New Delhi: Brokerage firm Nuvama has given a Buy rating on State Bank of India (SBI) shares. The brokerage said the banking stock can be purchased with a target price of Rs 950 per equity share in 12 months. SBI share closed over 2 per cent lower at Rs 736.40 on February 7, 2025.
In its Q3 Results 2024-25, SBI posted a 84 per cent jump in its net profit to Rs 16,891 crore, helped by a lower base in the year-ago period. The bank had recorded a net profit of Rs 9,164 crore in the third quarter of the previous financial year.
The country’s largest lender’s core net interest income increased 4 per cent year-on-year to Rs 41,446 crore.
SBI Q3 Results 2024-25 Highlights
- SBI’s Net Profit for Q3FY25 stood at Rs 16,891 crores registering a growth of 84.32per cent YoY
- Operating Profit for Q3FY25 increased by 15.81 per cent YoY to Rs 23,551 crore
- Bank’s ROA and ROE for the 9MFY25 stand at 1.09 per cent and 21.46 per cent respectively
- ROA at 1.04 per cent for the quarter increased by 42 bps YoY
- Net Interest Income (NII) for Q3FY25 increased by 4.09 per cent YoY
- Whole Bank and Domestic NIM for 9MFY25 stand at 3.12 per cent and 3.25 per cent respectively
- Whole Bank and Domestic NIM for Q3FY25 stand at 3.01 per cent and 3.15 per cent respectively
Commenting on the Net Interest Margin (NIM) impact, SBI chairman CS Setty attributed the NIM impact to a shift in customer preferences. He said that people are depositing money in in the high-yielding fixed deposits rather than the low-cost current and savings accounts.
“There is a shift in the saving behaviour which is irreversible in my view. There will be some movement from investments to savings, but broadly I think the culture of investments and looking towards generating some good returns on our savings is here to stay.
“Also, the element of government managing its own cash flows is impacting the current account movement. I don’t want to call it new normal, but I think higher Casa seems to be difficult,” he said.
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Nuvama advised stock market investors to buy SBI share with a target price of Rs 950 apiece. State Bank of India declared its Q3 Results 2024-25 in which the bank said its lower base helped Q3 profit zoom 84 per cent to Rs 16,891 crore. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
