SBI Share Price Target: ICICI Securities Calls For 24% Upside in SBI - Here’s Why

SBI Share Price Target: As India’s leading lender State Bank of India beats the street estimates with its second-quarter earrings (Q2FY25), ICICI Securities has called for a 24 per cent upside in its stock price on the back of expected growth in capex by the government in H2FY25, improving systemic credit growth, and steady rise in home loans where the bank holds nearly 27 per cent market share. 

With this, ICICI Securities has given the target price of Rs 1,000 per share for the State Bank of India, an uptick of 156 points from its current price of Rs 844 per share.

SBI Focusing on Risk-Adjusted Profitability: CS Shetty 

In a Non-deal Roadshow (NDR) with the brokerage firm, the State Bank of India Chairman CS Setty mentioned that the Bank is focusing consistently on risk-adjusted profitability and estimates a 14–16 per cent YoY credit growth guidance in the coming years. 

The bank also acknowledged the slower economic activity in the first half of the currency financial year (H1FY2025), however, it is hopeful that the activity will recover in the second half (H2FY25). 

“While systemic loan growth has been moderating, we believe SBI has strong chances of gaining credit market share on improving credit delivery, strong funding franchise, low LDR and idiosyncratic issues at the second-largest lender,” the brokerage note stated. 

Home Loans Driving Strong Growth, Gold Loans Follow

SBI has showcased strong performance in its home loan portfolio, recording a 13.7 per cent year-on-year growth in the second quarter of FY25. With a dominant market share in the segment, the bank continues to solidify its leadership in housing finance. 

To improve its operational efficiency and meet the growing demand for the home loan segment, SBI has added 350 Retail Asset Central Processing Centres (RACPC) over the past 2-3 years, increasing its network from around 210 centres previously. 

The average ticket size of home loans has also risen to Rs 42 lakh, compared to Rs 27 lakh earlier.

Apart from this, the bank's retail gold loan segment has grown to approximately Rs 40,000 crore, with its total gold loan portfolio, including agricultural loans, reaching Rs 1 lakh crore. 

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