BSE Code: | NSE Code: | ISIN: | Sector:

NSE
245.95
Change Change %
3.20 1.32%

Updated:23 Oct, 2017, 15:59 PM IST

BSE
245.75
Change Change %
3.25 1.34%

Updated:23 Oct, 2017, 15:55 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Nomura
N/A
14-08-2017 Buy 278.35 330.00
N/A
Open Long (1Y)
14-08-2018

Nomura maintains buy on State Bank of India 330

SBI's 1QFY18 performance was weaker than we expected, with slippages of INR300bn and INR179bn of slippages from SME/retail/Agri. While higher granular slippages were expected, the quantum was clearly a negative surprise. Also a NIM drop of around 40bp q-q was high and guidance of just 10-15bp improvement from current levels is not inspiring. With the weak show on NIM and asset quality, near-term catalysts are limited, in our view. The key over the next 6-12 months will be recovery from the granular accounts (guided INR130bn of recovery/upgrades) and NIM improvement from current levels.We expect normalised ROEs of around 11.5% by FY20F now and hence maintain our Buy rating. Our TP of INR330/share implies 1.1x Mar-19F adjusted book.

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