Why SBI Bank is a Good Buy Now
SBI stock price
On June 30, 2015, at 10:05 hrs State Bank of India was quoting at Rs 259.40, down Rs 0.15, or 0.06 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 234.52.
The company's trailing 12-month (TTM) EPS was at Rs 17.32 per share as per the quarter ended March 2015. The stock's price-to-earnings (P/E) ratio was 14.98. The latest book value of the company is Rs 169.77 per share. At current value, the price-to-book value of the company is 1.53.
SBI steps up recovery of bad loans in retail, realty
The bank's gross NPA in absolute terms declined to Rs 56,725 crore while the net NPA came down to Rs 27,591 crore at the end of March 2015.
SBI is taking steps to clamp down on bad loans that include web-based tracking of assets and "regular calls" to stressed accounts in retail as well as real estate segments, Chairperson of the country's largest lender Arundhati Bhattacharya has said.
In addition, the bank has initiated 'Dynamic Credit Rating' review of borrowal accounts to capture deterioration in credit quality promptly and to initiate corrective action and facilitate correct pricing of risk, she said in a message to shareholders ahead of July 2 Annual General Meeting.
"During the year (2014-15), the bank has embarked on a number of initiatives to clamp down on NPAs.
Some of them are web-based Assets Tracking & Monitoring and regular calls to stressed accounts (SMAs) in Retail segment and Real Estate sector to prevent slippages...," she said.
The bank's exposure in retail segment, which includes housing, auto, education and personal loans, increased to Rs 2.72 lakh crore, from Rs 2.37 lakh crore at the end of March 2014. Of this gross NPAs in retail was Rs 2,528 crore at the end of March 2015.
It has come down from Rs 3,034 crore at the end of 2013-14. Besides, she said, the bank has also set up asset tracking centres at all circles, and formed various committees to review stressed assets periodically and suggest resolutions and turn around strategies.
The bank's gross NPA in absolute terms declined to Rs 56,725 crore while the net NPA came down to Rs 27,591 crore at the end of March 2015.
During 2014-15, the bank's asset quality improved as net non-performing assets (NPAs) or bad loans were trimmed to 2.12 percent of net advances as against 2.57 percent at the end of previous fiscal.
At the same time, gross NPAs also came down to 4.25 percent of gross advances, from 4.95 percent at the end of March 2014.
With regard to capital requirement, Bhattacharya said: "As the pace of economic activity gathers further momentum in the coming years, the bank will be required to improve and strengthen its capital planning processes to support future business growth.
" Furthermore, she added, in view of the implementation of Basel III Capital Regulations, the transitional period for full implementation of Basel III Capital Regulations in India has already been extended up to March 31, 2019 by the Reserve Bank.
SBI stock price
On June 30, 2015, at 10:05 hrs State Bank of India was quoting at Rs 259.40, down Rs 0.15, or 0.06 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 234.52.
The company's trailing 12-month (TTM) EPS was at Rs 17.32 per share as per the quarter ended March 2015. The stock's price-to-earnings (P/E) ratio was 14.98. The latest book value of the company is Rs 169.77 per share. At current value, the price-to-book value of the company is 1.53.
SBI stock price
On June 30, 2015, at 10:05 hrs State Bank of India was quoting at Rs 259.40, down Rs 0.15, or 0.06 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 234.52.
The company's trailing 12-month (TTM) EPS was at Rs 17.32 per share as per the quarter ended March 2015. The stock's price-to-earnings (P/E) ratio was 14.98. The latest book value of the company is Rs 169.77 per share. At current value, the price-to-book value of the company is 1.53.
SBI steps up recovery of bad loans in retail, realty
The bank's gross NPA in absolute terms declined to Rs 56,725 crore while the net NPA came down to Rs 27,591 crore at the end of March 2015.
SBI is taking steps to clamp down on bad loans that include web-based tracking of assets and "regular calls" to stressed accounts in retail as well as real estate segments, Chairperson of the country's largest lender Arundhati Bhattacharya has said.
In addition, the bank has initiated 'Dynamic Credit Rating' review of borrowal accounts to capture deterioration in credit quality promptly and to initiate corrective action and facilitate correct pricing of risk, she said in a message to shareholders ahead of July 2 Annual General Meeting.
"During the year (2014-15), the bank has embarked on a number of initiatives to clamp down on NPAs.
Some of them are web-based Assets Tracking & Monitoring and regular calls to stressed accounts (SMAs) in Retail segment and Real Estate sector to prevent slippages...," she said.
The bank's exposure in retail segment, which includes housing, auto, education and personal loans, increased to Rs 2.72 lakh crore, from Rs 2.37 lakh crore at the end of March 2014. Of this gross NPAs in retail was Rs 2,528 crore at the end of March 2015.
It has come down from Rs 3,034 crore at the end of 2013-14. Besides, she said, the bank has also set up asset tracking centres at all circles, and formed various committees to review stressed assets periodically and suggest resolutions and turn around strategies.
The bank's gross NPA in absolute terms declined to Rs 56,725 crore while the net NPA came down to Rs 27,591 crore at the end of March 2015.
During 2014-15, the bank's asset quality improved as net non-performing assets (NPAs) or bad loans were trimmed to 2.12 percent of net advances as against 2.57 percent at the end of previous fiscal.
At the same time, gross NPAs also came down to 4.25 percent of gross advances, from 4.95 percent at the end of March 2014.
With regard to capital requirement, Bhattacharya said: "As the pace of economic activity gathers further momentum in the coming years, the bank will be required to improve and strengthen its capital planning processes to support future business growth.
" Furthermore, she added, in view of the implementation of Basel III Capital Regulations, the transitional period for full implementation of Basel III Capital Regulations in India has already been extended up to March 31, 2019 by the Reserve Bank.
SBI stock price
On June 30, 2015, at 10:05 hrs State Bank of India was quoting at Rs 259.40, down Rs 0.15, or 0.06 percent. The 52-week high of the share was Rs 335.90 and the 52-week low was Rs 234.52.
The company's trailing 12-month (TTM) EPS was at Rs 17.32 per share as per the quarter ended March 2015. The stock's price-to-earnings (P/E) ratio was 14.98. The latest book value of the company is Rs 169.77 per share. At current value, the price-to-book value of the company is 1.53.
Happy Investing
Source:Moneycontrol.com
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