The State Bank of India (SBI) is scheduled to release its Q1 results today. The PSU bank has previously notified the Indian stock market exchanges that the SBI board of directors will review and approve the unaudited financial figures for the April–June 2024 quarter during its board meeting on August 3, 2024, which is today. SBI is expected to release respectable Q1FY25 figures, as per stock market experts. Due to the Bundesbank’s successful mitigating measures, they claimed, margins might stay stable. They did caution us, nevertheless, to remain on the lookout for CASA, given that Bank of Baroda and Punjab National Bank (PNB) were able to keep their financing costs under control during the quarter ending in April 2020.
Preview of SBI Q1FY25 results
Manish Chowdhury, Head of Research at StoxBox, commented, “State Bank of India’s balance sheet has steadily grown, reaching ₹62 trillion in FY24,” about the type of Q1 results that SBI may provide. We expect the bank to release respectable Q1FY25 results. We anticipate consistent profits despite higher deposit costs because of the bank’s successful mitigation techniques. Due to rising digital spending, the cost-to-income ratio might be high this quarter, but these investments should start to pay off soon.
Due to the seasonally weak quarter and the bank’s robust Retail, Agriculture, and MSME (RAM) divisions, some stress is anticipated on the asset quality front, which could result in an increase in provisions. However, the overall pay bill is anticipated to dramatically reduce in Q1FY25, with the entire impact of pensions and salary modifications already factored in. As a result, we think the massive public sector will produce respectable results,” the StoxBox analyst stated.
CASA is highlighted
As SBI’s counterparts, Punjab National Bank (PNB) and Bank of Baroda (BoB), have managed to contain their cost of funding, Avinash Gorakshkar, Head of Research at Profitmart Securities, advised investors to remain cautious regarding SBI’s cost of funding. Therefore, for those who are impatient, CASA would be a crucial number.”
SBI’s target share price
Ganesh Dongre, Senior Manager, Technical Research at Anand Rathi, discussed the forecast for the SBI share price, stating that it is currently between ₹830 to ₹865. SBI shares should hit ₹895 per share if they emphatically cross the top barrier. Thus, current investors should hold onto SBI shares with a stop loss set around ₹830 and wait for the ₹865 breakout.
What is the SBI share’s target price?
The brokerage company retains a ‘Buy’ rating on SBI shares with a revised SOTP-based target price of ₹1,010 per share. It feels SBI justifies a re-rating due to the predicted sustaining of RoA above the 1%+ levels.
(Disclaimer: The opinions and suggestions mentioned are from individual analysts, experts, and broking firms, not endorsed by Businessuncover. Investors should consult certified experts before deciding on investments.)
