SBI Shares Resume Gains As Brokerage Remain Optimistic On Steady Q1 Performance, Stable Asset Quality

State Bank of India share price resumed gains on Monday after a blip on Friday as analysts remained optimistic over steady performance during the three months ended June and stable asset quality.

The country's largest lender's first-quarter profit beat estimates. The bank's core performance was broadly in line with expectations, with net interest income growing less than 1% quarter on quarter. A sharp 55% year-on-year jump in other income aided operating profit, which beat street estimates by 11%.

Provisioning was in line with analysts' forecasts, while profitability received a boost from other income. This quarter was marked by steady core performance, a sharp boost from treasury gains, and a largely stable asset quality.

While most brokerages remain bullish, Macquarie stands out with an 'Underperform' call. The street expects near-term NIM pressures. Strong loan growth, healthy deposit momentum, and improving credit demand will likely support performance in the second half of FY26.

SBI stock rose as much as 1.22% during trade so far to Rs 813 apiece on the NSE. It was trading 1% higher at Rs 812.3 apiece, compared to a 0.12% advance in the benchmark Nifty 50 as of 9:18 a.m.

It had declined 1% in the last 12 months and 2.67% on a year-to-date basis. The relative strength index was at 37.

Forty-one out of the 50 analysts tracking the company have a 'buy' rating on the stock, eight recommend a 'hold', and one suggests a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 941.6, implying an upside of 17%.