SBI has given a return of hoping 145% in the last 5 years. Whereas the Bank Nifty index has given a return of 69.67 %
Brokerage houses are giving thumbs up to SBI Bank.
Kotak Institutional Equities expects SBI to report a net profit of Rs 15,889.7 crore, up 74 percent on-year, and 12 percent on-quarter.
Kotak Institutional Equities stated that, “We expect a operating profit growth of ~25 percent yoy led by strong NII growth. We are building 25 percent yoy NII growth on the back of 15 percent yoy loan growth. We are building stable NIM but do see a possibility of a small expansion given the structure of loan book and negligible need for deposits to fund this growth.”
Kotak further added that, “We expect slippages at ~1.5 percent of loans (~Rs115 bn) mostly driven by SME and retail while corporate will continue to hold up relatively well. We should see further improvement in NPL ratios as recovery and upgrades are likely to be strong in 4Q.”
ICICI Direct estimates the net profit at Rs 15,114.2 crore, up 65 percent on-year and 6.4 percent on-quarter, and net interest income (NII) at Rs 38,500 crore, up 23.4 percent and 1.1 percent.
ICICI Direct further stated that, “credit growth is expected at 15 percent YoY to Rs 31591 billion, basing out post strong 18-20 percent growth in the last two quarters. We estimate deposit growth at 9.6 percent YoY with cost of funds stabilizing. Overall NII growth to stay strong at ~23 percent YoY to 38500 crore.
Technical View on State Bank of India Stock (SBIN)
As per the RSI (Relative Strength Index) and Super-trend Indicator, SBIN has generated a strong buying opportunity, Which can give great returns in the upcoming months.
The Stock is currently trading at ₹586.30 and has a strong potential of crossing the price level of ₹600.
As per the OI data, Heavy call writing can be seen on ₹600, So the stock price may retrace upto ₹586 after reaching the level of 600.
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