Share price of State Bank of India (SBI) fell nearly 11 percent intraday on March 6 following report it is picking up stake in Yes Bank.
According to CNBC-TV18 sources, SBI and LIC are likely to each pick up 24.5 percent stake in the Yes Bank and likely to appoint a new MD for Yes Bank and get the board control.Kotak Institutional Equities has maintained buy rating with a target at Rs 420 per share.
Broking house believes that SBI is the best proxy to invest in the corporate NPL recovery theme as it offers the best risk-reward.
A financial investment can ideally limit the loss as compared to a merger, it added.
At 10:40 hrs State Bank of India was quoting at Rs 269.50, down Rs 18.80, or 6.52 percent on the BSE.