SBI shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. SBI shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. SBI shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Shares of State Bank of India (SBI) are in focus today after the country’s largest lender concluded the sale of $750-million worth of senior 5-year notes at a coupon of 4.875% on Thursday. In the previous trading session, SBI shares closed marginally lower at Rs 566.30 on the BSE. The stock fell after three days of gain. SBI stock has lost 7.87 per cent since the beginning of this year and gained 13.67% in a year. Market cap of the bank stood at Rs 5.04 lakh crore on BSE. Total 2.68 lakh shares changed hands amounting to a turnover of Rs 15.13 crore on BSE.
In terms of technicals, the relative strength index (RSI) of SBI stands at 67.1, signaling it's trading neither in the overbought nor in the oversold zone. SBI stock has a one-year beta of 1.2, indicating very high volatility during the period. SBI shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
“The bonds will be issued through our London branch as of 5th May 2023 and shall be listed on Singapore Stock Exchange and India International Exchange, GIFT City,” SBI said in an exchange filing.
“The successful issue highlights SBI's strong investor base in offshore capital markets, which enables it to effectively raise funds from the world’s leading fixed income investors, especially during moments of increased volatility and uncertainty,” said Dinesh Khara, chairman, SBI.
SBI had mandated six banks — HSBC, Citigroup, JPMorgan, Standard Chartered Bank, MUFG, Emirates NBD — as joint global coordinators and lead managers of the bond issue.
In early April, the Board SBI approved long-term fundraising of up to $2 billion in debt during the financial year 2023-24. The fundraising will be done in one or multiple tranches through a public offer or private placement of unsecured notes in US dollar or any other convertible currency, the lender said.
Meanwhile, Motilal Oswal sees an upside of 39% in the SBI stock with a target of Rs 725. Here's a look at three factors, which are likely to push the SBI stock to the new target.
No fund raising in near term
The brokerage said the bank was confident of meeting the growth requirement via internal accruals and Tier 1 bonds and does not expect any capital raise in the near term.
Strong performance in term loans segment
SBI has a strong pipeline of sanctions and its undisbursed term loans are falling (26%QoQ), which signals that the utilization is increasing. Higher interest rates have not yet affected the growth environment. Mortgages have seen a sanction of 24% over 9MFY23, said the report.
Low NPAs
The gross non-performing assets ratio (GNPA) ratio in the retail segment is 0.67%, while average loan to value (LTV) ratio stands at 55-60%, and thus the bank does not expect any challenges going ahead. LTV ratio is calculated by taking the loan amount and dividing it by the value of the asset or collateral being borrowed against. The focus remains on keeping the credit cost at 50 bps, said the report.