Jefferies names State Bank of India stock a top pick

Published on 10/08/2026 at 11:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Net interest income reached INR 469.92 billion, up 14.40 percent. Jefferies sees INR 1,320 for State Bank of India stock on October 8, 2026.

SBI, INE062A01020, Illustration mit AI erstellt.

Jefferies named State Bank of India stock a top pick among large-cap banks on October 8, 2026, after the Reserve Bank of India raised its repo rate by 25 basis points and adopted a calibrated tightening stance, according to Business Standard. The call gives SBI a current earnings angle while the bank enters the second quarter of fiscal 2027.

Rate sensitivity meets earnings quality

Jefferies said banks with faster loan repricing could benefit from higher rates, while smaller private banks and non-bank lenders face greater funding pressure. The analysis placed State Bank of India among its preferred large-cap names alongside ICICI Bank and Axis Bank.

The bank's latest reported operating figures provide the financial base for that view. In the first quarter of fiscal 2027, net interest income reached INR 469.92 billion, up 14.40 percent year over year and 2.30 percent above Prabhudas Lilladher's estimate, according to DSIJ. The same report put reported net profit at INR 211.21 billion and net interest margin at 2.86 percent.

Target reflects the main debate

Jefferies assigned SBI a target price of INR 1,320 and estimated 38.00 percent upside in its October 8 assessment, as reported by The Economic Times. Its analysis estimated SBI's earnings sensitivity to a 75-basis-point rate increase at 4.00 percent, below the 6.00 percent estimate for Punjab National Bank.

The counterweight is credit quality and funding costs. Prabhudas Lilladher reported gross non-performing assets of 1.47 percent and net non-performing assets of 0.38 percent for the first quarter, while provisions reached INR 50.47 billion, partly reflecting incentive-provision amortization.

Market value and reporting date

On October 8, 2026, SBI had a market capitalization of INR 8.7 trillion, while its 52-week range stood at INR 858.10 to INR 1,234.70. Trading volume reached 6,071,360 shares in the latest finance snapshot, giving the target price a clear valuation reference.

Investing.com lists November 5, 2026 as the next earnings date and reports an average analyst target of INR 1,261.82 from 40 analysts. That average is INR 58.18 below the Jefferies target, showing that the latest bullish call sits above the broader analyst reference.