SBI: The Bank is for free

Hat Tip: TM

3 replies on “SBI: The Bank is for free”

The problem is that the market is fearing huge NPAs because PSU banks, and SBI is leading from the front, are being forced to participate in government’s lending to poor and uncreditworthy segment leading to huge delinquencies and write-offs (as happened earlier also on numerous occassions).
The market is discounting what SBI would present in the next two years.

47 + 22 + 3 + 2 + 4 + 1 + 18 = 97

How come 137 (Am i missing something)

Also 40% discount to HDFC AMC may not be justified for 2 reasons
1. AMC valuations still not mature in India bcoz only 2 listed companies that too very recent
2. HDFC brand name and customer profile vs SBI very different (recently we saw crash in Nippon price)

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