The shares of State Bank of India (SBI), gained 1.55% to Rs 1,113 on the BSE on Monday after India's largest public lender reported a 10% year-on-year (YoY) growth in its standalone net profit to Rs 21,121 crore in the first quarter of FY27, beating Street estimates.

SBI on Friday released its results for the April-June quarter of the ongoing financial year (FY) 2027, reporting a 15% YoY rise in net interest income (NII) to Rs 46,992 crore, also beating estimates. The lender’s operating profit rose 10% YoY to Rs 33,529 crore. Domestic net interest margin stood at 3%, improving by 7 basis points from Q4 FY26. Whole-bank NIM improved by 5 basis points sequentially to 2.86%.

SBI said its total business crossed Rs 110 lakh crore during the quarter. Deposits were above Rs 60 lakh crore, while advances crossed Rs 50 lakh crore. Whole-bank advances grew 19% YoY, while domestic advances rose 18.15%. Foreign office advances increased 21% in rupee terms and 10% in dollar terms.

The lender’s asset quality also improved during the quarter. Gross NPA ratio stood at 1.47%, improving by 36 basis points from a year earlier. Net NPA ratio improved by 9 basis points to 0.38%. Provision coverage ratio stood at 74.2%, while PCR, including accounts under the collection account, stood at 91.82%.

Nuvama on SBI share price

SBI has kicked off FY27 on a good note, said Nuvama Institutional Equities, as it retained its ‘Buy’ rating on the lender’s shares with a target price of Rs 1,300 apiece, implying an upside of more than 18% from the stock’s previous closing price of Rs 1,097 apiece on the NSE.

SBI reported a strong Q1 FY27, with credit growth rising 19% YoY and margins continuing to recover, up 5 bps QoQ to 2.87%, after the decline in Q4. Nuvama said this, coupled with lower opex and credit costs, led to a sharp profit beat. The lender has mobilised $6 billion in FCNR deposits, while it guides for credit growth of around 15%, domestic NIM of 3% and RoA of 1% in FY27, the brokerage noted. SBI should also benefit from the sale of stakes in SBI MF and NSE, which could help the bank build contingency and ECL buffers.

“Despite being India's largest banking franchise, SBI continues to trade at an undemanding 1.1x FY28 ABV, which we believe does not fully reflect its strong

Nomura on SBI share price

Nomura maintained its ‘Neutral’ call on SBI shares but increased its target price to Rs 1,160 apiece, implying an upside of around 6%. The international brokerage noted that the PSU lender reported a healthy set of Q1 results, with a positive surprise on NIMs.

Nomura does not expect the divergence between loan and deposit growth to sustain, and expects FY26-28 loan growth to moderate to 14%, versus 14-17% for large private banks. Additionally, higher sustainable credit costs as the bank transitions to new ECL norms pose a risk to SBI's RoA trajectory, Nomura noted.

Also read | SBI Q1 Results: Standalone profit rises 10% YoY to Rs 21,121 crore, beats estimates

Morgan Stanley on SBI share price

Morgan Stanley maintained its ‘Equal Weight’ call on SBI shares, with a target price of Rs 980 apiece. The international brokerage noted that the lender’s profit came in well ahead of estimates, led by higher NII, non-interest income and lower opex, ET Now reported.

It added that gross slippages declined, while asset quality continued to improve.

Asset quality remained resilient overall, although slippages were marginally higher during Q1 due to seasonal factors, it added.

SBI shares gained 5% in a week and 6% in a month to close at Rs 1,097 apiece on Friday. The stock is up 11% so far in 2026.

Over the longer term, shares of the PSU lender have gained more than 36% in one year, even as the broader Nifty 50 posted marginal losses. The stock has rallied over 91% in three years and 157% in five years.

Also read | SBI Q1 profit beats estimates on strong loan growth, asset quality