Morgan Stanley, Bank of America-Merrill Lynch cut SBI target price

Morgan Stanley and Bank of America-Merrill Lynch cut their target price on State Bank of India (SBI)after the country's largest lender posted an unexpected slump in quarterly profit.

Morgan Stanley has cut its price target to Rs2,000 from Rs2,450 and said the stock was unlikely to perform when net interest margins were falling. It kept its "underweight" rating on the shares. Bank of America-Merrill Lynch lowered its price target on SBI to Rs2,950 from Rs3,400 and maintained its "buy" rating on the stock.    

On Tuesday, SBI, posted a net profit of Rs209 million($4.6 million) in the fourth quarter, versus Rs18.67 billion a year ago, slammed by higher provisions, operating costs and taxes.