Monday, November 8, 2010

Result Update: State Bank of India (Improving earnings; slippages remain high; REDUCE; TP: Rs3,000)

State Bank of India
CMP: Rs3,423
Target Price: Rs3,000
Improving earnings; slippages remain high
·      SBI's net profit at Rs25.0bn, lower than our estimates driven by higher than expected provisions for the merger of State Bank of Indore (SBIndore)
·      Operating performance strong with NII growth of 45% (Rs81bn), operating profit growth of 31.5%. Other highlights (1) CASA at 47% and (2) fee income growth of 22% qoq
·      The slippages continue to remain high at Rs44.1bn for the quarter (Rs41.6bn excluding agri relief NPAs). Provision expenses to remain high at Rs18-19bn in coming quarters
·      We are upgrading FY11E/FY12E estimates by 5.2%6.2% each. ABV estimates upgrade by -2%/+1.4%. Maintain REDUCE with TP of Rs3,000 (1.8x consolidated ABV + subsidiary value)

No comments:

Blog Archive

Life Insurance | Health Insurance | Auto Insurance

Investors Please Listen !

More than 100 kinds of Insurance products from more than
20 companies under one roof.

Call: 9818269396



Safe Harbor:

The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
Powered by Olark
Advertising Learn to Invest