Mumbai: Brokerage houses have become more confident about State Bank of India (SBI) after its Q3 results. Analysts believe SBI shares can test levels up to Rs 1,305 in the next 12 months, which is the highest target given so far.
Currently, 49 analysts track SBI. Out of these, 42 have given a Buy rating, while seven have suggested Hold. No analyst has given a Sell rating, showing strong confidence in the bank’s future performance.
Target Prices Raised By Major Global Brokerages
Nomura has kept its Buy rating and increased the target price to Rs 1,235. The brokerage said most valuation improvement has already happened, and future stock growth will mainly come from earnings growth.
Jefferies has set a target of Rs 1,300 with a Buy rating. CLSA has raised its target to Rs 1,275 and maintained an Outperform rating. Citi has increased its target to Rs 1,265 with a Buy rating. Nuvama has given a Buy rating with a Rs 1,250 target. UBS has given a Neutral rating with a Rs 1,120 target price.
Strong Q3 Performance Supports Optimism
SBI delivered strong results in Q3 despite a challenging environment. Domestic loan growth was 15.6 percent year-on-year, higher than many private and PSU banks. Corporate loan growth stood at 13.4 percent. Deposit growth came at 9 percent, which was in line with expectations.
The credit-to-deposit ratio crossed 80 percent for the first time since FY16 and reached 81 percent.
Profit And Asset Quality Improve Further
Net profit rose 24.5 percent to Rs 21,028 crore. Net interest income increased 9 percent. Pre-provision operating profit grew nearly 40 percent, showing strong core performance.
Asset quality improved significantly. Gross NPA declined to 1.57 percent, and Net NPA fell to 0.39 percent, the lowest levels in nearly two decades. Credit cost declined to 0.29 percent. Net interest margin remained stable at 2.99 percent, with full-year guidance near 3 percent.
Before results, SBI shares closed at Rs 1,066. In 2026 so far, the stock has risen about 8 percent.
Disclaimer: This article is for informational purposes only and not investment advice. Stock market investments are subject to risks. Investors should consult certified financial advisors before making any investment decisions.
