India’s biggest lender in terms of assets, State Bank of India (SBI), surpassed ₹ 5 lakh crore market capitalization to enter the top three lenders just after HDFC Bank and ICICI Bank.
Market valuation touching ₹ 5.11 lakh crore, SBI shares on Wednesday traded 2.64 percent higher at ₹ 573 per share. Later, the stock figures rose to their all-time high at ₹ 574.65 per share, respectively. HDFC Bank was at ₹ 8.48 lakh crore while ICICI Bank stood at ₹ 6.40 lakh crore in their respective market valuations.
Industry experts assert that SBI is expected to deliver healthy core-PPOP (Pre-Provision Operating Profit) growth in FY23E. There would be a steady improvement in net interest margins, lower credit costs from FY24E, and robust loan growth in the two years of FY22-24E.
One of the well-known stock consultants, JM Financial, commented on SBI saying, “We see continued outperformance given that it is a key beneficiary of the uptick in systemic credit growth. SBI has protected its asset/liability market share over the last 5 years, and with increasing signs of stronger corporate credit demand emerging, we see SBI as one of the best-placed banks to ride the upturn.”
SBI online has navigated through the COVID-19 pandemic exceptionally well, JM Financial added.
