State Bank of India (SBI) shares gained 1.70% to ₹818.00 in early trade on Monday, August 11, after the country’s largest lender reported a 12% year-on-year (YoY) increase in standalone net profit for Q1FY26, prompting several brokerages to raise their target price. Motilal Oswal has maintained a ‘buy’ rating with a target of Rs 925, while some other firms have revised it as high as Rs 955.
SBI posted a quarterly profit of Rs 19,160 crore, up from Rs 17,035 crore in the same period last year, beating Street estimates of Rs 17,095 crore. Interest income rose 6% YoY to Rs 1,17,996 crore, while interest expenses climbed 9% to Rs 76,923 crore.
Motilal Oswal highlighted that Q1FY26 PAT exceeded expectations by 13%, supported by strong treasury gains and controlled operating expenses. Net interest income (NII) fell 4% sequentially to Rs 41,070 crore, with net interest margin (NIM) dipping 10 bps QoQ to 2.9%. Operating expenses dropped 22% QoQ to Rs 27,278 crore, aided by lower staff and other costs.
The bank’s loan book grew 12% YoY, deposits rose 11.7%, and the CASA ratio slipped 61 bps QoQ to 39.4%. Slippages stood at Rs 8,393 crore (0.75% ratio), with gross NPA marginally higher at 1.83% and net NPA steady at 0.47%. Provision coverage ratio (PCR) remained at 74.5%.
