SBI share price: Shares of the country’s largest bank, State Bank of India (SBI), will be in focus on the first trading day i.e. Monday. Actually, SBI has announced the results for the September quarter. After the quarterly results, brokerage firms look bullish on the shares of this public sector bank. Last Friday, a decline of 1.86 percent was seen in the company’s shares and the stock closed at Rs 843.25 on BSE. The market cap of the company is Rs 7.52 lakh crore. The stock’s 52-week high is Rs 912.10 and 52-week low is Rs 555.25.
Jefferies increased SBI’s target
After the quarterly results, global brokerage firm Jefferies has maintained its ‘Buy’ rating on SBI shares. Not only this, the brokerage has increased its target price for the stock to ₹1030 from earlier ₹1000. According to the current share price, there is a possibility of a rise of about 22 percent in the company’s shares. This stock is also one of the top picks for Jefferies.
DAM Capital also has ‘Buy’ rating on SBI, with a target price of ₹950 per share. Furthermore, Emkay has maintained ‘Buy’ rating with a target price of ₹1025 per share.
Brokerage opinion on SBI shares
Jefferies wrote in its note that SBI showed stable asset quality in the quarter, with the main focus being on improvement in deposit growth. SBI’s profit rose 28% to ₹18,300 crore, beating market expectations on higher MTM gains and lower employee expenses. The brokerage said the main positive was stable asset quality, even in the unsecured loan segment, which kept credit costs below 0.4%.
How were SBI’s quarterly results?
The net profit of State Bank of India (SBI) in the September 2024 quarter increased by 28% to Rs 18,331 crore. The bank’s profit in the same period a year ago was Rs 14,330 crore. The bank says that the board has approved raising long-term bonds of up to Rs 20,000 crore through public issue or private placement in financial year 2025.
During this period, the bank’s net interest income increased by 5% to Rs 41,260 crore, whereas this figure was Rs 39,500 crore in the same period a year ago. The bank’s gross NPA increased by Rs 4,951 crore in the September 2024 quarter, while the figure was Rs 8,707 crore in the June quarter.
During this period, the net interest margin (NIM) of the bank increased by 0.15 percent on annual basis and 0.8 percent on quarterly basis. According to the presentation given to investors, the net interest margin in the corresponding quarter stood at 3.14 percent, whereas this figure was 3.29 percent in the same period a year ago. SBI’s domestic net interest margins (NIMs) declined to 3.27 per cent in the July-September quarter, compared to 3.35 per cent in the April-June quarter. In the July-September 2024 quarter, this figure was 3.43 percent.
In the second quarter of the current financial year, the bank’s NPA (gross non-performing assets) declined by 4.14 percent to Rs 83,369 crore, whereas in the same quarter a year ago this figure stood at Rs 86,974 crore. Apart from this, during this period the net NPA of the bank stood at Rs 20,294 crore with a decline of 4.96% on annual basis.
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