SBI share price targets as PSU bank guides for 12-13% loan growth, NIM pressure in FY26

State Bank of India's Q4 results met analyst estimates in terms of profitability as robust treasury gains offset higher opex and provisions. The PSU lender's loan growth at 12 per cent year-on-year (YoY) was the highest among peers. The flattish reported net interest margin (NIM) reversed two quarters of fall. 

A few stock analysts maintained their 'Buy' or 'Outperform' rating on the stock as the PSU bank guided for 12-13 per cent loan growth for FY26, with some margin compression. 

"The FY26 guidance is for 12–13 per cent loan growth, some pressure on NIM and stable asset quality. Given higher-than-sector growth and stable AQ, we retain ‘BUY’ with unchanged target of Rs 950/1.4x adjusted book value. NIM and TWO income are monitorables," Nuvama said.

The SBI board has passed an enabling resolution to raise Rs 25,000 crore in FY26, which HDFC Institutional Equities said is a positive, given the need for growth capital. 

This brokerage said SBI is better-placed than large private banks, given surplus liquidity on the balance sheet, relatively lower drag from repo-linked book, and large investment book -- favourable in declining rate cycle). 

"However, we cut our FY26/F27E earnings estimates by 7 per cent, factoring in NIM compression, higher opex intensity, and softer growth, likely offset by potential treasury gains. We maintain BUY with an SOTP-
based target of Rs 1,010," it said.

Nirmal Bang Institutional Equities said it is positive on SBI for the long-term considering the bank’s leadership position in Corporate and Retail, ample liquidity on balance sheet and pristine asset quality.

"Adding subsidiary value per share of Rs 247.70, we derive our target price (TP) of Rs 1,010 (as against Rs 1,005 earlier). Our target multiple is in line with past 5 year average multiple of 1.35 times," it said.

 
MOFSL has cut its earnings estimates by 4.6 per cent for FY26 and 5 per cent for FY27 due to higher provisions and NIM pressures. 

"We expect FY27 RoA/RoE at 1 per cent/16.1 per cent. Reiterate BUY with a target of Rs 915 (based on 1.2x FY27E ABV).

CLSA suggested an outperform rating with a target of Rs 1,050 on the stock. JPMorgan, Bernstein and UBS sees the stock at Rs 915, Rs 900 and Rs 840, respectively. Elara Securities suggested a target of Rs 942 on the stock against 885 earlier.