'A good, long-term compounder' - CLSA bets on India's largest lender despite recent rally
Published on 26/02/2026 08:17 AM
'A good, long-term compounder' - CLSA bets on India's largest lender despite recent rallyAccording to CLSA, SBI's high liquidity coverage ratio provides twin benefits - the ability to grow loans faster than deposits and a positive impact on margins.By Meghna Sen February 26, 2026, 8:17:58 AM IST (Published)2 Min ReadBrokerage firm CLSA has an 'Outperform' rating on State Bank of India Ltd. (SBI), the country's largest lender, with a price target of ₹1,275 per share.
The target implies an upside potential of 6% from Wednesday's closing price.
While the stock may remain range-bound in the near term following its recent rally, CLSA believes SBI remains a strong long-term compounder.
Despite being the largest bank in the country, SBI has grown faster than the industry over the past five years.
Since Covid, the bank has leveraged its under-utilised branch infrastructure to scale up its retail lending franchise.
On the deposit front, it has narrowed the gap in cost of deposits with Axis Bank and Kotak Mahindra Bank over FY22-25.
According to CLSA, SBI's high liquidity coverage ratio provides twin benefits - the ability to grow loans faster than deposits and a positive impact on margins.
Shares of SBI have seen a sharp one-way move since reporting third-quarter results earlier this month. Following the earnings announcement, management raised its credit growth guidance to 13% to 15%, from 12% to 14% earlier.
Of the 49 analysts tracking the stock, 42 have a 'Buy' rating and seven recommend 'Hold'. None of the analysts have a 'Sell' rating on India's largest lender.
The stock hit a fresh record high on Monday but has declined over the last two trading sessions.
Shares of SBI settled 1.96% lower at ₹1,199.30 on Wednesday. The stock has gained 14% over the past month.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsSBI share priceSBI sharesshare market todayState Bank of IndiaState Bank of India SBI