State Bank of India | Market Cap 412,540 Cr
CMP Rs. 462 | P/B 1.4x FY23 (Standalone)
Results: State Bank of India (SBI) reported 15% growth in net interest income over previous year. Operating income before provisions for FY22 grew 5% versus FY21.
Key highlights:
Outlook: The management expects growth trends to continue to show strong traction, led by a pickup across most segments. Going forward in FY23, bank should post stronger growth in SME book as it has increased customer proposition by adding several features, a two-tier relationship manager system and digital features.
On asset quality front, slippage ratio improved to 0.99% in FY22 (vs 1.18% in FY21). The bank witnessed a decline in net NPA across retail segments. The bank is aspiring to have a net NPA of less than 1% and the endeavour of the bank is to keep credit cost as low as possible with an outer boundary of 1%. Exposure to Essar group is of INR78.9b and is 100% provided. SBI has strengthened its Balance Sheet by creating higher provisions on stressed accounts. It raised its PCR to ~90% in 4QFY22 (from ~65% in 1QFY18) and holds a higher (~85%) provision coverage on Corporate NPAs. The bank remains committed to delivering 15% RoE on a sustainable basis. Also the subsidiaries have delivered an encouraging performance during the quarter.
Disclosure: MoneyWorks4me's employees may have exposure in the securities mentioned in the above report. For detailed disclosure click here.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Download APP
