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BoFA downgrades these two PSU Banks on asset quality risks; SBI upgradedBofA said the recent correction in banking stocks appears overdone, with value emerging, particularly in large banks. It has turned more constructive on the segment, citing the current macro outlook and attractive valuations.By Meghna Sen  April 7, 2026, 9:23:20 AM IST (Published)1 Min ReadBrokerage firm BofA Securities has upgraded State Bank of India (SBI) to a 'Buy' rating from 'Neutral' earlier and raised its price target to ₹1,200 from ₹1,100 per share.

At the same time, the brokerage has downgraded Union Bank of India to 'Neutral' from 'Buy' with a price target of ₹195. It has also downgraded Bank of India to 'Neutral' from 'Buy', assigning a target price of ₹160.

BofA said the recent correction in banking stocks appears overdone, with value emerging, particularly in large banks. It has turned more constructive on the segment, citing the current macro outlook and attractive valuations.

The brokerage, however, cautioned that a prolonged geopolitical conflict could impact earnings by 3-23%.

On PSU banks, BofA highlighted healthy growth prospects and potential upside to net interest margins, but cited risks from lower non-interest income and asset quality.

Shares of SBI, Union Bank of India, and Bank of India are trading with losses of up to 3% today.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.