Buy Recommendation for SBI

Buy on State Bank of India with a target price of Rs 1950. During 1st Q FY09, we expect that the bank would report 28% (Y-o-Y) growth in advances and 24% (Y-o-Y) growth in deposits; NII is expected to report 8% growth (Y-o-Y) to Rs 48.5 billion; we expect that the bank's margin would be under pressure.