Is SBI Really that Bad to be worth just Rs 1625 ?

SBI 2013 Earnings AnalysisIn a Research note a Week ago, Morgan Stanley Downgraded India’s Sovereign bank the State Bank of India – SBI to a Sell with a Target price of Rs 1625. Some of the concerns raised by Morgan are – Revenue progression (loan growth plus fees) likely to be tepid given slowdown in economic growth, Asset quality will likely remain under pressure, given peak lending rates and slowing growth, Core Tier I capital ratio is one of the weakest amongst Asian peers and Multiples could be under pressure as revenue growth slows and asset quality pressures increase.

SBI announced its Results for the 9 Months ended Dec-2012. The Bank (more…)