SBI falls 1%, however Deutsche Bank initiates 'Buy' on stock; sees margin improvement

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26 Aug, 2025 12:21

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Global research firm Deutsche Bank has initiated a buy on PSU major State Bank of India with target of Rs 350 per share.

The house is of the view that with 5 percent CASA and 70 percent loans floating, the margin trajectory should improve. It expects further pick up in loan growth as we head towards end of year.

A day after deposit rate hike, State Bank of India (SBI) raised marginal cost-based lending rates (MCLR) by 10-25 basis points across most maturities, with immediate effect.

For the two- and three-year tenure, the rates were increased to 8.25 percent (from 8.05 percent) and 8.35 percent (from 8.10 percent), respectively. Rates on overnight and six month maturities were raised by 10 bps to 7.80 percent and 8 percent.

SBI, which accounts for more than a fifth of India’s banking assets, raised the key 1-year MCLR to 8.15 percent from 7.95 percent according to a notification on SBI website.

However, shares of SBI were trading lower by over 1 percent intraday on Thursday after the bank raised marginal cost-based lending rates (MCLR).

At 12:20 hrs State Bank of India was quoting at Rs 266.10, down Rs 2.65, or 0.99 percent. It has touched an intraday high of Rs 270.00 and an intraday low of Rs 263.45.

The company's trailing 12-month (TTM) EPS was at Rs 4.62 per share. (Dec, 2017). The stock's price-to-earnings (P/E) ratio was 57.62. The latest book value of the company is Rs 181.61 per share. At current value, the price-to-book value of the company was 1.47. The dividend yield of the company was 0.98 percent.