Buy State Bank of India; target of Rs 980: Sharekhan

Buy

Sharekhan's research report on State Bank of India

The bank is confident of sustaining loan growth at ~14-15% and NIMs at ~2.9-3% over the next couple of quarters. It does not expect a meaningful effect on margins in case of a shallow rate cut. Asset quality outlook is stable, thus lower credit cost is likely to support earnings/ returns ratio. Guides for ROA/ROE at ~1%/~15% over FY25E-27E. Stock trades at 0.9x/0.7x its FY2026E/FY2027E core BV estimates.

Outlook

We reiterate our Buy rating with an unchanged PT of Rs. 980, given steady growth outlook and healthy return ratios. Valuations have turned attractive after the recent correction.

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State Bank of India -11032025 -khan