Update on the Indian Equity Market:
\nOn Monday Nifty closed 1% higher at 14,485. Among the sectoral indices, IT (+3.3%), Auto (+2.6%), and Realty (+0.6%) closed higher. Media (-1.5%), PSU Bank (-1.5%), and METAL (-1.0%) were the sectoral indices that closed lower. Tata Motors (+12.6%), HCL Tech (+5.9%), and Infosys (+4.8%) closed on a positive note. Tata Steel (-2.6%), Bajaj Finance (-1.9%), and Adani Ports (-1.9%) were among the top losers.<\/p>\n
Excerpts from an interview of Mr. Ashwani Bhatia, MD, SBI with CNBC-TV18 dated 8th January 2020:
\n\u25cf\tState Bank of India (SBI), has concluded the issuance of USD 600mn from bonds to fund the expansion of their overseas business.
\n\u25cf\tMr. Ashwani Bhatia said there was a funding gap on the overseas side and this was the right time to fill it.
\n\u25cf\tSBI is the first bank to raise money post the Covid crisis. The spreads are better as compared to the last 6-7 years.
\n\u25cf\tSpeaking about asset quality on the domestic side, he said the bank has not seen the gloom that was anticipated on slippages.
\n\u25cf\tOn credit growth, he said there could be 8-9% growth in 2HFY21. The demand is coming back and, retail has been a good surprise.
\n\u25cf\tThe decision taken by the central government, RBI, and tax cuts in Maharashtra has helped the bank.
\n\u25cf\tOn loan growth, he said the bank is sitting on excess SLR and it can be used for the economy in the next 3 months. The bank reported a growth of 8% and the expectation is to touch double digits.
\n\u25cf\tIn terms of recovery, he said Rs 7,000-10,000 cr of recovery is expected.
\nConsensus Estimate: (Source: market screener and investing.com websites)
\n\u25cf\tThe closing price of SBI was \u20b9 283 as of 11-January-2020. It traded at 1x\/ 0.9x\/ 0.8x the consensus BVPS per share estimate of \u20b9 262\/286\/318 for FY21E\/ FY22E\/ FY23E respectively.
\n\u25cf\tThe consensus average target price for SBI is \u20b9 312\/- which implies a PB multiple of 0.9x on FY23E BVPS of 318\/-.
\nDisclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Update on the Indian Equity Market: On Monday Nifty closed 1% higher at 14,485. Among the sectoral indices, IT (+3.3%), Auto (+2.6%), and Realty (+0.6%) closed higher. Media (-1.5%), PSU Bank (-1.5%), and METAL (-1.0%) were the sectoral indices that closed lower. Tata Motors (+12.6%), HCL Tech (+5.9%), and Infosys (+4.8%) closed on a positive […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,53],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1619"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1619"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1619\/revisions"}],"predecessor-version":[{"id":1620,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1619\/revisions\/1620"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}