The State Bank of India share price is up 2% on stable Q1 performance. Brokerages have listed out the top growth drivers and the key reason for reiterating the Buy call on the stock.
Here is a look at top brokerage views-
Motilal Oswal on SBI: No material stress likely in FY26
Motilal Oswal has a Buy rating with a target price of Rs 925 per share on State Bank of India after steady Q1 performance. The Bank’s Q1 performance was led by strong treasury gains, controlled operating expenses, and in-line NII.
SBI’s NIM contracted 10 bps QoQ to 2.9%, but the management expects a gradual recovery in FY26, “supported by improved liquidity from CRR cuts, moderation in deposit cost, and benefits from the recent capital raise,” Motilal Oswal added.
The other factors supporting the call includes, credit growth at 12% YoY, with the unsecured Xpress Credit book remaining flat, while a robust credit pipeline is expected to support a healthy outlook over FY26. The domestic CD ratio, for SBI, remains benign and the leading domestic brokerage houses added that they “will be supportive of incremental credit growth. Despite elevated slippages (seasonal trend in Q1), the bank does not anticipate any material stress across lending segments.”
Motilal Oswal raised the earnings estimate “by 3% for FY26 and 3.5% for FY27 and estimate FY27 RoA/RoE at 1.1%/ 15.5%.”
Nuvama on SBI: Margins stable Vs peers
Nuvama has reiterated its Buy rating as well with a target price unchanged at Rs 950 per share. This implies almost 18% upside for the SBI share price from current levels. According to them, the FY26 guidance is for 12–13% loan growth, domestic NIM of 3% and stable NPL. “NIM will likely decline in Q2FY26 and then improve in H2FY26 with deposit-repricing and capital raise,” they added.
The Bank’s NIM fell 10 bps QoQ to 2.9%. The Core NIM stayed flattish QoQ. Nuvama believes that this “is better than a steeper decline for all peers. Treasury gains stayed high at Rs 6,300 crore though they were lower than Q4 as SBI had a one-time revaluation of SR.”
JM Financial on SBI: Steady loan growth momentum
JM Financial also has a Buy on State Bank of India and has raised the target price to Rs 950 per share. This implies as much as 18% upside for the State Bank of India share price. According to the brokerage house, the Q1 PAT growth of 12%/ YoY is significantly higher than their estimates driving RoA/RoE to 1.1%/17%. The PSU Bank’s loan growth remained stable at 12% YoY, led by home/international segments. Meanwhile the NII declined 4% QoQ due to a 16bps QoQ decline in NIM to 2.65%.
However, JM Financial pointed out that SBI’s asset quality remained stable with decline in gross/net slippages and stable SMA book on YoY basis. Credit cost declined 18bps QoQ. The management retained its FY26 guidance of 12% credit growth, 3% domestic NIM and slippages below 0.6%. The brokerage house revised its FY26/FY27 EPS estimates higher by 2-3%.