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Updated - June 15, 2026 at 12:26 PM.

| Bengaluru

State Bank of India (SBI) shares rose 1.6 per cent in early trade on Monday after Jefferies reiterated its buy rating on the stock and set a price target of ₹1,300 per share, implying a potential upside of around 28 per cent from the previous close.

The stock traded at ₹1,029.45 on the NSE at 12.15 pm, after hitting an intraday high of ₹1,034, compared with its previous close of ₹1,017.15.

Jefferies said the transition to the expected credit loss (ECL) framework remains a potential risk factor, although it does not expect the change to materially alter its broader investment thesis on the lender.

According to the brokerage, sustaining net interest margins (NIMs) will depend largely on SBI’s ability to reprice its corporate loan book. Its asset repricing analysis suggests deposits are likely to mature faster than assets, resulting in quicker repricing of deposits and potential pressure on margins.

Despite these concerns, Jefferies remains constructive on SBI’s outlook. The brokerage cited the bank’s consistent improvement in deposits per branch, lower reliance on priority sector lending certificates (PSLCs), growing fee income from bancassurance partnerships and limited buffer provisions as key positives.

Jefferies expects SBI’s loan book to grow at a compound annual rate of 13 per cent and forecasts a return on equity (ROE) of 14 per cent over the medium term.

The brokerage also sees valuation support for the stock, noting that SBI is currently trading at 1.4 times its FY27 adjusted book value.

Published on June 15, 2026

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