Jefferies has maintained its buy rating on State Bank of India (SBI) with a target price of ₹970, after Q1FY26 net profit rose 12% year-on-year to ₹192 billion, surpassing estimates.
The profit beat was driven by higher treasury income and lower operating expenses. Loan growth stood at a steady 12%, and the sequential NIM decline of 10 basis points was in line with expectations.
Asset quality stayed resilient across unsecured and SME portfolios, keeping the gross non-performing loan ratio at 1.8%. Management retained its guidance for a 1% return on assets (RoA) and a 3% domestic NIM. Following its recent capital raise, SBI’s CET-1 capital adequacy ratio now stands at 11%.
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