The brokerage house says that SBI has performed well quarter on quarter. Asset quality is continuously improving. Momentum remains in loan growth.
SBI Stock Price: After the results of the December quarter, there is a great rise in the shares of SBI, the largest public sector bank. In today’s trading, the shares are among the top gainers of Sensex 30. SBI is up more than 2 percent and it has reached a price of Rs 545. Whereas on Friday the stock closed at Rs 530. In fact, the December quarter has been strong for SBI. During this, the bank has made a record quarterly profit. The profit of the bank increased by 62 percent to Rs 8432 crore. The brokerage house says that the bank has performed well quarter on quarter. Asset quality is continuously improving. Momentum remains in loan growth. Further economic recovery is also due to SBI: Sensex 30’s top gainer after quarterly results, veteran brokerage houses are bullish on the stock, check targeting is going to benefit.
Under provision control, growth in loan book
Brokerage house Motilal Oswal has given investment advice in the stock and 725 has been another good quarter for SBI. During this PAT has increased by 62 percent on an annual basis. This has been possible due to strong growth in NII and provision control. The GNPA/NNPA ratio has improved by 40bp and 18bp on a quarterly basis and stood at 4.5 per cent and 1.3 per cent. Advances grew 5.5 per cent on a quarterly basis, while the international and SME books grew at 7 per cent and 10 per cent on a quarterly basis. While the retail and corporate books have shown growth of 5 per cent and 3.5 per cent respectively. The brokerage house says that the performance of the bank is getting stronger quarter on quarter. RoA/RoE is expected to be 1 per cent and 17 per cent in FY24E.
valuation attractive
Giving an overweight rating in the stock, brokerage house JP Morgan has given a target of Rs 650. The brokerage house says that there is steady growth in the business. Both capital and liquidity positions are strong. Asset quality is continuously improving. RoE is expected to be 15 per cent in FY23. At the same time, the valuation is also attractive at the current level. On the other hand, brokerage house CLSA has given a target of Rs 750 while advising to buy in the stock. The brokerage expects further strong growth. Jefferies has also given a target of Rs 650, advising to buy in the stock.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
,