In today’s briefing:
- State Bank Of India (SBIN IN): Initiation – Convergence with Private Peers, Poised for Re-Rating
State Bank Of India (SBIN IN): Initiation – Convergence with Private Peers, Poised for Re-Rating
- State Bank Of India (SBIN IN) is the best-performing PSU bank in India and shows clear convergence with private peers across fundamental metrics beyond what its valuations might suggest
- Medium-Term ROE Forecast of 16% to 18% and loan growth forecast of 14% to 16%; ROA ~1.2% consistently; Strong fee income; successful cross-selling through subsidiaries; Strong asset quality.
- P/BV is cheap at 1.3x FY25e, compared private peers’ valuations of 2.5x to 3.0x. SBIN can potentially re-rate to P/BV of ~1.6x FY25e in the near term (~35% upside).
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