State Bank of India shares plunged more than 11% over two trading sessions after the country's largest public-sector bank reported a miss on the bottom line in its Q4FY26 results, with net interest margin slipping below 3% and treasury losses adding to the pressure. Eight prominent global and domestic brokerages have since weighed in with a broad range of ratings, highlighting resilient loan growth and broadly stable asset quality, while flagging margin headwinds from repo-linked repricing as a key concern.

Q4FY26 Financial Performance

SBI's net profit rose 5.60% year-on-year but fell 6.40% quarter-on-quarter to ₹1,618.84 crore in Q4FY26, falling short of analyst estimates. Net interest income grew 4% year-on-year but declined 1% quarter-on-quarter to ₹44,380 crore, missing forecasts despite strong loan book expansion. NIM fell to 2.80% amid the transmission of repo rate cuts, marking the sharpest compression among large banks. The following table captures the key financial metrics from the quarter:

SBI stock declined 4.52% on the BSE on Monday, taking its two-day fall to more than 11%, compared to a 1.70% decline in the Sensex over the same period. The stock moved from ₹1,091.80 on May 7 to a peak of ₹1,094.87 on May 8 before closing at ₹973.50 on May 11.

Management Guidance

Management guided for credit growth of 3–4.5% going forward and expects to sustain domestic NIM above 3% in FY27, with Return on Assets (RoA) staying above 1%. The bank maintained its credit cost guidance at 50 basis points, while also guiding for 13–15% loan growth, Return on Equity (RoE) above 15%, and long-term profitability targets.

Brokerage Ratings and Target Prices at a Glance

The following table summarises the current ratings and target prices assigned by all eight brokerages:

Bullish Stances: BoFA, CLSA, JPMorgan, Kotak, and Macquarie

BoFA Securities maintains a Buy rating with a target price of ₹1,200, noting that 6% YoY PAT growth, driven by strong loan growth and lower credit costs, was sufficient to offset pressure on net interest margins from repo-linked repricing and lower non-interest income. Management has guided for 13–15% FY27 loan growth, NIM above 3%, credit costs below 50bps, and RoA above 1%, which BoFA views as supportive of its positive stance.

CLSA maintains an Outperform rating at ₹1,275, the highest target among all eight brokerages. The firm notes that a Q4FY26 pre-tax profit beat was achieved on the back of lower operating expenses, lower credit costs, and higher recoveries, even as net interest income came in weak and NIM compression from repo-linked repricing was sharper than expected. CLSA points to strong 17% loan growth, improving deposits, stable CASA ratios, and healthy asset quality as factors that kept the overall performance solid.

JPMorgan maintains an Overweight rating at ₹1,225, acknowledging a weaker-than-expected quarter characterised by softer NII growth and sharper-than-anticipated NIM contraction. The brokerage notes that management remains confident of margin recovery in FY27, while asset quality stayed healthy with low credit costs despite a slight seasonal uptick in slippages.

Kotak Institutional Equities maintains a Buy rating at ₹1,250, noting that 5% YoY earnings growth driven by sharply lower provisions and strong 17% loan growth offset weaker operating profits and a 20bps QoQ NIM decline. The brokerage expects a near-term pause in rerating until margin recovery becomes visible.

Macquarie maintains an Outperform rating at ₹1,150, acknowledging that Q4FY26 earnings missed estimates due to weaker margins and trading losses from a higher floating-rate loan mix. However, strong asset quality and expected 15% ROEs keep valuations attractive at 1.6x FY27E P/BV.

Cautious Views: UBS, Bernstein, and Morgan Stanley

UBS retains a Neutral rating at ₹1,080, highlighting a QoQ decline in net interest income and an 18bps NIM compression attributable to loan repricing, which offset healthy corporate-led loan growth and stable asset quality. UBS expects RoA pressure to persist over FY27–28, driven by normalisation of treasury gains and credit costs alongside subdued margin trends.

Bernstein maintains a Market Perform rating at ₹1,300, noting that strong 17% YoY loan growth and improved asset quality were offset by the sharpest NIM compression among large banks, a seasonal rise in slippages, and treasury MTM losses. Management reaffirmed FY27 growth, profitability, and asset quality guidance with a long-term commitment to 1%+ RoA and 15%+ RoE.

Morgan Stanley maintains an Equal-weight rating at ₹980, the most conservative target among all brokerages, highlighting concerns over the sharp NIM decline despite management expecting recovery through better loan yields. The brokerage has cut its FY27–28 NIM and EPS forecasts, though the bank still guides for healthy 13–15% loan growth assuming stable macro conditions.

Key Themes Across Analyst Views

Across all eight brokerage assessments, several common themes emerge:

• NIM pressure from repo-linked loan repricing is a shared concern, with compression noted across QoQ and YoY comparisons, including a 20bps QoQ decline flagged by Kotak and the sharpest compression among large banks highlighted by Bernstein
• Loan growth remains a positive driver, with 17% YoY growth and management guidance of 13–15% for FY27 cited as supportive across multiple brokerages
• Asset quality is broadly described as stable with low credit costs, though a seasonal uptick in slippages was flagged by JPMorgan and Bernstein, with fresh slippages rising to ₹5,548 crore from ₹4,860 crore in the prior quarter
• Provisions and credit costs are identified as a key earnings support, with provisions declining 36.30% QoQ to ₹2,870 crore and Kotak specifically noting sharply lower provisions as a driver of earnings growth
• Management guidance on NIM above 3%, credit costs below 50bps, RoA above 1%, and RoE above 15% for FY27 underpins the bullish cases, while UBS and Morgan Stanley remain cautious on the timeline for margin recovery

State Bank of India has notified stock exchanges of its upcoming series of interactions with institutional investors and analysts, scheduled across three consecutive days in May 2026. The disclosure was made pursuant to Regulation 30 read with Para A, Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was communicated via a letter dated 12.05.2026 signed by Shima Devi, AGM (Company Secretary).

Investor Meeting Schedule

The meetings will be organised by Jefferies and conducted in-person in a one-on-one or group meeting format with multiple institutional investors and analysts. No presentation to investors or analysts has been indicated. All timings are in EDT. The detailed schedule is as follows:

Disclosure and Information Scope

In line with regulatory requirements, State Bank of India has clarified that only information available in the public domain will be shared with investors and analysts during these meetings. The disclosure was filed with both BSE Limited and the National Stock Exchange of India Limited on 12.05.2026.