State Bank of India: Soaring Across All Frontiers

Company Name SBI Current Market Price Rs 651 Calendar Year Return 6.35% *** India’s largest bank, State Bank of India has had a robust performance of late, propelled by steady business, revenue growth and controlled provisions. SBI continues to focus on building a superior loan book, as evident in a steady decline in stressed assets, improving provisioning coverage ratio (PCR) and robust loan growth (13 per cent year-on-year (y-o-y) for Q2FY24). Investing Rationale Robust Asset Quality: Asset quality has remained well under control with constant moderations in both gross non-performing assets (GNPA) and net non-performing assets (NNPA) ratios. These are metrics used to assess the health of a bank’s loan portfolio and overall stress pool. SBI has witnessed 97bps/16bps y-o-y decline in GNPA/NNPA to 2.55 per cent and 0.64 per cent in Q2FY24. Slippages have been under control...