Neutral SBI, target Rs 185: Credit Suisse

Credit Suisse maintains a neutral rating on the State Bank of India post March quarter results but raised its 12-month target price to Rs 185 from Rs 162 earlier.

The NPL slippages spike in 4Q with credit cost likely to stay high, said the global investment bank. The management surprised by disclosing stress watchlist at just 2 per cent of loans.

The management's own guidance of NPL slippages remains high at 2.7 per cent for FY17. The return on equity (ROE) is likely to remain in single digits in FY17 as the low NPL cover.