State Bank of India share price target

SBIN continues to strengthen its Balance Sheet and improve its return ratios. The management's focus has been on building a granular, high-quality loan portfolio, while maintaining a strong focus on underwriting, which has aided a sustained turnaround in operating performance. SBIN remains well positioned to withstand MTM losses in its treasury portfolio as the rate environment hardens further. Retail growth is likely to remain strong. This, along with a pick-up in the SME and Corporate book (as the un-utilized limit continues to moderate to 40% v/s 53% a couple of quarters ago), will support loan growth. Improving margin, deployment...

State Bank of India is India's largest bank. The bank operates 22,224 branches globally and has a vast network of 63,906 ATMs/CDMs. It provides a wide range of financial services, such as insurance, credit cards and asset...

We maintain a BUY on the stock with a revised target price of Rs 720/share (SOTP basis core book at 1.3x FY24E and subsidiaries at Rs 211).

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SBIN reported another strong quarter, with PAT up 62% YoY to INR84.3b (4% beat), aided by steady NII growth and controlled provisions, as asset quality showed remarkable strength. GNPA/NNPA ratio improved by 40bp/18bp QoQ to 4.5%/1.3% as slippages subsided to INR25.8b (37bp annualized). Restructured book...

SBIN has demonstrated a strong improvement in asset quality, with GNPAs declining by 43% over the past three years, while PCR increased to 68% currently from 40% four years back. Fresh slippages moderated sharply to 1.2% in FY21 (2.5% in 1QFY22), lower v/s many of its private peers. AUCA book stood at INR1.72t higher than the GNPL pool, with recoveries in the 611% range. Over the past five years, the bank has recovered ~INR400b from the AUCA book. We expect the recovery trends to continue as the IBC process gains pace after a long pause due to the COVID-19 restrictions. SBIN appears well positioned to report strong uptick in earnings, led by moderation...

State Bank of India is India's largest bank. The bank operates 22,224 branches globally and has a vast network of 63,906 ATMs/CDMs. It provides a wide range of financial services, such as insurance, credit cards and asset...