Business Desk. State Bank of India (SBI), the country’s largest state-run bank, performed better in the June quarter despite the Corona epidemic. SBI’s net profit increased 81% to Rs 4,189.34 crore in the June quarter, while the bank has also improved its asset quality. Its stranded debt ratio has also reduced. In view of this, experts are saying that investing in the shares of this bank is a profitable deal. Learn why investing in State Bank of India shares can yield very good returns.
Improvement in asset quality
SBI has improved asset quality. The bank’s gross NPA stood at 5.44 per cent in the June quarter. It was 7.53 per cent in the same period last year. The bank’s net NPA declined to 1.8 per cent as against 3.07 per cent last year. Single net profit has increased by 81% to Rs 4,189.34 crore due to reduced back-of-the-fold loan, not Integrated profit up 62% to Rs 4,776.50 crore. The bank’s income has been Rs 87,984.33 crore, while the net interest income is Rs 26,641 crore.
Boost in market share
SBI’s market share has been steadily increasing, while the market share of other public sector banks has decreased compared to private banks. The bank has also improved in terms of retail assets, overall loans and deposits.
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Yes Bank benefit from bailout
advantage of having better structure Yes Bank bailout package will also SBI. Explain that there has been a large investment of State Bank in this bailout package.
Growth in Subsidiary Companies Growth in
all subsidiaries of State Bank of India is growing significantly. In the last 3 to 5 years, they are seeing growth of 25-40 per cent CAGR. These companies are market leaders in their respective fields. They are also benefiting from SBI’s distribution network.
Attractive is Valuation The valuation of
SBI remains quite attractive for investors right now. SBI had a one-year high of 351 in November last year. Accordingly, the stock of the bank is currently trading at a discount of 44% from its 1-year high. This is the reason why investment experts are saying that investing in its shares is better in terms of long-term profits.
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