UBS has maintained a ‘Neutral’ rating on SBI, with a target price of ₹840, as the bank’s Q4 results reflected an improving balance sheet but also signalled a weaker growth outlook in the near term.
SBI’s net profit dropped 9.9% YoY to ₹18,643 crore, while NII was up just 1.5% YoY. The bank reported better asset quality, with gross NPAs falling below 2%, and slippages under control at ₹4,319 crore. However, loan growth guidance has been revised lower by management, and NIMs are expected to remain under pressure in FY26.
UBS has kept its FY26–27 EPS estimates largely unchanged, reflecting the balancing effect of better credit quality and margin compression.
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.
