Nomura on SBI BUY Target Price Rs 630 from Rs 600 earlier | Stock Market Latest News

Nomura on SBI

BUY

Target Price Rs 630 from Rs 600 earlier

2Q review: Strong performance
Peak NIM, low net slippages were key positives

PPOP trend should correlate with loan growth from hereon

FY23F should reflect a normalized RoA and RoE at ~0.9% and ~16%, respectively

SBIN exits the COVID-19 second wave with a strong balance sheet
Considering slippages are likely to be more granular with quicker recovery periods, net slippages may be a better indicator while comparing banks

EPS estimate for FY22F is lower by 7% as we factor the pension cost