Management has been the catalyst to address SBI's asset quality: Shashank Khade

In a chat with ET Now, Shashank Khade, Vice President, Portfolio Management Services, Kotak Securities shares his views on SBI.

ET Now: State Bank of India is almost at Rs 1800. At these levels is SBI more like a buy because based on FY13 estimates SBI is trading at a price to book-off just one time?

Shashank Khade: As against the other nationalised banks, SBI's asset quality issue has been surfaced much earlier given the fact that there was a change in management which has been a catalyst to change the asset quality or address the asset quality itself. So SBI has gone through a derating cycle ahead of time as compared to other nationalised banks.

They have reported aggressive asset quality ahead and all this has got discounted in the price. So 1800 could be an interesting price, if the volatility persist in the markets. If you get lower levels then it could get more interesting but there is a cushion of safety given the fact that valuations have now corrected and possibly there is a lot of negative news already in the price.