Review

STATE BANK OF INDIA

Ticker : 500112
FV : Rs 1
52-Week H/L : Rs 351.00/149.55

We had previously recommended State Bank of India (SBI) in volume 36, issue no. 10 (dated December 30, 2019), when the stock was trading at Rs 329.85. SBI is a multinational, public sector banking and financial services statutory body. Its total income grew by 5.65 per cent to Rs 87,984.33 crore in Q1FY21 from Rs 83,278.08 crore in Q1FY20. Deposit inflows were strong, increasing 16 per cent YoY and 5.5 per cent QoQ. CASA deposits grew by 16.7 per cent YoY and 6.2 per cent QoQ. The bank reported a net profit of Rs 5,203.49 crore in Q1FY21, up by 63.85 per cent from Rs 3,175.86 crore in Q1FY20. Being the largest bank in India, SBI has business strengths that make it a beneficiary of liquidity with huge deposit inflow during uncertain times thereby, resulting in a lower cost of funds. Hence, we recommend a HOLD.