State Bank of India: 1QFY27: Broad-based beat; NIM expansion positive, growth guidance raised

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

08 August 2026

State Bank of India

1QFY27: Broad-based beat; NIM expansion positive,

growth guidance raised

Overweight

SBI.NS, SBIN IN

Price (07 Aug 26):Rs1,097.20

▲Price Target (Sep-27):Rs1,280.00

Prior (Sep-27):Rs1,240.00

SBI reported a strong 1Q’FY27 with broad-based beats across key operating

parameters. NII at Rs 469.9bn (+14% y/y, +6% q/q) came +3% vs JPM, PPOP at

Rs 335.3bn (+10% y/y, +21% q/q) came +13% vs JPM, PAT at Rs 211.2bn (+10%

y/y, +7% q/q) came +15% vs JPM. NII beat was driven by a combination of (i)

better-than-expected NIMs: Whole bank NIMs expanded by 5 bps q/q to 2.86%

(vs JPMe at 2.82%) with domestic NIMs expanding by 7 bps q/q to 3%. We believe

this should help significantly improve confidence in SBI’s ability to deliver a

domestic NIM of 3% for FY27, where the skepticism had risen post the sharp q/q

decline and miss in 4Q’FY26, (ii) higher growth with average interest earning

assets rising by 16% y/y (vs JPM: 14.2% y/y). SBI’s loan growth at 19% y/y came

in +1% vs JPMe with SBI raising the growth guidance to 14-15% y/y (vs 12-14%

earlier), underscoring SBI's confidence in the strong growth momentum. Credit

costs at 41bps also came in lower vs JPMe of 42bps. We factor 1Q in our forecasts

with a 1-4% increase for FY27-29E. We reiterate OW with a 3% higher PT of Rs

1,280/share, backed by SBI’s industry leading growth and benign AQ trends.

1Q performance: 1Q PAT of Rs 211.2bn (+10% y/y, +7% q/q) came +15% vs

JPMe. It was a broad-based beat with NII growth of 14% y/y (+6% q/q, +3%

JPMe) and whole bank NIM up 5bps q/q to 2.86% (vs 2.82% JPMe). Non-II

beat JPMe driven by strong trading income, while fee income moderated q/q

due to seasonality. Opex was up 5.4% y/y (-1% vs JPMe) with cost/income of

46.7% (JPMe 50.1%). Credit costs (on loans) of 41bps rose q/q on seasonality

but were down 5bps y/y and came in lower vs JPMe with Gross slippages

declining by 20bps y/y to 0.61%. GNPA/NNPA declined 2bps/1bps q/q to

1.47%/0.38% (best over 2 decades). Net loan growth of 19% y/y came better

vs JPMe of 17.6%. Deposit growth lagged at 9.7% y/y (vs 10.3% JPMe).

…