Morgan Stanley and Macquarie Research cut their rating on SBI.
SBI Chairman O.P. Bhatt told analysts on a conference call May 2 that more farmers had stopped repaying loans since the debt waiver was announced.
State Bank has fallen 21 percent since Finance Minister Palaniappan Chidambaram told banks to forgive 600 billion rupees ($15 billion) of debt in his budget speech Feb. 29. SBI is owned 59.7 percent owned by the government.
It has the major share of loans to the agricultural sector among Indian banks.
``We are surprised at how quickly the NPLs have accrued on the agri portfolio,'' Credit Suisse analysts. ``The increase in NPLs across most businesses including retail, small and medium enterprises and mid-corporates is also worrying.''
The bank's share price target was cut to 1,550 rupees from 1,910 rupees and its rating reduced to ``underweight'' from ``equal-weight,'' Mumbai-based analysts Anil Agarwal and Ashish Jain of Morgan Stanley said in a note to clients today.
SBI NPA is 128 billion rupees compared to 100 billion rupees a year ago.
SBI Chairman O.P. Bhatt told analysts on a conference call May 2 that more farmers had stopped repaying loans since the debt waiver was announced.
State Bank has fallen 21 percent since Finance Minister Palaniappan Chidambaram told banks to forgive 600 billion rupees ($15 billion) of debt in his budget speech Feb. 29. SBI is owned 59.7 percent owned by the government.
It has the major share of loans to the agricultural sector among Indian banks.
``We are surprised at how quickly the NPLs have accrued on the agri portfolio,'' Credit Suisse analysts. ``The increase in NPLs across most businesses including retail, small and medium enterprises and mid-corporates is also worrying.''
The bank's share price target was cut to 1,550 rupees from 1,910 rupees and its rating reduced to ``underweight'' from ``equal-weight,'' Mumbai-based analysts Anil Agarwal and Ashish Jain of Morgan Stanley said in a note to clients today.
SBI NPA is 128 billion rupees compared to 100 billion rupees a year ago.
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