State Bank of India (SBIN IN) – Q2FY27 Result Update – Tighter liquidity environment may benefit SBI – BUY
Published on 03 Nov 2026
SBI saw a steady quarter as core PPoP was in-line; lower loan growth was offset by better reported NIM, up 8bps QoQ to 2.94%. Management was a bit conservative in terms of domestic NIM guidance as it may surprise positively led by full impact of loan repricing while SBI may not compete aggressively on deposit pricing given adequate liquidity buffer. Despite achieving only 38-41% of targeted credit accretion in H1FY27, bank sounded confident of achieving loan growth guidance of 14-15% YoY in FY27 due to decent corporate pipeline and healthy RAM growth. We tweak multiple to 1.3x from 1.4x but keep TP at INR1,200 as we roll forward to Sep’28 core ABV. Retain ‘BUY.
