Feb 9 (Reuters) - State Bank of India jumped 7.5% to close at a record high on Monday after the nation's largest lender beat quarterly profit estimates and raised its full-year loan growth outlook, prompting at least 15 brokerages to lift their price targets.
The stock settled at an all-time high of 1,146 rupees, gaining the most in a day since June 2024. It led gains on the Nifty 50 and the banking index, which advanced 0.7% and 0.9%, respectively.
It also topped the state-owned bank index, which closed 3.3% higher.
The state-owned lender on Saturday increased its credit growth forecast for the ongoing fiscal year to 13%-15% from 12%-14% after reporting a 15.4% loan growth in the December quarter, driven by strong demand from small enterprises and retail customers.
At least 15 analysts hiked their price targets after the results, data compiled by LSEG showed, with median PT rising to 1,164 -- about 1.6% above Monday's closing price. Thirty-three analysts rate the stock "buy" or higher and five "hold".
Emkay Global raised its PT to 1,225 rupees from 1,100 rupees, citing the bank's confidence in sustaining growth, while Citi lifted the target to 1,265 rupees from 1,140 rupees, pointing to broad-based momentum across SBI's loan portfolios.
Indian banks posted a double-digit percentage loan growth in the December quarter as festive-season demand and broad consumption tax cuts spurred consumer spending.
SBI's asset quality improved in the December quarter, with its gross non-performing asset ratio easing 50 basis points year-on-year to 1.57%.
"State Bank of India delivered yet another strong print, demonstrating strong earnings resilience, much better than peers," Mumbai-based Elara Securities said.
"That said, the bank (stock) has outperformed by about 12% in the past three months and narrower discounts to a few larger private banks suggest that near-term price catalysts could be limited and contingent on macro tailwinds," it said.
SBI's shares have risen nearly 17% in 2026 while the Nifty is down 1%.
(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)
