New Delhi: Motilal Oswal has stated that the shares of country’s largest public sector bank, State Bank of India (SBI), would rise in future as the lender is expected to record stable earnings in future.
The brokerage praised SBI’s performance and termed it a ‘top buy’ among public sector banks. This comes after the public sector lender posted Q4 2024-35 Results.
The financial services firm expected the earnings of SBI to remain stable and there will be a balance in key indicators like return on assets (RoA) and return on equity (RoE), which would attract investors.
According to Motilal Oswal’s report, SBI has not only posted strong quarterly results, but is also expected to deliver good financials in future. The brokerage has given a target price of Rs 925 for SBI shares. The SBI stock was trading at Rs 817.40 at 1:35 pm on June 2, 2025.
This target has been set on the basis of 1.2 times FY27E asset book value (ABV) and a value of Rs 245 for its subsidiaries. The financial services provider predicted SBI’s earnings to rise by 6 per cent annually between FY25-27. The report estimates RoA to be ~1% and RoE to be ~15.9% for FY27.
SBI 2024-25 Results
In its financials, SBI recorded a net profit of Rs 709 billion in FY25, which is the highest level ever. The bank posted a compounded income growth rate (CAGR) of 37 per cent in the last four years.
The pre-tax profit of the bank’s retail segment surged by 49 per cent, while treasury income increased by 9 per cent to Rs 176 billion. The total loan book saw an annual growth of 12 per cent.
The bank mentioned that its net interest margin (NIM) declined by 30 basis points to 3.0 percent, mainly due to a decline in express credit growth and increased funding costs. The lender’s domestic NIM stood at 3.15%, which can be considered as satisfactory.
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Motilal Oswal has exuded confidence in SBI shares to appreciate and projected the target price of Rs 925 apiece. SBI’s Operating Profit for FY25 crossed Rs 1 lakh crore and grew by 17.89% YoY to Rs 1,10,579 crores while Operating Profit for Q4FY25 grew by 8.83% YoY to Rs 31,286 crores. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
