sbi share price | Buy SBI, target price Rs 530: Motilal Oswal

Motilal Oswal has a buy call on

State Bank of India

(SBI) with a target price of Rs 530. The current market price of State Bank of India is Rs 414.25.

State Bank of India, incorporated in the year 1955, is a banking company with a market cap of Rs 343,195.94 Crore.

State Bank of India’s key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2020.

Investment Rationale

According to Motilal Oswal, SBI reported a strong Q4 FY21 in a challenging environment. Deposit growth stood strong, led by healthy CASA trends, while loan growth is likely to recover gradually over FY22-23E, Motilal added. Asset quality outlook remains particularly encouraging, with record low slippages and controlled restructuring book.

Retail asset quality was impeccable for SBI, with slippages significantly lower v/s peers, said Motilal Oswal. It holds unutilized Covid provisions of ~Rs 63b. Motilal believes, the bank is well on track to keep credit cost under control.

Hence, Motilal Oswal maintains its FY22E/FY23E estimates and project RoA/RoE of 0.8 per cent/15 per cent by FY23E. Motilal maintains its buy rating with a revised target price of Rs 530/share.

Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 103430.64 Crore, up 6.43 per cent from last quarter’s Total Income of Rs 97182.15 Crore and up 9.78 per cent from last year same quarter Total Income of Rs 94218.82 Crore. The bank has reported a net profit after tax of Rs 6125.52 Crore in latest quarter.

(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)

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