The shares of State Bank of India (SBI) jumped nearly 7 percent to a fresh record high on February 9 after the public lender’s Q3 results surpassed expectations. Several brokerages raised their target prices for the stock.
The shares of the company hit a fresh 52-week high of Rs 1,137 apiece in the morning trading hours of Monday.
SBI on February 7 reported a net profit after minority interest of Rs 21,028.15 crore for the October-December quarter of the ongoing financial year 2026. This is the highest-ever quaterly net profit reported by the banking behemoth.
This marks a 24.49 percent year-on-year (YoY) increase from the Rs 16,891.44 crore net profit reported in the same quarter of the previous financial year.
The public lender’s net interest income (NII) meanwhile grew 9 percent YoY to Rs 45,190 crore during the quarter under review from Rs 41,445 crore in the year-ago period, reflecting steady growth in core lending income.
Sequentially, SBI’s asset quality improved, with gross NPA ratio improving to 1.57 percent in Q3 FY26 from 1.73 percent in Q2 FY26. Net NPA ratio meanwhile declined to 0.39 percent in Q3 FY26 from 0.42 percent in Q2 FY26.
Provisions for the quarter stood at Rs 4,506 crore, lower than Rs 5,400 crore in the previous quarter and sharply down from Rs 911 crore a year earlier, indicating easing credit costs.
The bank's management also raised SBI's loan growth guidance for FY26 to 13–15 percent, from the earlier 12–14 percent.
Nomura maintained its ‘Buy’ call on SBI shares, while raising its target price to Rs 1,235 apiece. This implies an upside potential of nearly 16 percent from the stock’s previous closing price.
The international brokerage said that the company delivered an “strong all-round” performance during the quarter, with better margin delivery and loan growth in comparison to its peers. It added that strong NIM performance, controlled opex and higher other income drove a beat on profit after tax.
Nomura further noted that loan growth was strong and broad based, while asset quality remained stable. Incremental upside is expected to be largely earnings-driven, rather than multiple-led, it added.
CLSA maintained an ‘Outperform’ rating on the stock, while raising its target price to Rs 1,275 apiece. This implies an upside potential of nearly 20 percent from the stock’s previous closing price.
The international brokerage said that the lender posted Stronger-than-expected Q3 results, with core PPoP and PBT beating estimates by 4-11 percent.
Loan growth picked up from 13 percent to 15 percent YoY, and sequential loan growth outperformed PSU peers as well as large private banks, it added. Margin improved 2 bps QoQ to 3 percent due to a lower cost of deposits, it said, adding that slippages declined sequentially and credit costs were much better than expected.
Citi kept a ‘Buy’ call on SBI shares, and raised its target price to Rs 1,265 per share. This implies an upside potential of nearly 19 percent from the stock’s previous closing price.
The international brokerage said that the lender’s core earni9ngs surpassed expectations. Broad-based growth across SME, corporate, agri & Xpress credit led management to raise FY26 loan growth guidance to 13-15 percent, it added.
Citi added that NIMs are expected to sustain at or above 3 percent. Disciplined underwriting and recoveries should support asset quality, it said.
Jefferies kept a ‘Buy’ call on SBI shares, and raised its target price for the stock to Rs 1,300 apiece. This implies an upside potential of nearly 22 percent from the stock’s previous closing price.
The international brokerage said that the firm’s Q3 results beat estimates, driven by higher other income and lower credit costs. Loan growth improved to 15 percent, NII growth was the leading among the peers at 9 percent, fees grew 16 percent and credit costs remained low, it added.
Nuvama kept a ‘Buy’ call on SBI shares, and raised its target price to Rs 1,250 per share. The international brokerage said that the lender posted strong core earnings with 6 percent QoQ loan growth and 5 percent QoQ NII growth.
It added that PAT was above estimate due to a Rs 2,200 crore dividend from SBI AMC and Rs 770 crore interest on tax refunds. Reported NIM rose 2 bps QoQ, while core NIM ex-refund dipped.
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