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.

Disclaimer:

The information available on this article is provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner. We do not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information provided on this website.

Copyright 2025 Krish Capital Pty. Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.