Geojit's research report on State Bank of India
Operating profit came in at Rs. 18,061cr (+36.35% YoY) primarily on higher interest income; PAT rose 81.2% YoY to Rs. 4,189cr. GNPA/NNPA ratio improved to 5.44%/1.86% (vs. 6.15%/2.23% in Q4FY20); Slippages down to 0.60% (vs. 1.41% in Q4FY20). Share of alternate channels in total transactions has increased from 90% in Q1FY20 to 93% in Q1FY21. The bank saw a 33.0% increase in loan processing fee indicated an uptick in the loan disbursements. Backed by a well-diversified loan portfolio and strong balance sheet with lower exposure to high risk sectors, we believe that the bank's valuation remains attractive.
Outlook
Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 246 (SOTP).
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