State Bank of India Down After Hitting 4.5-month High.
Shares of the State Bank of India BSE 1.82 % fell over 0.5 per cent in trade on Monday, after gaining as much as 4.1 per cent to its highest since Jan 12, 2016.
On Friday, India’s largest lender reported worse-than-expected earnings for the quarter ending March but said fewer than feared of its loans risked turning sour.
In a note to its client, the brokerage firm JM Financial BSE 0.33 % said, “Potential for lesser slippages over the new fiscal year started in April is now turning around investor sentiment.”
The firm adding to its statement said that, “SBI’s loan growth of 13 per cent versus average of 10 per cent in sector was driven by 20 per cent growth in retail segment.”
Furthermore, JM Financial added quality of lending to corporates improved with 65 per cent on incremental loans of them being rated ‘A’ versus 23 per cent two years ago.The brokerage maintains “buy” rating on stock with a Target Price of Rs 300.
Last week, stock of SBI gained 16.3 per cent over the previous four sessions.
Read More – SBI Updates