By Jash Kriplani
After trailing HDFC Bank for more than a year, the State Bank of India (SBI) on Friday overtook the private sector lender to regain the top spot in terms of m-cap.
At the end of Friday’s trading session, the total market capitalisation of the largest lender in terms of loan book stood at Rs 2.05 lakh crore against HDFC Bank’s Rs 1.89 lakh crore.
On Friday, the HDFC Bank scrip slipped 1.63% to Rs 789.50 on the BSE following reports that government will turn down its proposal to raise the cap on foreign institutional investment to 67.55%.
In May, the HDFC Bank scrip has gained 9.92%, underperforming the BSE Bankex, which has gained 19.15%. Meanwhile, the SBI scrip has outperformed the index with gains of 32.53% in the month.
On Friday, the SBI scrip surged nearly 10% to a three-year high of R2,755.25 after the bank posted better-than-expected results.
The bank saw a 7.8% y-o-y decline in its net profit to Rs 3,041 crore, but beat Bloomberg consensus estimates of Rs 2,807 crore.
Axis Capital raised the target price on the SBI scrip to Rs 2,929 from Rs 1,992 and upgraded the stock to ‘buy’ from ‘hold’ after the results.
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