Brokerages bullish on SBI despite Rs 77 billion loss in Q4FY18

Most brokerages have revised their rating on the stock post results in a hope that the NPA cycle may be turning around.

State Bank of India (SBI) gained over five per cent on Wednesday to Rs 267 levels on the NSE despite the bank positing a huge Rs 77 billion loss in the March 2018 quarter. The rally, over the past two sessions, comes on the back of expectations of an improvement in the asset quality going ahead.

Most brokerages have revised their rating on the stock post the results in a hope that the non-performing asset (NPA) cycle may be turning around. This is the second consecutive quarter that SBI has reported a loss.