SBI Shatters Rs 100 Trillion Business Mark! Analyst Flags HUGE Profit Surge & Rs 1108 Target – Buy Signal Ignited!

State Bank of India (SBI) has announced an exceptional performance for the second quarter of FY26. The bank's total business crossed a significant milestone of INR 100 trillion, and its granular lending focus in the Retail, Agriculture, and MSME (RAM) portfolio surged past INR 25 trillion, indicating strong momentum in core lending. Net Profit for the quarter, including an exceptional gain, saw a 10.0% year-on-year increase to INR 20,160 crore. Profitability remained healthy, with Return on Assets (ROA) at 1.15% and Return on Equity (ROE) at 20.2% for the first half of FY26. Net Interest Income (NII) grew by 3.3% year-on-year to INR 42,984 crore, though it slightly missed analyst estimates. Net Interest Margins (NIMs) remained stable, with whole-bank NIM at 2.9% and domestic NIM at 3.1%. Loan growth was robust at 12.7% year-on-year, with domestic advances up 12.3% and foreign advances up 15.0%. Key drivers included retail advances (+15.1%), SME lending (+18.8%), agriculture (+14.3%), and personal loans (+14.1%). Corporate advances saw a moderate 7.1% growth. On the deposit front, overall deposits increased by 9.3% year-on-year, with Current Account Savings Account (CASA) deposits growing 8.1% and maintaining a healthy ratio of 39.6%. Impact: This strong financial performance, coupled with positive loan and deposit growth, reinforces investor confidence in State Bank of India. The reiteration of a "BUY" rating and a high target price by analyst Deven Choksey suggests a bullish outlook for the stock. This can positively influence investor sentiment towards SBI and potentially other large-cap banking stocks, signaling stability and growth potential in the Indian banking sector. Rating: 8/10 Definitions: * ROA (Return on Assets): A profitability ratio that indicates how profitable a company is relative to its total assets. * ROE (Return on Equity): A measure of financial performance calculated by dividing net income by shareholders' equity. * NII (Net Interest Income): The difference between interest income generated by a bank and the interest it pays out to its lenders. * NIMs (Net Interest Margins): A profitability metric for banks that measures the difference between the interest income generated and the interest paid out, expressed as a percentage of interest-earning assets. * CASA (Current Account Savings Account): Deposits held in demand deposit accounts, which are typically low-cost for banks. * SOTP (Sum of the Parts): A valuation method where a company's total value is determined by adding up the individual values of its separate business units or subsidiaries.