SBI shares rise nearly 2% after Q1 beat. Here's what Nomura, Morgan Stanley and other top brokerages expect next

SBI on Friday released its results for the April-June quarter of the ongoing financial year (FY) 2027, reporting a 15% YoY rise in net interest income (NII) to Rs 46,992 crore, also beating estimates. The lender’s operating profit rose 10% YoY to Rs 33,529 crore. Domestic net interest margin stood at 3%, improving by 7 basis points from Q4 FY26. Whole-bank NIM improved by 5 basis points sequentially to 2.86%.

SBI said its total business crossed Rs 110 lakh crore during the quarter. Deposits were above Rs 60 lakh crore, while advances crossed Rs 50 lakh crore. Whole-bank advances grew 19% YoY, while domestic advances rose 18.15%. Foreign office advances increased 21% in rupee terms and 10% in dollar terms.

The lender’s asset quality also improved during the quarter. Gross NPA ratio stood at 1.47%, improving by 36 basis points from a year earlier. Net NPA ratio improved by 9 basis points to 0.38%. Provision coverage ratio stood at 74.2%, while PCR, including accounts under the collection account, stood at 91.82%.

Nuvama on SBI share price

SBI has kicked off FY27 on a good note, said Nuvama Institutional Equities, as it retained its ‘Buy’ rating on the lender’s shares with a target price of Rs 1,300 apiece, implying an upside of more than 18% from the stock’s previous closing price of Rs 1,097 apiece on the NSE.Nomura on SBI share price

Nomura maintained its ‘Neutral’ call on SBI shares but increased its target price to Rs 1,160 apiece, implying an upside of around 6%. The international brokerage noted that the PSU lender reported a healthy set of Q1 results, with a positive surprise on NIMs.Nomura does not expect the divergence between loan and deposit growth to sustain, and expects FY26-28 loan growth to moderate to 14%, versus 14-17% for large private banks. Additionally, higher sustainable credit costs as the bank transitions to new ECL norms pose a risk to SBI's RoA trajectory, Nomura noted.

Also read |SBI Q1 Results: Standalone profit rises 10% YoY to Rs 21,121 crore, beats estimates

Morgan Stanley on SBI share price

Morgan Stanley maintained its ‘Equal Weight’ call on SBI shares, with a target price of Rs 980 apiece. The international brokerage noted that the lender’s profit came in well ahead of estimates, led by higher NII, non-interest income and lower opex, ET Now reported.It added that gross slippages declined, while asset quality continued to improve.

Motilal Oswal on SBI share price

Motilal Oswal Financial Services reiterated its ‘Buy’ call, but increased its target price to Rs 1,370 apiece, implying an upside of around 25%. The domestic brokerage highlighted the healthy earnings beat while raising its earnings estimates for the bank.SBI delivered a steady quarter, with healthy NII, while NIMs expanded after the sharp decline seen in Q4, Motilal Oswal said, adding that the bank now meets its domestic NIM guidance of 3% and expects to sustain this level in FY27, supported by improving yields and a healthier credit growth outlook of 14-15%. It noted that SBI’s management remains constructive on loan growth and has reiterated its guidance of 14-15% growth going forward.

Asset quality remained resilient overall, although slippages were marginally higher during Q1 due to seasonal factors, it added.

SBI share price

SBI shares gained 5% in a week and 6% in a month to close at Rs 1,097 apiece on Friday. The stock is up 11% so far in 2026.Over the longer term, shares of the PSU lender have gained more than 36% in one year, even as the broader Nifty 50 posted marginal losses. The stock has rallied over 91% in three years and 157% in five years.

Also read |SBI Q1 profit beats estimates on strong loan growth, asset quality

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price