Buy State Bank of India; target of Rs stoear: Motilal Oswal

Motilal Oswal is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 1000 in its research report dated November 09, 2024.

Broker Research

November 12, 2024 / 15:22 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on State Bank of India

State Bank of India (SBIN) reported 2QFY25 PAT of INR183.3b (up 28% YoY, 12% beat), driven by a steady NII and robust treasury income. The bank is well poised to deliver robust growth as domestic CD ratio remains controlled at 67.9% while strong underwriting will enable a tight leash on credit cost. SBI has delivered three years earnings CAGR of 36% with an average RoA at 1%. The bank under the leadership of Mr. CS Setty has reaffirmed to maintain 14-15% loan growth while RoA to conservatively remain at 1%. 2QFY25 NII grew 5.4% YoY to INR416.2b (in-line). NIMs moderated 8bp QoQ to 3.14%.

Outlook

We broadly maintain our earnings and estimate FY26 RoA/RoE of 1.1%/17.4%. SBI remains our preferred stock in the PSU banking space and we reiterate BUY with a TP of INR1,000 (1.5x FY26E ABV).

For all recommendations report, click here