State Bank of India (SBI) has recorded strong performance in 2025. SBI shares have gained 25% so far this year, leaving behind many big private banks in Nifty. After growth of just 5% in 2023 and 23% in 2024, this 2025 rally is taking the bank to its fifth consecutive year of positive returns and its best performance in two years.
Strong growth will continue in the future?
SBI’s strength does not lie only in its size. This bank has long been considered trustworthy among domestic and international investors. Stable credit growth, better asset quality and changing interest rate expectations have made the bank’s earnings sustainable. Meanwhile, experts believe that the stock can easily reach Rs 1,100 and above.
The recent cut in GST will increase consumption and RBI’s GDP estimates for FY26 at 6.8% and FY27 at 6.6% are creating a favorable environment for the banking system. Loan demand is likely to increase further in the second half of FY26, which will strengthen the growth trend of SBI.
Market analysts’ opinion and target price
According to an ET report, market analysts say that SBI has a lot of potential for further growth. CLSA issued Accumulate rating and kept the target price at Rs 1,170 per share, which means there is an upside potential of about 20% from the current market price. Axis Securities has also given a Buy rating and analysts believe that there are no concerns regarding growth or asset quality. HSBC has kept a revised target of Rs 1,110 for the stock.
Balance sheet and NIM strength
The balance sheet of the bank is very strong. Net interest margin (NIM) increased by 7 basis points in the second quarter. The CASA ratio is 36.9%, and the CASA market share is more than 23%. The total loan book is now around Rs 43 lakh crore, which is about 2324% of the total loan book of the country.
Leave a Reply