Buy State Bank Of India - Karvy

Buy State Bank Of India - KarvyKarvy Stock Broking Limited has maintained ‘Buy’ rating on State Bank Of India (SBI) stock to achieve a target of Rs 1350 within 1-2 days.

According to Karvy, day traders can buy the stock at Rs 1305 with a stop loss of Rs 1275.

Shares of the bank, on Monday (April 20), closed at Rs 1295.95 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 130.14 and 9.59 respectively. The share price has seen a 52-week high of Rs 1840 and a low of Rs 894 on BSE.

SBI, on April 18, announced that it has expanded the time-period of its concessional financing to the agriculturists against warehouse receipts by another five months to September 30.

The plan was to conclude on April 30, 2009. The statement comes after the bank expanded, during the last week, its special home and car loans scheme at 8% and 10%, respectively, for the first one year, till September 30, 2009.

In February 2009, SBI started providing loans at a concessional rate of 8% to agriculturists against cold storage and warehouse receipts, in order to save them from falling prey to hurt sale of their farm production.

To finance the company’s foray into 3G telecom services, SBI has decided to offer Rs 100 billion loan to Vodafone-Essar.

The 5-year loan contains an interest rate of 13.25% during the initial 2 years; afterward, it will be re-adjusted on the strength of the average prime lending rate of 4 public sector banking institutions.

Moreover, SBI eyes a loan growth of 25% during the existing fiscal, that is in FY 2009-2010.

Mr. OP Bhatt, SBI chairman, stated that the bank’s total business reported a growth of Rs 2.5 trillion.