SBI share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about SBI share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned SBI share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
Also read: ONGC share price target 2022, 2023, and 2030.
SBI Share Price Target 2022, 2023, 2024, 2025, and 2030
State Bank of India a Fortune 500 company, is an Indian multinational, public sector banking and financial services statutory body headquartered in Mumbai. SBI is the largest Indian bank with 1/4th market share, serves over 45 crore customers through its vast network of over 22,000 branches, 62,617 ATMs, 71,968 BC outlets.
State Bank of India has successfully diversified businesses through its various subsidiaries such that SBI general insurance, SBI life insurance, SBI mutual fund, SBI card, etc. SBI has its presence globally and operates in over 31 foreign countries.
State Bank of India is an Indian multinational, public sector banking and financial services statutory body. For SBI, the interests of the common man have always remained at the core of its business. The Bank has a strong portfolio of distinctive products & services and leverages technology to deliver and manage them in a personalized and customer-centric way. State Bank of India is actively involved since 1973 in non-profit activity called Community Services Banking. All its branches and administrative offices throughout the country sponsor and participate in a large number of welfare activities and social causes. The bank’s business is more than banking because it touches the lives of people anywhere in many ways.
No of Branches
Domestic advances mix
SBI Share Price Target 2022
Motilal Oswal has a buy call on SBI with a target price of Rs 675. The time period given by the brokerage when SBI can reach the given target is one year.
Motilal Oswal on SBI Share Price Target 2022
SBI reported a steady quarter, with net earnings growing 67% YoY to Rs 76.3 billion, aided by controlled provisions, as asset quality showed remarkable strength, despite the impact of the second COVID wave.
GNPA/NNPA ratios improved by 42bp/25bp QoQ to 4.9%/1.5% as fresh slippage subsided to Rs 41.8 billion. Motilal Oswal expects SBI to deliver FY23E/FY24E RoE of 14.5%/15.7%, maintaining a buy rating with a revised target price of Rs 675 per share.
NII grew by 11% YoY boosted by a tax refund of Rs 19.92 billion. Domestic NIM improved by 35bp QoQ to 3.5%. CASA mix stood at 46.2% (stable QoQ).
- The management expects NII to remain strong and NIM at 3.2 to 3.3%.
- It aims to deliver a RoE of 15% on a sustainable basis across cycles. The management believed it to be on tract and is confident of achieveing the same.
- Around Rs 80 billion, which slipped during Q1FY22, was recovered in Q2FY22.
ShareKhan has a buy call ob SBI with a target price of Rs 534. The time period given by the Sharekhan when SBI can reach the given target is one year.
ShareKhan on SBI Share Price Target 2022
State bank of India has pleasantly surprised by keeping asset quality under control during the Q1FY22. Slippages were higher sequentially but in line with expectations and better than many private sector banks. In addition, the bank indicated a strong recovery in July/August.
SBI has a healthy provision cover of 86% as of Q1FY22. The capital adequacy ratio at 13.66% is comfortable and with the government’s majority holding, capital and liquidity will not be an issue.
Net interest margin(NIM) at 2.92% and RoA at 0.6%, are at sub-optimal levels. Normalization of credit cost and pick up in credit growth should boost RoA and RoE going ahead.
SBI needs to focus on improving NIM & RoA, despite an encouraging trend on the asset quality front, the bank still operates at sub-optimal levels, both in terms of NIM and RoA. It would have to take steps to improve yield on advances and improve its core profitability.
SBI currently trades at 1.8x/1.7x/1.4x its FY2022E/FY2023E/FY2024E ABVPS, which is attractive considering the value of the franchise. SBI is better placed with respect to asset quality, capitalization and underwriting strengths, etc. With its business strengths, ShreKhan expects NII and profitability to bounce back in the next 2-3 years, helped by higher margins. ShareKhan expects RoE of 13-14% by FY2022E/FY2023E. By considering all these factors Sharekhan maintains a buy on the stock with a target price of Rs 534.
