Shares of State Bank of India
(SBI) hit a six-month high of Rs 307, up 3% on the BSE on Monday, extending its Friday’s 1.6% gain after the public sector lender and Reliance Jio
tied up to provide a platform offering digital banking, commerce, and financial services to customers.
“Post operationalization of Jio Payments Bank (a 70:30 JV between RIL and SBI) Jio and SBI
are deepening their partnership to bring next-generation bilateral frictionless experience with exclusive digital Banking, Payments and Commerce journeys for their customers,” Reliance Jio
said in media release.
In separate filing SBI
on Friday said that the bank and National Highways Authority of India completed documentation for a term loan facility of Rs 250 billion sanctioned by the Bank. A comprehensive Memorandum of Undertaking was also signed between NHAI
to strengthen the existing relationship and to develop cooperation in financial services on the basis of mutual interest.
Analysts at Antique Stock Broking maintain ‘buy’ rating on the SBI
with a SOTP-based target price of Rs 325 per share.
by far is the best state-owned bank in terms of asset quality, capitalization, and retail franchise. Stress loan formation and merger with associate banks in FY17 have significantly eroded earnings as well as valuations. However, with revised impaired but unrecognized loans of Rs 258 billion (1.3% of loans), better positioning in the power sector and higher leverage to resolution, we expect P&L to gain strength and credit cost to come off to 1.6% by FY20e with further fall in coming years vs. peak of 3.8% in FY18,” the brokerage firm said in company update.
The stock of SBI
was trading at its highest level since February 2, 2018. In past one month, the stock has outperformed the market by surging 19% as compared to 6% rise in the S&P BSE Sensex.
At 10:17 am; SBI
was trading 2.3% higher at Rs 305 on the BSE, against 0.31% gain in the benchmark index. A combined 8.11 million equity shares changed hands on the counter on the BSE and NSE so far.