State Bank of India, the country’s largest public sector bank reported its highest-ever quarterly net profit. In Q3, their standalone net profit stood at Rs 14,205 Crore, a 68 percent increase Year on Year from Rs 8,432 Crore.
Their Net Interest Income (NII) stood at Rs 38,069 Crore which jumped 24 percent YoY from Rs 30,687 Crore and 8 percent QoQ from Rs 35,183 Crore. Their Net Interest Margin (NIM) increased by 29 basis points YoY at 3.69% against 3.40%.
The asset quality of the bank saw an improvement as their Gross NPA stood at 3.14% against 4.50% in Q3FY22. Their net NPA was at 0.77% compared to 1.34% in the same period the year before.
Further, the bank continued to maintain the highest market share of 24.81% in UPI remittances. Their leadership in Debit card spending was at 26.4% and in mobile banking transactions was 23.32%.
State Bank of India (SBI), a Fortune 500 company, is the oldest and largest Public Sector Bank in India. The company has a market capitalization of Rs 4,87,239 Crore and a dividend yield of 1.35.
Till the afternoon on Monday, the shares of the bank were trading marginally higher in green at Rs 546 levels. The stock has shed approximately 10 percent in the past month. It reached a 52-week high of Rs 629.55 in December last year. Currently, it is trading 13 percent away from those levels.
Brokerage firm ICICI Securities has maintained a ‘Buy’ rating on the stock with a target price of Rs 805 per share which represents an upside of 47% from the current levels.
SBI’s Q3FY23 earnings surpassed expectations, with a beat across operating metrics crossing 1% RoA and 9MFY23 RoE crossing the 18% RoE mark. Credit growth of 18% / 16%, stable NIMs, operating profit growth of 15% / 19% and credit cost of 0.6% / 0.8% will drive RoE to 19%/ 17% by FY23E/FY24E, respectively, the brokerage said in its report.
Written by Anoushka Roy
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