Business outlook steady; internal accruals to support growth momentum

Company

12 Dec 2023 | 5 Min Read

State Bank of India (SBIN) is well positioned to absorb the impact of increased risk weight by RBI.

SBIN aims for sustainable RoA/RoE of ~1.2%/20%.

Loan growth momentum remains healthy, with a focus on asset quality.

Margins expected to be range-bound with a slight downward bias.

Asset quality remains robust, with controlled credit costs.

SBIN aims to deliver sustainable RoA of ~1.2% and RoE of ~20%.

Valuation and view: Reiterate BUY with a target price of INR700.