SBI shares rise ahead of appointment of new Chairman; UBS upgrades stock to buy

There are seven items on the agenda for the meeting of BBB, including upcoming "vacancy" of the Chairman post at SBI, as per the sources. The meeting would be held through video conferencing.

August 28, 2020 / 11:02 AM IST
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State Bank of India (SBI) share price gained over a percent in morning trade on August 28. The Banks Board Bureau (BBB) is scheduled to hold interviews of candidates for the post of Chairman of the State Bank of India on August 28, according to sources. BBB is the headhunter for state-owned banks and financial institutions.

There are seven items on the agenda for the meeting of BBB, including upcoming "vacancy" of the Chairman post at SBI, as per the sources. The meeting would be held through video conferencing.

Also, global financial firm UBS upgraded the stock to 'buy' from 'sell'. "Bank stocks are down 12-62 percent year-to-date and have underperformed the broader markets. We think the sector’s downside risks are limited and upgrade SBI from sell to buy," UBS said in a note.

UBS has a target price for SBI at Rs 260. "We reduce FY21E GNPL formation and credit costs but raise our NIM estimates, resulting in a 17-115 percent lift in FY21E earnings for the banks we cover. Our estimates are 4-30 percent higher than consensus for select coverage banks," UBS said.

The stock price has gained over 40 percent in the last 3 months and was trading at Rs 223.00, up Rs 7.25, or 3.36 percent. It has touched an intraday high of Rs 224.25 and an intraday low of Rs 216.50.

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The scrip was also one of the most active stocks on NSE in terms of volumes with 4,21,22,082 shares being traded.

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Moneycontrol News
first published: Aug 28, 2020 09:56 am

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