"A reflection on PSBs valuation history may cause trading multiples to look constrained, however the quality of earnings, growth outlook and broader re-rating in PSU entities will nevertheless enable steady performance of the sector," Motilal analysts including Nitin Aggarwal said.
UBS said SBI's earnings sensitivity to key metrics such as margins and credit cost remains high and, therefore, it expects the state-run bank's return on asset and RoE to moderate by FY25, driven by lower margins and rising credit costs.
SBI's filing said that the executive committee of the central board is scheduled to have a meeting on April 18 2023 to consider the long-term fundraising plans of up to $2 billion.
Shares of Axis Bank have jumped 9 per cent since its results on October 20. The private lender reported a 70 per cent year-on-year (YoY) rise in net profit at Rs 5,329.77 crore, thanks to a sharp fall in provisions
State Bank of India's EPS estimates for FY23 and FY24 have been raised upward by 10-15 per cent post Q2 results. Its price targets stood largely in the Rs 700-760 range