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Tag: SBI Q2 results

  • SBI hits record high; stock can rise up to Rs 760 level, say analysts

    SBI hits record high; stock can rise up to Rs 760 level, say analysts

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    A consensus ‘Buy’, State Bank of India (SBI) beat Reliance Industries to become the most profitable company in the September quarter. A handful of brokerages have upped their FY23/FY24 EPS estimates for the PSU bank by 10-15 per cent. Their price targets for SBI are in the Rs 700-760 range, suggesting more steam left for the largest PSU lender. This is even as the scrip has climbed over 300 per cent since 2020 low of sub Rs 150-odd levels (on a closing basis).

    The public sector bank posted its highest ever quarterly net profit at Rs 13,265 crore, up from Rs 7,627 crore in the same quarter of the previous financial year. Its consolidated profit at Rs 14,752 crore in fact beat Reliance Industries’ Q2 profit of Rs 13,656 crore.

    YES Securities, which has SBI as it top banking pick since June 2021, has a target of Rs 760 on the stock. It values the bank at 1.3 times FY24 book value for an FY23-25E return on equity (RoE) profile of 13.3-16 per cent. The brokerage has assigned a value of Rs 205 per share to SBI subsidiaries.

    The stock rose 4.9 per cent to hit a record high of Rs 622.90 level on BSE. The scip is up 29 per cent year-to-date.

    Nuvama Institutional Equities has upgraded the stock to ‘Buy’ from ‘Hold’ with a revised target of Rs 715 from Rs 595 earlier.

    “We are increasing EPS by 14 per cent/10 per cent for FY23E/FY24. In anticipation of NIM expansion sustaining in H2FY23 and the credit cycle remaining strong and benign, we are increasing the target valuation to 1.5 times BV FY24E from 1.2 timrd. We retain Rs 180 per share value for subsidiaries,” it said.

    The bank’s net interest income rose 12.8 per cent year-on-year to Rs 35,183 crore, up from Rs 31,184 crore in July-September 2021. The bank’s net interest margin (NIM) stood at 3.55 per cent in the reporting quarter against 3.23 per cent in June and 3.50 per cent in the September quarter last year.

    Elara sees the stock at Rs 717. Nirmal Bang Institutional Equities said that the bank is currently carrying a 75 per cent  provision coverage ratio (PCR), along with 105 bps coverage on standard loans. The current coverage ratios indicate healthy provisioning buffer, it said. while suggesting a target of Rs 718 on the stock.

    Motilal Oswal sees the stock at Rs 700. JM Financial said SBI is in ‘cruise mode’. It expects the stock’s outperformance over Nifty to continue going ahead.

    ” We see greater probability of the bank trading closer to 1-SD above its long-term valuation average as witnessed in FY2011-2013,” it said. 

    The scrip commands 32 ‘Buy’ ratings, 5 ‘Buy’, two ‘Hold’ and nil sell rating as per publicly available data with Trendlyne.  

    Also Read: Sterlite Technologies shares rise 4% after Q2 profit plunges 58%, here’s why

    Also Read: Bank of Baroda shares rally 12% to hit fresh 52-week high. More gains ahead?

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  • SBI Q2 results: Bank says its net profit jumped 74%, net interest income rose 16.8%

    SBI Q2 results: Bank says its net profit jumped 74%, net interest income rose 16.8%

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    State Bank of India (SBI), the largest bank in the country as per assets, has announced that its net profits jumped by 74 per cent this quarter.  

    The public sector bank said it has posted the highest ever quarterly net profit at Rs 13,265 crore, up from Rs 7,627 crore in the same quarter of the previous financial year.  

    Its operating profit for the July-September quarter was at Rs 21,120 crore, which is up by nearly 17 per cent on a year-on-year basis. 

    Net interest income  

    The bank’s net interest income rose 12.8 percent year-on-year to Rs 35,183 crore, up from Rs 31,184 crore in July-September 2021. The net interest income is the difference between interest earned and interest expended. The bank’s Net Interest margins (NIM) were at 3.55 per cent in the reporting quarter from 3.23 per cent in June and 3.50 percent in September last year. 

    As per its filing, the bank’s interest earned rose 15 per cent to Rs 79,859.59 crore, while the interest expended was Rs 44,676.15 crore. 

    Bad loans went down 

    The largest lender in the country reported that its gross non-performing assets (NPA) were 3.52 per cent of the total loan book, down from 4.90 per cent in Q2 FY22.  

    On a net basis, bad loans were 0.80 per cent of the loan book compared with 1.52 per cent in 2021, which is a healthy sign. 

    Robust loan and deposit growth 

    On the loan and deposit side, the bank stated its credit growth jumped nearly 20 per cent year-on-year with domestic advances growing by 18.15 per cent year-on-year. It reported spectacular growth in domestic advances due to corporate advances followed by retail personal loans. 

    Whole Bank Deposits grew nearly 10 per cent YoY, out of which CASA Deposit grew by 5.35 per cent. The CASA ratio stood at 44.63 per cent as on September-end. 

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