GS maintains their Buy rating on SBI with an upward revised target at Rs 367/share. GS hosted the Chairman of State Bank of India at the GS India CIO tour. According to GS, Asset quality guidance stays the same at 2.5% of NPL/restructured loans. Asset quality seems to be playing out as per the guidance and is in fact surprising positively. The recovery momentum is also gathering pace, driven by retail and SME demand for credit as well as ability to repay timely. The bank is committed to improve the return on assets to 1% by FY23. Focus is also on digital enhancing with strong performance in its digital app. Trading at just 0.4x P/BV FY22, SBI represents a compelling risk reward in their view.
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