SBI shares jumps to a new record high

India’s largest lender The State of India (SBI) witnessed its net profit decline 7% to Rs 5196 crores in the Financial Quarter that ended in December. However, net interest income rose to 4%. Shares of State Bank of India gained traction of as much as 10% touching an all-time high of Rs 390.6. The stock is up for the fifth straight day and has gained close to 40% during the previous Financial Quarter period.

SBI aims to report double-digit credit growth by the second quarter of the next fiscal, spurred by a revival in corporate credit demand.

Analysts have raised earnings estimates and target prices for State Bank of India, and expect a further rerating on account of its lower slippages, fall in credit costs and attractive valuations. Of the 48 analysts tracking SBI, 45 recommend a ‘buy’, while three suggest a ‘hold’.