Buy State bank of India Target Rs.700 - Motilal Oswal Financial Services
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Balance sheet strengthens further; RoA/RoE surpass long-term average
Tech becoming key growth enabler; net NPAs lowest in past two decades
* State Bank of India’s(SBIN) FY23 annual report highlights that the bank is steadily strengthening its balance sheet and consistently delivering healthy RoE while maintaining its leadership position.
*The bank continues to focus on building a superior loan book, as evident in a steady decline in stressed assets, improving PCR and robust loan growth (17% in FY23). *The Retail segment reported a 2.5x jump in PBT after the Corporate segment showed a 5x increase in PBT in FY22. SBIN has delivered an earnings CAGR of 51% over FY20-23 and crossed a key milestone of INR500b of profits in FY23.
*On the digital front, YONO continued to set new records with ~143m downloads and ~60m registered users, along with average daily logins of ~10.3m. SBIN sanctioned 1.39m digital loans worth INR243b and opened 64% of savings accounts through YONO in FY23. *SBIN reported further improvement in asset quality, with PCR improving to 76% (98.6% on the corporate book) in FY23. Controlled restructuring (0.8%), low SMA pool (10bp) and 100% coverage on SR portfolio provide comfort and would keep credit costs under control. We reiterate BUY with a TP of INR700.
To Read Complete Report & Disclaimer Click Here
For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412
Above views are of the author and not of the website kindly read disclaimer
