SBI nears record high on fundraising plan; stock rises 7% in six days
.jpg)
State Bank of India (SBI) shares were trading 1 per cent higher at Rs 362 on the BSE, after the state-owned lender said its board will consider raising capital additional tier-1 capital. The stock was trading close to its all-time high of Rs 364 touched on May 23, 2019 in intra-day trade.
The meeting of the bank's central board is scheduled to be held on Monday, July 1, to consider raising capital via Basel-III compliant debt instruments during the financial year 2020, SBI said in the filing after market hours on Wednesday.
SBI was trading higher for the sixth straight day, gaining 7 per cent, against 1.5 per cent rise in the S&P BSE Sensex during the same period. The stock has rallied 35 per cent in the past four months against 10 per cent rise in the benchmark index.
“SBI’s strong liability franchise and better capital position differentiate it from other PSU peers. Moreover, industry best cost of funds also helps lower asset side risks. Sharp decline in credit cost and improvement in margin are expected to drive improved RoAs over FY20E/21E,” Reliance Securities said in a client note.
Factoring in the benefits of likely stake sale in subsidiaries in FY20E and write-backs from some large NCLT (National Company Law Tribunal) recoveries, we expect RoA of 0.8 per cent/0.9 per cent in FY20E/FY21E,” the brokerage firm said with ‘buy’ rating on the stock and target price of Rs 390 per share.
Analysts at JP Morgan have ‘overweight’ rating on SBI with target price of Rs 400 per share, as the brokerage firm believes asset quality and provisioning cycle for SBI is now coming to a close.
“We think the bank’s core ROE will reflate from FY20 onward as the company crosses the “hump” on provisions and NPL recognition over FY19. With the large part of credit costs and operating costs behind it in FY19, SBI should start reverting to normalized profitability from FY20 onward, in our view, and the bank should hit the target ROA of 0.9-1 per cent over FY20-21,” the analysts said in May report.
Other Latest News
.webp)
Shiv Sena (UBT) chief Uddhav Thackeray on Wednesday hit out the BJP, saying that by inducting former Congress leader Ashok Chavan, the ruling party has also become a part of the multi-crore Adarsh Housing Society scam now. Earlier, the BJP used to target Chavan saying the families of martyrs were fooled in the Adarsh scam, but now the same party is involved in fooling them, he alleged.
Thackeray was addressing a press conference at Nanded in Maharashtra, where he arrived to campaign for the Maha Vikas Aghadi (MVA) candidate Vasant Chavan from the Nanded Lok Sabha constituency.
.webp)
Jamie Dimon, the chief executive of US banking giant JPMorgan Chase, has praised Prime Minister Narendra Modi and berated the “liberal press” for criticising him.
Dimon, in a webinar hosted by The Economic Club of New York, praised Modi's government for alleviating poverty and implementing reforms. “Modi has done an unbelievable job in India. I know the liberal press here; they beat the hell out of him. “He has taken 400 million people out of poverty," Dimon was quoted as saying.
.webp)
The Reserve Bank of India (RBI) on Wednesday released a compiled master direction raising the minimum capital requirement for asset reconstruction companies (ARCs) to begin securitization to Rs 300 crore from Rs 100 crore as on October 11, 2022.
The central bank said that the regulation would be effective from April 24, 2024. ARCs, as on October 11, 2022, have been provided a glide path to achieve the minimum required Net Owned Fund (NOF) of Rs 300 crore.
.webp)
Reliance Jio has become the world's largest mobile operator in data traffic consumption, surpassing China Mobile. According to global analytics firm Tefficient, the Indian telecom operator's total traffic reached 40.9 exabytes in the January-March quarter, compared to China Mobile's 38.
Jio also has the second-largest 5G subscriber base globally, with 108 million users. More than 28 per cent of its total wireless data traffic is now consumed by 5G users, said the company in an analyst presentation.
.webp)
Congress leader Rahul Gandhi on Wednesday accused Prime Minister Narendra Modi of waiving off loans worth Rs 16 trillion of his billionaire friends, and said the country will never forgive him for this "crime".
In a post in Hindi on X, he said this money could have been used to cure the pain of Indians but was spent on creating hype for the ilk of those like 'Adanis'.
.webp)
.webp)
.webp)
.webp)
.webp)
