State Bank of India has been a cornerstone of the Indian banking sector. The bank is the biggest public lender in the country. The lender has a market cap of ₹5.07 lakh crore and has seen its share price rise tremendously since its listing. So here’s what would have happened if your father had invested ₹10,000 in the bank a decade ago.
The Investment: On 7th August 2013, SBI was trading at ₹171.61. Fast forward to today, the stock is valued at ₹560. This means that an investment of ₹10,000 would have bought approximately 58 shares a decade ago. Today, those 58 shares would be worth approximately ₹32,480.
Earnings: The public lender booked a standalone profit of ₹16,884.3 crore, up 178% from the ₹6,068.1 crore profit it reported in the June quarter of 2022. The lender's net interest income stood at ₹38,904 crore, up 24% from the year-ago period.
However, the company's net interest margin went down 37 basis points on a quarter-over-quarter basis to 3.47%. The gross non-performing assets (NPA) ratio was at 2.76%, down by 115 bps year-over-year, and the net NPA ratio was at 0.71%, down by 29 bps YoY.
Analyst Reactions: The analysts while largely bullish on the stock did express concern about the slump in the lender’s NIM. Here are the latest analyst calls on the stock.
Price Action: SBI’s share price was down 0.71% to trade at ₹569.25 in the late hours of trading on Monday.
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