Highlights

• State Bank of India has secured a consensus buy rating with a target price of ₹1,073.32 as per Refinitiv data.
• The rating aligns with the bank’s Q2FY26 performance marked by rising profitability, expanding business volumes and sustained asset quality improvements.

State Bank of India (NSE:SBI), the country’s largest lender, has attracted favourable attention in the analyst community after securing a consensus buy rating (as per Refinitiv data), supported by a target price of ₹1,073.32.

Business Growth Surpasses ₹100 Trillion Milestone

In Q2FY26, SBI achieved a landmark milestone with its total business crossing ₹100 trillion, reinforcing its standing as one of Asia’s most influential financial institutions. The bank’s RAM (Retail, Agriculture and MSME) portfolio also exceeded ₹25 trillion, supported by broad-based credit expansion across both domestic and overseas operations.

Whole Bank advances grew 12.73% year-on-year, while domestic advances increased by 12.32%, driven by continued momentum in retail and SME lending. Foreign office advances recorded a robust 15.04% rise. Retail loan growth stood at 15.09%, with SME advances expanding by 18.78%, followed by agriculture at 14.23%. Corporate advances also grew steadily at 7.10% year-on-year.

Deposits increased by 9.27%, with CASA deposits climbing 8.06%, and the CASA ratio stabilising at 39.63% as of 30 September 2025.

Strong Profitability Anchors Financial Performance

SBI reported a net profit of ₹20,160 crore for Q2FY26, an increase of 9.97% over the previous year. Operating profit rose 8.91% to ₹31,904 crore, supported by stable core operations and controlled costs. Net Interest Income increased 3.28%, while the bank continued to maintain healthy margins with a whole bank NIM of 2.97% and a domestic NIM of 3.09% for the quarter.

For the first half of the fiscal year, SBI’s Return on Assets stood at 1.15%, while Return on Equity registered at 20.21%, reflecting profitability relative to its balance sheet strength.

Asset Quality Continues to Improve

SBI sustained its asset quality improvement trend with the gross NPA ratio declining to 1.73%, an improvement of 40 basis points year-on-year. Net NPAs also improved to 0.42%. Provision Coverage Ratio reached 75.79%, while the PCR including AUCA rose to 92.29%.

The slippage ratio improved to 0.45% in Q2FY26, demonstrating enhanced underwriting and credit monitoring frameworks. Credit cost remained controlled at 0.39%.

Capital Strength and Digital Leadership Support Future Growth

Capital Adequacy Ratio stood at 14.62%, reflecting sufficient buffers to support credit expansion. SBI’s digital ecosystem continued to gain traction, with over 64% of new savings accounts opened through YONO in Q2FY26. Alternate channels contributed 98.6% of total transactions, reinforcing SBI’s ongoing shift towards digital-first banking.