Is SBI stock in your portfolio? If not, it is the best time to buy this stock. The price of SBI’s stock was running at Rs 724 on 14 February. This stock has fallen by about 10 percent in the last 6 months. The price of this stock has come down from one year forward book value. On the other hand, some quarters have seen improvement in the bank’s performance. Its asset quality has improved. SBI has also performed well on other standards.
Profits over Rs 52000 crore
In the first 9 months of this financial year SBI The profit of Rs 52,258 crore has been Rs 52,258 crore. This is 29 per cent growth year after year after year. It has good loan growth, reduction in operating experiences and lower credit cost. However, the margin has decreased slightly and the fee income has also decreased. The bank’s advanced has increased by 13 per cent on a year -on -year basis. This growth is on the bank’s loan book of Rs 40 lakh crore. Therefore it can be called much better.
Credit growth estimates to be better
SBI’s management has predicted credit growth in FY25 to be 14-16 percent. This is more than the credit growth of the banking industry. The bank’s retail loan has seen lethargy. However, the demand for loan from SME has been good. Corporate credit growth is also good. The bank’s deposit growth has been 10 percent. This is less than the growth of Advance. However, despite the dull deposit growth, the bank’s credit and deposit ratio is 68.9 percent. This is less than the CD ratio of the banking industry. If the CD ratio is up to 75 percent, then the management does not have any problem.
Asset quality much better
SBI’s asset quality is best in the last decade. Gross and net non-purpose asset ratio is continuously decreasing. Slipage ratio and credit cost is also quite low. The management is not expected to grow them. The management does not see the risk even in the unseen credit.
Should you buy?
According to the price of stock currently, it is trading at 0.9 times the estimated book value of FY26. This means that the price of stock is quite attractive right now. Buying SBI shares on this valuation means that Investors will get SBI’s subsidiary bank free. If the shares of SBI are purchased now, then there can be good earnings over the medium to long periods.