Book profits in SBI, says Rajesh Agarwal

Rajesh Agarwal, Head of Research of Eastern Financiers Limited told CNBC-TV18, "The entire banking space is witnessing a lot of stress in the recent past on concerns of tapering of QE3, on concerns of non-performing assets (NPA). But going forward the kind of valuations they are trading at specially the PSU side, it is very attractive. If one looks at any of the banks, they are trading at price to adjusted book of 0.5-0.6, PE of 2-3 times and some of them are giving a good dividend yields of more than 5-6 percent so all of them are trading at very attractive valuations."

"As far as State Bank of India (SBI) is concerned, there has been lot of concerns on NPA front. We have seen bottom-line going down by a huge amount in the first quarter. There are still some concerns on the NPA front. But going by pure valuations it is very attractive at these levels also and can touch a target of Rs 1950-2000 in the next six months," he said. "I think one should try booking profits for a very short duration because in the recent past it has move up by around Rs 300. Maybe one can re-enter at levels of Rs 1650-1700 once again for a target of Rs 1980-2000 in the next six months." Also Read: SBI ups lending rate to 9.8%, makes loans costlier