UBS has reiterated its neutral rating on State Bank of India (SBI) with a target price of ₹880, after Q1FY26 results broadly met expectations.
The bank delivered stable margins, with higher other income and controlled operating expenses helping earnings performance. Loan growth was modest, and the loan-to-deposit ratio eased by 70 basis points sequentially.
Management reaffirmed its guidance for loan growth and NIM for FY26. UBS noted that at the current valuation of 0.9x Sep’26E price-to-book value, the stock’s risk-reward profile appears balanced, with limited triggers for a sharp re-rating in the near term.
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