State Bank of India shares hit fresh 52-week high on Tuesday; stock closes 2% higher

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 on June 1, 2021, reached a fresh 52-week high of Rs 434.45 apeice, even as benchmark indices ended flat. At the end of the day’s trade, the lender closed 1.97 per cent higher at 432.60 apiece. The stock reached an intra-day low of Rs 425.35, according to the data available on the stock exchange. A total of 33.29 lakh shares of SBI traded on BSE, while 5.92 crore shares exchanged hands on the NSE.

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

The share price of State Bank of India has soared over 10 per cent in the last 10 days. Going from Rs 384.55 apiece to Rs 424.25 per share. The 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. Recently, Swiss investment bank Julius Baer increased SBI’s target price to Rs 500 apiece from the previous target of Rs 440. “SBI’s earnings to benefit from a normalisation of credit cost, growth in the loan book, cross-selling, and strong CASA franchise,” Julius Baer said in a report. They highlighted that the high probability of government support, coupled with the status of being a systemically important bank add to SBI’s strengths.

SBI Q4 results help shares surge

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. State Bank of India’ Net Interest Income (NII) increased a strong 19% on-year basis to Rs 27,070 crore. This was driven by a 5% on-year growth in loans and a 17 bps expansion in the domestic Net Interest Margin (NIM) to 3.11%. The bank’s domestic loans grew 6% from the previous year while retail loans were up 16%. Agriculture, SME were both up 4%, and corporate loan growth remained muted.

SBI’s total slippages and restructuring during the financial year 2021 stood at Rs 46,420 crore, well below management guidance of Rs 60,000 crore. Given the improving asset quality, overall provisions fell 11% on-year basis. 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.