Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
25 October, 2021 04:33 IST
Motilal Oswal maintains Buy on SBI; target of Rs 530
Source: IRIS | 24 May, 2021, 07.50PM
Rating: NAN / 5 stars.
Comments  |  Post Comment
  State Bank of India (SBI) 4QFY21 result has been nothing less than spectacular. The bank reported 4QFY21 slippages of just Rs 54.7 billion (a 20-quarter low; surprisingly comparable to other Private Banks), thus taking total slippages for FY21 to Rs 285 billion (1.2% of loans), while restructuring book stands controlled at 0.7% of loans.

GNPAs fell 15% in FY21 (43% decline over the past three years), while the coverage ratio has increased to 71% at present from ~40% four years back. Its earnings in FY21 have been more than the sum of what it did in the last five years (FY16-20).

Commenting on the result review, Motilal Oswal Institutional Equities said, "Overall, the bank is making strong progress on earnings normalization (FY21 RoE of ~9.3%). We expect the bank to deliver FY22E/FY23E RoE of 13.9%/15%. We maintain our BUY rating with a revised TP of Rs 530/share (1.1x FY23E ABV+Rs 187/share from subsidiaries). SBIN continues to remain among our top Buys in the sector."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.



 Post Comment
Name Email
Security Code type    into this box
Related Articles
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer