Equity Research Report: SBI

SBI may report a 15% CAGR in core operating EPS for FY: 24-26 amid robust credit demand, NIM, NPA management, and domestic macro stability

Company Overview, Business Model & Competitors:

SBI (State Bank of India) is the largest bank in India and the 48^th largest bank in the world in terms of assets. SBI is the most trusted PSB (Public Sector Bank), owned by GOI (Government of India) with almost 25% market share and also the 5^th largest employer in India. SBI originated from the Bank of Calcutta, founded in 1806 via the Imperial Bank of India, making it the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged with the other two presidency banks in British India, the Bank of Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in 1955.

Overall SBI has been formed from the merger and acquisition (M&A) of more than twenty banks throughout its 200-year history. The Government of India took control of the Imperial Bank of India in 1955, with the Reserve Bank of India (India's central bank) taking a 60% stake, renaming it State Bank of India, which is now present at every corner of the country, virtually make it as the banker of every Indian (common man) and the ‘national bank’, with the mantra of pure banking and nothing else. SBI has around 22500 physical branches and 63000 ATMs all over the country (India).

SBI has also a presence in several foreign countries like Australia, Bangladesh, Bahrain, Canada, China, Mauritius, Nepal, Sri Lanka, Nigeria, Russia, Kenya, South Korea, South Africa, the U.K., and the U.S. Almost 95% of SBI revenue comes from India, while 5% generated from foreign countries. Almost 34% of revenue comes from retail banking, 21% each from corporate/wholesale banking and treasury operations, 18% from insurance business, and 5% from others.

SBI is a strategic bank for GOI and also falls under the RBI category of ‘too big to fall” (systematically important bank). SBI has virtually the monopoly of government business and the ‘effective RBI’ at local levels (towns and cities, where RBI is not present physically. Top competitors of SBI are HDFC Bank, ICICI Bank, PNB, BOB, Axis Bank, Canara Bank, Union Bank of India, BOI, and Indusind Bank.

SBI acquired control of seven regional banks in 1960. They were the seven regional banks of former Indian princely states. They were renamed, prefixing them with 'State Bank of'. These seven banks were the State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBN), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT). All these banks were given the same logo as the parent bank, SBI.

The plans for making SBI a single very large bank by merging these associate banks started in 2008, and in September of the same year, SBS merged with SBI. The very next year, the State Bank of Indore (SBN) also merged. Following a merger process, the merger of the 5 remaining associate banks, (viz. State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore); and the Bharatiya Mahila Bank with the SBI was given an in-principle approval by the Union Cabinet on 15^th June 2016. On 15^th February 2017, the Union Cabinet (GOI) approved the merger of five associate banks with SBI. Overall, this merger was negative for the SBI due to higher liability provisions for bad loans and pensions. The merger was effective from FY17 (1^st April 2017).

Now, SBI is India’s largest commercial Bank in terms of profits, assets, deposits, branches, and employees. SBI is also a Fortune 500 company, an Indian Multinational (MNC), Public Sector Banking and Financial services company. The rich heritage and legacy of over 200 years, accredit SBI as the most trusted Bank by Indians through generations.

SBI, the largest Indian Bank with almost 25% market share, serves over 45 crore customers through its vast network of over 22,000 branches, 62617 ATMs/ADWMs, 71,968 BC outlets, with an undeterred focus on innovation, and customer centricity, which stems from the core values of the Bank - Service, Transparency, Ethics, Politeness, and Sustainability. The Bank has successfully diversified businesses through its various subsidiaries i.e. SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, etc. It has spread its presence globally and operates across time zones through 229 offices in 31 foreign countries. Growing with the times, SBI continues to redefine banking in India, as it aims to offer responsible and sustainable Banking solutions.

SBI-Subsidiaries/Joint Ventures (JV):

·         SBI LIFE INSURANCE COMPANY LIMITED (SBI-LIFE): SBI Life Insurance, one of the most trusted life insurance companies in India, is now a separate listed entity; SBI now holds 55.45%

·         SBI GENERAL INSURANCE COMPANY LIMITED (SBI GENERAL): SBI General is one of the fastest-growing private general insurance companies, with the strong parentage of SBI

·         SBI CARDS AND PAYMENT SERVICES LIMITED (SBICPSL): Now a separate listed entity-SBI Cards and Payment Services Limited (SBICPSL) is a subsidiary of the State Bank of India. SBI Cards and Payment Services Limited (“SBI Card”) is a non-banking financial company and is India’s largest pure-play credit card issuer with a base of over 15.5 million cards in force, as of December 2022; SBI now holds 68.96%

·         SBI FUNDS MANAGEMENT LIMITED (SBIFML): With 35 years of rich experience in fund management, SBI Funds Management Ltd. (SBIFML) is a JV between SBI and AMUNDI (France), one of the world's leading fund management companies, aiming to offer diversified asset management solutions and help the varied base of investors achieve their financial goals

·         SBI CAPITAL MARKETS LIMITED (SBICAPS): SBICAPS is India’s leading investment banker, offering a bouquet of investment banking and corporate advisory services to diversified clients across three product groups - Project Advisory and Structured Finance, Equity Capital Markets, and Debt Capital Markets. These services include Project Advisory, Loan Syndication, Structured Debt Placement, Mergers and Acquisitions, Private Equity, Restructuring Advisory, ESG Advisory, Stressed Assets Resolution, IPO, FPO, Rights Issues, Debt, Hybrid Capital raising, InvIT advisory, REIT advisory and COC advisory (Committee of Creditors)

·         SBICAP Securities Ltd (SSL): SSL, a wholly owned subsidiary of SBI Capital Markets Ltd, is the retail broking arm of the SBI Group. SSL offers its customers a variety of products and services to choose from – such as Equity, Derivatives, Mutual Funds, Insurance Products, Corporate FDs, etc. through state of art trading platforms on the mobile app, website, and dealer terminal. SSL is also a captive sourcing arm of the State Bank of India for sourcing Home Loan and Auto Loan business

·         SBICAP Ventures Limited (SVL): SVL is SBI’s Asset Management Arm handling alternate investments and one of India’s fastest-growing asset managers in this space. Set up in the year 2005, SVL is a wholly owned subsidiary of SBI Capital Markets Limited. SVL has a successful track record of investing pan-India in stressed residential real estate and the MSME sector including renewable energy, waste management and climate-related investments. Major global investment partners of SVL include the Foreign and Commonwealth Development Organization (FCDO) of the UK Government, the European Investment Bank (EIB), and the Japan International Cooperation Agency (JICA)

·         SBI SG GLOBAL SECURITIES SERVICES PRIVATE LIMITED (SBI-SG): SBI-SG, is a joint venture between the State Bank of India (SBI) and Societe Generale (SG) with 65% holding by SBI. The Company was set up to offer high-quality custodial and fund accounting services to domestic and foreign institutional investors supplemented by the bouquet of premier banking services of SBI

·         SBI DFHI LIMITED (SBI DFHI): SBI DFHI Limited is one of the largest standalone Primary Dealers (PD) with a pan-India presence. As a Primary Dealer (PD) it is mandated to support the book-building process in primary auctions and provide depth and liquidity to secondary markets in G-Sec. Besides Government securities, it also deals in money market instruments, non-G-Sec debt instruments, amongst others. As a PD, its business activities are regulated by RBI

·         SBI Payment Services Pvt Ltd. (SBI Payments): SBI Payment Services Pvt. Ltd. (SBI Payments) -SBI became the first public sector bank to form an exclusive Joint Venture i.e., SBI Payments for merchant acquiring business and holds a 74% stake in the company. SBI Payments is one of the largest acquirers in the country with a presence across more than 5000 centers in PAN India. The objective is to create a state-of-the-art acceptance ecosystem in all geographies of the country and enable the merchants to accept payments digitally through various form factors such as PoS, Bharat QR, BHIM-Aadhaar, NETC, Soft PoS etc

·         SBI GLOBAL FACTORS LIMITED (SBIGFL): SBIGFL is a leading provider of factoring services for domestic and international trade. It is a wholly-owned subsidiary of the State Bank of India. The Company’s services are especially suitable for MSME clients for freeing up resources locked in book debts. The Company is actively participating in bidding on the TReDS platforms. Under its membership of Factors Chain International (FCI), the Company can ameliorate credit risk from export receivables under the 2-factor model

·         SBIPENSION FUNDS PRIVATE LIMITED: SBIPFPL has been appointed as the Pension Fund Manager (PFM) along with 9 (Nine) others to manage the pension corpus under National Pension System (NPS). SBIPFPL is one of the 3 (three) PFMs appointed by the Pension Fund Regulatory & Development Authority (PFRDA) for management of Pension Funds under the NPS for Central Government (except Armed Forces) and State Government employees and one of the 10 (Ten) PFMs appointed for management of Pension Funds under the Private Sector

·         STATE BANK OPERATIONS SUPPORT SERVICES PVT. LTD. (SBOSS): State Bank Operations Support Services Pvt Ltd (SBOSS) is a wholly owned subsidiary of SBI set up in July 2022, for providing operations support services at RUSU branches of SBI. The company has developed a robust Pan India “High Tech”, “High Touch” and “Low Cost” model for providing multidimensional support to operations in Agri & SME segments. It has adopted appropriate technologies to provide doorstep services to customers/borrowers of the Bank in RUSU areas. It facilitates greater Financial Inclusion through appropriate credit linkages for meeting national development goals.

·         SBI acquired 48.2% of the shares of Yes Bank as part of RBI directed rescue deal in March 2020; now holds 26.14%

Bank Network:

As of 31^st March 2023, the SBI has a network of 22405 domestic branches, 65627 ATMs/ADWMs, and 76089 CSPs along with 235 offices/JVs in 29 foreign countries.

Key management: Key person: Dinesh Khara (Chairman & CEO)

Board Members:

Key Shareholders: Promoters: Government of India: 56.92%; FIIs/GDRs/OCBs/NRIs:10.94%; Banks & Insurance Companies: 10.63%; Mutual Funds & UTI:  13.72%; Others: 7.79%

Summary of latest report card: Q4FY23 and FY23 (Consolidated: INR 100 Cr. =1B)

·         NII Rs.446.31B vs. 421.341B sequentially (+5.94%) and 346.64B yearly (+28.76%)

·         Other non-interest operating income (including fees, trading, and misc. income) Rs.360.83B vs. 341.58B sequentially (+5.64%) and 313.55B (+15.08%); excluding W/O recovery    

·         Total operating income Rs.807.15B vs. 762.89B sequentially (+5.80%) and 660.19B yearly (+22.26%)

·         Total operating expenses Rs.552.15B vs. 493.83B sequentially (+11.81%) and 452.02B yearly (+22.15%)

·         PPOP Rs.255.00B vs. 269.06B sequentially (-5.22%) and 208.17B yearly (+22.50%)

·         Net bad loan (W/O-Recovery) Rs.83.05B vs. 56.84B sequentially (+46.11%) and 34.80B yearly (+138.68%)

·         EBTDA (Core Operating Profit after bad loan) Rs.171.95B vs. 212.22B (-18.97%) and 173.38B (-0.82%)

·         Reported NPA Provisions/Loan Loss Rs.17.80B vs. 19.96B sequentially (-10.80%) and 36.25B yearly (-50.89%)

·         EBITDA (Notional profit after NPA provisions) Rs.237.20B vs. 249.10B (-4.78%) and 171.92B (+37.97%)

·         NPA/SR provisions Rs.37.95B vs. 61.96B sequentially (-38.76%) and Rs.81.09B yearly (-53.21%)

·         Notional profit after NPA/SR provision Rs.217.06B vs. 207.09B sequentially (+4.81%) and 127.08B yearly (+70.00%)

·         EBTDA/Share (Core operating EPS) Rs.19.27 vs. 23.78 sequentially (-18.97%) and 19.43 yearly (-0.82%)

·         PPOP margin 31.59% vs. 35.27% sequentially (-3.68%) and 31.53% (+0.06%)

·         NIM (%) 3.60% vs 3.50% sequentially (+0.10%) and 3.15% yearly (+0.45%)

·         Advance (Standalone) Rs.31.99T vs 30.58T sequentially (+4.61%) and 27.34T yearly (+17.02%)

·         NII Rs.1.61T vs. 1.34T (+20.25%)

·         PPOP Rs.0.90T vs.0.79T (+13.01%)

·         Net Bad Loan (W/O-Recovery) Rs.0.18T vs. 0.14T (+26.45%)

·         Core operating EPS Rs.80.62 vs 73.19 in FY22 (+10.15%) vs 50.47 in FY21 (+45.01%)

·         NIM 3.60% in FY23 vs 3.50% FY22 (+0.10%) and 3.32% FY21 (+0.18%)

