SBI Share Price Target: CLSA Assigns Outperform Rating, Sees Upside to ₹1,275
CLSA Initiates Bullish View on State Bank of India
Global brokerage CLSA has assigned an "Outperform" rating to State Bank of India Ltd, setting a price target of ₹1,275 per share. The target indicates a potential upside of 6 percent from Wednesday’s closing price.While the brokerage expects the stock to consolidate in the near term following its recent rally, it maintains that SBI remains a structurally strong long-term growth story.
Strong Growth Despite Market Leadership
Despite being India’s largest lender, SBI has outpaced industry growth over the past five years. According to CLSA, the bank has effectively leveraged its under-utilized branch network post Covid to accelerate the expansion of its retail lending franchise.This strategy has enabled SBI to drive growth even as it operates at scale, reinforcing its competitive position within the Indian banking sector.
Deposit Cost Gap Narrows with Private Peers
On the liability side, SBI has improved its deposit cost structure. Over FY22 to FY25, the bank has narrowed the gap in deposit costs with private sector peers such as Axis Bank and Kotak Mahindra Bank.CLSA highlighted that SBI’s high liquidity coverage ratio provides two key advantages. First, it allows the bank to grow loans faster than deposits. Second, it supports margins by offering balance sheet flexibility.
Credit Growth Guidance Raised After Q3 Results
SBI shares have rallied sharply since the announcement of its third-quarter results earlier this month. Following the earnings update, management revised its credit growth guidance upward to 13 percent to 15 percent, compared to the earlier range of 12 percent to 14 percent.The upward revision reinforced investor confidence in the bank’s loan growth momentum.
Analyst Sentiment Remains Strong
Of the 49 analysts tracking SBI, 42 have assigned a "Buy" rating, while seven recommend "Hold." Notably, none of the analysts have issued a "Sell" rating on the stock.The stock touched a fresh record high on Monday before witnessing declines in the last two trading sessions.
On Wednesday, shares of SBI closed 1.96 percent lower at ₹1,199.30. Despite the recent pullback, the stock has surged 14 percent over the past month, reflecting sustained investor interest in India’s largest lender.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.