New Delhi, April 7 -- Global brokerage UBS has upgraded its stance on two major public sector banks - State Bank of India (SBI) and Bank of Baroda (BoB) - anticipating that potential monetary policy easing by the Reserve Bank of India (RBI) could enhance their growth prospects. UBS believes the recent underperformance of these banking stocks has improved their risk-reward profiles and supports a more constructive outlook, especially for Bank of Baroda due to its relatively cheaper valuation.

UBS has raised its rating on SBI from 'Sell' to 'Neutral' and increased the price target to Rs.840 per share. The brokerage highlighted that India's largest lender stands to benefit from a low cost of funds, a favourable liquidity environment, and ta...