STATE BANK OF INDIA
State Bank of India, as a company, does not need any introduction to all of you but I may say a few words. Initially 3 presidency Banks were set up by Britishers, Bank of Bengal, Bank of Bombay and Bank of Madras. At certain point of time, these were merged to be known as Imperial Bank of India.
After independence, it was felt that there should be a strong Government sponsored and Government partnered Bank to take care of various Banking needs of Government as well as public. Accordingly State Bank of India was set up under SBI Act in 1955 and Imperial Bank got transformed into State Bank of India. Subsequently, 7 Associate Banks which were earlier set up by Princely states were taken over as Subsidiaries of SBI, viz. State Bank of Hyderabad, State Bank of Indore etc.
The Bank has a share capital of 526 crores made up of 52.6 crore equity shares of Rs.10.00 each. Of the above, Central Government holds 59.73% shares, Institutions like LIC, FIIs etc. hold 24.22 % shares and Custodians of depository receipts hold 7.42 % shares. Public share holding is only 8.63%. The Bank has offered shares on rights basis @ 1 share for every 5 shares held at 1590.00. The rights issue is expected to be subscribed fully.
If you are reading this in Kashiwala dot blogspot dot com, then it is original post. However, if you are reading this in blog dot watchshare dot in or any other site, then it is pirated from Kashiwala's site.
INTRINSIC WORTH OF SBI SHARES
i) The Bank has got substantial real estate properties all over India and in the balance sheet of SBI, several buildings are shown to be having a value of Rs.1.00 or Rs.100.00 (For eg. Bombay Main branch). These buildings command considerable value and the Bank is in the process of revaluing the assets to shore up tier-II capital.
ii) The Bank has got equity capital of 526 crores and free reserves of Rs.41691 Crores (Sourse BSE Site), thus commanding a huge book value.
iii) The Bank has got several associates and subsidiaries which are doing quite well.
iv) All the Associate Banks are not listed. Of the listed Associate Banks, as and when their share value rises, the intrinsic value of SBI’s share also rises.
v) There may be a possibility that SBI may list the shares of its Asset Management Company and SBI Life (both subsidiaries). It this happens, this will unlock share value of SBI. Some regulatory processes are involved in this direction.
FUTURE PROGRAMME OF THE BANK
i) The Bank was in news recently when it opened its 10000th branch in Puduvayal under the constituency of the Hon’ble Finance Minister.
ii) Most of the branches of the Bank have been brought under Core Banking solution and this has resulted in excellent customer service. Besides, the Bank has changed the premises of its various branches and created excellent working atmosphere/ambience, with ultimate customer satisfaction in mind.
iii) Shri O.P. Bhatt, Chairman of SBI was chosen as the best entrepreneur recently amidst several other contestants. Shri Bhatt is a strong visionary and the industry circles believe that he will take SBI to new highs.
iv) The Bank is offering EZ trade (online trading) with Motilal Oswal and this business is picking up fast. In due course, it will give its competitors a tough time.
The share price saw a high of 2500 very recently and has come down since then. Now it is around Rs.1700.00.
Conservative and safe investors can safely purchase the shares of SBI at the current rates and hold it for a long long time. They will certainly see their capital appreciation in due course of time.
Disclaimer: This report has been prepared solely for information purposes and the investment is the sole decision of the investor. Such information is impersonal and is not an inducement to invest. The information contained herein has been obtained from sources believed to be reliable and author , accepts no responsibility for the accuracy of its contents. Investors are advised to satisfy themselves fully before making any investments or committing themselves and should consult their own financial consultants whether and how to use such information in making any investment decision. The author accepts no liability arising out of use of the above information/ article.
Kindly note :
a) We advise only regarding fundamentally strong and performing companies. The companies may be mostly profit making and in a few cases, they may be turn around companies.
b) Please go through our fundamental analysis carefully, verify the facts and figures (if you need to) and only then invest.
c) We expect investors to have a time horizon of at least one year and more.
d) We do not advise for short term investing, which is risky.
e) Despite all these, we do not take any responsibility for your financial matters. Investment is solely your decision.
