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MumbaiOne hour ago
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- Today the market is down by more than 300 points, despite SBI’s share is up
- Kotak Mahindra Bank has a market cap of 3.85 lakh crore. SBI has 3.75 lakh crore rupees
The stock of the country’s largest bank State Bank of India (SBI) can go up to 600 rupees. It is currently trading at Rs 422. In terms of market capitalization, it could outstrip Kotak Mahindra Bank. Its stock has risen by more than 50% in a month.
Share has increased two and a half times since March
However, since March, it has been trading at about two and a half times more. Morgan Stanley said in its report that the stock could go up to 600 rupees. This is because it can be re-rated once the economic conditions of the country improve. Its market cap has increased to Rs 3.75 lakh crore on Thursday. It is the third bank in the top 10. HDFC Bank on the first and Kotak on the second. The market cap of SBI is just 10 thousand crore less than that of Kotak.
Market cap had gone up to 2 lakh crores
Until recently, the market cap of SBI was Rs 2 lakh crore. Its stock stood at Rs 149 in May, compared to Rs 269 a month earlier. Morgan Stanley has said that India’s growth forecast is going to improve later. This situation is similar to the year 2000. Even then the economic conditions were in favor of banks. Morgan Stanley believes that real GDP growth is estimated at 12.1% in the next fiscal year. It was earlier 10%. Private investment is recovering.
SBI will prove to be the best
Morgan Stanley has said that SBI will prove to be the best in comparison to other banks. Also, its performance will be better than that of government companies. Its deposits have increased well in recent years. This has reduced its cost. This has accelerated loan growth. Retail loans have a 35% stake, up from 20% 10 years ago.
The bank’s digital focus is
Morgan Stanley said the bank is focusing on digital. With this, its payment market is getting better. SBI’s story is similar to that of China Merchant Bank. China Merchant Bank has performed better. At the moment, there is a strong jump in shares of public sector banks. Canara Bank shares have risen from Rs 111 to Rs 174. For the last three days, the shares of four state-run banks have been rising by 20-20% every day.
Bank of India, Indian Overseas Bank, Central Bank and Bank of Maharashtra are reported to be private. Therefore, for the last three days, their shares are experiencing an upper circuit of 20% daily.