SBI stock trades in red after reporting mixed December quarter results

SBI Share Price: The stock of India's biggest public lender, State Bank of India, started the trading session on BSE on Monday (February 5, 2024) on a higher note after reporting mixed December quarter results.

The stock of SBI ended the trading session on Monday down by 1.18 per cent, or Rs 7.70, at Rs 642.70. 

SBI's net interest income (NII) rose by 4.6 per cent in the December quarter, while its profit after tax was down by 35.5 per cent to Rs 9164 crore in the quarter under review.

What SBI said in its post-result concall and interview to Zee Business

• The bank has made AIF provision of Rs 240 crore.
• Its total exposure to AIF is Rs 1000 crore.
• The lender has no concerns on slippages.
• Its around Rs 13000 crore provision is for wage and pension.
• The bank says that it made Rs 7100 crore towards pension and Rs 6100 crore provision for wages (the difference between November 2022 to December 2023)
• Its wages provision has increased from 14 per cent to 17 per cent.
• It says that in the next quarter, more Rs 5400 crore provision is required.
• The next quarter will not need to make extra Rs 8000 crore provision, which means the profit will be improved by Rs 8000 crore, says SBI official.
• Around Rs 900 crore slippages have been rolled back and one account in SME will need to be restructured, the bank says.
• The lender's whole net interest margin (NIM) is 3.22 per cent in the December quarter against 3.29 per cent Quarter-on-Quarter (QoQ).
• The bank says that it should be able to grow loan book by at least 14-15 per cent.
• It has room to grow 20 per cent as well, the bank says.
• It expects its Q4 to be stronger than Q3.
• Loan book growth is expected to remain good at around 14-15 per cent, as per the bank.
• The bank is open to raising funds if required.
• It doesn't feel the need to raise capital now and doesn't have any stress in rural areas.
• Agri NPA will come below 10 per cent, and it expect it to be 8 per cent going forward.
• The RBI has decoupled from FED, and SBI expects rate cut expects from 3FY25.
• The lender clears its position with PayTM saging its doesn't have any relationship with the fintect firm.

What brokerages say about SBI

• CLSA has maintained a buy call, raising the share price target to Rs 800 from Rs 700.
• Nomura has maintained a buy call, raising the target to Rs 755 from Rs 665.
• Jefferies has maintained a buy call with a target of Rs 810.
• JP Morgan has maintained an 'overweight' rating with a target of Rs 725.
• Goldman Sachs has maintained a buy rating on SBI and cut the target to Rs 677 from Rs 686.
• Macquarie, on the other hand, has maintained neutral stance on SBI with a target price of 615.