Over the last year, shareholders of State Bank of India (SBI) have been disappointed. Despite reasonable quarterly results, the bank’s stock price declined from above ₹1,200 in February to the ₹950 level.
Much of this was due to the overall negative sentiment in the stock market and FII selling.
But part of it was due to concerns about rising interest rates, which led to a slowdown in growth.
In this editorial, we will discuss the pros and cons of investing in the stock of SBI.
Market position: SBI is the largest public sector bank in India. As a financial institution, it commands the trust of every Indian. Deposits are made in the bank with complete confidence. Over the years, the bank has used the low-cost funds to provide loans to all sections of society.