1370% Dividend: PSU Bank Stock To Sell, Shares Fall 4.20% In 3-Months: Analyst

State Bank of India shares declined 4.40% today on BSE to settle at Rs 782.60 per share and gained 37% in last 1-year. The PSU has a market capitalisation of 6,98,440.13 crore. Brokerage firm Goldman Sachs sought to downgrade SBI shares to sell from neutral. The analyst also slashed the target price of State Bank of India shares to Rs 742 from Rs 841. Meanwhile, out of 49 analysts who are tracking SBI shares, 38 have given buy call, six recommended hold, and remaining assigned sell.

Goldman Sachs feels that SBI faces several headwinds ahead as its Returns on Assets (RoA) peaks and the analyst expects a valuation de-rating for SBI. The PSU lender's risk-reward profile is becoming 'unfavourable' as the sustainability of SBI's RoA continues to witness soaring headwinds, Goldman Sachs added.

The analyst feels SBI's RoA to moderate from peak levels of more than 1% in 2024 to below 1% levels by 2026. It expects lower loan growth amid the widening gap with the growth in the bank's deposits.

SBI Shares Performance: The bank's market capitalisation stood at Rs 6,98,440.13 crore. The 52-week high price of SBI shares on BSE is Rs 912.10 apiece (as on 03/06/2024) and 52-week low price is quoting Rs 543.15 apiece (as on 26/10/2023), respectively. SBI shares slipped 4% in last 2-weeks, gained 22% year-to-date, gave return of 45% in last 2-years, and rallied185% in last 5-years.

Fundraising: Earlier this year on June 11, SBI approved fundraising and said, "We submit that the Executive Committee of the Central Board at its meeting held today i.e. 11th June 2024 has approved, inter alia, to examine the status and decide on long term fund raising in single / multiple tranches of up to $3 billion under RegS/144A, through a public offer and/or private placement of senior unsecured notes in US dollar or any other major foreign currency during FY 2024-25," SBI said in the BSE filing on Tuesday."

SBI Dividend: The PSU on May 9, 2024 recommended a dividend of Rs 13.70 per equity share of Re 1/- each fully paid up (i.e. 1370%) for the year ended 31.03.2024." The shares traded ex-dividend on May 22, 2024.

SBI Stock Split History: State Bank of India split face value of its share once since November 20, 2014. The PSB last sub-divided the face value of its shares from Rs 10 to Re 1 in 2014.SBI share traded ex-split as on November 20, 2014.

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