Buy State Bank of India; target of Rs 1108: Deven Choksey

Deven Choksey is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 1108 in its research report dated November 06, 2025.

Broker Research

November 10, 2025 / 12:05 IST

buy

26 Aug, 2025 12:21

Volume

Todays L/H

Deven Choksey's research report on State Bank of India

SBI reported a strong performance in Q2FY26, with total business surpassing INR 100 tn and the RAM (Retail, Agriculture, MSME) portfolio crossing INR 25 tn, reflecting sustained momentum in granular lending. Net Profit (including exceptional gain) for the quarter stood at INR 201,600 mn, up 10.0% YoY. Profitability remained healthy, with ROA at 1.15% and ROE at 20.2% for H1FY26. Net Interest Income rose 3.3% YoY (+4.7% QoQ) to INR 4,29,841 mn missed our estimate of INR 4,52,313 mn by 5.0%. NIMs stayed stable, with whole-bank NIM at 2.9% and domestic NIM at 3.1% in Q2FY26. Advances grew 12.7% YoY, with domestic advances rising 12.3% YoY, while foreign office advances increased 15.0% YoY. Retail advances expanded 15.1% YoY, supported by SME lending (+18.8% YoY), agriculture (+14.3% YoY), and retail personal loans (+14.1% YoY). Corporate advances grew 7.1% YoY. Deposits increased 9.3% YoY, and CASA deposits rose 8.1% YoY, placing the CASA ratio at 39.6% as of September 30, 2025.

Outlook

We value SBI’s standalone business at INR 857 per share (based on 1.2x FY27E ABVPS), while we value its stake in the subsidiaries at INR 251 per share, implying a SOTP target price of INR 1,108. We reiterate our “BUY” rating on the stock.

For all recommendations report, click here