KRChoksey has a buy call on SBI with a target price of Rs532. The time period given by KRChoksey when SBI can reach the given target is one year.
KRChoksey On SBI
- In Q1FY22, Net interest income increased by 3.74% YoY at Rs 27,638 Cr. Domestic NIM for Q1FY22 at 3.15%, has declined by 9bps YoY.
- Operating profit increased by 5.06% YoY to Rs 18,975 Cr in Q1FY22 from Rs 18,061 Cr in Q1FY21. The operating profit excluding exceptional increased to 14.85% YoY. Non interest income for Q1FY22 at Rs 11,803 Cr grew by 24.28% YoY.
- Net profit of Rs 6,504 Cr in Q1FY22. This represents increase of 55.25% YoY.
- Deposits grew at 8.82% YoY at Rs 37,20,987 Cr. Credit growth stood at 5.64% YoY at Rs 25,23,793 Cr in Q1FY22.
- Net NPA ratio at 1.77% is down 9bps YoY, gross NPA ratio at 5.23% is down 12 bps YoY in Q1FY22.
Valuation & view on SBI by KRChoksey
Q1FY22 was a stable quarter on operating terms for the State Bank of India (SBI). Loan book growth for the quarter was modest YoY and down sequentially. Asset quality was hit by the second wave of Covid in line with the peer performance. The Bank’s performance is showing a gradual improvement quarter by quarter. The restructuring of the book is underway. The strong deposit franchise, large customer size, and loan book mix augur well for the bank. It is, therefore, better placed than its PSU peers to weather further crisis especially related to the pandemic.
We have factored CAGR of 48% in profits over an advance CAGR of 9% over FY21-23E. KRChoksey expects its RoA to improve to 0.8% by FY23E and RoE to improve to ~14.5% by FY23E. We value the bank at 1.4x FY23E P/ABV (earlier 1.2x) on an ABV of INR 325, taking the SOTP value to INR 532 per share (earlier INR 450 per share), implying a potential upside of 20.4% over the CMP. Accordingly, KRChoksey upgraded the rating on the shares of SBI Ltd. to a “BUY”.
Emkay global financial services have a buy call on SBI with a target price of Rs 600 per share. The time period given by the brokerage when SBI can reach the given target is one year.
Emkay Global on SBI
Q1FY22 operating performance beat estimates on healthy fees/treasury gains, but high provisions led to a 5% miss on PAT at Rs65bn (est. Rs68.4bn). Asset quality performance was mixed, with GNPA up 34bps QoQ to 5.3% (led by retail/SME), restructured pool rising moderately to 0.8% of loans.
SBI has already seen a decent NPA clawback of Rs48bn in July with a pickup in collections, while restructuring should reduce SME NPAs. This, along with the transfer of NPAs to NARCL (Rs200bn/0.8% of loans) and resolutions via NCLT should meaningfully bring down NPAs. We trimmed earnings estimates for FY22-23 by 5/3%, but expect the bank to deliver 13-15% RoE over FY22-24E.
Emkay global maintains a buy rating with a target price of Rs 600, valuing cor bank at 1.4x sep 23E ABV and investments at Rs 185, leading to a 32% upside. SBI is the second-best pick after ICICI, and Emkay global financial services believe that a better-than-expected growth/asset quality movement could provide further upsides to earnings or valuations.
Outlook & Valuation of SBI by Emkay Global
Emkay global earnings estimates for FY22-23 by 5-3% but expect SBI to deliver 13-15% RoE over FY22-24E. SBI is among PSBs for its strong liability profile, high retail orientation, reasonable capital position, and sharply improving RoA/RoE, given the renewed focus on profitability while maintaining market dominance and portfolio quality. Retain Buy rating with a revised TP of Rs600, valuing the core bank at 1.4x Sep’23E ABV and subs/investments at Rs185.
Key risks: macro-slowdown and delay in corporate/retail credit demand; sharp rise in G-sec yields hurting treasury; and delay in corporate resolutions.
