BANGALORE, Nov 7 (Reuters) – Shares of State Bank of India (SBI) (SBI.NS) The country’s largest lender rose nearly 5% on Monday to an all-time high after reporting record quarterly profits and saying it expects credit growth to remain in the double digits.
SBI’s share price climbed a whopping 4.8% to hit a record high of Rs 622.70 in early trading, continuing a recent rally in which the share has risen about 17% since mid-October, nearly half of the year’s surge so far. occupies.
At least 25 of the 40 brokerages trading the stock have raised their price targets to 700 rupees from about 660 rupees, according to Refinitiv data.
The lender’s net profit surged 74% to INR 132.64 billion ($1.61 billion) in the September quarter, well above an estimated INR 105.3 billion, according to Refinitiv data.
SBI is “going full steam ahead,” ICICI Securities analyst Kunal Shah wrote in a report.
In addition to record profits, SBI’s Net Interest Margin (NIM), a key indicator of profitability, improved in the quarter, while Total Non-performing Assets (NPA) decreased from 3.91% to 3.52%.
SBI reported a “best-in-class” quarter, posting industry-leading credit growth of 20% year-over-year, Emkay Research analyst Anand Dama wrote in a note on Sunday.
Lenders expect credit growth of 14% to 16% in the current fiscal year, and anticipate the unwinding of treasury investments.
“The significant improvement in asset quality (as measured by the NPA) was a positive surprise,” Nirmal Bang analyst Nikhil Shah said in a note. We seem to be in a good position,” he said.
Analysts are still overwhelmingly bullish on the stock, with no analysts recommending ‘sell’ and only one ‘hold’ rating. The remaining 39 analysts rate SBI shares as Buy or Strong Buy, according to Refinitiv data.
SBI’s share price was last up 3.7% at 0510 GMT, up 33.7% this year, easily beating the 4.5% gain of the leading Nifty 50 index. (.NSEI)($1 = 82.2275 Indian Rupee)
Reported by Praveen Paramasivam, Bangalore. Edited by Savio D’Souza
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