August 12, 2025

Hold onto your hats, stock lovers! State Bank of India (SBI), India’s biggest bank, showed its muscle by reporting a stunning 12% jump in standalone net profit for the June quarter (Q1FY26). Following this power-packed performance, SBI shares shot up 2.3% on the BSE, hitting their day’s high of Rs 822.85 on Monday. And guess what? Brokerage houses are so impressed they upped SBI’s target price to as high as Rs 955! Here’s what’s cooking: SBI’s net profit for the quarter stood tall at Rs 19,160 crore, beating expectations easily. Last year, the bank had made Rs 17,035 crore in the same quarter, and market watchers had guessed around Rs 17,095 crore. SBI’s interest income also grew 6% to Rs 1,17,996 crore, compared to Rs 1,11,526 crore a year ago. But costs aren’t sleeping either. Interest expenses rose 9% to Rs 76,923 crore, up from Rs 70,401 crore last year’s quarter. Brokerage buzz after the results: - Motilal Oswal says "Buy" with a target price of Rs 925. They highlight SBI’s "13% beat, driven by strong treasury gains and controlled opex." They note that while net interest income (NII) fell 4% quarter-on-quarter to Rs 41,070 crore and net interest margin (NIM) dipped 10 basis points to 2.9%, expenses fell 22% mainly due to lower employee costs. Loans grew 12% YoY, deposits up 11.7%, but CASA ratio slipped slightly to 39.4%. - JM Financial also shouts "Buy" with a target of Rs 950. They praise a 12% YoY and 3% QoQ profit jump, beating estimates by 15%. Stable loan growth comes from home and international segments, despite a 4% NII drop. Core fee income and low expenses boost profits. Asset quality remains steady. - Antique Stock Broking gives a thumbs-up with target Rs 955. They credit the earnings beat to higher other income and lower expenses but trimmed their growth outlook to 12–13% from earlier higher estimates. They call valuations attractive with solid returns on assets and equity. - Avendus upgraded SBI to "Buy" from "Add," raising the price target to Rs 938 from Rs 852. They expect SBI to grow faster than the system, with lower savings account rates helping margins. Asset quality is strong, though returns (RoA/RoE) may ease a bit by FY26. SBI’s outlook looks bright with loan growth around 12% YoY and deposits climbing steadily. Margin and expense management remain crucial as India’s largest lender gears up for a vibrant FY26. So, SBI lovers, keep your eyes on this mega banking star—it’s shining brighter than ever!

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Tags: State bank of india, Sbi q1fy26 results, Stock target price, Bank earnings, Brokerage ratings, Loan growth,