr of slippages were from the restructured book....