The State Bank of India (SBI) shares hit a new record high of Rs 433.80 on the BSE, after they rallied 2 per cent in Tuesday’s intra-day trade, surpassing its previous high of Rs 433.60 hit on May 28, 2021. The stock of the state-owned lender has outperformed the market in the past month by surging 21 per cent after it reported another strong quarterly performance and showed further sequential improvement in assets quality and a rise in profitability in the March quarter (Q4FY21). In comparison, the S&P BSE Sensex was up 6.7 per cent during the period.
Amid a sharp rally in the market price of the bank’s stock, its market capitalisation is now just 4 per cent away from the momentous Rs 4-trillion mark. At 09:45 am, the stock was up 1.7 per cent at Rs 431.35 with a market capitalisation of Rs 3.85 trillion, BSE data shows.
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Most of the brokerages have maintained their ‘buy’ rating on SBI with a target price of up to Rs 650 per share. Analysts believe the overall outlook has improved with many positive levers like decline in credit cost, improvement in credit – deposit ratio and better yields due to less reversals. Thus, better margins could lift the bank’s operational performance going forward, they said.
Stock Covered in the news