CLSA has reiterated its outperform rating on State Bank of India (SBI) and maintained the target price at ₹1,050 after the lender delivered a core profit before tax (PBT) beat of 32% compared to its estimates in Q1FY26.
The performance was led by stronger-than-expected pre-provision operating profit (PPOP) and benign credit costs. SBI’s loan growth outpaced the sector by two percentage points, driven by strong demand in retail lending. The 10 basis point decline in NIM was in line with peer banks.
Asset quality remained healthy, with gross slippages 10 basis points below estimates. Operating expenses were 11% lower than expected, supported by cost savings across employee and non-employee categories.
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