State Bank of India shares are in focus this Monday after the lender came out with a subdued set of earnings on Friday, even ending the trading session as the biggest Nifty loser. Brokerages have since came out with differing views on the counter.
While most brokerages have remained bullish on SBI despite the Q4 blip, JPMorgan has notably cut target price on the counter, whereas HSBC has gone on to increase the target price, citing strong performance in terms of core fees and asset quality.
This comes on the back of SBI's Q4 earnings that saw NII register modest growth, notably missing analyst estimates. Margins also saw a compression due to the lower NII and yields.
Loan growth was led by robust growth SME and Agri portfolio segments while CASA mix saw marginal increase. SBI was able to register strong profitability, thanks to lower provisions. Asset quality, meanwhile, was at two-decadal low.
Here's what brokerages have said on SBI after their March quarter earnings.
Brokerages on SBI
Macquarie on SBI
- Maintains Outperform with target price of Rs 1150
- PAT missed estimates
- Weak margins spooks confidence
- Earnings miss driven by weak margins and trading losses
- NIM impacted by higher proportion of floating book
- FY27 NIM guidance ~3% with expectation of yield stabilisation and better CASA mix
- FY27 loan growth guidance maintained at 13–15%
- Asset quality remains a bright spot
HSBC on SBI
- Maintain Buy; Hike TP to Rs 1170 from Rs 1120
- Margins a must for re-rating
- Q4 results saw a sharp QoQ decline in NIM/NII
- Performance on core fees / opex / asset quality was robust
- Cut EPS by 0.4-1.7% for FY27/28 to reflect the NIM pressure, offset by stronger fee and controlled expenses
CLSA on SBI
- Maintain Outperform with TP of Rs 1275
- NIM spoils the party
- Good performance on everything except NIM
- Strong and balanced loan growth performance
- Big miss on NIM; asset quality steady
- Temporary setback, but medium-term story unchanged
J.P. Morgan on State Bank of India
Maintains OVERWEIGHT | TP Rs. 1,225 (cut from Rs. 1,260)
- 4QFY26 results reflects strong advances growth and stable asset quality
- Domestic NIM fell due to lower yields from repo‑linked loans
- PAT aided by domestic NII and controlled opex but cost/income ratio declined.
- Asset quality remained stable, Credit costs helped offset margin pressure.
- Management guided for FY27 domestic NIM of ~3%
- Margins to be supported by loan repricing, RAM yield and low deposit costs.
Citi on SBI
- Maintained Buy Target price retained at Rs1,230
- NIM contracted due to EBLR/MCLR repricing and higher floating rate loan mix
- cost of deposits eased only slightly to 5.04% vs 5.07%
- GNPA improved to 1.49% vs 1.82% FY25 driven by aggressive write-offs
- Management sees no asset quality concerns and maintains 50bps credit cost guidance
- Earnings estimates cut by 3–4% for FY27E/FY28E due to NIM pressure
Jefferies on SBI
- Buy rating maintained; Target price at Rs1,300 unchanged
- Weak Q4 is a temporary blip and outlook remains intact
- NIM missed estimates due to lower yields on corporate lending
- expects NIMs have bottomed and can stabilize in FY27
- Loan growth expected to sustain at 13–14% aiding topline
- Stock remains among top picks
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