(Image Source: Mint)
The Dalal Street heavyweight is flexing its muscles. On Monday morning, State Bank of India (SBI) shares did not just climb; they leapt, surging nearly 6.7% to hit a fresh 52-week high of ₹1,139.70.
For anyone tracking the pulse of the Indian economy, this is not just a number on a screen. It’s a loud signal that the country’s largest public sector lender is firing on all cylinders. With trading volumes hitting a massive 228 lakh shares, it’s clear that both retail and institutional investors are hungry for a piece of the action.
The Q3 Earnings Beat: Breaking Down the Numbers
What’s fueling this rally? SBI’s Q3 FY26 results did not just meet expectations, they demolished them. While analysts were bracing for steady growth, SBI delivered a powerhouse performance.
- Profit Explosion: The bank reported a net profit of ₹210.3 billion, a staggering 24.5% year-on-year growth.
- Asset Quality: In a sector where bad loans are always a concern, SBI’s gross NPA (Non-Performing Assets) dropped to a lean 1.57%.
- Loan Book Strength: With credit growth at 15.6%, the bank is successfully lending to an India that is eager to expand.
Key Performance Metrics at a Glance
| Metric | Result (Q3 FY26) | Trend |
| Net Profit | ₹210.3 Billion | Up 24.5% |
| Gross NPA | 1.57% | Improving |
| Loan Growth | 15.6% | Strong |
| NIM (Margins) | 2.99% | Stable |
Why Brokerages are Rushing to Raise SBI Target Prices
If you think the current price of ₹1,137.30 is the peak, top-tier brokerages beg to differ. The sentiment on the street has shifted from “Hold” to a resounding “Buy.”
Motilal Oswal has been particularly aggressive, hiking its target price to ₹1,300. Their logic? SBI has raised its credit growth guidance for the year, signalling confidence in the months ahead. Meanwhile, HDFC Securities and Emkay Global have also pushed their targets upward to ₹1,200 and ₹1,225, respectively.
The consensus is clear: SBI is no longer just a “safe” PSU stock; it’s a growth engine.
The “Secret Sauce”: Dividends and Treasury Gains
Beyond the core lending business, SBI had a few extra cards up its sleeve this quarter. A one-time dividend windfall of ₹22 billion from SBI Mutual Fund and treasury gains of over ₹32 billion provided a significant cushion to the bottom line.
More importantly, the management’s outlook remains bullish. They expect to keep domestic Net Interest Margins (NIMs) above the 3% mark while keeping the cost-to-income ratio tightly managed at around 50%.
Is it Too Late to buy SBI Shares?
With the stock gaining 54% over the past year, many investors are asking if they have missed the bus. However, with “Buy” orders nearly matching “Sell” orders even at these record highs, the market depth suggests there is still plenty of steam left in the engine.
Analysts continue to label SBI as the “top pick” among PSU banks. With stable asset quality and the ability to maintain a 1.1% Return on Assets (RoA), the bank is proving it can operate like a nimble private player while maintaining its massive public-sector scale.
