Buy SBI, Target Rs 1265: Nirmal Bang
Nirmal Bang Research is bullish on State Bank of India (SBI) and maintained ‘Buy’ rating on the stock to achieve a target of Rs 1265.
Traders can buy the stock on dips with a stop loss of Rs 1240.
Shares of the company, on Monday (April 13), closed at Rs 1217.90 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 130.14 and 9.51 respectively. The share price has seen a 52-week high of Rs 1840 and a low of Rs 894 on BSE.
Huge volumes witnessed in last couple of days, and the structure looks very positive, so buy the stock and hold, if it maintains above 1248, a big move is expected.
State Bank of India (SBI) has extended the cheap loan offer for auto and home loans till September 2009.
Under the plan that was previously valid till April 2009 end, SBI had fixed the rate of interest on fresh home loans at 8 per cent for the initial year, whereas the cost of auto loans was frozen at 10 per cent during the first year.
Later, the interest rate was to be revised to the prevailing rate. SBI has broadened the scheme by 5 months.
The bank (SBI), on April 13, has slashed interest rates for new loans for SMEs.
It said that the new interest rate for SME loans up to Rs 5 lakh will be 8%, and 10% for loans from Rs 5 lakh to Rs 2.5 million.
The rate reduction will be available till 2011, and will be applicable for working capital and term loans under certain conditions.
SBI and Sydney-based Macquarie Group, on April 6, made announcement about the launching of $1.037 billion fund for investing infrastructure projects in the Indian market.
Macquarie-SBI Infrastructure Fund (MSIF) will carry on raising capital during the existing fisal, and in cooperation with domestic institutions, the total capital is projected to be between $2 billion and $3 billion.
Thus far, global investors committed $887 million to MSIF alongside a direct co- investment commitment of $150 million by SBI, bringing total capital raised to $1.037 billion.