Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy on State Bank of India with a target between Rs 1775-1840.

In latest research report, the firm said that SBI has been under tremendous selling pressure and has been underperforming the market for some time.

Interested investors can buy the stock on dips and hold.

In addition, the firm has suggested a support level for the scrip at Rs 1560.

The firm also said that the stock has been under huge selling pressure and has been underperforming the market for some time. On the lower side 1600-1580 is the very strong support area for this stock, if this level is broken then a major fall is seen. Already we have seen a 17% fall in the stock from the top of 1940.

Today (June 15), the stock opened at Rs 1623.90, as against its last closure of Rs 1637 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 143.67 and 11.46 respectively. The share price has seen a 52-week high of Rs 1935 and a low of Rs 894 on BSE.

State Bank of India (SBI), on June 13, announced that it will cut depository rates across all tenors by 25 basis points from June 15.

For tenure of 181 days to less than 1-year, the new depository rate is 6.25% from 6.50%, whereas for 1-year to less than 2-years, the new rate is 7% from 7.25% earlier.    

For 2-years to below 1,000 days, the rate has been slashed from 7.50% to 7.25% whilst for a period of 1,000-days, the new rate is fixed at 7.50%.

For 1,001 days to less than three years, the fresh rate is 7.25%.     

The rate has been cut to 7.25% for 3-years to less than 5-years. For 5-years to less than 8 years, the rate is 7.75%.    

For a tenure of 8 years and up to 10 years, the new rate is 8% vs 8.25%.    

An additional 0.50% for deposits of resident Indian senior citizens for tenures of 1-year and above would maintain for term deposits of amount less than Rs 10 million.

SBI, on June 08, said that it will set up `several` other funds to cash in on the region after introducing an infrastructure fund in affiliation with Macquaire and IFC.

With a view to stretch out to all major centres across India, SBI is likely to double up the total number of its divisions for retail sales of gold coins to 1,100 during the existing financial.