State Bank of India (SBIN IN) – Q1FY27 Result Update – Strong earnings quality maintained – BUY
Published on 08 Aug 2026
SBI saw a good quarter due to better core revenue and asset quality. Adjusted for IT refund, reported NIM was up ~10bps QoQ to 2.85% while core fee was up 21% YoY (4% beat). NIM improvement was aided by (1) lesser reliance on bulk deposits leading to lower deposit growth and increase in LDR by 149bps QoQ to 83% (2) soft corporate growth QoQ and healthy RAM accretion. With LCR at 126%, there is more headroom to utilize liquidity for growth. ECL impact is being assessed; however, effect may not be material due to capital release from subsidiary divestment and regulatory dispensation. We keep multiple of 1.4x on Mar’28 core ABV and maintain TP at INR 1,200. Retain ‘BUY.
