SBI Shares Surge as Brokerages Raise Target Price to ₹955 After Strong Q1 Results

Quick Summary

• State Bank of India (SBI) shares rose 2.3%, reaching Rs 822.85 on the BSE after reporting strong Q1FY26 results.
• Standalone Net Profit: Rs 19,160 crore, a YoY increase of 12%, exceeding street estimates of Rs 17,095 crore.
• Interest Income: Grew by 6% YoY to Rs 1,17,996 crore; interest costs increased by 9% to Rs 76,923 crore.
• Brokerage firms reacted positively:

– Motilal Oswal: Target price: Rs 925; highlighted treasury gains and controlled operating expenses (Opex).
– JM Financial: Target price: Rs 950; noted stable loan growth at ~12% and steady asset quality with credit cost improvements.
– Antique Stock Broking: Target price: Rs 955; trimmed growth estimates but maintains positive outlook based on RoA/RoE metrics.
– Avendus: Raised proposal to Buy with a target price of Rs 938; expects faster-than-system growth offsetting NIM impacts.

Asset Quality & Growth Metrics:

• Loan book grew by 12% YoY, deposits rose by 11.7% YoY, CASA ratio declined slightly to 39.4%.
• Slippages reported at 0.75%, Gross NPAs up marginally at 1.83%.

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indian Opinion Analysis

The robust Q1FY26 results indicate SBI’s resilience amidst rising interest costs and fluctuating net interest margins (NIM). The bank’s strategic focus on controlling operating expenses while maintaining asset quality has contributed significantly to its profit figures, exceeding market expectations.

The positive outlook from brokerage firms demonstrates confidence in SBI’s fundamentals despite modest revisions in long-term growth forecasts by some analysts due to slower systemic trends.The consistent rise in loans and deposits further underscores SBI’s dominant position as India’s largest lender.

However, minor declines in CASA ratio and slippages warrant monitoring for sustained stability moving forward. With elevated target prices reflecting optimism about earnings potential driven by operational efficiencies and treasury gains,SBI appears well-positioned in the Indian banking sector for continued performance momentum.