State Bank of India or sbi share price Made a new 52-week high on Friday 546.40 per share. SBI shares opened with close gains 2 per share and moved to a new 52-week high in morning deals. However, profit-booking soon started and banking stocks got exhausted. 10.65 less than Thursday’s close 540.10 level on NSE. However, after the strong results of SBI’s third quarter, stock market experts are seeing further rise in banking stocks.
According to stock market experts, the share price of SBI may increase. 600 per share level in immediate short term whereas in short to medium term, it may go up 650 per share level. He said SBI does not have any liquidity problem and after the infrastructure oriented budget, PSU banks are expected to get the benefit of increased liquidity demand in the infrastructure sector. Since SBI is the leading lender in India, it is expected to get maximum benefit of this demand and hence its business volume is expected to increase further in the coming quarters. He advised investors to add this stock to their portfolio and keep it for short to medium term.
Speaking on SBI’s share price outlook after SBI’s quarterly results; Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “SBI has reported strong Q3 earnings as its year-on-year (YoY) net profit grew by nearly 62 per cent. SBI reported strong loan book and asset quality. & PS. So, one can keep over the counter for short to medium term at least while those who do not have this stock in their portfolio can also add SBI shares to their portfolio.”
Echoing the thoughts of Avinash Gorakshakar; Sumeet Bagdia, Executive Director, Choice Broking said, “SBI shares are looking positive on the chart pattern. If the stock opened on Monday from 5 10 more than its Friday close, then can buy SBI shares at current market price for immediate short term target from 580 maintain 600 stop loss 525 each level.”
In Q3FY22 results, SBI has registered a growth of 62 per cent year-on-year in net profit to 8,431.9 crore. Its net interest income (NII) for Q3 FY2021-22 grew by 6.48 per cent over the corresponding period of the previous fiscal. Home loans, which account for 24 per cent of SBI’s domestic advances, grew by 11.15 per cent over Q3 FY2011. Additionally, the Corporate and Small and Medium-sized Enterprises (SME) segment also grew during the third quarter.
During the third quarter, total deposits of the bank grew by 8.83 per cent and savings bank deposits by 10.30 per cent. Current account deposits grew by 7.89 per cent over the corresponding period of the previous year.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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