SBI Stock Price: Experts see healthy returns after Q2 FY2024 results

With the quarterly earnings of India’s largest bank by total assets, State Bank of India, around the corner, analysts have become bullish on the stock and are predicting a healthy upside from the current market price.

SBI will announce its September second quarter results on Friday, November 8.

In the first quarter of the current financial year, SBI’s net profit remained virtually unchanged. Net interest income (NII) rose 5.7 percent year-on-year, while net interest margin (NIM) fell 12 basis points (bps).

SBI’s second quarter forecasts

For the second quarter of 2025, the bank is expected to report healthy earnings growth, but provisioning could rise and margins could shrink slightly.

According to brokerage firm Motilal Oswal Financial Services, SBI may report an increase in net profit of 14.5 percent year-on-year (year-on-year), while operating profit may rise 37.9 percent year-on-year. Net interest income (NII) for the quarter increased 5.3 percent year-on-year.

According to Manish Chowdhury, head of research at Stoxbox, the bank can report healthy performance and profitability this quarter.

Chowdhury highlighted that the bank has one of the lowest domestic LDRs, a strong LCR and a robust regulatory retail deposit base.

“During the quarter, we could see NIM compression of 10 basis points, as management says. However, it remains in line with the overall banking sector. During the first quarter, derailments were quite high. However, the management has stated that the derailments are seasonal and they are not concerned about the underlying quality,” Chowdhury said.

“While overall credit growth in the sector is slowing, we believe SBI has a solid opportunity to capture larger credit market share. SBI expects credit growth for FY25 to be close to 15 percent, supported by broad-based credit growth across segments. Under these circumstances, we believe that SBI, a leading public sector bank, is likely to post solid performance this quarter, with a positive fundamental outlook,” Chowdhury said.

Price development of SBI shares

SBI shares have posted healthy gains over the past year. The stock has risen by about 45 percent in the past year. It reached a 52-week high of ₹912.10 on June 3, while a 52-week low of ₹555.25 on November 22 last year.

On a monthly basis, the stock rose 4 percent in October, while market benchmark Sensex fell 6 percent.

Price target for SBI shares

Experts believe that the stock has the potential to rise to the level of ₹874 in the short term after the second quarter results.

‘Technically close ₹824 is good for the stock. Furthermore, we might see an advantage in it ₹845, ₹860 and ₹874 levels in the coming days. You can keep a stop-loss close ₹794,” said Mahesh M Ojha, AVP – Research at Hensex Securities.

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Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not of Mint. We advise investors to consult certified experts before making investment decisions.