Hold State Bank of India: Rajesh Agarwal

Agarwal told CNBC-TV18, "If one is a long-term investor then one should stay Put because the numbers were inline with expectation at least on the profit part. The NPAs were pretty high and it was beyond expectations, gross NPA would reach to the levels of 4.99 and net NPA to 2.22 and that was beyond expectation but as we all know the economy has been going through headwinds and there has been a lot of non-performing assets increase in different sectors such as power and airline and this has taken a stall but going forward once interest rates starts coming down and economy looks better these things will be taken care of.”

He further added, “In the short-term there would be some headwinds in the stock and therefore the next one or two quarters there would be some pressure on NPAs. Even on the net interest income which has not grown as is expected I think there are some problems but still at Rs 1800-1850 if the stock comes down due to market reaction I would be a buyer on this stock so I would suggest a buy on this stock if one’s funds allowed otherwise if one is holding one can stay Put for a one year price target of maybe Rs 2200-2300.”