Bernstein has retained its ‘Market-Perform’ rating on SBI, with a target price of ₹900, after the bank reported a robust RoA performance in Q4FY25, supported by non-interest income and stable margins.
SBI’s net profit came in at ₹18,643 crore, marking a 9.9% YoY decline, as the prior-year base included exceptionally low provisions. This quarter, provisioning rose sharply to ₹6,442 crore from ₹1,610 crore a year ago. Still, the net interest margin (NIM) held at 3%, and RoA remained above 1%, which Bernstein considers a strong outcome in a tightening macro environment.
The brokerage highlighted that while asset quality continued to improve, with gross and net NPAs easing QoQ, the provision cushion seen in earlier quarters is now normalising, potentially limiting profit growth ahead.
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.
