Domestic brokerage JM Financial has reiterated its ‘Buy’ call on State Bank of India (SBI), citing the lender’s strong Q2 performance and sustained business momentum. The brokerage raised its 12-month target price to Rs 1,105 from Rs 950, implying a potential upside of 15 per cent from the stock’s current levels. Advertisement

JM Financial said SBI’s steady operating performance was supported by robust asset quality and proactive liability management, helping its net interest margin (NIM) expand by 3 basis points (bps) sequentially. Even after excluding a one-time income tax refund, the bank’s core NIM rose 1 bp, outperforming peers that saw a 5–8 bps contraction, the report noted.

While SBI’s core pre-provision operating profit (PPOP) met estimates, its adjusted profit after tax (PAT)

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