Curiously, SBI share price has just rallied another 6 per cent after a 4 per cent jump in the previous session even as the country's largest lender reported a record standalone net loss of Rs 7,718 crore in the fourth quarter ended March, mainly due to sharp rise in provisioning for bad loans. 

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Besides that, a lower investment income as well as higher provisioning for wage revision dented the profits of the state-owned lender. The bank had registered a net profit of Rs 2,815 crore in the corresponding quarter of preceding fiscal ended March 31, 2017.

Despite the worst-ever quarter, the stock gained as much as 6.11 per cent to Rs 269.70 on the BSE as investors turned positive after the lender said it expects recovery over next 2 years. SBI aims to grow loans at an annual average of 12 percent through March 2020, nearly halving its gross non-performing

loan ratio, bringing down provisioning costs and improving margins. 

Global brokerage Morgan Stanley expects SBI's net interest margins (NIMs) to improve, helped by higher rates (strong deposit franchise) and NPL recoveries

It retained “overweight” rating with target price of Rs 360. 

"Upfront stress recognition, as anticipated, took the sheen off SBI's otherwise operationally steady Q4FY18 (Rs 7700 crore loss despite NII beat due to 6.9 per cent slippage run rate)," said Edelweiss Securities in a results review report. 

The brokerage believes it is better positioned amongst peers to capture emerging opportunities amidst slackened competition. Value in its non-banking subsidiaries will also be a more stable and scalable vector. 

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"Ascribing Rs 85/share to subsidiary businesses, the stock trades at 0.7x adjusted FY20E book. We maintain ‘BUY/SO’ with SOTP-based target price of Rs 350," Edelweiss said. 

However, global brokerage Credit Suisse maintained ‘underperform’ rating on the stock, slashing price target to Rs 322 from Rs 381.

"Residual stress is contracting, but further capital is required. Gross NPAs have likely peaked at 10.9 per cent this quarter. We have cut FY19 EPS by 3 per cent and FY20 EPS by 20 per cent on higher provisions," the brokerage said in a results review note.