If you are also looking for a better stock from the banking sector, then you can keep an eye on SBI. Brokerage house ICICI Security is bullish on the stock.
SBI Stock Price: The outlook for the banking sector is better. The earnings season for the March quarter has also indicated this. Asset quality of the banking sector has improved, credit growth has improved, while cost control has also been visible. Earnings have improved due to all this. If you are also looking for a better stock from the sector, then you can keep an eye on the stock of the country’s largest public sector bank SBI. Brokerage house ICICI Securities is bullish on the stock and has given a target of Rs 673 while maintaining investment advice. The brokerage says that the bank has set a different standard for the entire sector. Strong growth is expected in the business going forward.
LIC shares even below Rs 700, lock-in period for anchor investors is coming to an end, there is a possibility of a big fall
High standard for the banking sector
Brokerage house ICICI Security has given a target of Rs 673 while recommending investment in SBI. In terms of current price of Rs 462, it can give 46% return. According to the brokerage, SBI has set new standards for the banking system. SBI’s RoE stood at 13.9% and RoA at 0.67% at the end of FY22. Gross NPA has come down to the low of last 1 decade. Slippage was less than 1 per cent. Credit cast reduced to 55bps and margins are showing good growth. Asset quality has improved due to credit cost control and is expected to further strengthen. Credit growth in FY23E/FY24E is expected to be between 13 per cent and 15 per cent. RoE is expected to be less than 16 per cent during this period due to stable net interest margin and better asset quality.
Strong Player in the Banking Sector
Number of Depositors of SBI The bank has 14.20 crore Financial Inclusion Accounts (BC channel). The number of home loan customers is 45 lakhs, while the market share in the home loan segment is more than 35 per cent. Market share in debit card segment is 27.6 percent, market share in POS is 15.2 percent. There are around 4.80 crore YONO registered users. 55 lakh crores is government business turnover, while 1.79 crores are salary savings accounts. There is good growth in every segment of the bank like retail, corporate, home loan, vehicle loan.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)