·         Advance (consolidated) Rs.32.68T in FY23 vs 27.94T FY22 (+16.96%) and 25.01T FY21 (+11.74%)

Highlights of Management comments-Investor Presentation and Q&A:

·         Robust Indian economy amid infra stimulus and improving rural demand despite global macro-headwinds

·         Overall bank credit (industry) grew around +15.00% (y/y) in FY23 on an average against +9.6% in FY22; deposit growth was +9.6% vs 8.9%

·         Revival in corporate/private capex/investment/spending is paving the way for healthy credit demand

·         Remains India’s largest bank; approx market share: deposits (23%); advance (20%); debit card spends (26%); ATM (30%); mobile banking (22%); home loan (33%); auto loan (19%)

·         Reported ROA: 0.96% for FY23 (+29 bps)

·         Reported ROE: 19.43% for FY23 (+551 bps)

·         Domestic NIM: 3.58% for FY23 (+22 bps)

·         Credit growth: +16% for FY23 (y/y)

·         Advance: Retail (43%); Corporate (35%); SME (13%); Agri (9%)

·         Diversified business/corporate loan book

·         Robust fee, cross-sell, and FX income

·         Focus continues improving income streams with control of costs

·         Higher operating expenses due to higher wage revision, tech-related costs, and DICGC premium (for higher deposits) coupled with higher MTM (Rs.700B) for bond portfolio (HTM) due to higher bond yields

·         Robust credit growths: retail (+17.64%); corporate (+12.52%); SME (+17.59%); AGRI (+13.31%)

·         Consistently improving asset quality and thrust on digital banking

·         Guidance for FY24 credit growth: 12-14%

·         Bank may not drive aggressively for deposit growth above the +10% trend rate as SBI has already excess SLR for around Rs.4T and has to provide higher interest rates to the customers

·         Bank is trying to keep NIM at an incrementally higher rate without any dilution

·         Total provisioning around Rs.2.79T, equivalent to AUCA (advance under collection-cumulative write-off)

·         Bank is providing advance provision in anticipation of doubtful/potentially doubtful advances in line with RBI draft policy/plan (even if for accounts which are not under any stress) for around Rs.70-75B/FY

·         Bank is not increasing deposit interest rates contrary to other players as it thinks that RBI may soon start cutting rates due to lower inflation

·         SBI Chairman Khara: “I always had in mind and that is one of the reasons when the rest of the market was only increasing the deposit interest rates, we did not increase the interest rates---- Isn't it and then I knew that from this pole to this pole, let there be aberrations, let others face that aberration, we are the largest bank let us stay cool”

·         Being the largest and trusted PSU bank, SBI need not run behind deposits and is not in a hurry to raise interest rates on deposits; thus NIM is expected to be robust

·         Overall banking system including SBI is now ensuring quality lending and borrowers are also increasingly cooperating amid a strict recovery process including IBC

·         Xpress personal credit is being provided to PSU (like defense forces) and reputed corporate employees (having salary accounts with SBI with very good track records); thus although officially unsecured, such credit/personal loan assets are very safe (more than secured lending) and virtually nil/negligible default rate

·         Despite easy opportunities to raise equity capital in the last five years, SBI refrained and instead plowed back profits to support business/loan growth to ensure consistently higher ROE and consistently higher dividend; today SBI can support loan growth of Rs.7.10T without any equity dilution

·         Relatively lower fee income to asset ratio primarily due to lower/waive off of loan processing fee for intense competition among various banks & financials; but SBI is now mainly focusing on cross-selling and FX income, which is growing robustly

·         Domestic-Cost of deposits 3.99% in Q4FY23 vs 3.90% sequentially and 3.83% yearly

·         Domestic-Yield on advances 8.10% in Q4FY23 vs 7.87% sequentially and 7.58% yearly

·         Domestic-Yield on investments was 6.51% in Q4FY23 vs 6.40% sequentially and 6.07% yearly

·         Domestic-NIM 3.58% in Q4FY23 vs 3.49% sequentially and 3.39% yearly

·         SBI thinks RBI may soon start cutting rates amid a lower inflation trajectory, but SBI is not in a hurry to cut rates in anticipation of that; overall MCLR is dependent on various factors including RBI repo rate and effective bond/GSEC yield

·         At present credit/deposit ratio for SBI is around 72% against the industry average of around 85%

