India’s largest commercial bank, State Bank of India (SBI), has caught the attention of leading brokerages including Jefferies, CLSA, HSBC, and others after releasing its Q1 FY26 results. Analysts are bullish on SBI’s growth prospects, with price targets suggesting up to a 28% upside from current levels.

SBI Share Performance

With a market capitalization of ₹7.59 lakh crore, SBI shares are trading at ₹823, only 6% below their 52-week high of ₹875.50. Over the last five years, the stock has delivered 320% returns, making it a consistent wealth creator.

Q1 FY26 Highlights

  • Net Interest Income (NII): ₹41,072 crore, nearly flat YoY (-0.13%).

  • Net Interest Margin (NIM): Declined by 32 bps to 2.90% for the bank, and 33 bps to 3.02% for the domestic book.

  • Operating Profit: ₹30,544 crore, up 15.49% YoY.

  • Net Profit: ₹19,160 crore, up 12.48% YoY.

  • Credit Cost: Reduced by 1 bps to 0.47%.

Improved Asset Quality

  • Gross NPA: Down 38 bps to 1.83%.

  • Net NPA: Down 10 bps to 0.47%.

  • Provision Coverage Ratio: 74.49%, up 8 bps.

  • Capital Adequacy Ratio: 14.63%, up 77 bps.

Loan & Deposit Growth

  • Gross Advances: ₹42.55 lakh crore, up 11.61% YoY.

  • Retail, Agriculture & MSME Loans: Up 13.94%.

  • Corporate Loans: Up 5.70%.

  • Total Deposits: ₹54.73 lakh crore, up 11.66% YoY.

  • CASA Deposits: Up 8%; Term Deposits: Up 14.23%.

Brokerage Recommendations

  • HSBC: Buy, Target Price ₹960 (+17% upside) – Cites strong loan growth potential and margin stability.

  • Jefferies: Buy, Target Price ₹970 (+18% upside) – Highlights focus on maintaining RoA of 1% and NIM of 3%.

  • CLSA: Buy, Target Price ₹1,050 (+28% upside) – Notes stable asset quality and strong profit beat.

Future Outlook

SBI has maintained its 12% credit growth guidance for FY26, with potential to touch 13%. Management expects a U-shaped recovery in margins, with improvement from September following the CRR cut. No major asset quality risks are foreseen.

With strong fundamentals, robust loan growth, improving asset quality, and top brokerages backing the stock, SBI appears to be a strong long-term investment opportunity.