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SBI Share Price Target: Nuvama Institutional Equities has reiterated its ‘BUY’ rating on State Bank of India (SBI) after the lender’s robust second-quarter results, calling it the best performer among large banks. The brokerage raised its 12-month target price to Rs 1,150 from Rs 950 earlier, implying a potential upside of around 20 per cent from the current levels.

According to Nuvama, SBI delivered a strong all-round beat in Q2FY26 across key parameters — net interest income (NII), current and savings account (CASA) deposits, and fee income. The bank’s profit after tax (PAT) was 10 per cent higher year-on-year (YoY) and 5 per cent quarter-on-quarter (QoQ), supported by higher loan growth and margin improvement.

Core net interest margin (NIM) rose by 5 basis points sequentially, contrary to expectations of a decline. Loan growth came in at 4 per cent QoQ against the consensus estimate of 3 per cent, while fee income surged 12 per cent QoQ and 25 per cent YoY. Current account deposits jumped 18 per cent YoY, significantly outperforming peers.

Core pre-provision operating profit (PPOP) rose 2 per cent QoQ and 9 per cent YoY, while slippages and non-performing loans continued to decline. Core return on assets (RoA) stood at 1.05 per cent and reported RoA at 1.17 per cent.

Following the strong performance, SBI raised its FY26 loan growth guidance to 12–14 per cent from 12–13 per cent earlier. The management also expects NIM to stay above 3 per cent in the second half of FY26, compared to 2.97 per cent in Q2.

Nuvama said SBI’s Q2 results reaffirm its leadership among large public sector banks. “We view SBI’s performance in Q2FY26 as the best among large banks. With sustained earnings momentum and improving profitability, we raise our EPS estimates and revise the target price to Rs 1,150 (1.5x FY27E book),” the brokerage said.

The firm also noted that upcoming listings of SBI Mutual Fund and SBI General Insurance could unlock further value for shareholders.

At a market price of Rs 957, SBI trades at a market capitalization of Rs 8.83 trillion (USD 99.6 billion), with a 52-week range of Rs 680–959. Foreign institutional investors hold 9.6 per cent in the bank, while domestic institutions own 27.8 per cent as of September 2025.

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

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