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Largest lender in India, SBI has touched a new milestone in personal banking advances by crossing the 5 trillion mark by end of November 2022. This would be a significant achievement considering the bank completed this last 1 trillion growth in just 12 months. Also, the trajectory indicated the bank's progression at an accelerated pace. On Monday, SBI shares were moving closer to their 52-week high. Broadly, the shares were on a bull run.

The first time SBI struck a 1 trillion mark in personal banking advances was in January 2015. The bank has continued to grow steadily hereon. It marked the 2 trillion level in January 2018, followed by the 3 trillion mark in August 2020 despite the Coronavirus pandemic being at its peak. Later, the bank reached 4 trillion mark in November last year. In a matter of 12 months, SBI has managed to clock 5 trillion mark in personal banking advances.

On the 5 trillion milestone, Dinesh Khara, Chairman, said, “I am delighted to announce yet another milestone achieved by SBI. The bank has always strived to set aspirational benchmarks for the industry. We are extremely grateful to our customers and stakeholders who have trusted us and played a significant role in achieving this growth."

Khara added, "A series of tactical measures and digital initiatives undertaken over the past few years played a crucial role in our journey to the Rs. 5 Trillion mark under Personal Banking advances (other than Housing). We are committed to making, Banking a delightful experience for our customers."

In its statement, it was revealed that SBI has always been ahead of the curve in offering superior value propositions for its esteemed customers.

SBI's personal banking advances mainly comprise personal loans, pension loans, auto loans, education loans, P-Gold loans, and other personal loan products.

On BSE, at the time of writing, SBI shares traded at 616.50 apiece up by 1.47%. The shares have climbed nearly 2% so far in the day. It was trading near the intraday high of 617.70 apiece. At the current market price, SBI's valuation is around 5.5 trillion.

That being said, the shares are closing the gap towards a 52-week high of 622.90 apiece.

In its latest note, Reliance Securities said despite the challenging environment, the bank continues to remain the best bet amongst the public sector banks (PSBs) on the back of a formidable liability franchise, well-performing subsidiaries, and better capital positioning.

SBI's management reiterated its target to deliver 15% RoE in the ensuing period, mainly to be aided by credit growth (guidance of 10% growth in FY22), moderation in credit cost backed by asset quality improvement, and rationalization of operating cost, the report cited.

However, the stock brokerage stated that SBI's asset quality, loan loss provisioning, and capital raising plans need to be monitored in the medium term.

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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