Agencies revise target for SBI; countrys largest PSU banks m-cap reaches $100 bn
The country largest lender, State Bank of India, boasts of a customer base that exceeds the total population of the US and Russia by a handsome margin. In Q2GFY26, it has come up with results that beat investor expectations with a 10% y-o-y rise in net profit.
Kolkata: State Bank of India, the country's largest bank, has come up with robust financial results for the Q2FY26 period, which includes a 10% y-o-y rise in net profit, which is stoked by strong credit growth and stake sale in Yes Bank. Perhaps more significant, the quality of assets improved and gross NPAs sliding to 1.73%. The credit growth forecast now stands at 12-14%. This result has prompted a number of expert agencies such as Citi, CLSA, HSBC, Jefferies and Nomura to upgrade their outlook on the stock. 50 analysts have studied the SBI stock and 82% or 41 have assigned a "buy" rating and only one has given a "sell" call. Eight have said "hold". Reports indicate that an upside of 8.6% from the current levels exist. The SBI stock was trading at Rs 962.60, up Rs 5.00 or 0.52% after 2 pm on Thursday, November 5. Let's have a closer look at what a few prominent analyst agencies have to say.
CLSA target price
Hong Kong-based international brokerage and investment group CLSA has set Rs 1,170 as the target price of SBI stock over the next 12 months. CLSA's target is the highest. It has maintained "accumulate" rating. Its earlier target was Rs 1,050 earlier.
HSBC target price
HSBC is another prominent agency that thinks the SBI stock will sail past the Rs 1,100 level. It has issued a target of Rs 1,110, significantly higher than the earlier target of Rs 960 earlier. It said that SBI is enjoying a healthy loan growth. A stable asset quality and robust revenue growth are the other important features. It has also raised EPS projections by 6% to 9% between FY26 and FY28.
Nomura target price
Japanese major Nomura has also revised the target price upwards for SBI. Its earlier target was Rs 980 and now it has been pushed up to Rs 1,100. It has also increased the FY26 EPS for SBI by 6%. The reasons are one-off gains. EPS estimates for the period between FY26 and FY28 have been raised by 3% to 5%, thanks to projections of higher margins and growth in loans. Nomura also forecast RoA and RoE levels of 1.1% and 16% over FY27 and FY28.
Jefferies target price
The US-based brokerage major too revied target price for SBI upwards. It raised the target from Rs 970 to Rs 1,140. It mentioned that SBI could try monetising its stake in SBI Asset Management Company and / or SBI General Insurance going forward, which has been discussed in D Street in the past few months.
Citi target price
New York-based Citi has also raised its target price for SBI above Rs 1,100. While it was Rs 1,050 earlier, it has been pushed up to Rs 1,110 now. The Buy signal continues on this stock from Citi. Like Jefferies, it also thinks that SBI could realilse the value of its stake in the AMC business or of its General insurance business which could be listed.
Market cap past $100 bn
While posting this better-than-expected performance in Q2FY26, SBI powered past the $100 billion market cap milestone on Thursday, November 6. Other headline grabbing figures of India's biggest bank are Rs 100 trillion total business, total advances of Rs 44.20 lakh crore and deposits of Rs 55.92 lakh crore as of September 2025. Incidentally, according to market-cap rankings, Reliance Industries is the leader with $228 billion market cap, while HDFC Bank with $170 billion at second place. Other companies exceeding the $100 billion mark are Bharti Airtel, TCS and ICICI Bank.
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