Bank - Public
₹ 155332.86374927 Cr.
₹ 88348.876 Cr.
The Indian Banking sector is rising rapidly due to infrastructure spending, favorable government policy, rising disposable income and increasing consumerism and easier access to credit.
The banking industry is in boom with growing demand across India. But is it the right time to invest in banking stocks is the question to be asked? We can look into more details and dig a little deeper into the analysis of the stock.
Let’s look at how SBI is performing and if it is the right time to buy the stock of SBI with detailed analysis.
For Banking companies, The primary source of Income is interest earned on various loans given to individuals and corporates. SBI has earned Rs 242868.654 Cr. revenue in the latest financial year. It has posted decent revenue growth of 13.983889712291 % in last 3 Years.
In terms of advances, the bank reported 12.97 % YOY, rise . If you see 3 years advance growth, it stands at 14.303054402738 %.
Currently the company has a CASA ratio of 44.5707720251086 %. It’s overall cost of liability stands at 4.66206951872154 %. Also, the total deposits from these accounts stood at Rs 2911386.011 Cr.
The Bank has a Poor ROA track record. The ROA of SBI is at 0.0241667637004114 %.
The Lender is inefficiently managing it’s overall asset portfolio. The Gross NPA and Net NPA stood at 7.53 % and 3.01 % respectively as on the latest financial year.
One other important measure of banks’ financial health is provisioning coverage ratio. The YoY change in provision and contingencies is negative at -29.198944018593 % which means it has decreased from the previous year.
Non-Interest income or other incomes are very important for banks as it gives a regular source of income for bank with no additional risk. Other income of SBI decreased and is currently at Rs 3.67748878 Cr.
The company has a inadequate Capital Adequacy Ratio of 12.72 .
The best metric which provides insights about bank’s valuation is P/B ratio. Currently SBI is trading at a P/B of 1.45878794770732 . The historical average PB was 1.34.