·         Expecting robust credit growths in FY24 amid solid demand for credit from retails, corporates/business, and also government (to fund infra/EV stimulus)

·         SBI is now focusing on NIM rather than topline growth for Foreign offices/subsidiaries and NIM has been improved from around 1.3 to 1.70-2.00 over the years and most of the lending are corporates in nature

·         SBI is also focusing on cross-selling in International/Foreign offices

·         Higher domestic branches and higher salary/operating costs are compensated by higher cross-selling income; because of trusted brand value, SBI cross-selling products have high demand among customers

·         Focusing on digital banking (YONO) supported by AI/big data analytics

·         As of now, no plan to list any subsidiaries

·         As of now no plan to increase the savings deposit rate

·         The overseas lending portfolio was around Rs.4.92T in FY23; with growth of +19.55% in INR term; +10% in USD term

·         Total employee cost around Rs.572.92B in FY23, where wage revision amount was Rs.24.90B, which is 4.35% of the employee cost

·         SBI is taking care of its overseas exposure/assets around Rs.5T out of a total of 32T assets; i.e. 15% amid global macro-headwinds and cross currency headwinds

·         SBI is a long-term player in some overseas operations, having 25-150 years of presence and is now focusing on growing export/import activities of the Indian manufacturing sector, requiring FX funding

·         SBI is also having proper FX/USD SWAPS/hedges against FX risk

·         As the country’s ‘national bank’, SBI is focusing on a long-term vision like 25-50 years, not 2-5 years to build/finance the growth story

·         The domestic loan book of SBI has grown around 15.99% in FY23 against the industry average of 15%

·         SBI may soon be at par with some big private banks in terms of credit growth; SBI Chairman Khara said: “I think last year the loan book for the system as a whole has grown as 15% and we grew at 15.99%. People talk about elephant dancing; the elephant is racing, racing faster than the system, it is not only dancing. So, I think the kind of potential which we have you will have to watch.”

·         SBI is also proving fresh large corporate/industrial loans after due diligence and risk management (including the use of AI/big data analytics) without shying away (like some other private bank peers) as now recovery mechanism is robust (after IBC)

·         Almost Rs.1.7T worth of infra projects are in progress (financed by SBI)

·         Total NBFC exposure was around Rs.3.57T in FY23 vs 2.71T FY22 (+31%); most of the exposure is essential to very well-rated corporates  either in the public sector domain or backed by leading corporate groups

·         The lower slippage ratio for SBI and the overall PSU/Private banking sector is due to improving macros, excellent underwriting (loan sanctioning process), control, and regular follow-up with the borrower; thus lower slippage ratio should be sustainable

Fair Valuation: (Average of EPS+BVPS+OCFS) SBI: Rs.602-683-785-903 for FY: 23-26

SBI reported a core operating EPS (PPOP-Bad Loan) of around Rs.80.62 in FY23 against 73.19 in FY22, 50.47 in FY21, and 21.67 in FY20 with an average run rate of around +62%. During the COVID disruption times (2020-22), the bank primarily focused on NPA management rather than business/credit growth. Now in FY23-22, after COVID, SBI reported the above pre-COVID trend in credit growth to around due to the normalization of the COVID situation- the full reopening of the economy; huge infra and targeted rural/agri stimulus by the government; increasing secured lending rather than unsecured lending, relatively lower base, robust NIM (yield curve steepening amid rate hikes) and increasing recovery for prior write off accounts. SBI provided guidance of around 12-14% in credit growth for FY24 against +17% in FY23.

SBI is cautiously optimistic about overall business growth amid the global economic slowdown, higher inflation/macro headwinds, higher borrowing costs, and lower discretionary spending, but Indian macro is also exceptional. Also, Indian corporates are now almost deleveraged, thus expecting healthy loan growth, not only in the business segment but also households amid a thrust on branch expansions and digitalization. But high inflation/higher cost of living may also impact discretionary spending by the lower middle class in India. This coupled with higher borrowing costs may also affect the asset quality of all Indian banks including SBI.

Although RBI may indicate/cut rates from April’24, just ahead of India’s general election (May-June’24), if core inflation indeed sustains below 4.50%, Indian banks including SBI may not be in a hurry to cut lending rates at least till Mar’24, which will protect NIM.

