SBI Stocks Rose: State Bank of India (SBI) shares are seeing great gains today. In today’s business, SBI gained about 5 per cent and reached Rs 221. The stock closed at Rs 207 on Wednesday. SBI, the largest public sector bank, has also shown strong financial performance in the challenges. Bank’s net interest income has increased in the second quarter, margin has improved. There has been growth in retail credit, while collection efficiency has also improved significantly. The best thing is that the asset qualitf outlook also improved. Expert says that despite the challenges of Covid 19, the bank has performed better all round. In the coming days, it will get the benefit of its leading position.
What to say of a brokerage house
Brokerage House Motilal Oswal Says that SBI has performed well even in the chalanging environment. There is a steady improvement in deposit growth. CE has improved to 97 percent on the asset quality front. Asset quality is getting better. In the second quarter, Collections Efficiency is reaching pre-Covid level. The number of borrowers has increased. Advance has grown by 7 percent on an annual basis. Retail loans grew by 14.5 percent on an annual basis. Home loan grew 10 percent on an annual basis. However, corporate loan growth has been muted. The brokerage has raised earnings growth estimates for FY21 / FY22. The brokerage house has set a target of Rs 300 for the stock, which is 45 per cent higher than the current price of Rs 207.
Brokerage House Sharekhan The stock has a target of Rs 280. Which is 35 percent more than the current price of Rs 207. According to the brokerage, SBI is in a better position than its peer companies. The bank’s position is strong in terms of asset quality, capitalization, underwriting strength. The business outlook is slowly improving, which will benefit the bank. Brokerage House Dolat Capital The stock has also set a target of Rs 280. According to the brokerage, the bank has faced the challenges of Covid 19 in a better way and is now proving to be one of the biggest beneficiaries in the improving environment.
Brokerage House CLSA Has raised the target for the stock from Rs 310 to Rs 330. In this context, the stock can get 60 percent return. According to the brokerage, NII growth of the bank has been better than expected. The collection rate has reached 97 percent, which is the strongest showing in the top bank. The company’s profits are expected to increase further in the coming days.
SBI results at a glance
SBI made a profit of Rs 4574 crore in the September quarter of the financial year 2020-21. This is 52 per cent more on an annual basis. Operating profit increased by 12 per cent to Rs 16460 crore. The total interest income of SBI has been Rs 28181 crore. The bank has registered an improvement in profits, capital adequacy, provision coverage ratio etc. Total deposits with SBI increased by 14.41 per cent on an annual basis to Rs 34.70 lakh crore. Home loans grew 10.34 percent over the previous year.
The bank’s net NPA ratio stood at 1.59 per cent in the second quarter, down 120 bps on an annual basis and 27 bps on a quarterly basis. The gross NPA ratio stood at 5.28 per cent, which is 191 bps on an annual basis and 16 bps lower on a quarterly basis.