Time period given by analyst is one year when State Bank of India price can reach defined target.
State Bank of India, incorporated in the year 1955, is a banking company (having a market cap of Rs 407810.12 Crore).
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 93266.94 Crore, down -9.83 % from last quarter Total Income of Rs 103430.64 Crore and up 6.00 % from last year same quarter Total Income of Rs 87984.33 Crore. The bank reported net profit after tax of Rs 7379.91 Crore in latest quarter.
Investment Rationale
SBI reported steady performance in a challenging environment, with strong earnings led by controlled provisions. However, business trends were modest, impacted by the lockdowns. Asset quality remains broadly on track despite elevated slippage, led by Retail/SME. However, restructuring and the SMA pool remain in check. The brokerage expects slippage to subside going ahead, assuming there is no third COVID wave or no severe impact from it. Overall, PCR remains healthy at ~68%, and it also holds unutilized COVID provisions of ~INR91b. The bank is well on track to keep credit costs in check. It maintains estimates for FY22/FY23 and project RoA/RoE of 13.1%/14.6%.
Promoter/FII Holdings
Promoters held 56.9 per cent stake in the company as of June 30, 2021, while FIIs held 11.4 per cent, DIIs 24 per cent and public and others 7.6 per cent.
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