Accumulate SBI on any decline, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, " State Bank of India  subsidiaries are probably responding to the news of a probable merger happening with State Bank of India. However, one really needs to see when and what price and how the whole thing happens. In my view probably State Bank of India is a much better bet within the PSU space." "The way we are looking at the NII growth for State Bank of India is going to be much better. Again from quarter earnings perspective the asset quality pressures would definitely ease on for bankers like State Bank. 

The management is probably doing the right moves. Again I think BFS portfolio is something that will lead the public sector banks in a big way. So, the treasury income is going to be substantial not just for State Bank of India but for most public sector banks," he added. "I think in terms of capital adequacy the bank is adequately sufficed to probably carrying on its balance sheet growth which means the operating leverage benefits would stay with State Bank.

 So, I would prefer investors with a long term view to probably stay with State Bank and probably accumulate the stock on any significant decline that one probably sees," he said.