SBI shares gain 1%, among top Nifty gainers, as brokerages bullish on loan growth, profitability outlook

SBI share price: State Bank of India (SBI) shares rose around 1 percent on Thursday, placing the country's largest lender among the top Nifty 50 gainers, as brokerages CLSA and Goldman Sachs maintained their bullish outlook on the stock following management interactions with institutional investors.

The brokerages highlighted SBI's expectations of robust credit growth, improving profitability and opportunities in corporate lending, wealth management and digital banking. While management remains optimistic about loan demand, it acknowledged that matching the banking system's projected growth could be challenging given SBI's relatively high base.

SBI shares were trading around Rs 1,072 in morning deals, up approximately 1 percent. The stock has gained 8.8 percent so far in 2026, outperforming the Nifty 50, which has declined 3.1 percent during the same period. The bank's market capitalisation stood at approximately Rs 9.9 lakh crore.

• Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

CLSA sees 25% upside, highlights corporate lending opportunities

CLSA maintained its 'Outperform' rating on SBI with a target price of Rs 1,325 per share, implying an upside of approximately 25 percent from Wednesday's closing price. Following SBI management's roadshow in the US, the brokerage said the bank remains positive about the broader banking sector and its own growth prospects.

Management indicated that corporate capital expenditure is beginning to emerge in sectors such as thermal power, renewable energy and roads. However, capital expenditure among mid-sized companies remains relatively modest.

SBI has retained its loan growth guidance of 14-15 percent, with retail, agriculture and MSME (RAM) loans accounting for 65 percent of its domestic loan portfolio.

On profitability, management reiterated its ambition to achieve a core return on assets (RoA) of 1 percent over the business cycle. Higher fee income and more effective liability management are expected to be important drivers of this target.

Goldman Sachs bullish on retail lending, wealth management

Goldman Sachs maintained its 'Buy' rating on SBI with a target price of Rs 1,130 per share. The brokerage highlighted management's plans to expand lending to self-employed individuals, strengthen wealth management operations and increase cross-selling opportunities across its customer base.

SBI also intends to deepen corporate and retail banking relationships while modernising operations through artificial intelligence and digital initiatives. Goldman Sachs said management retained its credit growth guidance of around 15 percent, with the possibility of exceeding this projection by a few percentage points.

SBI's Q2 earnings and upcoming investor meetings

The brokerage assessments follow SBI's fiscal second quarter earnings, when the lender reported a 14.3 percent year-on-year increase in net profit to Rs 23,038 crore, aided by an exceptional gain of Rs 7,289 crore. Net interest income rose 14.7 percent to Rs 49,143 crore, exceeding the CNBC-TV18 poll estimate of Rs 47,901 crore.

SBI is scheduled to meet institutional investors in Singapore on November 17 and 18, participating in the BofA India Corporate Day and Morgan Stanley's Asia Pacific Summit.