Buy State Bank of India; target of Rs 460: Sharekhan

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26 Aug, 2025 12:21

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Sharekhan's research report on State Bank of India

SBI posted strong results with mixed operational numbers, but asset quality performance improved; loan growth too outperformed system growth, indicating market share gains. Strong asset quality performance, GNPA declined 217 bps y-o-y and 51 bps q-o-q to 4.77%. NNPA ratio at 1.23% is down 142 bps y-o-y and 36 bps q-o-q; Proforma GNPA / NNPA too were well contained. Asset quality is finally emerging from the shadows; we believe that a strong balance sheet, market-share gains can drive re-rating of stock.

Outlook

Stock trades at 1.6x / 1.3x its FY2022E / FY2023E ABVPS, which we believe are reasonable. We maintain a Buy on the stock with a revised SOTP-based price target (PT) of Rs. 460.

For all recommendations report, click here

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