CLSA has reiterated its ‘Outperform’ rating on State Bank of India (SBI), setting a target price of ₹1,075 per share, indicating a potential 28% upside from the current market price (CMP) of ₹841.10. The brokerage notes that while SBI’s loan growth remains healthy, deposit growth is lagging. There has been a marginal decline in net interest margin (NIM), but asset quality remains intact. CLSA forecasts a return on equity (RoE) of 15%-16% over the medium term and suggests that valuation multiples could rerate if loan growth continues in the early teens.
Disclaimer: This information is for informational purposes only and does not constitute financial advice.
