SBI shares in green post Q2 results: most global brokerages raise target price

Shares of the country's leading state-run lender remained steady after its quarterly results announcement on Friday. At around 9:39 am in Monday's trade, SBI traded with gains of 0.37 per cent at Rs 846.4, while at the day's high in early trade it scaled to Rs 851.75 per share. 

The lender primarily reported a better asset quality for the September quarter. For the reporting quarter, its net profit came in at Rs 18,331 crore, an increase of 27.9 per cent over the corresponding period a year ago.

The PSU bank's net interest income (NII)—or the difference between the interest earned and the interest paid—increased 5.4 per cent to Rs 41,620 crore, according to a regulatory filing.

Also read: SBI Q2FY25 earnings 

Global brokerages view on SBI post its Q2FY25 performance

Jefferies continued with its buy and a higher target of Rs 1,030, a strong upside of over 22 per cent. The brokerage said the stability in retail asset quality lends comfort. Also, the brokerage held that loan growth at the state run lender can improve can going ahead.

Operating results aided by treasury gains and write-back of staff cost provisions, it added. Also, Jefferies noted that the company's capital market related subsidiaries fared well during the review quarter.

Hong Kong-based global brokerage CLSA reiterated its 'outperform' call with a target of Rs 1,075, implying gains of over 27 per cent from the previous close. The brokerage said that deposit growth has been lagging on a YoY basis with marginal decline in NIM but asset quality remains intact. The brokerage forecasts 15-16 per cent return on equity (ROE) over the medium term.

Nomura meanwhile has continued with its 'buy' call on the stock with the target raised to Rs 1,050 per share. As per the brokerage, the lender has posted sector-leading growth during the review quarter with healthy deposit growth. Cost to Income (C/I) has been at the lowest level since FY18. Current valuations with core bank at 1.1x FY26 P/B attractive, it added, while saying that it is the brokerage's top pick in the sector.