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Apr 25, 2011, 03.10 PM IST
JPMorgan raised State Bank of India, the country's top lender, to "overweight" from "neutral", citing regulatory relief from higher provisioning norms and positives from teaser loan withdrawal.
It also raised its target price on the stock to Rs 3,200 from Rs 2,800 earlier, and said the bank was better placed than other state-run banks on margins.
Credit Suisse raised State Bank of India to neutral from underperform on Monday, after the central bank relaxed provisioning norms for banks.
It said the country's top lender will be the biggest beneficiary of the Reserve Bank's move and estimated that its provision expense over the next five quarters may now be Rs 2000 crore to Rs 3500 crore (USD 450 million to USD 790 million) lower than earlier forecasts.
Credit Suisse said this would ease a major earnings headwind and help it lower the gap in reported profitability to peer banks.
At 2:07 pm (0837 GMT), SBI shares were up 2.2 percent, while the broader NSE index was up 0.1 percent.
JPMorgan earlier raised the stock to overweight from neutral, while Deutsche Bank changed to buy from hold.
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