State Bank of India shares outperform Sensex, Nifty year-to-date; stock up 52% in 2021

State Bank of India’s share price has outperformed benchmark indices Sensex and Nifty so far this year.

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SBI stock hit a 52-week high of Rs 434.45 per share on June 1, 2021 and a 52-week low of Rs 163.45 in May last year. Image: PTI

State Bank of India’s share price has outperformed benchmark indices Sensex and Nifty so far this year. While SBI stock price has gained 52% since January 1, Sensex and Nifty have soared 10-12% each. On June 28, SBI share price was trading flat at Rs 428.9 apiece, while benchmark indices were down in the red. The stock reached a 52-week high of Rs 442 per share on June 3 and since then has slipped over 2%. SBI, the largest state-owned bank in the country has a market capitalisation of Rs 3.82 lakh crore.

Check Live Price: State Bank of India

State Bank of India Historical Price: SBI Share price in the last 10 trading session

The share price of State Bank of India has seen volatility over the last 10 trading session. SBI stock fell more than 4% between June 14 and June 18 to trade at Rs 412.9 per share. However, since then State Bank of India’s share price has jumped 3.7% to recoup almost all losses. Along with leading private sector banks such as ICICI Bank, Axis Bank, and HDFC Bank, State Bank of India is expected to gain market share in the coming years, helped by its strong balance sheet. “Among the PSUs, we estimate RoE for SBIN to reach ~15% by FY23E. Earnings growth and improving return ratios would continue to drive re-ratings in banking stocks,” brokerage firm Motilal Oswal said earlier this month.

Charts show strong momentum for SBI

State Bank of India’s shares, along with other bank stocks have rallied since April. According to domestic brokerage firm Sharekhan, since mid-April, the banking space has been recovering and has moved up by ~17.7%. Now, on the charts, State Bank of India shares offer an attractive entry opportunity for investors. “After a short-term consolidation, the stock has taken support near the junction of 40 DEMA and the daily lower Bollinger Band. The stock has formed a short-term base and has started the next move up,” they added.

The brokerage firm has a ‘buy’ rating on the stock with a target price of Rs 450-475 per share. Analysts at Sharekhan recommend a stop-loss at Rs 410 apiece.

Earlier in May, the State Bank of India reported its quarterly earnings. The lender reported an 80% jump in standalone net profit in the fourth quarter for the financial year 2021 as bad loans declined. SBI’s net profit came in at Rs 6,450 crore.

State Bank of India (SBI) History and Company Profile

The bank’s history dates back to pre-independence India. The amalgamation of Bank of Bengal, Bank of Bombay, and Bank of Madras — the three pillars of banking in India during the British era — led to the foundation of Imperial Bank of India on 27 January 1921. According to the bank’s website, when India attained freedom, the Imperial Bank had a capital base (including reserves) of Rs11.85 crores, deposits and advances of Rs 275.14 crores and Rs 72.94 crores respectively and a network of 172 branches and more than 200 sub-offices extending all over the country.

The present-day State Bank of India is the country’s largest lender in terms of assets, loans, deposits, and branches and is a Fortune 500 company. After the merger of banks in 2017, SBI commands a domestic market share of over 20% in deposits and loans, and it has an extensive pan-India network of 22,220 branches serving 44 crore customers. The bank also operates 58,500 ATMs.

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