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Buy State Bank of India; target of Rs 975: Emkay Global Financial

Emkay Global Financial is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 975 in its research report dated August 10, 2025.

August 12, 2025 / 12:08 IST
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    26 Aug, 2025 12:21
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    Emkay Global Financial' research report on State Bank of India

    SBI posted a ~6% beat on PAT at Rs192bn/1.1% RoA, led by higher other income (especially treasury gains) and controlled opex, partially offset by higher provisions. Credit growth remained well above the system’s at ~12% YoY, led by healthy growth in the retail and MSME segments, while corporate growth moderated due to higher pre-payments (Rs120bn). The management believes that the healthy pipeline on project financing, coupled with expected acceleration in mortgages in 2H, should support overall credit growth at ~12% with upward bias in FY26E. Margins could correct a bit in 2Q albeit improve in 2H, benefiting from the CRR/deposit rate cut and the recent capital raising with exit NIM at 3%.

    Outlook

    We largely retain FY26-28E earnings and expect the bank to deliver a healthy RoA of ~1.0-1.1%/RoE of ~15-17%. We maintain BUY with TP at Rs975 (valuing the SA bank at 1.2x Jun-27E ABV/subs at Rs270/sh).

    For all recommendations report, click here

    Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    State Bank of India - 12082025 - emkay

    Broker Research
    first published: Aug 12, 2025 12:07 pm

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