State Bank of India (SBI) shares jumped over 2.5% in intra-day trade on Friday, i.e. 27 December, to become one of the top gainers among the Sensex and Nifty stocks after research firm Citi raised its target price on the stock.
Citi maintained its ‘buy’ call on SBI stock and raised the target price to Rs 400 from Rs 375 earlier, citing higher value for SBI Life and higher multiple on core banking business.
The research house said SBI would be able to stabilise its key operating parameters, while merger of its associate banks should provide leverage to gain market share.
At 11:18 am, SBI shares were trading at Rs 337.60 apiece, up 2.4%, after hitting the day’s high of Rs 338.35. The stock has jumped over 15% in the last one year.
SBI had recently reported bad loan divergence of Rs 11,932 crore for the financial year ending March 2019. The lender also reported divergence of Rs 12,036 crore in provisioning for the period. As a result, the bank’s fourth-quarter net profit of Rs 838 crore was adjusted to a net loss of Rs 6,986 crore.
In a separate development, SBI on Thursday announced that it will soon be introducing one-time password (OTP)-based cash withdrawal system to help protect its customers from unauthorised transactions at ATMs. However, the OTP-based facility will only be applicable for transactions above Rs 10,000.
The system shall be active across all SBI ATMs effective 1 January 2020 between 8 pm to 8 am. “Introducing the OTP-based cash withdrawal system to help protect you from unauthorised transactions at ATMs. This new safeguard system will be applicable from 1st January, 2020 across all SBI ATMs,” SBI posted on its official Twitter account.
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