04-Nov-2026 08:04:33
CITI on SBI ; Buy, TP Rs 1300
SBI's Rs230bn PAT (up 14% YoY) was lifted by a Rs72.9bn stake-sale gain, partly offset by a Rs12.8bn treasury loss and 15% YoY/38% QoQ opex growth. NII rose 14% YoY/4.6% QoQ, beating estimates as NIMs expanded 8bps (vs our forecast of 2bps decline). With 49% of loans linked external benchmarks (incl 32% repo-linked), NIMs should skew favorably in a rising-rate cycle, though management conservatively reiterated 3%+ NIM guidance. Loan growth was modest at 3.3% QoQ/18.2% YoY, lagging the system as corporate lending stayed flat. Management retained 14-15% FY27 advances guidance, though we expect 16%+ Slippages stayed below 0.5%, credit costs under 0.35%. ECL transition impact is pegged at Rs195bn (3.3% of net worth, 0.4% of advances).
STATE BANK OF INDIA