LKP Securities has a buy call SBI with a target price of Rs.670 per share. The time period given by the brokerage when SBI can reach the given target is one year.
LKP on SBI Share Price Target 2022
State Bank of India (SBI) has delivered a stable result on the operating and asset quality front. Moreover, reported gross slippages stood at ₹42bn v/s ₹156bn in the previous quarter. It’s reported GNPA (4.9% v/s 5.32% in 1QFY22) and NNPA (1.52% v/s 1.77% in 1QFY22) improved noticeably. The bank has witnessed stable advance growth (6.5% YoY & 0.5% QoQ) and strong deposit growth (10% YoY & 2.4% QoQ) sequentially with better liquidity position.
The bank has reported PAT of ₹76bn (v/s ₹65bn in 1QFY22) on the back of strong NII growth (13%QoQ and NIMs: 3.33%) along with lower provisioning expenses because of specific provision utilization. The 2QFY22 ROA and ROE stood at 0.66% and 11.4% respectively. Management reiterated the target ROE of 15% in the mid-run. LKP Securities believe the ROE target of 15% is achievable in the mid-run. Therefore, LKP Securities recommend a BUY rating with an increased target price of ₹670 (earlier ₹541).
Outlook & Valuation of SBI by LKP Securities
Under the base-case scenario, LKP securities expect the bank to post a ROA/ROE of 0.8%/13% by FY23E led by healthy balance sheet growth along with higher PCR (provisioning coverage ratio) and stable asset quality. LKP securities recommend a BUY rating with a revised target price of ₹670 (potential upside of 27%).
Way2Wealth On SBI Share Price Target 2022
Way2wealth has a buy call on SBI, the brokerage didn’t give any target price but the brokerage is confident in SBI for medium to long term investment.
Way2Wealth Report on SBI
- Highest quarterly net profit of Rs 7,627 Cr, 67% up YoY.
- Robust retail loan growth but overall loan growth muted due to contraction in corporate book.
- Improvement in asset quality; restructures book contained at 1.2%.
- Improvement in key metrics like NIM, CASA, etc.
- Trading at attractive valuation.
Deposits of SBI
- Deposit growth of 10% moved in tandem with industry trend led by CASA growth of 12%.
- The CASA share improve slightly to 46% and above from 45% average of last four fiscals.
- 62% of new saving accounts opened through Yono in H1FY22.
Margins of SBI
- The bank’s net interest margin expanded to 3.5%, up 35bps QoQ.
- The bank got the twin benefits of improving yields and decline in cost of deposits leading to margin expansion.
Operational performance of SBI
- Operating profit increased by 9.84% YoY to Rs 18,079 Cr in Q2FY22 from Rs 16,460 Cr in Q2FY21.
- Fully provided Rs 7,418 Cr due to change in family pensions rules, even as regulator granted dispensation to amortise in 5 years.
- Operating expense growth was contained at 5% YoY with focus on improving income streams.
Way2Wealth Outlook on SBI Share Price Target
Way2Wealth re-iterates that the bank has a huge scope for improvement in earnings when it will start firing on key parameters like loan growth, margin expansion, lower operating expense, and stable asset quality.
The profit surge in Q2FY22 saw a glimpse of the above-mentioned parameters like margin expansion and stable asset quality.
SBI is currently valued at 1 time trailing core book value which is attractive considering the improving return ratios and is discounting most of its concerns in the current valuation.
According to our analysis, SBI share price target for 2022 is Rs 560.
|SBI share price target 2022|
SBI Share Price Target 2023
During FY2021, SBI deposits growth has remained in double digits and well above the ASCBs’ growth rate. In FY2021, SBI total deposits grew at 13.56% (ASCBs growth: 11.40%) to 36,81,277 crore from the previous year’s level of32,41,621 crore. This high growth in deposits pushed SBI’s market share up by 45 bps to 23.29%. However, the foreign offices’ deposits contracted by -5.04% to 1,11,112 crore, while domestic deposits grew by 14.26% to35,70,165 crore. On a positive note, the CASA deposits grew at a faster pace of 16.73%, compared to term deposits growth of 12.23%.
