Citi has resumed coverage on State Bank of India (SBI) with a buy rating and a target price of ₹1,050, citing its strong loan growth outlook, stable margins, and attractive return profile. The brokerage highlighted that SBI remains its preferred pick among public sector banks.
For FY26–27, Citi has built in loan growth of 13–14% year-on-year, net interest margins on interest-earning assets at 2.8–2.9%, and a stable credit cost of 40–45 basis points. These factors are expected to help SBI deliver a return on assets of 1% and a return on equity in the 14–15% range over the forecast period.
Citi said SBI’s scale, diversified loan book, and strong deposit franchise provide it with a structural advantage over peers in navigating cyclical and regulatory changes. The brokerage added that its current valuations continue to offer upside, given the earnings consistency expected over the medium term.
Disclaimer: The views and recommendations made in this article are those of Citi. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
