SBI’s net interest income (NII) and net profit reported y-o-y growths of 19% and 80% respectively during the fourth quarter of 2020-21. Improvements in provision coverage ratio and capital adequacy ratio are the other positive factors that have made the bank a favourite of analysts.
Should you use the correction to buy steel stocks?
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Last Updated: May 24, 2021, 11:38 AM IST
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If the global economy recovers and there is no big supply addition in the next 2 years, we should see another round of uptick in metals, says Sandip Sabharwal.
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As China has become more serious in controlling inflation the upside in metal prices is restricted in the near term and so the performance of metal stocks will also be muted, says independent market expert Sandip Sabharwal in this interview with ET Now. Edited excerpts:
Several brokerages have raised their price targets for
NEW DELHI:
SBI s March quarter results have surprised analysts on the asset quality side, with slippages similar to or better than those of large private banks. While there are some concerns over the credit growth and the impact of Covid 2.0 on SME accounts, foreign brokerages are largely positive on the stock, with targets as high as Rs 650, suggesting up to 62 per cent potential upside for the stock over Friday s close of Rs 401.10.
SBI s March quarter was a big beat, CLSA said, while revising its target on the stock to Rs 650 from Rs 600 earlier. FY21 slippages at less than 1.2 per cent of the loans were the best in class and the corporate credit cycle is clearly turning with retail slippages at less than 0.5 per cent.
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MUMBAI: CLSA sees a lot of value in large cap banks inspite of the 60-90% surge in their stocks since September 2020. Axis Bank, State Bank of India and ICICI Bank are CLSA s top picks. We see a dual benign credit cycle play out both for corporate and retail loans from FY22, and our top picks are key beneficiaries as 70% of their provisioning in the past five years was due to high corporate stress, said CLSA.
The brokerage said the dual benign credit cycle for both corporate and retail loans continues to play out and the reversing rate cycle is positive for banks net interest margins.