SBI preferred - Morgan Stanley upgrades Bank of Baroda, Punjab National Bank, Bank of India, Canara Bank
SOE banks' balance sheets have improved, and bad loans formation should moderate going forward. Prefer SBI; Morgan Stanley sees continued structural challenges at others, limiting re-rating. Valuations, however, are cheap, and hence Morgan Stanley upgrades Bank of Baroda, Punjab National Bank to Equal weight and Stay Under weight on Bank of India, Canara Bank given low profitability.
Morgan Stanley upgrades Bank of Baroda, Punjab National Bank to Equal weight and Stay Under weight on Bank of India, Canara Bank given low profitability: Reuters