State Bank of India
Angel Broking is bullish on State Bank of India (SBI) and has recommended accumulate (buy) rating on the stock with a target of 
2,595 in its February 16, 2012 research report.
State Bank of India (SBI) is the largest government owned bank in India. It is also the oldest bank in the country. It has more than 13,500 branches in the country and has the most rural reach. It also has nearly 155 branches in about 30 countries all over the world, including – Nigeria, Canada and U.S. SBI also has the most number of ATMs in the country. It provides various services like – car loans, home loans, fund management, commercial and factoring services and the like. SBI is the only bank which has various tie-ups with NGOs. Pratip Chaudhuri, SBI Chairman, says that SBI is doing so well because it strictly adheres to the policies of Reserve Bank of India.
According to Angel Broking, for Q3 FY2012, SBI's standalone net profit increased by 15.4 percent y-o-y to 3,263 crore, which were above street estimates. Sequential expansion in both domestic (32bp) and foreign NIM (4bp) was the major positive from the result. However, the asset quality continued to disappoint with gross and net NPA levels increasing sequentially by 18.1 percent and 16.6 percent, respectively. During Q3 FY2012, the bank's net advances grew by 16.5 percent y-o-y (up 7.0 percent q-o-q), while deposits accretion was moderate at 13.9 percent y-o-y (up 2.9 percent q-o-q). The reported CASA (Current Account Savings Account) ratio as of Q3 FY2012 stood at 47.9 percent (47.8 percent in Q2 FY2012 and 48.2 percent in Q3 FY2011). The bank's NIM increased for both domestic (up by a strong 32bp q-o-q to 4.4 percent) and foreign operations (up by 4bp q-o-q to 1.8 percent) on account of better yields. Adjusting for net loss on investments of 221crore, non-interest income declined by 9.6 percent y-o-y.
Currently, SBI is being traded at 2416.75. Its 52 week high is 2,960.05 and 52 week low has been 1,571.10. It is currently being traded at an average volume of 3,006,948.