Within CASA, the current account deposit grew by 27.36%, while Saving Bank Deposits grew by 14.79%, which has resulted in the CASA ratio improving by 97 bps to 46.13% in FY2021. In FY2021, ASCBs credit off-take has continued its downward momentum and grew at a 59-years low of 5.6%. However, SBI domestic advances growth has rebounded in the current year and grew by 5.67% to 21,82,516 crore, compared to 3.75% growth in FY2020.
The foreign office’s advance growth contracted by 0.14% to 3,56,877 crore. So, the gross advances of SBI grew by 4.81% to the level of 25,39,393 crore in FY2021 from the previous year’s level of24,22,845 crore. The strong domestic loan growth is led by growth in retail personal loans, driven by home loans, Xpress credit and gold loans. The retail personal loans segment grew by 16.47% to 8,70,711 crore in FY2021, which is in line with the Bank’s strategy towards this segment led by robust digital channels. Within retail, Home Loans, Xpress credit, and Gold Loans grew substantially by 10.51% to5,03,779 crore, 36.49% to 1,92,780 crore, and 465.08% to20,987 crore respectively.
These segments constitute around 82.41% of the total Personal loans. With this robust growth, your Bank’s market share in Home loans is at 34.53% and 31.74% in Auto loans. The growth in Xpress credit is mainly driven by SBI digital YONO and INB platforms. By considering all these factors, SBI share price target for 2023 is Rs 670.
|SBI share price target 2023|
SBI Share Price Target 2024
According to data on the sectoral deployment of bank credit for March 2021, credit growth to Agri & and Allied activities has accelerated to 12.3% in March 2021 (4.2% a year ago), the highest since April 2017. Credit growth to industry decelerated marginally to 0.4% (0.7% a year ago) mainly due to credit to large industries, which contracted by 0.8% in March 2021 (as compared with a growth of 0.6% a year ago). This is primarily on account of large industries raising resources from non-bank sources.
Credit growth to the services sector decelerated to 1.4% during FY2021 from 7.4% in the previous year, primarily driven down by a sharp deceleration in credit growth to NBFCs after a spurt in the preceding year and contraction in credit to professional services. Further, personal loans accounted for one-fourth of total bank credit and continued to record double-digit growth of 10.2%, compared to last year’s growth of 15.0%, led by housing and other personal loans. To give support to the market and economy during the pandemic, RBI announced several liquidity measures and also reduced the key policy repo rate by 115 bps to 4.0% and CRR by 100 bps to 3.0%.
Thus, the downward interest rate scenario has continued with a decline in deposit and lending rates, aided by large surplus liquidity, the implementation of the external benchmark linked lending rates, and subdued credit demand. If we look at SCBs, the lending rate (weighted average lending rates on fresh loans) has declined by 79 bps (PSBs: 120 bps, Pvt Banks: 22 bps) and weighted average domestic term deposit rate has reduced by 100 bps (PSBs: 89 bps, Pvt banks: 101 bps) during FY2021.
The current pandemic has highlighted the importance of maintaining business continuity in times of complete absence of physical interaction and building a robust digital banking infrastructure. The trend for mobile banking is encouraging. From 3.6 lakh crore in April 2020, the mobile banking payments have increased to9.3 lakh crore in January 2021, fuelled by COVID panic-led lockdown. Similarly, transactions in UPI have increased from 1.5 lakh crore in April 2020 to5.0 lakh crore in March 2021, indicating an increase of 145%. SBI share price target for 2024 is Rs 720.
|SBI share price target 2024|
SBI Share Price Target 2025
Retail and Digital Banking is the largest business vertical of the Bank, with 99.45% of total branches and 98.04% of the total human resources of the Bank. The Group comprises of eight strategic business units, which drive the largest branch network across the country. SBI is committed to customer delight at all its branches. The ever-evolving customer preferences, especially of the younger population, coupled with an increased focus on enhanced customer convenience, are transforming the retail banking landscape. Retail segment will have a positive impact on the SBI share price target.
