State Bank of India - Q4 FY20 Result Update - ICICI Securities

SBI reported 21.8% of borrowers, 23% in term loans opted for moratorium. In home loan-20%, MSME 47%, personal unsecured 5% and working capital 20% customers opted for moratorium. Total provisioning for the quarter was at Rs. 13495 crore, which includes Covid-19 provisioning of Rs. 938 crore only, lower than other large banks. Around Rs. 6250 crore worth assets availed standstill benefits and made 15% provisions for the same. Q3FY20 results were highlighted due to Essar Steel income and provision write back. Hence, are not comparable QoQ. PCR (excluding w/off) was at 65.2% vs. 63.5%.

Valuation & Outlook

Covid-19 provisions and stress of future along with hangover of Yes Bank would keep the stock performance muted. We expect return ratios of RoA at 0.5% and 9.1% RoE by FY22E. We revise target price lower to Rs. 215, valuing at 0.7x FY22E ABV standalone bank and assigning subsidiaries value of Rs. 80 post holding company discount. We downgrade the rating from BUY to HOLD. MD's tenure ending by October 2020 will also be an overhang.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_SBI_Q4FY20.pdf

Shares of STATE BANK OF INDIA was last trading in BSE at Rs.187.8 as compared to the previous close of Rs. 174.05. The total number of shares traded during the day was 10714152 in over 58593 trades.

The stock hit an intraday high of Rs. 189.8 and intraday low of 176. The net turnover during the day was Rs. 1949687427.

Source : Equity Bulls

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