SBI - Q4FY13 Result Preview - Angel Broking

State Bank of India is slated to announce its 4QFY2013 results today. The Net interest income (NII) is expected to decline by 2.6% yoy to Rs. 11,401cr. Non-interest income is also expected to decline by 2.9% yoy to Rs. 5,110cr. The operating expenses of the bank are expected to increase by 20.8% yoy to Rs. 8,908cr (as the bank is expected to provide for wage revision around Rs. 1,000cr during the quarter). The operating profit is expected to decline by 20.8% yoy to Rs. 7,603cr and the net profit is expected to decline by 17.1% yoy to Rs. 3,359cr. At the current market price, the stock trades at a valuation of 1.3x FY2015E P/ABV.

We maintain our Accumulate recommendation on the stock, with a target price of Rs. 2,669.

Source : Equity Bulls

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