The brokerage said sustaining net interest margins (NIMs) will largely depend on the bank’s ability to reprice its corporate loan book. According to its asset repricing analysis, deposits are likely to mature faster than assets, which could result in quicker repricing of deposits and put pressure on margins.
Despite this, Jefferies remains constructive on SBI’s outlook, citing 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.
The brokerage highlighted the transition to the expected credit loss (ECL) framework as a potential risk factor, although it does not see it materially altering the broader investment thesis.Jefferies expects SBI’s loan book to grow at a compound annual rate of 13% and forecasts a return on equity (ROE) of 14% over the medium term.
The brokerage also finds the valuation attractive, noting that the stock trades at 1.4 times its FY27 adjusted book value.
According to Bloomberg consensus data, 49 analysts currently track SBI. Of these, 43 have a “Buy” recommendation, while the remaining six have a “Hold” rating.
SBI shares were trading 1.13% higher at ₹1,012 on Friday. The stock has gained around 3% so far in 2026.
