State Bank of India jumps to 12-week high on recovery forecast
Updated : May 23, 2018 12:02 PM IST
Shares of State Bank of India rose more than 6 percent to a 12-week high on Wednesday after the country's largest lender projected a recovery over the next two years following a record quarterly loss.
Top brokerages welcomed SBI's move to clean up its accounts, recognising large part of its stressed assets that forced the Mumbai-based lender to report a quarterly loss of 77.18 billion rupees ($1.13 billion), the second highest in the country's banking industry.
The market may take solace that the gross stress has likely peaked, Jefferies said in a note, adding that core profitability should see a cyclical improvement through the second half of 2019.