SBI Shares (SBI) Surge: Analysts Stay Bullish Following Impressive Q4 Financial Results

• SBI shares see a rise of over a percent after Q4 results surpass expectations.
• The state-run lender reports its highest-ever quarterly net profit of ₹20,698 crore in Q4 of FY24, marking a 24% growth from the previous year.
• Analysts maintain a ‘Buy’ rating on SBI shares, with Emkay Global raising its earnings estimates for FY25-26E by 9-14%.

State Bank of India (SBI) shares surge following impressive Q4 results. The bank’s robust credit growth, stable NIM, and solid asset quality metrics contribute to the positive outlook.

SBI Q4 Results Beat Estimates

State Bank of India (SBI), the largest state-run lender in the country, reported a record quarterly net profit of ₹20,698 crore in the fourth quarter of FY24. This represents a 24% growth from ₹16,694.5 crore in the same quarter of the previous year. The bank’s shares rose over a percent on Friday, extending gains from the previous session.

Optimistic Growth Projections

The bank’s management expects to grow its credit book by 14-16% in the current fiscal year, reflecting optimism around domestic growth. It also projected a deposit growth of 12-13% for FY25. The asset quality of the bank improved during the March quarter as Gross NPA decreased 2.9% and Net NPA declined 6.1% QoQ.

Analysts Maintain ‘Buy’ Rating

“SBI logged a strong all-around show in 4Q, with robust credit growth at 16% YoY, healthy margins at 3.3%, and a strong 14% PAT beat,” said Anand Dama, Senior Research Analyst at Emkay Global Financial Services. Emkay Global raised its earnings estimates for FY25-26E by 9-14% and expects a sustained strong RoA and RoE at 1.1% and 17-18%. It retained a ‘Buy’ rating and raised SBI share price target to ₹950 apiece from ₹750 earlier.

Conclusion

SBI’s impressive Q4 results and optimistic growth projections have led to a surge in its share prices. Analysts maintain a ‘Buy’ rating on SBI shares, reflecting the bank’s robust credit growth, stable NIM, and solid asset quality metrics. As India’s largest state-run lender continues to perform well, investors can expect a relatively stable performance going forward.