Citi initiates the coverage on SBI with ‘buy’ rating, RS sets 1,050 target price

Global Brokerage Citi has reset the coverage on State Bank of India (SBI) with a ‘buy’ rating and a target price of RS 1,050, which indicates a bullish look at the largest public lender of India.

The move stems from the conviction of CITI in SBI’s strong visibility of credit growth, improving return statistics and operational efficiency in the medium term.

Citi highlights a number of important drivers that strengthen its positive attitude. The bank witnesses a strong traction in Xpress Credit, a growing pipeline for company loans and a renewed push on the segment of the housing loan.

These trends are expected to support robust growth in the loan in the future. While the sector is confronted with some pressure on Net Rentemarges (NIMS), CITI believes that SBI is well positioned to reduce this through liability cost optimization and strategies for revenue management.

For FY26-FY27E, CITI loan growth of 13-14% projects on an annual basis, with NIMs about interest-earning assets probably remain in the reach of 2.8-2.9%. Credit costs are expected to remain benign at 40-45 basic points.

These inputs Feed Into Citi’s Forecast of a Return on Assets (ROA) at 1% and Return on Equity (roe) in the range of 14–15%, Reflecting efficient capital utilization and improved profitability.backed by these prefects, IS IS IS IS IS IS IS IS IS IT IT IT IT IS IS IS IS IS IS IS IS IS IS IS IS IS IS IS IS IS IS IS IS IS IS ISISTIEDIEDIEDIEDIEDIEDIEDIEDIEDIEDIEDIEDIEDIEDIEDIEDIEDIED ​​SECTICEDIED ​​SECTICEDIED ​​SECTICEDIED ​​SECTICSIED SIZED SIZED SIZEDIED ​​SECTICSIED SECTICSIED. Banks.however, The Brokerage also notes a few downside risks to its thesis, including potential slippages in Asset Quality, lower than expected NIMs and increased credit costs. Each of these factors can affect the ability of the bank to achieve its projected ROA and ROE goals.

Despite these risks, Citi’s prospects remain constructive, which underlines confidence in SBI’s ability to deliver sustainable growth and value in the evolving bank landscape.

Around 9:40 am the shares of SBI Plat on RS 865 on BSE.

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((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)