State Bank of India share price target

State Bank of India (SBIN) reported 2QFY25 PAT of INR183.3b (up 28% YoY,12% beat), driven by a steady NII and robust treasury income.

PAT at Rs. 18,331 crore (up 28% y-o-y) was significantly above estimates mainly driven by higher treasury gains and other income resulting in RoA/RoE at 1.17%/18.0% in Q2FY25.

SBI, to its credit, has one of the lowest domestic LDR, strong LCR and a formidable regulatory retail deposit franchise. Together, these significantly bolster the bank from the systemic issue of slower deposit growth.

PAT declined on subdued topline and higher credit cost, while operational efficiency offset some of its adverse impact

We maintain our BUY recommendation on the stock.

SBIN reported 1QFY25 PAT of INR170.4b (up 1% YoY, in line), driven by controlled opex. NII grew 5.7% YoY to INR411.3b (4% miss).

State Bank of India (SBI) has reported steady and broadly in-line Q1FY25 PAT of INR 170bn (up 1% YoY) with 1.1% RoA. Loan growth remained strong at ~16% YoY (up 1.2% QoQ). NIM adjusted for IT refund was flattish.

IIP: IIP growth eases in Mar'24. SBIN: Continued strong performance across segment. GCPL: Strong volume-led growth across markets. POLYCAB: Strong quarter, strong outlook. ORIENTEL: Strong revenue; profitability falters

We maintain our BUY' rating on the stock with a revised SOTP-based target price of Rs 1,010/share (Valuing Core-book at 1.5x FY26E ABV as we roll forward multiple and valuing subsidiaries at Rs 219), thereby implying an upside of 23% from the CMP.

SBI reported a solid quarter with beat on all fronts. The bank reported RoA of ~1.36% in Q4, led by strong growth in operating profit and lower credit cost.

SBIN’s 4QFY24 PAT grew 24% YoY to INR207b (28% beat), driven by
higher other income, lower opex and lower-than-expected provisions. NII grew 3.1% YoY/4.6% QoQ (in line). NIMs expanded 8bp QoQ to 3.3% (domestic NIMs at 3.47%, up 13bp QoQ).

Monthly Economic Buffet: Economic Round-up January 2024. SBIN: Pension one-off hurts profitability. JSTL: Progressing on expansion but valuations fair. ACEM: Healthy quarter, sustainability key; retain HOLD. ALPM: Healthy quarter; PAT beat on low tax rate. CPBI: Margin stress across segments. VSTT: Poor demand dampens performance