09 Oct , 2024 By : Debdeep Gupta
State Bank of India (SBI) share price jumped nearly 3 percent on October 9 to touch an intraday high of Rs 804.35 per share on the NSE, after a Nomura report set a price target with 25 percent upside potential.
Analysts at the global brokerage Nomura have a 'Buy' call on SBI stock with a share price target of Rs 980 per share. Around noon today, SBI shares were trading at Rs 797.45 apiece on the NSE, up 2.05 percent. The stock has gained over 4 percent in the last two days.
Nomura, in its latest report, said SBI is well-placed to deliver on asset quality given its lower exposure to ‘problematic’ segments and a strong retail underwriting track record.
"SBI has the lowest domestic LDR (loan-to-deposit ratio) among large banks (with arguably one of the strongest deposit franchises), and hence, faces no imminent supply-led pressures on growth," it noted.
Nomura analysts said that SBI’s asset quality may remain steady, given that "SBI’s unsecured personal loans are predominantly exposed to salaried government employees and have held up well through cycles. The outlook for corporate credit quality remains strong, although some near-term blips are possible."
State Bank of India (SBI) share price jumped nearly 3 percent on October 9 to touch an intraday high of Rs 804.35 per share on the NSE, after a Nomura report set a price target with 25 percent upside potential.
Analysts at the global brokerage Nomura have a 'Buy' call on SBI stock with a share price target of Rs 980 per share. Around noon today, SBI shares were trading at Rs 797.45 apiece on the NSE, up 2.05 percent. The stock has gained over 4 percent in the last two days.
Nomura, in its latest report, said SBI is well-placed to deliver on asset quality given its lower exposure to ‘problematic’ segments and a strong retail underwriting track record.
"SBI has the lowest domestic LDR (loan-to-deposit ratio) among large banks (with arguably one of the strongest deposit franchises), and hence, faces no imminent supply-led pressures on growth," it noted.
Nomura analysts said that SBI’s asset quality may remain steady, given that "SBI’s unsecured personal loans are predominantly exposed to salaried government employees and have held up well through cycles. The outlook for corporate credit quality remains strong, although some near-term blips are possible."
0 Comment