CLSA has maintained an ‘Outperform’ rating on SBI with a target price of ₹1,050, highlighting that the bank’s Q4FY25 profit beat was driven primarily by higher treasury gains and other income, even as loan growth moderated.
SBI reported a net profit of ₹18,643 crore, down 9.9% YoY, with net interest income (NII) rising 1.5% YoY to ₹42,774 crore. Asset quality continued to improve, with gross NPAs falling to ₹76,880 crore (1.82%) from ₹84,360 crore (2.07%) QoQ, and net NPAs improving to ₹19,667 crore (0.47%).
CLSA noted that loan growth slowed to 12% YoY, down from the 14–15% run rate seen in prior quarters, while deposit growth remained tepid at 9–10%. Although NIMs were stable, they continue to lag the top private sector peers. As a result, CLSA has cut its FY26–27 earnings estimates by 4%, citing weaker loan growth and some NIM moderation.
Disclaimer: The above views are those of the brokerage and not the publication. Investors are advised to consult a certified financial advisor before making investment decisions.
