State Bank of India’s (SBI) annual report is based on the themes of improved productivity, high digital adoption and sustainable and inclusive growth, domestic brokerage and research firm IIFL.
Buoyed by better overall environment, public lenders State Bank Of India Credit returned to double-digit growth after FY19, with nearly 10% of incremental growth in FY22 coming from the infrastructure sector.
“Corporate ROA (PBT) witnessed sharp expansion and the overall ROA improvement was driven by decadal-less credit cost. SBI is showing strong momentum across all sectors and stress loans are provided very well. The ROA/ROE is expected to remain healthy at 0.9/18% during FY 2013-25, primarily driven by lower operating expenses and some more moderation in credit costs,” the note said.
The brokerage house has downgraded its buy rating on SBI shares to . is repeated with a target value of 620, implying a potential increase of over 37% from the current stock level.
India’s largest bank registers 41% rise in standalone net profit 9,113.5 crore for the quarter ended March 2022, the highest ever quarterly profit. The lender had reported profit of 6,450.7 crore in the year-ago quarter.
SBI’s net interest income (NII), the difference between earned and spent, sees a growth of 15% 31,198 crore during Q4FY22 from 27,067 crore year-on-year (YoY). Domestic net interest margin (NIM) for Q4FY22 grew 29 bps year-on-year at 3.40%.
The asset quality of the public lender improved as gross non-performing assets (NPAs) stood at 3.97% of total assets, down from 4.50%, while net NPAs stood at 1.02% as against 1.34% quarter-on-quarter (QoQ). Was. The total provision for contingencies including bad debts was 7,237 crore as compared to 6,974 crore from the previous quarter and 11,051 crore (YoY).
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