India’s largest bank State Bank of India (State Bank of India (SBI)) also felt the wrath of the bears today due to the all-out sell-off in the market. SBI shares fell more than 4% on the first trading day of the week, i.e. Monday, and even lost their market capitalization by Rs 4 lakh crore. Despite this, SBI maintains its eighth position among the most valuable companies. On the other hand, the current decline in the SBI has brought a buying opportunity for investors as the analyst’s view on this is optimistic.
SBI shares closed at Rs 446.35 on BSE, down Rs 15.45 or 3.35%. The shares were trading near their intraday low of Rs 442.35.
The market capitalization of SBI stood at Rs 3,98,350.04 crore at the current price. While on Friday last week, the market capitalization of SBI was Rs 4,12,138.56 crore.
The SBI tracked the selloffs across benchmarks and broader indices. The Sensex closed at 52,846.70, down 1,456.74 points or 2.68%. The Nifty 50 closed at 15,774.40, down 427.40 points or 2.64%.
These 3 stocks hit a 52-week low, are trading below Rs 100, brokerages said this is a good buying opportunity
Overall, there was a blood Holi in banking stocks today. Bank Nifty closed 1,077.95 points or 3.13% lower at 33,405.85. Meanwhile, BSE Bankex fell 1,241.52 points or 3.12 points to close around 39,735.84.
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Kunal Shah, Renish Bhuva and Chintan Shah of ICICI Securities said in their research note: “Good growth in FY2022, GNPA at decade lows, new NPAs below 1%, cost of Interest SBI benefited from marginal growth of 0.55 percent and stable margins, resulting in a FY22 RoE of 13.9 percent and a ROA of 0.67 percent.
SBI’s net profit increased by 55.19% to Rs 31,676 crore in FY22 on an annual basis. Interest income (NII) of SBI increased by 9.03% to Rs 1,20,708 crore on an annual basis. The bank’s return on equity (RoE) in FY22 was 13.92%, up 398 basis points year-on-year.
Apart from this, SBI’s retail portfolio crossed the Rs 10 lakh crore mark in FY22. According to news in Mint, the home loan which accounts for 23% of the bank’s domestic advance rose by 11.49% to Rs 5,61,651 crore. Savings bank deposits increased by 10.45% in FY22. While time deposits increased by 11.54%. Meanwhile, the gross NPA ratio fell 101 basis points year-on-year to 3.97%. While the net NPA ratio decreased by 48 basis points year-on-year to 1.02%.
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Keeping these figures in mind, analysts at ICICI Securities retained the BUY rating on SBI with an unchanged target of Rs 673.
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