SBI share price target raised by multiple analysts after Q3 results

Shares of India's largest lender, State Bank of India (SBI) are likely to test levels of as high as ₹1,305, over the next 12 months, according to the highest price target given by analysts tracking the stock.

49 analysts have coverage on SBI currently, out of which 42 of them have a 'Buy' rating on the stock, seven say 'Hold', with no 'Sell' ratings.

The consensus estimate of price targets implies a potential upside of 11.5% from current levels.

Nomura has maintained a 'Buy' rating on SBI and raised its price target to

₹1,235.

The brokerage said that a meaningful part of the re-rating has already played out. Nomura believes any further upside from current levels is likely to be driven by earnings growth rather than multiple expansion.

Among other brokerages, Jefferies has a 'Buy' rating on SBI with a raised price target of ₹1,300, while CLSA has reiterated its 'Outperform' call and lifted its target to ₹1,275.

Citi has also maintained a 'Buy' rating and raised its price target to ₹1,265. Nuvama has kept its 'Buy' rating with a higher target of

₹1,250.

Meanwhile, UBS has a 'Neutral' rating on the stock with a price target of ₹1,120. The brokerage said it believes the risk-reward at current valuations of around 1.3x FY27E P/BV is evenly balanced.

SBI Q3 review

SBI delivered an exceptionally strong performance in the December quarter amid a challenging operating environment.

Domestic loan growth stood at 15.6% year-on-year, outpacing loan growth reported by the top four private sector banks as well as the top seven PSU banks. Corporate loan growth remained healthy at 13.4% YoY.

Deposit growth stood at 9%, broadly in-line with expectations.

	Q3FY25	Q3FY26	QoQ	YoY	Vs Est
Advances	40,04,567	46,27,734	6.1%	15.6%	2.3%
Deposits	52,29,384	57,01,309	2.0%	9.0%	-0.7%

The credit-to-deposit ratio crossed 80% for the first time since FY16 and now stands at 81%, compared with 78% in the previous quarter.

The lender reported an exceptional performance in its profit growth. Net profit rose 24.5% YoY to ₹21,028 crore, compared with ₹16,891 crore in the same period last year.

The bank's net interest income or NII rose 9% YoY, in-line with expectations. Pre-provision operating profit surged nearly 40% YoY, driven largely by a rise in other income and tight control over operating expenses.

Other income jumped 66% YoY, while operating expenses grew by just 6%, lower than estimates. As a result, PPOP was around 17% higher than the CNBC-TV18 poll.

Provisioning remained lower than Street expectations, which further supported the strong profit growth for the quarter.

Asset quality metrics also improved, with SBI reporting its lowest non performing asset ratios in nearly two decades. Gross NPAs declined to 1.57% from 1.73% sequentially, while net NPAs eased to 0.39% from 0.42% in the previous quarter.

Credit costs moderated to 0.29%, down from 0.39% quarter-on-quarter and lower than estimates.

Margins remained stable, with net interest margins at 2.99% compared with 2.97% in the previous quarter.

The bank maintained its full year NIM guidance at around 3%, with the current quarter already close to that level. Management also raised domestic loan growth guidance to 13-15% from the earlier 12-14%.

During the earnings call, the bank said it aims to deliver a return on assets of 1% through the cycle, while the cost-to-income ratio is expected to remain below 50%.

SBI also indicated that the cost of funds is likely to remain broadly stable in the fourth quarter.

Shares of SBI ended 0.7% lower at ₹1,066 on Friday, ahead of the results announcement. The stock is up over 8% so far in 2026.