(AJAY SINGH RATHORE)
KASHIWALA
State Bank of India, as a company, does not need any introduction to all of you but I may say a few words. Initially 3 presidency Banks were set up by Britishers, Bank of Bengal, Bank of Bombay and Bank of Madras. At certain point of time, these were merged to be known as Imperial Bank of India.
After independence, it was felt that there should be a strong Government sponsored and Government partnered Bank to take care of various Banking needs of Government as well as public. Accordingly State Bank of India was set up under SBI Act in 1955 and Imperial Bank got transformed into State Bank of India. Subsequently, 7 Associate Banks which were earlier set up by Princely states were taken over as Subsidiaries of SBI, viz. State Bank of Hyderabad, State Bank of Indore etc.
The Bank has a share capital of 526 crores made up of 52.6 crore equity shares of Rs.10.00 each. Of the above, Central Government holds 59.73% shares, Institutions like LIC, FIIs etc. hold 24.22 % shares and Custodians of depository receipts hold 7.42 % shares. Public share holding is only 8.63%. The Bank has offered shares on rights basis @ 1 share for every 5 shares held at 1590.00. The rights issue is expected to be subscribed fully.
If you are reading this in Kashiwala dot blogspot dot com, then it is original post. However, if you are reading this in blog dot watchshare dot in or any other site, then it is pirated from Kashiwala's site.
INTRINSIC WORTH OF SBI SHARES
i) The Bank has got substantial real estate properties all over India and in the balance sheet of SBI, several buildings are shown to be having a value of Rs.1.00 or Rs.100.00 (For eg. Bombay Main branch). These buildings command considerable value and the Bank is in the process of revaluing the assets to shore up tier-II capital.
ii) The Bank has got equity capital of 526 crores and free reserves of Rs.41691 Crores (Sourse BSE Site), thus commanding a huge book value.
iii) The Bank has got several associates and subsidiaries which are doing quite well.
iv) All the Associate Banks are not listed. Of the listed Associate Banks, as and when their share value rises, the intrinsic value of SBI’s share also rises.
v) There may be a possibility that SBI may list the shares of its Asset Management Company and SBI Life (both subsidiaries). It this happens, this will unlock share value of SBI. Some regulatory processes are involved in this direction.
FUTURE PROGRAMME OF THE BANK
i) The Bank was in news recently when it opened its 10000th branch in Puduvayal under the constituency of the Hon’ble Finance Minister.
ii) Most of the branches of the Bank have been brought under Core Banking solution and this has resulted in excellent customer service. Besides, the Bank has changed the premises of its various branches and created excellent working atmosphere/ambience, with ultimate customer satisfaction in mind.
iii) Shri O.P. Bhatt, Chairman of SBI was chosen as the best entrepreneur recently amidst several other contestants. Shri Bhatt is a strong visionary and the industry circles believe that he will take SBI to new highs.
iv) The Bank is offering EZ trade (online trading) with Motilal Oswal and this business is picking up fast. In due course, it will give its competitors a tough time.
The share price saw a high of 2500 very recently and has come down since then. Now it is around Rs.1700.00.
Conservative and safe investors can safely purchase the shares of SBI at the current rates and hold it for a long long time. They will certainly see their capital appreciation in due course of time.
Disclaimer: This report has been prepared solely for information purposes and the investment is the sole decision of the investor. Such information is impersonal and is not an inducement to invest. The information contained herein has been obtained from sources believed to be reliable and author , accepts no responsibility for the accuracy of its contents. Investors are advised to satisfy themselves fully before making any investments or committing themselves and should consult their own financial consultants whether and how to use such information in making any investment decision. The author accepts no liability arising out of use of the above information/ article.
Kindly note :
a) We advise only regarding fundamentally strong and performing companies. The companies may be mostly profit making and in a few cases, they may be turn around companies.
b) Please go through our fundamental analysis carefully, verify the facts and figures (if you need to) and only then invest.
c) We expect investors to have a time horizon of at least one year and more.
d) We do not advise for short term investing, which is risky.
e) Despite all these, we do not take any responsibility for your financial matters. Investment is solely your decision.
(AJAY SINGH RATHORE)
KASHIWALA
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