Key Insights

- SBIN's earnings were suppressed for the past several years due to issues pertaining to asset quality, merger, etc. SBIN is well poised for an earnings recovery led by steady operating performance, recoveries from NCLT resolutions and normalization in credit cost to 1.9%/1.3% over FY20E/FY21E.

- SBI's subsidiaries have displayed robust performance over the last few years. At CMP, its subsidiaries account for ~35% of total valuation with the bank trading close to its lowest valuation (0.7x FY21E ABV).

- SBIN's stock price has corrected 29% over the past three months, which provides favorable risk-reward.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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