SBI hits a new low

State Bank of India (SBI) has hit a new 52-week low today at Rs.1599.05 and though it has recovered from this level, it remains in the red at Rs.1615.85, down almost 3%.

The stock is in the red ahead of its Q1FY14 expected to be announced today. Expectations are largely of a poor set of numbers. It is estimated that net profit will fall around 8-10%. More worrying is the asset quality and that is where all the attention will be. Restructured assets amount is what the market will watch. If further asset quality deterioration comes in, the market is sure to be further disappointed though that is precisely what the market is expecting to happen.