Buy SBI With Stop Loss Of Rs 2588

Buy SBI With Stop Loss Of Rs 2588Technical analyst Rahul Mohinder has maintained 'hold' rating on State Bank of India (SBI) Limited stock with a target of Rs 2680.

According to analyst, the investors can buy the stock with a stop loss of Rs 2588.

The stock of the bank, on May 04, closed at Rs 2617.35 on the Bombay Stock Exchange (BSE).

Current EPS & P/E ratio stood at 159.20 and 16.37 respectively.

The share price has seen a 52-week high of Rs 3515 and a low of Rs 2165 on BSE.

The State Bank of India has accepted gladly the central bank's verdict to increase the rate of interest on savings deposits, saying that the measure will in actual fact cut down the rate of its funds.

SBI Chairman Mr. Pratip Chaudhuri stated, "For a bank like ours, it (hike in interest rate on savings deposits) does (augurs well)... (People are) keeping Rs 9.5 lakh crore at home in cash because of the low interest rate (on savings deposits). They are not comfortable in committing money in long-term deposit."

Mr. Pratip further noticed that the rate of preserving savings accounts is nil, particularly in a CBS system, "so incremental cost is too low," the chairman said.

On whether the banking institution will raise its lending and depository rates accompanying the RBI plan, he denied giving a clear answer.