Thus considering all the pros & cons, management comments, guidance, present and past run rate, etc, SBI may report at least 15% average growth (CAGR) of core operating EPS between FY24-26 (average PE 8), 15% CAGR in BVPS (average PB 1.25), and 15% CAGR in OFCS (average multiple 6), the average fair value (EPS+BVPS+OCFS) may be around Rs.602-683-785-903 for FY: 23-26; FY22 fair value was around 466. As the financial market generally discounts 1Y earnings/EPS in advance, SBI may scale 683/- by Dec’23, 785/- by Dec’24-Mar’24, and 903/- by Dec’24-Mar’25; the present market price is around 600/-.

Being a PSU bank, SBI has a relatively lower PE because sometimes, the political interest of the government gets priority over business interest; but if core operating EPS indeed grew around 15-20% on an average in the coming years, the market may provide higher PE around 12-15 from present levels of 8-10.; i.e. the stock valuation may be related.

Treatment of bad loans in bank’s P/L:

NPA provision is only an accounting entry/provision (like depreciation); it’s not a cash outflow. Banks generally write off a chronic NPA/defaulting loan account from its book but try to recover the same directly or indirectly through some compromise settlement, DRT, NCLT, selling assets (SARFASI), etc. equivalent to at least the full principal amount, sacrificing full or part unpaid accumulated interest. But in many cases, banks have to waive off a significant amount of principal amount for lack of underlying assets and absconding borrowers. This process is called bank recovery (by some agency or direct bank) and may take even 5-10 years for a full and final settlement of a large write-off NPA account (bad loan).

Every year/quarter, the bank shows some NPA write-off + NPA sold and also NPA cash recovery; the difference is bad loans. In reality, write-off and waive-off are two different accounting entries as the former is provisional, while the latter is a permanent loss in nature (after a bad loan turned non-recoverable loan). Banks generally do not waive off any bad loan account until it is sold to any ARC with a discount or becomes fully unrecoverable.

Asset Quality Analysis: NPA-SBI-QLY

Asset Quality Analysis: NPA/AUCA (asset under collection)-SBI-QLY

Asset Quality Analysis: NPA-SBI-YLY

Asset Quality Analysis: NPA/AUCA (asset under collection)-SBI-YLY

Overall, the total stressed assets (NPA+AUCA/WO) of SBI was around Rs.3T against the advance of Rs.32T; i.e. almost 10% of the total loan is now under stress, and out of that Rs.1.75T (~2T) is in AUCA; i.e. almost 6% under write-off (W/O) category. This ratio was around 25-20% a few years ago.

Over the last few years, SBI’s domestic credit growth was supported by higher household loans (secured/unsecured) as most of the loans were offered to PSU/government employees. Also, SBI is now offering most of the corporate loans to only blue-chip private or PSU companies. Overall, the personal/household loan portfolio was around 43% and business/industrial loans are quite diversified across industries. Most personal/household loans are secured (home/auto/gold), while unsecured loans are mainly given to ‘secured’ people (PSU employees or senior-level employees/personnel of blue-chip private companies).

SBI is now a PSU-heavy lender and thus asset quality is improving quite dramatically after COVID disruptions as government-backed PSUs are the safest borrowers. SBI is now giving thrust on techs (algo/AI/ML) for its lending decision in a centralized rule-based manner (like private lenders). This is a significant step, leading to the re-rating of the bank unlike the old days of manipulated/fraudulent lending culture at branch levels. SBI is now also steadily improving its fee-based income (like its private peers). In corporate lending, most of the borrowers belong to blue chip categories, having AAA ratings.

Technical view: SBI (LTP: 610 as of 20/07/2023-EOD)

For short/medium-term trading purposes:

Looking ahead, whatever may be the narrative, technically, SBI now has to sustain above 620 for a lifetime high 630, and from there only sustaining above 640 may further rally to 670/690-705/720 and 745-770 in the coming days (bullish case scenario). On the flip side, sustaining below 630, SBI may again fall to 600/580-565/550*-525/500* and only sustaining below that may further fall to 465*-422 and 318/295-270 in the coming days.

Investors may accumulate SBI around 575-550-500-465 levels on any correction or sustainable break up above 630-640 under the present market scenario.

P&L Analysis (QLY): SBI

P&L Analysis (YLY): SBI

B/S Analysis (YLY): SBI

B/S Ratios and BVPS analysis (YLY): SBI

C/F Analysis (YLY): Axis Bank

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