SBI share price hits fresh 52-week high after Q3 results; brokerages see up to 14% upside — Check targets

State Bank of India reported an all-time high standalone net profit of Rs 21,028 crore for the December quarter of FY26, driven by steady loan growth, higher non-interest income and improved asset quality.

The country’s largest lender also saw its shares rise sharply on Monday, with the stock trading at Rs 1,137, up Rs 70.60 or 6.62 per cent. During the session, the stock touched an intraday high of Rs 1,139.70, which also marked its 52-week high.

SBI Q3 FY26 Results

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On a consolidated basis, State Bank of India posted a net profit of Rs 21,317 crore for the quarter ended December, marking a year-on-year increase of 13.06 per cent, according to a regulatory filing.

On a standalone basis, the bank’s core net interest income grew 9.04 per cent to Rs 45,190 crore during the quarter, compared with Rs 41,446 crore in the same period last year.

The growth in net interest income was supported by a 15.14 per cent increase in loan growth. Domestic net interest margin, however, saw a marginal compression of 0.03 per cent and stood at 3.12 per cent during the quarter.

Non-interest income registered strong growth during the quarter. It rose 15.65 per cent to Rs 8,404 crore, reflecting higher fee income and other income streams. Overall expenses increased to Rs 1,08,052 crore, compared with Rs 1,04,917 crore in the corresponding quarter of the previous financial year.

Deposit growth remained moderate during the October-December period. The bank reported a 9.02 per cent growth in deposits during the quarter. Loan growth, however, continued to outpace deposit growth, reflecting strong credit demand across segments.

On the asset quality front, State Bank of India reported some improvement. Fresh slippages during the quarter came in at Rs 4,458 crore, compared with Rs 3,823 crore in the year-ago period.

Despite this, the gross non-performing assets ratio improved to 1.57 per cent as of December 31, 2025, from 1.73 per cent at the end of September. Overall provisions during the quarter stood at Rs 4,507 crore, significantly higher than Rs 911 crore in the same period last year.

The bank’s capital position remained stable. Overall capital adequacy stood at 14.04 per cent as of December 31, 2025, while the core capital buffer was at 10.99 per cent.

Speaking at a press conference, SBI Chairman C S Setty said that a special dividend of Rs 2,200 crore from SBI Mutual Fund contributed to the profit growth in the third quarter. He added that higher fee income, recoveries from written-off accounts and growth in net interest income also supported the strong performance.

SBI Share Price Target

Brokerages largely maintained a positive view on the stock following the results. At the current market price of Rs 1,137, brokerages see an upside of up to around 14 per cent for State Bank of India, based on the highest target price of Rs 1,300.

CLSA maintained an ‘Accumulate’ rating on SBI and raised its target price to Rs 1,275 from Rs 1,170, citing stronger-than-expected third-quarter performance, improved margins and better-than-peer loan growth.

Nomura maintained a ‘Buy’ rating and raised its target to Rs 1,235 from Rs 1,100, highlighting strong delivery on margins, loan growth and asset quality.

Citi also maintained a ‘Buy’ rating and increased its target price to Rs 1,265 from Rs 1,140, pointing to robust credit growth, stable margins and well-contained credit costs.

Jefferies retained its ‘Buy’ rating and raised its target to Rs 1,300 from Rs 1,190, noting higher other income, lower credit costs and healthy loan growth.

JP Morgan maintained an ‘Overweight’ rating on the stock with a revised target price of Rs 1,250.

UBS, however, kept a ‘Neutral’ stance and raised its target to Rs 1,120 from Rs 1,030, citing balanced risk-reward at current valuations.

Bernstein maintained a ‘Market Perform’ rating with a target of Rs 1,100, while noting strong loan growth, improved margins and better asset quality.