STATE BANK OF INDIA IN 2025

STATE BANK OF INDIA IN 2025

 How well did SBI  do in  2025 ?   What do analysts expect for 2026 ?

Dated 27.12.2025 : In 2025, the State Bank of India (SBI) had a “stellar” year, characterized by record-breaking profit milestones, a significant rally in its stock price, and the crossing of a massive total business threshold . Under the leadership of Chairman C. Sreenivasulu Setty, the bank solidified its position as India’s largest lender while managing the transition through multiple interest rate cuts by the RBI.

1. Financial Performance Highlights

SBI maintained strong profitability throughout the fiscal year 2024-25 and the first half of 2025-26.

• Record Profits: The bank reported a standalone net profit of ₹70,901 crore for FY25. By the September 2025 quarter (Q2 FY26), quarterly profits reached ₹20,160 crore, a ~10% year-on-year increase.
• Asset Quality: SBI achieved some of its best asset quality metrics in recent history. The Net NPA (Non-Performing Asset) ratio dropped to 0.42% by September 2025, down from 0.53% a year earlier.
• Net Interest Margin (NIM): NIMs faced slight pressure due to the RBI’s repo rate cuts (which totaled 125 basis points in 2025). Domestic NIM stood at 3.09% in late 2025, down from 3.27% the previous year.
• Business Growth: The bank’s total business (deposits + advances) crossed the historic ₹100 lakh crore milestone in 2025.

2. Stock Market Performance

The stock was one of the top performers in the Nifty 50 for 2025.

• Annual Gain: SBI shares surged approximately 25% during the calendar year 2025.
• Price Levels: The stock started the year around ₹793 and climbed to trade in the ₹965–₹980 range by December 2025, touching 52-week highs near ₹1,000.
• Market Cap: Its market capitalization crossed the ₹8.9 lakh crore mark, maintaining its spot as one of India’s most valuable companies.

3. Key Strategic Developments

• The “₹1 Lakh Crore” Goal: The bank officially set an ambitious target to become the first Indian bank to achieve ₹1 lakh crore in annual net profit.
• Capital Raising: SBI raised ₹25,000 crore via a Qualified Institutional Placement (QIP) in 2025 to bolster its capital adequacy and support future credit growth without further equity dilution for the next five years.
• Subsidiary Moves: Plans were set in motion for the SBI Mutual Fund IPO, expected to launch by late 2026.
• Global Recognition: In a historic first for an Indian bank, SBI was named the “World’s Best Consumer Bank 2025” by Global Finance magazine.

Summary Table: Key Metrics (Sept 2025)

ANALYSTS’ EXPECTATION FOR 2026 : 

As of late December 2025, the consensus among major brokerages and market analysts for the State Bank of India (SBI) in 2026 is overwhelmingly bullish. Analysts expect the bank to continue its “super-cycle” of profitability, driven by value unlocking from its subsidiaries and robust loan growth.

Here is a breakdown of the specific analyst target prices and the key factors driving the outlook for 2026:

1. Major Brokerage Target Prices for 2026

Most analysts have set their 12-month price targets for SBI in the range of ₹1,100 to ₹1,200, implying a potential upside of 15%–22% from current levels (around ₹980)

2. Key Catalysts for 2026

Analysts point to three major “triggers” that could push SBI’s stock toward these record highs:

• The SBI Mutual Fund IPO: Chairman C.S. Setty confirmed in December 2025 that the SBI Mutual Fund IPO (a 10% stake sale) is on track for 2026. This is expected to be a massive value-unlocking event for the parent bank’s valuation.

• The ₹1 Lakh Crore Profit Goal: SBI is aiming to become the first Indian bank to hit an annual net profit of ₹1,00,000 crore. With FY25 profits already crossing ₹70,000 crore, analysts believe the bank is well-positioned to reach this milestone by the end of FY26 or FY27.

RAM Segment Dominance: Retail, Agriculture, and MSME (RAM) loans now make up over 56% of domestic advances. This “granular” lending strategy is helping the bank maintain a Net NPA below 0.5%, which is exceptionally healthy for a PSU bank

3. Projected Financial Metrics (FY 2025-26)

• Loan Growth: Projected at 13%–14%, outperforming the industry average.
• NIMs (Margins): Expected to stabilize around 3.0%–3.1%, even with the 2025 interest rate cuts.
• Return on Equity (RoE): Analysts expect the bank to maintain a healthy RoE of 16%–18%

Risks to Watch

While the outlook is positive, analysts have noted a few headwinds:

1. Cost of Deposits: High competition for deposits might keep the “cost of funds” elevated.
2. Regulatory Changes: Any further changes by the RBI regarding “Expected Credit Loss” (ECL) provisioning could impact short-term earnings.

To read the article on the Indian Overseas Bank in 2025  , CLICK HERE 

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This article is for informational purposes only. It summarizes updates from publicly available sources and AI-generated insights from a  reputed AI app. 

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