SBI share price target 2024: Net profit UP 24%, Rs 13.70 dividend - BUY?
sbi share price target 2024: net profit up 24%, rs 13.70 dividend – buy?
(Authored by Samta Barnali Achintya)SBI Q4FY2024 results: Country’s largest lender State Bank of India (SBI), on Thursday released its quarterly results. SBI’s net profit for FY24 stood at Rs 61,077 crore. For Q4FY24, the bank’s net profit increased by 23.98% to Rs 20,698 crores and Net Interest Income (NII) jumped by 10.38% YoY.
While the operating profit for FY24 stood at Rs 93,797 crores, increasing by 12.05% YoY, operating profit for Q4FY24 grew by 16.76% YoY, that stood at Rs 28,748 crores. Apart from this, SBI’s ROA and ROE for FY24 stood at 1.04% and 20.32% respectively. Additionally, the bank’s ROA improved by 13 bps YoY, at 1.36% for the quarter.
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Furthermore, the bank saw an improvement in its Net NPA ratio at 0.57%, which increased by 10 bps YoY. Also, the bank’s domestic advances grew by 16.26% YoY, whereas Foreign Offices’ Advances grew by 9.47% YoY. Furthermore, retail personal loans and corporate loans both saw increases compared to the same time last year. Retail personal loans grew by 14.68%, while corporate loans grew by 16.17%.
Meanwhile, Whole Bank NIM for FY24 is marginally down by 9 bps YoY to 3.28%.
SBI share price target 2024: Jefferies’ observation
Brokerage firm Jefferies has maintained a BUY rating on the SBI stock with a target price of Rs 810. It may, however, be noted that SBI stock, on Thursday, closed at Rs 820 per share (+9.20). According to the brokerage house, the Net Interest Income (NII) grew by 3%, which was slightly higher. This growth was mainly driven by lower staff costs and higher treasury gains, with most companies surpassing expectations – the brokerage said.
The brokerage house observed that the slippages remained low and gross/ net NPLs were marginally down for the quarter. As per a BSE filing, the bank’s slippage ratio for FY24 increased by 3 bps YoY, standing at 0.62%. Similarly, the credit ratio for the year also saw an improvement of 3 bps YoY, which stood at 0.29% – it observed.
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The bank also announced that its central board has declared a 1370 percent dividend for the fiscal year ending March 31, 2024.
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