State Bank of India share price target

We hosted SBI’s Ms Saloni Narayan, Depuy Managing Director (DMD), Mr A K Paul, DMD designate, Mr Ravi Shankar Akella, CGM and Mr Misal Singh, Investor Relations.

We remain constructive on SBI, supported by the upward-revised credit growth guidance of 12–14% for FY26, a healthy corporate pipeline, and stable NIMs (above 3%) and CRR-related tailwind ahead.

We maintain our BUY recommendation on the stock.

State Bank of India (SBI) reported yet another strong quarter with Q2FY26 PAT of INR 201.6bn, aided by the Yes Bank stake sale along with superior loan / core fee growth, NIM and comfortable asset quality.

SBI continues to report sector-beating credit growth of 13% YoY and margins of 2.97% (up 7bps QoQ), which, coupled with the higher other income, led to a strong 7.4% PAT beat at Rs202bn/1.2% RoA.

SBI posted a ~6% beat on PAT at Rs192bn/1.1% RoA, led by higher other income (especially treasury gains) and controlled opex, partially offset by higher provisions.

Amidst tough macro environment, SBI reported yet another steady quarter with ~12% YoY growth in loans, deposits and PAT.

*over or under performance to benchmark index State Bank of India (SBI) is India's largest bank, with a vast network of 22,937 branches globally and 63,791 ATMs/CDMs. Through its subsidiaries, SBI offers a diverse range of...

We maintain our BUY recommendation on the stock.

PAT beat our estimates by 5% mainly aided by govt-guaranteed SRs; return ratios stay steady with RoA/RoE of 1.1/17.3% in FY25

SBI saw a decent quarter; while core PPoP beat PLe by 11.3% due to better fees and TWO recoveries, asset quality was soft as provisions were higher at 66bps (PLe 25bps) since (1) write-offs/ageing provisions were more and (2) strong TWO recovery and SR reversal (Rs39bn) provided leeway to front load credit costs. Credit growth is guided to be above system in FY26E; we are factoring a 12% CAGR over FY25-27E. Opex for FY25 was flat at Rs1.18trn due to 9.7% decline in staff cost. For FY26, bank has guided a cost to income of 50-51% with...

State Bank of India (SBIN) reported a 4QFY25 PAT of INR186.4b (in line) with robust treasury gains offsetting higher opex and provisions. NII grew 3% YoY to INR427.7b (in line). NIM stood at 3.0% (1bp QoQ dip) with domestic NIM holding stable at 3.15%.

SBI posted a slightly soft quarter, as credit growth moderated to 12.4% YoY due to pre-payments in the corporate book, while higher opex (staff cost + deposit insurance) and provisions (std assets + investment + PLI incentive) caused a 5% earnings miss, with PAT at Rs186bn/1.1% RoA.

Q4 numbers were a mixed bag. NII at Rs. 42,775 crore (in line) grew by 3% y-o-y/ 3% q-o-q. NIMs were stable, declined marginally by 1 bps q-o-q to 3.0% although outlook on NIMs remains negative. Core fee income growth was healthy at 13% y-o-y/ 36% q-o-q.

Black & White

SBI is expected to sustain healthy performance in terms of growth and profitability in the near to medium term. Loan growth guidance is intact at ~14-15% y-o-y and deposit growth at 10% y-o-y.