Business & Finance
SBI Shares Rise 2% on Q2 Earnings, Nomura Lowers Target Price
Shares of State Bank of India rose almost 2% on Thursday after the bank released its September quarter earnings. The stock traded at Rs 998.15, up Rs 19.15 or 1.96%, on the NSE at 12:35 pm. SBI reported a 14.3% year‑on‑year increase in standalone net profit to Rs 23,038 crore for Q2FY27. Net interest income climbed 14.7% to Rs 49,143 crore, and the net interest margin improved to 3.1% from just over 3% a year ago. Loan loss provisions fell 33% to Rs 2,759 crore, indicating better asset quality. Operating profit rose 7.3% to Rs 34,226 crore, while other income declined 24% to Rs 11,777 crore. SBI chairman CS Setty reiterated guidance of 10‑11% deposit growth and 14‑15% credit growth for FY27, noting a corporate loan pipeline of Rs 7.8 lakh crore and no immediate need to raise deposit rates. Nomura kept its ‘Neutral’ rating but cut its target price to Rs 1,100 from Rs 1,160 after the results. The brokerage said higher operating expenses and treasury losses offset stronger net interest income. SBI’s profit after tax, adjusted for the stake sale, was Rs 170 billion, 7% below Nomura’s estimate. While net interest income beat estimates by 2%, operating expenses were 3% higher than expected and the treasury book recorded a loss of Rs 12.8 billion. Nomura also noted modest underlying loan growth of 1.6% quarter‑on‑quarter, excluding FCNR(B)-linked loans, and expects net interest margin improvements in FY28 to be largely offset by higher credit costs from the transition to the expected credit loss framework in April 2027.