Buy State Bank of India; target of Rs 1150 : ICICI Securities

ICICI Securities's research report on State Bank of India

We hosted SBI’s Ms Saloni Narayan, Depuy Managing Director (DMD), Mr A K Paul, DMD designate, Mr Ravi Shankar Akella, CGM and Mr Misal Singh, Investor Relations. SBI reiterated its focus on consistent financial performance led by prudent yet disciplined growth. NIM has improved QoQ and should sustain its improving trajectory, barring any large rate movement, in our view. The bank saw a strong 25% YoY rise in core fee income in Q2FY26. We believe, steady performance here should clearly outweigh any downward pressure from an uptick in credit cost or opex. We highlight that SBI has delivered similar or better performance on loan, NIM, fee, and asset quality/credit costs in Q2FY26 vs. peers.

Outlook

Maintain BUY and an unchanged TP of INR 1,150, valuing the core FY27E banking business at ~1.5x. Key risk is rise in stress impacting growth and profitability. Takeaways from the meetings below.