SBI’s customer base is steadily increasing across the country, making Retail Banking the most prolific segment of SBI, both in terms of deposit mobilisation as well as extending customized credit. SBI continues to be the largest Home Loan provider in the country and the largest dispenser of Education Loans, which demonstrates its unflinching commitment to serving society at large. SBI continues to be at the forefront in the digital banking domain with a steady stream of technology-driven innovations.
It has a multi-channel delivery model, which offers its customers a wide choice to carry out these transactions, at any time and at any place. SBI has increased its offerings across various channels – digital, mobile, ATM, internet, social media, and branches. By considering all these factors, SBI share price target for 2025 is Rs 780.
|SBI share price target 2025|
SBI Share Price Target 2030
In FY2021, your Bank’s car loan market share in total new car sales has jumped to 16.5% as against 14.4% in FY2020. While due to COVID-19 Pandemic, industry sales were affected; your Bank took various initiatives to maintain volumes and grew its portfolio YOY by 5% in the current fiscal.
A vast product range covering all types of vehicles was made available to both existing and New to Bank (NTB) customers, through multiple channels, such as Branches, YONO, Dealers, and CLPs. Your Bank’s YONO car loan comes with benefits of 0.25% concession in rate of interest and NIL Processing Fee to customers, which is an additional feature provided by SBI. This will have a positive impact on SBI share price target in the long run.
Your Bank continued helping in upgrading the living standards of its customers by providing Auto Loans at competitive rates, thereby making “owning a car” an affordable proposition. These measures have helped your Bank to grow its loan portfolio to reach a level of 76,322 crores as of 31st March 2021. Personal Loans, both secured and unsecured, are amongst the most popular products in your Bank and your Bank is a leader in this market segment. Your Bank is aggressively catering to the needs of the salaried class (both government and private), pensioners, and self-employed/ other customers.
Your Bank is now extending loans to customers with salary accounts at other Banks also through SBI Quick Personal Loans (CLP Platform). As of 31st March 2021, the Personal loan portfolio (Xpress credit and Pension loan) reached a level of 2,23,329 crore with a YTD growth of 33.89% (56,532 crores). The growth is contributed primarily by the flagship product Xpress credit to the tune of 51,367 crores (YTD growth 36.32%). During this financial year, your Bank has provided personal loans (Xpress credit and pension loan) amounting to1,26,104 crore to more than 31.13 lakh customers, which includes digital loans of 16,569 crores (PAXC –9,402 crore, Insta Credit – 5,663 crores, PAPNL –824 crores And Insta Pension – 680 crores).
By considering all the above-mentioned factors and extensive research on the Indian banking sector, SBI share price target for 2030 is Rs 2,140.
|SBI share price target 2030|
Also read: IOB share price target 2022, 2025, and 2030.
SBI Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||SBI Share Price Target|
|SBI share price target 2022||Rs 560|
|SBI share price target 2023||Rs 670|
|SBI share price target 2024||Rs 720|
|SBI share price target 2025||Rs 780|
|SBI share price target 2030||Rs 2,140|
Frequently Asked Questions
What is the prediction of SBI share?
The prediction of SBI share price for 2022 is Rs 560, SBI share price target for 2023 is Rs 670, SBI share price target for 2024 is Rs 720, SBI share price target for 2025 is Rs 780, and SBI share price target for 2030 is Rs 2,140.
Is SBI good stock to buy?
Yes, you can buy SBI for the long term. SBI is the biggest bank in India and SBI is very strong in terms of financials and fundamentals, so you can buy SBI for the long term without a second thought.
Will SBI become private?
No, SBI will not become private and the government of India will never do it, as it is the biggest PSU bank in India and also profitable.