By Aditya Raghunath
Investing.com -- Analysts across the board have hiked price targets for SBI ( State Bank of India (NS:SBI)) after the bank reported its results for the third quarter of FY21, ended December 2021. Its net profit fell 6.9% to Rs5,196.22 crore compared to Rs 5,583.4 crore in the corresponding quarter last fiscal. The fall was due to increased provisioning for bad loans.
On a quarter-on-quarter basis, profit grew 13.6% from Rs 4,574.2 crore that is reported in the September quarter of 2020.
Analysts believe that the worst is over for SBI and that the stock is poised to go on a bull run like never before. Brokerage firm Motilal Oswal (NS:MOFS) has given SBI a target of Rs 475, an upside of over 20% from its February 5 closing price of Rs 395. In a note, the firm said, “SBI reported a robust operating performance in a challenging environment. Loan growth is showing a healthy recovery in the retail portfolio, with disbursements in many business segments surpassing pre-COVID levels. Deposit growth stood strong, while margin remains broadly stable.”
Apart from Motilal Oswal, brokerage firms like CLSA have hiked its target to Rs 560, an upside of over 41%. Credit Suisse (SIX:CSGN) has a target of Rs 480 while Kotak Institutional Securities and Macquarie have a target of Rs 450. Morgan Stanley (NYSE:MS) says the bank might hit Rs 525.