Japanese brokerage firm Nomura said it prefers State Bank of India over private sector lenders Axis Bank and ICICI Bank now.
"We see clear growth drivers, margin upside, return on equity improvement in SBI. Even its asset quality issues are behind now," said the brokerage that raised Bank's FY20-22 EPS estimates by 5 percent.
Hence, Nomura maintains buy rating on the stock with a price target at Rs 470 apiece, implying a 38 percent potential upside from the current level.
SBI had reported a net profit of Rs 838.4 crore for the quarter ended March 2019 against loss of Rs 7,718 crore in a year ago period. Asset quality improved as the company's gross NPA was down at 7.53 percent against 8.71 percent, while net NPA was down at 3.01 percent versus 3.95 percent, QoQ.
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